Pace shares gain on record revenues Pace, the world's largest maker of TV set-top boxes, has reported record revenues for the fourth quarter, vindicating the new management and boosting the company's share price ahead of full-year results in March. In a trading update on Thursday, the company said full-year sales were expected to be $2.4bn, 4 per cent ahead of its previous guidance. The company's year-end debt was expected to be not more than $170m, nearly half what it was in 2011. The news boosted shares in Pace, which closed 4.2 per cent higher at 200.8p. The stock has more than quadrupled in value since 2011, when it hit a low of 44p after flooding in Thailand damaged the factories of its two biggest suppliers and led to profit warnings. The company expected its underlying operating margin to be 7.3 per cent after adjusting for the disruption to the supply of hard disc drives for its set-top boxes, which are used by pay-TV providers. Adjusted earnings before interest, tax and amortisation was expected to be $157m, which would be 11 per cent ahead of the previous year's guidance. Mike Pulli, chief executive, said: "We have made good headway on our strategy, and Pace is becoming a more profitable, cash generative company." The news gives a happy ending to a year that began with a senior management shake-up. Between December 2011 and February 2012, Pace replaced its chief executive, chief operating officer and chief financial officer, bringing in a new team led by Mr Pulli. Last month Pace bid unsuccessfully for Google's set-top business, Motorola Home, the value of which dwarfed Pace's market capitalisation. Analysts described the bid as bold, but Google eventually sold the unit to Arris, a little-known US networking equipment maker. In September, the Yorkshire-based company's boxes were rejected by BT for its YouView television catchup service. Alexandra Jarvis, an analyst at Peel Hunt, said Mr Pulli and his management team had restored confidence in the company. It's a massive contrast from a year ago. Through the course of this year they have been steadily outperforming on every level," said Ms Jarvis. She said the market continued to undervalue Pace, which trades on 8.6 times forward earnings. Pace became the world's biggest maker of television set-top boxes by shipments after it overtook Motorola and France's Technicolor in 2010.