REG - Vianet Group PLC - Interim Results
07/12/2021 07:00
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RNS Number : 7477U Vianet Group PLC 07 December 2021
7 December 2021
Vianet Group plc
("Vianet", "Company" or "the Group")
Interim Results
Vianet Group plc (AIM: VNET), the international provider of internet enabled,
cloud based, telemetric services to the hospitality, unattended retail
vending, and remote asset management sectors, is pleased to announce its
unaudited results for the six months ended 30 September 2021.
Our Smart Zones division provides unique quality assurance, business
intelligence and waste management services to the drinks retailing industry.
Our Smart Machines division provides innovative real-time monitoring, business
intelligence and data insights for unattended vending machines maximising
operational efficiency, stock control and cash flow whilst reducing our
customers' carbon footprint.
The Group has seen a strong recovery in our Smart Zones division, aligned to
the re-opening of pubs through Q2 2022, together with good growth in both new
business and unit sales in our Smart Machines division. This has resulted in a
good H1 2022 performance, improving the quality of our strong recurring
revenue base. Vianet has also made progress towards commercialising data
capture in other verticals, which will provide the Group with a further growth
engine.
H1 2022 has provided real momentum into H2 2022, and subject to global
semiconductor chip supply chain and Covid-19 pressures, we expect to achieve
FY2022 market expectations of £2.2 million of adjusted operating profit((a))
and being back at pre-pandemic levels of trading in FY2023.
Financial highlights
● Revenue of £6.34 million (H1 2021: £4.07 million, H1 2020: £8.41 million)
● Recurring revenues at 83% (H1 2021: 87%, H1 2020: 82%). H1 2021 proportion of
recurring increased due to reduction in hardware sales during hospitality
lockdowns
● Adjusted operating profit((a)) of £0.82 million (H1 2021: adjusted operating
loss((a)) of £0.38 million, H1 2020: adjusted operating profit £2.00
million)
● EBITDA((b)) £0.99 million (H1 2021: £0.26 million loss, H1 2020: £2.33
million)
● Operational cash generation, post working capital, was £1.40 million (H1
2021: £1.19 million, H1 2020: £2.44 million)
● Basic loss per share at 1.15p (H1 2021: basic loss per share at 4.86p, H1
2020: basic profit per share 6.00p)
● Net debt increased to £2.52 million (H1 2021: £1.15 million, H1 2020: £1.18
million) due to a combination of investment in a new sales and marketing team,
continued product development, together with substantially reduced customer
billing during lockdown in Q1 2022 and component premiums of over £200k in
the period
● Maintaining a prudent approach, the Board will not declare an interim dividend
for the current financial year (H1 2021: nil, H1 2020: 1.70p)
Divisional highlights
● Smart Machines new unit sales at 5,990 (H1 2021: 3,212 units) with estate
increasing c. 12% to c. 42,400 units
● New contactless payment device sales at 5,410 units (H1 2021: 2,152 units)
● Smart Machines adjusted operating profit((a)) at £0.71 million (H1 2021:
£0.55 million, H1 2020: £0.78 million)
● Investment in Smart Machines sales and commercial team is driving customer
engagement with 22 new contracts and 5 renewals on 3-5-year terms
● Smart Zones adjusted operating profit((a)) at £1.31 million (H1 2021: £0.13
million, H1 2020: £2.32 million)
● Smart Zones estate re-openings at 98% and now on full billing
● Smart Zones had three long term contract renewals, including Stonegate and two
new data contracts facilitated by Oxford Partnership
((a)) Adjusted operating profit is profit before exceptional costs,
amortisation, interest and share-based payments
((b) )EBIDTA is earnings before interest, tax, depreciation, and amortisation
Commenting, James Dickson, Chairman and Interim Chief Executive Officer of
Vianet Group plc, said:
"The first half has seen a return to operating profit with positive momentum
in the second quarter going into H2.
"Whilst we are not immune to the global supply chain and Covid-19 pressures,
our H1 2022 results provide real momentum into H2 2022, with a clear line of
sight towards meeting FY2022 market estimates of £2.2 million and giving rise
to the Group's return to pre-pandemic levels of trading during early FY2023.
"The Group has been laying the foundations for growth and now has a strong
pipeline of opportunities in several verticals where our data capture will
allow customers to increase sales, improve efficiency and reduce their carbon
footprint."
