PAY TV and broadband technology group Pace plc is set for further growth and broadening of its operations following a strong performance in 2014.

The Saltaire-based global operator – which remains the world’s leading producer of set top boxes – grew sales by 6.1 per cent to £1.7 billion and lifted pre-tax profits by 34.3 per cent to £114 million from £85 million in 2013.

Pace has increased dividend payments to shareholders for the third year running. A final 3p dividend will result in a full-year pay-out of 4.5p, 27 per cent higher than 2013.

Chief executive Mike Pulli said technological developments driven by engineers at its Saltaire base would enable it to continue expanding its product range and widen its operations.

Pace was continuing to become a more profitable, cash generative business with a broader spread of products and customers and a better mix of revenue.

The acquisition of California-based technology business Aurora Networks in January 2014 had been a key step in the strategy to grow a broader platform across hardware, software and services.

Aurora had been integrated into Pace ahead of schedule, enabling it to boost revenues from non-core products by 231.1 per cent to £245 million.

Mike Pulli said “I am pleased to report we have had a very successful year making considerable progress in all areas of the business.

“Pace is continuing to evolve into a more profitable, cash generative business with a broader spread of offerings and customers and finishes the year in a strong position.

“During 2014, we have launched a record number of products across the globe and continued to lead the market in both product innovation and the service we deliver to our customers. Demand from our customers has remained strong and we continue to win new business.

“In delivering a 9.2 per cent operating margin we have achieved our mid-term target a year ahead of plan. However, despite the good progress that has been made, there remains significant opportunity for the performance of the company to continue to improve.”

“The board are confident that, through Aurora Networks, potential additional acquisitions and the ongoing delivery of our strategic plan, Pace will continue to strengthen its position as a market leading technology solutions provider for the PayTV and broadband industries and deliver further value to our shareholders.

“We are confident about our trajectory and are focused on making further progress in 2015 and beyond”.