Pace shares tumble

Saltaire-based Pace said the flooding meant operations at Western Digital’s operations in Thailand had to be suspended.

This will hit its shipments for the rest of the year.

Pace said the worst case impact on operating profits will be £6m.

As a result operating profits are likely to fall below its previous guidance of between £95m and £108m.

“Confidence in management remains fragile due to three profit warnings,” analysts at Altium Securities said in a note, cutting its target price for Pace to 87p from 105p.

The broker, which repeated its “hold” rating on the stock, said the near-term catalyst now rests on a well-defined growth plan from the new chairman Allan Leighton’s strategic review in mid-November.

Altium said this would be the first step towards rebuilding investor confidence”.

Western Digital Corp’s facilities in Thailand were inundated by rising floodwater at the weekend, bringing operations to a standstill. The US company said the damage would hit its ability to meet customer demand in the fourth quarter.