- Ends -
An analyst briefing given by James Dickson, Chairman and Interim Chief
Executive Officer, and Mark Foster, Chief Financial Officer will be held today
at 09.30hrs at Cenkos, 6-8 Tokenhouse Yard, London EC2R 7AS or online via
Microsoft Teams. Please contact vianet@yellowjerseypr.com
(mailto:vianet@yellowjerseypr.com) for details.
Enquiries:
Vianet Group plc
James Dickson, Chairman and Interim CEO Tel: +44 (0) 1642 358 800
Mark Foster, CFO www.vianetplc.com (http://www.vianetplc.com)
Cenkos Securities plc
Stephen Keys / Camilla Hume Tel: +44 (0) 20 7397 8900
www.cenkos.com (http://www.cenkos.com)
Media enquiries:
Yellow Jersey PR
Sarah Hollins Tel: +44 (0)7764 947 137
Henry Wilkinson Tel: +44 (0)7951 402 336
vianet@yellowjerseypr.com (mailto:vianet@yellowjerseypr.com) www.yellowjerseypr.com (http://www.yellowjerseypr.com)
Chairman and Interim Chief Executive Officer's Statement
Last year I provided a comprehensive update on our proactive response to the
Coronavirus ("C19") pandemic. This year the emphasis has shifted to the
strength of our recovery and the clear sales and commercial momentum we have
going into H2 2022, which I expect will see the Group back to pre-pandemic
performance levels early in FY2023.
Strong Q2 recovery resulted in an adjusted operating profit of £0.82 million.
Together with the strong momentum going into H2 this gives us confidence that
FY2022 market expectations of c. £2.2 million of adjusted operating profit
will be achieved and that the Group will be back to pre-pandemic levels during
early FY2023.
Whilst it has been challenging dealing with the uncertainty around the pace of
hospitality sector and city centre office re-openings, I am delighted to
report that the Group's performance continues to recover well. We are not
immune to any reintroduction of Covid-19 restrictions, the global
semi-conductor shortages and associated stock premium costs, or upwards
inflationary pressure, but we are confident that momentum and sales will
continue to grow.
Performance
The focus has been on cash management, customer engagement, continued
investment in sales, and technology as we migrate to a fully cloud-native
environment to support growth. This is allowing us to build momentum and
accelerate our Smart Machines growth plans whilst developing Smart Zones
contribution at the same time as commercialising data opportunities in new
verticals.
Comparison is given against H1 2021 and H1 2020 to provide better context to
our solid recovery.
Despite Covid-19 restrictions in Q1, turnover was at £6.34 million (H1 2021:
£4.07 million, H1 2020: £8.41 million) being 75% of pre-pandemic performance
levels.
The Group's adjusted operating profit was £0.82 million (H1 2021: £0.38
million loss, H1 2020: £2.00 million profit), representing over 40% of
pre-pandemic performance.
Operating profit post exceptional items was £0.78 million (H1 2021: £0.52
million loss, H1 2020: £2.59 million profit). H1 2020 had a net £0.59
million exceptional credit, which included a £0.92 million deferred
consideration release. The pre-tax loss was £0.36 million (H1 2021: £1.44
million loss, H1 2020: £1.77 million profit).
The Group's loss per share was 1.15 pence (H1 2021: loss 4.86 pence and H1
2020: earnings 6.00 pence).
New telemetry and contactless payment device sales helped our Smart Machines
division to an adjusted operating profit of £0.71 million (H1 2021: £0.55
million, H1 2020: £0.78 million), representing over 90% of pre-pandemic
performance. During H1 2022, the new sales team delivered over 25 new and
re-signed contracts with increasing traction coming into H2.
Although Q1 was challenging due to the hospitality sector restrictions, Smart
Zones division adjusted operating profit recovered to £1.31 million (H1 2021:
£0.13 million, H1 2020: £2.32 million). The strong recovery in Q2 was helped
by the strength of recurring income from long-term contracts in the active UK
and Europe estate of c. 10,400 (FY2021: 10,800). During the period, there
was a net reduction of around 400 active sites, however some of these closures
may be sites that are yet to re-open, especially in some city centres.
The growing demand for data and market insights is driving increased sales in
our core hospitality and un-attended retail sectors. It is also allowing the
Group to commercialise exciting growth opportunities in other sectors such as
catering and forecourt solutions.
