REG - Vianet Group PLC - Interim Results
03/12/2024 07:00
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RNS Number : 4815O Vianet Group PLC 03 December 2024
Vianet Group plc
("Vianet", "the Company" or "the Group")
Interim Results for the half year ended 30 September 2024
Momentum building and on track to deliver sustained growth in line with
management expectations.
Re-instatement of interim dividend
Vianet Group plc (AIM: VNET), a leading international provider of actionable
data and business insights to the hospitality, unattended retail vending, and
remote asset management sectors, is pleased to present its unaudited results
for the six months ended 30 September 2024.
Financial highlights
● Revenue Growth: H1 2025 revenue increased 7% to £7.69m, up from £7.19m in H1
2024 showcasing strong upward trajectory.
● Strong Recurring Revenue: Recurring revenue accounted for 84% of total income
at £6.45m (H1 2024: 87%) highlighting stability of our business model.
● Robust Gross Margin: Gross margin remained strong at 67% (H1 2024: 69%)
despite higher proportion of lower margin hardware sales
● Increased Operating Profit: Adjusted operating profit rose 10.1% to £1.43m
(H1 2024: £1.30m), testament to effective cost management strategies.
● EBITDA Growth: EBITDA grew 26.6% to £1.55m (H1 2024: £1.22m), reflecting
lower exceptional costs and the operational gearing of the business.
● Return to Profitability: Pre-tax profit of £0.018m (H1 2024: loss of
£0.171m), marks a significant turnaround of the business.
● Strong Cash Generation: Operational cash generation of £1.92m, approximately
124% of EBITDA (H1 2024: £1.28m), supporting financial health of the Company.
● Reduction in Net Debt: Net debt reduced to £1.00m (H1 2024: £2.09m),
complemented by cash reserves of £2.25m, enhancing our financial stability.
● Dividend Resumed: Interim dividend of 0.3p per share declared (H1 2024: Nil),
reflecting our confidence in future growth.
(a) Adjusted operating profit is profit before exceptional costs,
amortisation, interest, and share-based payments(b) EBITDA is earnings before
interest, tax, depreciation, and amortisation
We are pleased to report another period of solid growth amid evolving market
conditions. During the period the Group has traded in line with management
expectations and demonstrated significant year-on-year improvements across key
performance indicators, and we have line of sight on the activity required to
deliver management expectations for the second half.
In hospitality, the successful integration of Beverage Metrics has enhanced
our product portfolio, enabling us to make considerable progress towards
securing substantial rollouts in the UK and US managed markets. The proven
value of our solutions enabling operators to not only reduce costs but improve
efficiency is continually validated by the UK leased and tenanted sector.
In the unattended retail division, we maintain a strong and secure market
position. Our engagement with the vending operators instils great confidence
that the currently gradual but accelerating transition from 3G to 4G will
yield significant benefits for the division. We have a very robust and growing
pipeline with good visibility on significant opportunities in the upcoming
periods.
Collaborations in both the US and UK are opening new opportunities and
expanding our market reach and revenue potential in unattended retail, fuel
forecourt and the broader hospitality sectors. We are constantly seeking new
partners, new avenues of growth and the collaborations that we have taken
years to cultivate are proving to be highly productive.
Our financial position continues to strengthen, with net debt reduced by over
£1 million and cash reserves rising to £2.25 million. This solid foundation
allows us to resume an interim dividend, confidently invest in future growth
and reward our shareholders.
While the recent budget presents challenges, particularly for the hospitality
sector, it highlights the increasing relevance of our solutions and our
confidence in these together with the current trading and momentum we are
seeing in the business has underpinned the Board's decision to reinstate the
interim dividend. By reducing waste, enhancing productivity, and improving
sales, we empower our customers to achieve more with less.
