PIC.L - PACE - Update

Highlights from RNS prelim results for y/e 31 Dec 3010:
Numbers:

• revenues up 17%, organic up 10%
• return on sales increased from 6.7% in 2009 to 7.8%
• operating profit before exceptionals up 32%
• adjusted basic EPS up 24%

Operating highlights:

• completed three strategically importatn acquisitions
• broadened product portfolio
• continued to gain market share across all markets

Outlook:
"The Board expects 2011 revenue growth of a similar level to that achieved in 2010. ... The Board expects further return on sales progress as Pace develops its new business opportunities and further leverages its established and highly efficient operating model."
http://www.investegate.co.uk/Article.aspx?id=201103080700094...

So, more growth in sales, and improved margins. What's not to like? The stock market "rewarded" this excellent performance by the share price dropping about 12% in price. Its adjusted diluted EPS is 22.7p, and on a share price of 194p, it is trading on a PE of 8.5.

Follow-up:

Pace Plc , the world's biggest maker of set-top boxes, said a U.S. customer was delaying a big order to 2012, reducing its 2011 sales growth and wiping some 100 million pounds off its stock market value. ... "One customer on a specific project decided to accelerate a new piece of technology, which meant the revenue from that client has shifted from 2011 to 2012," Chief Executive Neil Gaydon told reporters.