Bradford-based Pace Micro Technology says it is on course for a brighter future despite making a loss of more than £12 million.

Chief executive Malcolm Miller said today there were signs of a gradual turnaround after the company carried out a restructure over the past year.

The restructuring exercise cost Pace £12.3 million, which wiped any hope of a substantial profit and left the firm with a pre-tax loss of £12.1 million compared with £18.4 million last time..

But the company did better in the second half of the year by making a pre-tax profit of £2.5 million, before taking restructuring costs into account. This was on a reduced turnover of £184 million, compared with £219.6 million last time.

Mr Miller said today: "We are seeing a gradual turnaround here through careful cost control and by looking at our overheads. Our major markets will be in the UK this year and Latin America, where there will be a growth in the digital TV market.

"We have won deals with BSkyB and BDB to produce set top boxes for their digital TV services. We are the first of four companies to be ready for BSkyB's launch later this year. We are the first in most markets," he added.

The firm has gone through a troubled time, including making 150 workers redundant in February to save £5 million. This was blamed on digital television's failure to take off in a big way. Now there are hopes that this will start to happen.

The firm has already made 1.5 million digital and six million analogue set top boxes and operates in 80 countries around the world.

Pace chairman Peter Morgan said: "It is difficult to predict the pattern and speed of consumer uptake, but the cost cuts, together with substantial demand from broadcasters for our products, gives us confidence for this year.

"The longer-term potential for digital television worldwide is excellent. Our investment in technology and in building an important customer base means Pace is well-positioned to take advantage of the opportunities," he added.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.