Vianet reaps benefits of 'strong recurring revenues' in H1

Vianet said interim revenues ticked up £100,000 to £7.19m, with recurring revenues rising one basis point to 87%, while first-half gross margins increased from 64% to 69%.

The AIM-listed group delivered a pre-tax loss of £171,000, net of a £200,000 investment into the recently acquired Beverage Metrics. However, on a like-for-like basis, Vianet turned in a pre-tax profit of £29,000 - a marked improvement on the prior year period's pre-tax loss of £106,000.

Vianet noted that its smart machines unit had experienced "modest revenue growth" from 3.0m to £3.05m, something it said was "very encouraging" given industry-wide delays due to the replacement plans for 3G being finalised.

Chief executive James Dickson said: "Over the past three years, the Group has strategically and deliberately taken actions aimed at reclaiming the Company's pre-Covid position and seizing the opportunities that emerged from the pandemic. Our investments in sales, technology, new market verticals, expanded product lines, and collaborations provide a solid platform for growth.

"As a result, the Group remains exceptionally well-positioned to continue to deliver growth in recurring revenues and earnings, generate strong free cash flow and distribute dividends. As we continue to execute our long-term strategic plan and explore future strategic opportunities for Vianet, I look forward to the future with much optimism and confidence."

As of 1135 GMT, Vianet shares were up 2.21% at 64.90p.

Reporting by Iain Gilbert at Sharecast.com