Dividend
While the Group's recovery is assured, Vianet is not immune from global supply
issues or further Covid-19 restrictions impacting our markets. As such, we
remain focused on managing our cash balances to fund working capital and
invest in growth. As a result, the Board will remain prudent and refrain from
re-introducing an interim dividend for H1 2022. However, subject to no further
lockdowns or restrictions on the hospitality sector and no deterioration of
semi-conductor supply, we expect H2 cash generation will enable the Board to
reinstate a dividend in July for FY2022.
Outlook
The bounce-back experienced in Q2 2022 has continued to develop momentum into
H2 2022, which should result in the Group meeting current market guidance for
the full year.
Barring any further draconian restrictions on the hospitality sector or
significant deterioration in global microchip supplies, the business is well
placed to get back to pre-pandemic performance levels in early FY2023.
As a result of working closely with our customers and suppliers, intelligent
cash management, and uninterrupted investment, the Group is in a strong
position to take advantage of the clear opportunities in remote asset
management, contactless payment, and market data insights in our existing and
new sectors.
· Smart Machines will continue to accelerate growth from the
significant pipeline of opportunities in the UK and Europe from both existing
and new customers. We have the leading end to end solutions for un-attended
retail together with a highly motivated sales and commercial team who have
real momentum. The H1 new business gains resulted in 22 customers being
onboarded, which alone will result in significant new device sales in H2.
· Smart Zones has a healthy pipeline, including several major
technology upgrade programmes, and will continue to recover through H2 2022 as
new installation programmes are realised. Our investment in data insight and
relationship with Oxford Partnership is allowing the Group to develop new
revenue opportunities in hospitality which are expected to gain momentum
through H2 into FY2023.
· Following successful field trials, using the Group's existing
technologies, and commercial negotiations, we should see progress in
establishing new growth in sectors such as environmental, catering,
forecourts, and tank monitoring.
We are not immune from some of the well-publicised global supply chain
challenges, but our high levels of contracted recurring revenue will continue
to support our recovery and cash generation capability. Whilst Covid-19 and
Brexit related challenges may endure for some time, our ongoing investment in
product and people is creating real momentum, and I am confident that the
Group has the team and financial wherewithal to drive growth for a sustained
period, as the demand for both data and contactless solutions grows.
The Board remains confident that momentum and sales will continue to grow as
we execute our long-term growth strategy and deliver earnings growth as the
world recovers from the pandemic.
James Dickson
Chairman and Interim Chief Executive
Officer
7 December 2021
Chief Financial Officer's Review
Our strategy of delivering insight and analytics by connecting customers to
their assets has been revalidated. Our customers are increasingly relying on
the data we provide to help them navigate the pandemic. Smart Zones provides
critical trading information for our hospitality customers, enabling senior
level decision-making on business support and re-opening plans. This has led
to further contracts and accelerated renewals.
Growth in contactless payments is driven by the perception of 'dirty cash' and
the gradual trend towards phasing out of notes and coins. This is accelerating
the strategic move to contactless solutions. With the recent increase in the
contactless limit to £100 per transaction, we have seen further growth in
units and net estate size with the installation of contactless payment devices
in unattended retail machines. For many, this is being viewed as critical to
business survival.
Operational cash generation, post working capital, was £1.40 million (H1
2021: £1.19 million, H1 2020: £2.44 million) being c. 57% of pre-pandemic
performance. Q1 endured hospitality restrictions whilst Q2 was impacted by
microchip stock premiums and inflationary costs. The cash position was helped
by close management of our costs and continuing payments from our customers.
Despite some of the broader economic challenges, we are confident that our
cash trajectory is robust and adequately supports our business needs.
Exceptional costs amounted to £0.04 million (H1 2021: £0.14 million and H1
2020 was an exceptional credit of £0.58 million resulting from a deferred
consideration release of £0.92 million).
The Group had an overall net debt position of £2.52 million at the half-year,
compared to £1.15 million last year (H1 2020: £1.18 million), with gross
debt of £4.45 million (H1 2021: £4.87 million, H1 2020: £3.02 million)
taking account of the CBIL facility. The net debt increase was primarily due
to investment in our new sales and marketing team, maintaining product
development spend through the pandemic and the introduction of significant
one-off discounts to help our customers during the pandemic restrictions.
