PIC.L Share News (PIC)

Strong demand for the latest home entertainment products despite the economic downturn helped set-top box supplier Pace post a sharp rise in profits in the year to December 31.Pre-tax profits climbed to £69.9m from £13.1m the previous year on revenues that rose to £1.13bn from £745.5m. The firm shipped 17.2m set-top boxes, up from 13.1m the previous year.Europe accounted for 6.2m boxes, with 1.1m going to the rest of the world region and 9.7m going to the Americas. Pace boxes are compatible with new TV technologies such as HD and 3D.'We consolidated our leadership position in the industry, shipping more set-top boxes to more customers and into more geographies than ever before,' said chief executive Neil Gaydon. 'We are now the most diverse set-top box business by customer, product and geography.'He said the company went into 2010 on a strong footing. 'The pay TV market continues to be positive and there is good demand for the group's products. Against this backdrop Pace expects a combination of solid volume growth and a modestly lower ASP resulting from product mix to lead to mid single digit revenue growth for the year.'Separately, Pace announced that it has agreed to acquire Bewan Systems, a French supplier of modems, wi-fi accessories and other equipment, for €12.5m. Pace said the acquisition would enable it to 'offer converged gateway and digital TV solutions to payTV customers.'