Pace cuts 2015 revenue outlook

In April, it was announced that Pace is to be sold to US rival Arris Group for over £1.5bn in a deal that is expected to safeguard Pace’s 500 UK employees and provide a bumper payout for investors.

In a statement issued today, Saltaire-based Pace said: “The recommended combination with ARRIS Group continues to progress in-line with expectations and, subject to the satisfaction, or where relevant, waiver, of all relevant conditions, the transaction is expected to close in late 2015.”

Pace also provided a trading update. As previously stated, the company continues to expect strong revenue growth in the second half of 2015 when compared with the first half, driven by new product launches and additional demand for existing products.

The statement added: “Due to continuing challenging economic conditions in certain regions, phasing delays at major customers in North America and delayed decisions by customers, current forecasts indicate that revenue growth will be slightly lower than previously expected.

“However, due to an improved product mix, improving supply chain effectiveness and increased operational efficiencies, the group expects no change to previously communicated profitability and cash flow for the year.”

Revenue for 2015 is now expected to be around $2.55bn, compared with $2.62bn the year before. Adjusted EBITA for 2015 is still expected to be around $255m, compared with $241.1m the year before.