Smart Machines
Smart Machines sales of new telemetry and contactless device connections
continued, with overall sales of 5,990 units (H1 2021: 3,212 units, H1 2020:
7,634 units) with contactless payment sales of 5,410 units (H1 2021: 2,152
units, H1 2020: 4,796 units) being ahead of our pre-pandemic performance. The
sales performance was very encouraging, especially given the slower recovery
in UK offices and the brands and manufacturing sectors.
Turnover was £2.63 million (H1 2021: £2.04 million, H1 2020: £2.71
million), representing c. 97% of pre-pandemic performance. Although two-thirds
of new hardware sales were capital purchases, the recurring revenue remained
strong at just over 70% (H1 2021: c. 82%, H1 2020: just under 70%). The H1
2021 sales mix was impacted by a significant reduction in both hardware and
development recharges due to the first lockdown.
During the period, industry recognition that contactless payment adoption will
accelerate, and operating overheads needed to be reduced by visiting sites
less frequently led us to sign 22 new contracts and 5 renewal contracts.
Momentum into H2 2022 has been encouraging as the sales team is starting to
deliver on the new business pipeline we have identified. We are confident that
the Smart Machines growth opportunity has been enhanced due to changing
behaviour arising from the pandemic. Barring any further unforeseen national
initiatives, the underlying opportunity remains strong, and we are confident
it will enhance our future earnings growth.
Smart Zones
The underlying performance of the Group's core beer monitoring business was
significantly impacted during the various national lockdowns over the last 18
months but has recovered strongly.
Turnover of £3.72 million (H1 2021: £2.03 million, H1 2020: £5.70 million)
was c. 65% of pre-pandemic levels largely due to the hospitality restrictions
and temporary discounts for customers in Q1.
Recurring revenue remained strong at over 90%. Similar to the levels achieved
in H1 2021 and marginally higher than the c. 87% we delivered H1 2020.
Pre-exceptional profit of £1.31 million (H1 2021: £0.13 million, H1 2020:
£2.32 million) represents c. 56% of our pre-pandemic performance.
In the period, we successfully delivered several key contract renewals. Most
notably, the Group signed long-term contract renewals with EIG/Stonegate and
with the Oxford Partnership for data insights.
There were 151 new system installations in H1 2022, compared to 41 in H1 2021.
In addition, there were almost 500 system upgrades compared to around 140 in
H1 2021.
Customers have embraced our trading performance insights and data analytics
throughout the last 18 months. The Group's continued investment in new
technology and the migration of data and services to the cloud has
significantly increased the opportunities we see ahead in our Smart Zones
division.
In the US, the impact of lockdown has significantly impacted the hospitality
industry for our key customers and prospects. New sales stalled, which coupled
with the support package we provided to customers, led to our US business
suffering a £0.03 million loss in the period (H1 2021 £0.16 million loss and
H1 2020: £0.01 million profit). As with all cinema chains, our largest US
customer, AMC Theatres, has been affected by Covid-19 closures and remains
seriously challenged despite their re-financing. Inevitably this will impact
our H2 performance in the USA, but we remain confident in pursuing other
avenues of opportunity in this large and exciting market.
Looking Forward
Our principal aim during the period has always been to come through the
pandemic in the best possible shape and with the critical business growth
drivers enhanced.
Whilst the impact of the pandemic may not yet be over, there has been a
significant positive shift in customer behaviour, and we are confident of
delivering both FY2022 market expectations and strong growth over the life of
our three-year plan.
