Vianet recurring revenues, adjusted underlying earnings rise in FY24

Business intelligence provider Vianet Group said on Thursday that recurring revenues and adjusted underlying earnings had improved in the year ended 31 March, with progress within the unattended retail and hospitality divisions being "particularly strong".

Vianet said turnover increased by 7.6% to £15.18m in FY24, while recurring revenues increased to £12.94m from £12.52m, accounting for 85% of total revenue, with hardware sales up 40% to £2.24m. Gross margins improved by 3.5% to reach 68.7%.

The AIM-listed group noted that adjusted underlying earnings rose by 11.6% to £3.47m, ahead of market expectations.

Net debt was "significantly reduced" by 54.9% to £1.52m, while year-end cash reserves increased from £700,000 to £1.82m.

Chairman James Dickson said: "The past twelve months have been both productive and rewarding. While the 3G upgrade deliberations initially held back new installations, we have made significant financial and operational progress and we saw a rebound in demand during Q4 and into the new financial year. The switch-off provided a unique opportunity to engage with our customers effectively.

"We've secured long-term contracts and have a good pipeline for H1 2025, which supports our optimism for the future. Our strategic investments in sales, technology, and new markets provide a strong platform for growth, and I am delighted with the momentum we are building as we move into FY2025."

Separately, Vianet said it had made a "notable strategic contract win" with Wilcomatic Wash Systems, securing the rollout of partner Suresite's contactless payment solution on a five-year agreement with Wilcomatic.

Dickson added: "This contract win consolidates our entrance into an exciting new vertical and demonstrates the group's ability to expand into adjacent industry verticals that we have previously highlighted. We are delighted that our efforts with new initiatives are yielding positive results as we continue to capitalise on the considerable opportunities with manufacturers and retailers within the forecourt sector and beyond."

As of 1020 BST, Vianet shares were up 6.04% at 109.75p.

Reporting by Iain Gilbert at Sharecast.com