Pace faces supply issues

The Shipley-based group expects full-year operating profit to be about £89.5m, on revenue of about £1.5bn.

In October, the Thai operations of US group Western Digital, which supplies 60-65 per cent of the 3-1/2 inch hard drives found in Pace’s personal video recorders, were brought to a standstill due to flooding.

Pace said its hard disk drive suppliers remain uncertain on capacity and pricing, and this will have an impact on 2012 revenue, profit and cash flow.

Currently, Pace expects a £22m - ££32m impact on 2012 operating profit, a majority of which will be taken in the first half.

Last month, the world’s number one supplier of TV decoders said its operating profit for the year would likely fall below its earlier expectation of £95m to £108m.

Shares in the company, which have lost nearly 70 per cent of their value in the last year, were at 51p this morning.