Mark Foster
Chief Financial
Officer
7 December 2021
Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2021
Exceptional Total Unaudited Unaudited Audited
6 months 6 months 6 months Year
Before Exceptional Before
6 months Exceptional Exceptional
6 months 6 months
Ended Ended Ended Ended Ended Ended Ended
30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 31 March
2021 2021 2021 2020 2020 2020 2021
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000
Continuing operations
Revenue 3 6,340 - 6,340 4,066 - 4,066 8,369
Cost of sales (2,306) - (2,306) (1,497) - (1,497) (3,307)
Gross profit 4,034 - 4,034 2,569 - 2,569 5,062
Administration and other operating expenses 4
(3,215) (38) (3,253) (2,946) (142) (3,088) (6,092)
Operating profit/(loss) pre amortisation and share based payments 3
819 (38) 781 (377) (142) (519) (1,030)
Intangible asset amortisation
(1,050) - (1,050) (837) - (837) (1,669)
Share based payments
(35) - (35) (48) - (48) (73)
Operating loss post amortisation and share based payments
(266) (38) (304) (1,262) (142) (1,404) (2,772)
Net finance costs
(59) - (59) (32) - (32) (50)
Loss from continuing operations before tax
(325) (38) (363) (1,294) (142) (1,436) (2,822)
Income tax credit 5 30 - 30 30 - 30 867
Loss and other comprehensive income for the year 3
(295) (38) (333) (1,264) (142) (1,406) (1,955)
Loss per share
Continuing Operations
- Basic 6 (1.15p) (4.86p) (6,75)p
- Diluted 6 (1.15p) (4.83p) (6.75)p
Consolidated Balance Sheet
At 30 September 2021
Unaudited Unaudited Audited
As at As at As at
30 Sept 30 Sept 31 March 2021
2021 2020
£'000 £'000 £'000
Assets
Non-current assets
Intangible assets 23,956 23,708 24,040
Property, plant and equipment 3,290 3,610 3,391
Deferred Tax asset 265 510 236
Total non-current assets 27,511 27,828 27,667
Current assets
Inventories 1,530 1,519 1,431
Trade and other receivables 2,692 2,509 2,758
Cash and cash equivalents 1,932 3,721 1,894
6,154 7,749 6,083
Total assets 33,665 35,577 33,750
Equity and liabilities
Liabilities
Current liabilities
Trade and other payables 3,593 3,098 3,257
Borrowings 1,741 1,466 1,265
Leases 35 34 53
5,369 4,598 4,575
Non-current liabilities
Other payables 86 117 86
Borrowings 2,707 3,408 3,290
Deferred tax - 1,111 -
Leases - 20 -
2,793 4,656 3,376
Equity attributable to owners of the parent
Share capital 2,895 2,895 2,895
Share premium account 11,711 11,709 11,709
Share based payment reserve 472 412 437
Merger reserve 310 310 310
Retained profit 10,115 10,997 10,448
Total equity 25,503 26,323 25,799
Total equity and liabilities 33,665 35,577 33,750
Summarised Consolidated Cash Flow Statement
For the six months ended 30 September 2021
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2021 2020 2021
£'000 £'000 £'000
Cash flows from operating activities
Loss for the period (333) (1,406) (1,955)
Adjustments for
Net Interest payable 59 32 50
Income tax credit (30) (30) (867)
Amortisation of intangible assets 1,050 837 1,669
Depreciation 244 309 563
Loss on sale of property, plant and equipment 67 7 126
Share-based payments expense 35 48 73
Operating profit/(loss) before changes in
working capital and provisions 1,092 (203) (341)
Change in inventories (97) (28) 60
Change in receivables 66 1,035 786
Change in payables 337 389 547
306 1,396 1,393
Net cash from operating activities 1,398 1,193 1,052
Cash flows from investing activities
Purchases of property, plant and equipment (211) (131) (268)
Purchase of intangible assets (966) (1,185) (2,348)
Net cash used in investing activities (1,177) (1,316) (2,616)
Cash flows from financing activities
Net Interest payable (59) (32) (50)
Issue of share capital 2 - -
Repayment of leases (18) (45) (64)
Repayments of borrowings (606) - (319)
New borrowings - 3,540 3,540
Payment of deferred consideration - - (31)
Net cash (used in)/from financing activities (681) 3,463 3,076
Net (decrease)/increase in cash and cash equivalents (460) 3,340 1,512
Cash and cash equivalents at beginning of period 1,893 381 381
Cash and cash equivalents at end of period 1,433 3,721 1,893
Reconciliation to the cash balance in the Consolidated Balance Sheet
Cash balance as per consolidated balance sheet 1,932 3,721 1,893
Bank overdrafts (499) - -
Balance per statement of cash flows 1,433 3,721 1,893
Statement of changes in equity
Six months ended 30 September 2021
Share Share Share based payment reserve Merger Retained profit Total
capital premium reserve
account
£000 £000 £000 £000 £000 £000
At 1 April 2021 2,895 11,709 437 310 10,448 25,799
Share based payment - - 35 - - 35
Issue of share capital - 2 - - - 2
Transactions with owners - 2 35 - - 37
Loss and total comprehensive income for the period - - - - (333) (333)
Total comprehensive income less owners transactions - 2 35 - (333) (296)
