Vianet trades 'largely as anticipated'

Vianet told investors on Tuesday that profits would top last year's result of £3.62m and, as such, it now intends to recommend a final dividend of 4p per share, unchanged .

The AIM-listed firm's smart machines division, including the recently integrated Vendman business, continued to deliver "strong growth" in connected devices, with increased penetration helped by the transition of capital sales elements to a recurring sales model.

Whilst reduced capital sales suppressed its short term financial performance, strong contracted recurring revenues had provided it with greater visibility and "higher quality of future earnings", the company said in a statement.

The group's smart zones division contributed slightly less year-on-year, with the impact of pub closures being partially offset by transactional process cost savings and system upgrades for customers.

Chairman James Dickson said: "We are pleased to deliver good year-on-year profit growth again and it is notable that this has been achieved whilst shifting the focus within Smart Machines from capital to recurring annuity based sales.

As of 0940 GMT, Vianet shares had picked up 0.83% to 122p.