Vendman integration fueling growth at Vianet

Internet of things platform provider Vianet Group told shareholders on Thursday that trading in the first two months of its financial year was “broadly in line” with its expectations.

The AIM-traded firm, which was holding its annual general meeting, said it was also making “good strategic progress” through its focus on growth opportunities in its Smart Machines division.

Chairman James Dickson said the Smart Machines division, where there was “real emphasis” on taking advantage of Vianet’s position in coffee vending and contactless payment device connectivity, was building sales momentum which would fuel growth.

He said the integration of Vendman was also progressing well, with traction increasing as the firm seeked to overlay around 200,000 Vendman mobile connections with higher value Smart Machines connections, and also cross-sell from the portfolio to existing customers and vending operators internationally.

“In the Smart Zones division trading is marginally behind last year so far due to installation phasing although there is encouraging progress with revenue growth in our managed compliance service,” Dickson said.

“The board remains confident that Vianet's long term strategy is the right one and that the group is well positioned to deliver earnings growth and expand the future strategic options for Vianet.

“This is reflected in the board's decision to recommend maintaining the final dividend at 4p per share.”