At 30 September 2021 2,895 11,711 472 310 10,115 25,503
Six months ended 30 September 2020
Share Share Share based payment reserve Merger Retained profit Total
capital premium reserve
account
£000 £000 £000 £000 £000 £000
At 1 April 2020 2,895 11,709 364 310 12,403 27,681
Share based payment - - 48 - - 48
Transactions with owners - - 48 - - 48
Loss and total comprehensive income for the period - - - - (1,406) (1,406)
Total comprehensive income less owners transactions - - 48 - (1,406) (1,358)
At 30 September 2020 2,895 11,709 412 310 10,997 26,323
12 months ended 31 March 2021
Share Share Share based payment reserve Merger Retained profit Total
capital premium reserve
account
£000 £000 £000 £000 £000 £000
At 1 April 2020 2,895 11,709 364 310 12,403 27,681
Share based payment - - 73 - - 73
Transactions with owners - - 73 - - 73
Loss and total comprehensive income for the year - - - - (1,955) (1,955)
Total comprehensive income less owners transactions - - 73 - (1,955) (1,882)
At 31 March 2021 2,895 11,709 437 310 10,448 25,799
Notes to the interim report
1. Statutory information
The interim financial statements are neither audited nor reviewed and do not
constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006.
The financial information for the year ended 31 March 2021 has been derived
from the published statutory accounts. A copy of the full accounts for that
period, on which the auditor issued an unmodified report that did not contain
statements under 498(2) or (3) of the Companies Act 2006, has been delivered
to the Registrar of Companies.
These interim financial statements will be posted to all shareholders and are
available from the registered office at One Surtees Way, Surtees Business
Park, Stockton on Tees, TS18 3HR or from our website at
www.vianetplc.com/investors.
2. Accounting policies
The interim financial statements have been prepared in accordance with the AIM
Rules for Companies and on a basis consistent with the accounting policies and
methods of computation as published by the Group in its Annual Report for the
year ended 31 March 2021, which is available on the Group's website.
The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in
preparing these interim financial statements and therefore the Interim
financial information is not in full compliance with International Financial
Reporting Standards.
Having considered current trading performance, the Directors have a reasonable
expectation that the Company and the Group have adequate resources to continue
in operational existence for the foreseeable future. Financial forecasts and
projections, taking account of reasonably possible changes and sensitivities
in future trading performance and the market value of the Group's assets, have
been prepared and show that the Group is expected to be able to operate within
the level of cash and the available headroom on the current banking facility.
The Directors are confident that the Company will be able to meet its
liabilities as they fall due over the next 12 months. As a result, this
financial information has been prepared on a going concern basis.
3. Segmental information
An operating segment is a component of an entity that engages in business
activities from which it may earn revenues and incur expenses. The segment
operating results are regularly reviewed by the Chief Operating Decision Maker
to make decisions about resources to be allocated to the segment and assess
its performance. Vianet Group is analysed into to two trading segments
(defined below) being Smart Zones (mainly adopted in the leisure sector,
including US (particularly in pubs and bars) and Smart Machines (mainly
adopted in the vending sector (particularly in unattended retail vending
machines) supported by Corporate/Technology & stores costs.
The products/services offered by each operating segment are:
· Smart Zones: Data insight & actionable data services, design,
product development, sale and rental of fluid monitoring equipment.
· Smart Machines: Data insight & actionable data services, design
product development, sale and rental of machine monitoring and contactless
payment equipment and services.
· Corporate/Technology: Centralised Group overheads along with
technology and stores related costs for the Group.
The inter-segment sales are immaterial. Segment results, assets and
liabilities include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated assets and
liabilities comprise items such as cash and cash equivalents, certain
intangible assets, taxation, and borrowings. Segment capital expenditure is
the total cost incurred during the year to acquire segment assets that are
expected to be used for more than one period.
