Murray will be replaced by
The set-top box developer, which provides technology for
It maintained its expectations for
Pace raised its interim dividend to
The company posted a pretax profit of
The company said that the decline in revenue was mostly caused by the run-rate effect of expected dual sourcing at major North American customers in the second half of 2014. However, margin improved due to efficiencies in the supply chain, improved revenue mix, and a contribution from its acquisitions Aurora Networks, it said.
Pace said the acquisition of
Pace posted exceptional charges of
The company reiterated confidence in meeting its medium-term target of 9% operating margin in 2015, as it continued to make progress toward its strategic plan during the half year. It expects revenue and profit to grow in the second half of the year, as demand for network products is stronger than it had expected.
"We continue to make good progress on executing our strategy; the integration of Aurora, key wins in all areas of our product and service portfolio across all of the regions that Pace operates in, and ongoing operational improvements give management confidence that we will maintain our momentum and make further progress in the second half of 2014 and beyond," said Chief Executive Officer
Broker Liberum maintained its Hold rating for Pace, saying that whilst results are ahead of its expectations, the departure of the "highly regarded" Murray is "likely to overshadow strong results".
Liberum noted that no reason was given for Murray's departure, and said that the "sudden departure would suggest there have been disagreements over strategy or personal reasons." Pace's results were released ahead of schedule because of Murray's exit.
"Pace is showing strong execution but longer-term structural challenges still linger," Liberum said.
Shares in Pace were trading up 0.5% at
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