Vianet reports solid numbers for first half

Real time monitoring systems, data management services and business intelligence provider Vianet Group announced its interim results for the six months to 30 September on Tuesday.

The AIM-traded company reported revenue growth of 1.44% to £7.06m, which it said was principally due to Vending Division growth.

Operating profit before amortisation, share based payments and exceptional items was up 7.2% to £1.64m, and profit before tax was up 8.65% at £1.13m.

Basic earnings per share were up 12.1% at 3.42p, including a deferred tax adjustment charge of 1.21p.

The firm’s interim dividend was maintained at 1.70p, and at period end it had net cash of £1.98m, swinging from net debt of £2.32m.

“I am pleased to report that the group's focus on growth areas has delivered increased profits in our continuing business for this period,” said chairman James Dickson.

“Against a modest improvement in the challenging backdrop to the UK pub sector, our strategy of focussing on newer products such as iDraught, coffee vending telemetry and contactless payment services has progressed well.

“We believe there is substantial scope to grow sales of these and other existing products and services as well as bringing new offerings to both the vending and leisure markets through enhanced technology.”

Dickson said that across the group cash flow was strong, underpinned by high levels of recurring revenue, which supported its investment in strategic insight and mobile application development.

He explained that would be a key value driver going forward as the company continues to develop its ‘Internet of Things’ capability to provide greater value to customers.

“The board remains confident that Vianet's long term strategy is appropriate and the group is capable of delivering consistent and sustained growth.”