The segmental results for the six months ended 30 September 2021 are as
follows:
Continuing Operations Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Total revenue 3,715 2,625 - 6,340
Profit/(loss) before amortisation, share based payments and exceptional costs
1,314 714 (1,209) 819
Pre-exceptional segment result 1,008 601 (1,875) (266)
Exceptional costs (3) (22) (13) (38)
Post exceptional segment result 1,005 579 (1,888) (304)
Finance income - - - -
Finance costs (53) (6) - (59)
Profit/(loss) before taxation 952 573 (1,888) (363)
Taxation 30
Loss for the year from continuing operations (333)
Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Segment assets 27,403 4,083 1,914 33,400
Unallocated assets - - 265 265
Total assets 27,403 4,083 2,179 33,665
Segment liabilities 7,897 - 265 8,162
Unallocated assets - - - -
Total liabilities 7,897 - 265 8,162
Notes to the interim report (continued)
The segmental results for the six months ended 30 September 2020 are as
follows:
Continuing Operations Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Total revenue 2,025 2,041 - 4,066
Profit/(loss) before amortisation, share based payments and exceptional costs
132 550 (1,059) (377)
Pre-exceptional segment result (76) 430 (1,616) (1,262)
Exceptional costs (12) (39) (91) (142)
Post exceptional segment result (88) 391 (1,707) (1,404)
Finance income - - 1 1
Finance costs (19) (14) - (33)
(Loss)/profit before taxation (107) 377 (1,706) (1,436)
Taxation 30
Loss for the year from continuing operations (1,406)
Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Segment assets 29,089 4,083 1,895 35,067
Unallocated assets - - 510 510
Total assets 29,089 4,083 2,405 35,577
Segment liabilities 7,780 - 363 8,143
Unallocated assets - - 1,111 1,111
Total liabilities 7,780 - 1,474 9,254
Notes to the interim report (continued)
The segmental results for the 12 months ended 31 March 2021 are as follows:
Continuing Operations Smart Zones Smart Machines Corporate/ Technology
Total
£'000 £'000 £'000 £'000
Total revenue 3,953 4,416 - 8,369
Profit/(loss) before amortisation, share based payments and exceptional costs
503 1,102 (2,292) (687)
Pre-exceptional segment result 85 858 (3,372) (2,429)
Exceptional costs (81) (147) (115) (343)
Post exceptional segment result 4 711 (3,487) (2,772)
Finance income - - 1 1
Finance costs (28) (23) - (51)
Profit/(loss) before taxation (24) 688 (3,486) (2,822)
Taxation 867
Profit for the year from continuing operations (1,955)
Smart Zones Smart Machines Corporate/ Technology
Total
£'000 £'000 £'000 £'000
Segment assets 27,534 4,083 1,897 33,514
Unallocated assets - - 236 236
Total assets 27,534 4,083 2,133 33,750
Segment liabilities 7,466 - 485 7,951
Unallocated assets - - - -
Total liabilities 7,466 - 485 7,951
Notes to the interim report (continued)
4. Exceptional items
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2021 2020 2021
£'000 £'000 £'000
Corporate restructuring and transitional costs 23 59 154
Disposal costs - - 101
Network Obsolescence costs 1 - 8
Other 14 83 80
38 142 343
Corporate restructuring and transitional costs relate to the transition of
people and management to ensure we have the succession and calibre of people
on board to deliver the strategic aims and aspirations of the Group.
5. Tax
The credit for tax is based on the loss for the period and comprises:
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2021 2020 2021
£'000 £'000 £'000
United Kingdom corporation tax 30 30 867
The tax credit reflects the utilisation of brought forward trading losses,
which had previously been recognised as a deferred tax asset, against the
taxable profit for the period within Vianet Limited.
6. Loss per share
Basic loss per share is calculated by dividing the earnings attributable to
ordinary shareholders (loss of £333k) by the weighted average number of
ordinary shares outstanding during the period.
Diluted earnings per share are calculated on the basis of loss for the year
after tax divided by the weighted average number of shares in issue in the
year plus the weighted average number of shares which would be issued if all
the options granted were exercised.
The table below shows the earnings per share result.
30 September 2021 30 September 2020
(Loss) Basic (loss) per share Diluted (loss) per share Earnings Basic earnings per share Diluted earnings per share
£000 £000
Post-tax loss attributable to equity shareholders (333) (1.15p) (1.15p) (1,406) (4.86p) (4.83p)
30 Sept 30 Sept
2021 2020
Number Number
Weighted average number of ordinary shares 28,953,818 28,953,414
Dilutive effect of share options - 172,967
Diluted weighted average number of ordinary shares 28,953,818 29,126,381
Due to the loss in the period no dilutive effect of share options is required
to be calculated.
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