Divisional Highlights
Unattended Retail:
· Notable 16.5% Increase in Like-for-Like Sales: 3,659 new units
sold (H1 2024: 3,141), in addition to upgrade of 1,057 3G devices to new 4G
devices
· Revenue Growth: Turnover increased by 6.2% to £3.24m (H1 2024:
£3.05m), reflecting our strong market presence and effective sales
strategies.
· Divisional Operating Profit: Adjusted operating profit of £0.98
million (H1 2024: £1.05million), reflecting lower hardware margin for 3G
upgrades and further strengthening of our sales team.
· Estate Expansion: Our net operational estate has grown by an
impressive 7.5%, now totalling over 37,000 units (H1 2024: 34,500)
· Major Contracts Secured: 48 new 3-5-year agreements signed
compared to 37 in H1 2024, benefitting from competitor withdrawals in the
market and therefore solidifying our position in the industry.
· Forecourt Sector Expansion: Successfully completed the
installation of over 1,900 units with Rontec and Wilcomatic, marking a
significant milestone in our expansion into the forecourt sector.
· Contactless Payment Units: Delivered 2,654 new contactless
payment units (H1 2024: 2,123), further consolidating our strong market
position.
Hospitality:
· Revenue Growth: Turnover increased 7.3% to £4.45m (H1 2024:
£4.08m) underlining the effectiveness of our strategies.
· Divisional Operating Profit: Adjusted operating profit rose 12.2%
to £2.2million (H1 2024: £1.96 million, as management work to drive
profitability further.
· BMI Integration Success: Fully integrated the Beverage Metrics
platform, significantly enhancing UK and US market position.
· New Products: We launched Enersave beer cooling system energy
management solution, completing 20 installations and building a promising
pipeline for future growth.
· Contract Wins: We secured three new long-term agreements,
including a 5-year renewal with Heineken's Star Pubs & Bars, plus a
post-period renewal for 5 years with Greene King, further solidifying client
relationships and helping to underpin meeting management's expectations for
the full year.
· These achievements highlight our dedication to growth and
innovation in the hospitality sector, positioning us for continued success.
Mark Foster, CFO, commented:
"Our operational cash generation remains a highlight, with £1.92m generated
after working capital adjustments, representing 124% of EBITDA. This strong
cash conversion, coupled with reduced net debt underpins our robust financial
position.
Exceptional costs decreased to £0.11m, reflecting lower restructuring and
acquisition expenses compared to H1 2024. Our improved banking facilities have
enhanced our financial flexibility, supporting ongoing operations and growth
initiatives.
Looking ahead, we are confident that our investments in technology, strategic
acquisitions, and new market opportunities will continue to deliver strong
financial results."
James Dickson, Chairman and CEO, commented:
"I am personally delighted with this set of financial metrics. It is a
testament to the dedication and work ethic of the entire team. Our performance
continues to build momentum and is supported by a strong sales pipeline and
exciting commercial opportunities across the business which enable me to feel
very confident about the Group's future performance. This confidence is also
manifested in the Board's decision to re-instate the interim dividend. As cost
pressures rise across the board for our customers, our solutions become
increasingly valuable by helping them reduce costs, enhance efficiency, and
drive growth.
With a dynamic team, an innovative product range, strong recurring income
streams, and a robust sales pipeline, we are well-positioned to deliver
sustained growth and execute our long-term strategic vision. My confidence in
the group's prospects has never been stronger.
- Ends -
James Dickson, Chairman & CEO, and Mark Foster, CFO, will provide a live
presentation relating to results for the six months ending 30 September
2024 via the Investor Meet Company platform today at 10:30 am GMT.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard until 9 am
the day before or during the live presentation.
Investors can sign up to Investor Meet Company for free and add to
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Enquiries:
Vianet Group plc
James Dickson, Chairman & CEO Tel: +44 (0) 1642 358 800
Mark Foster, CFO www.vianetplc.com (http://www.vianetplc.com)
Cavendish Capital Markets Limited
Stephen Keys / Camilla Hume Tel: +44 (0) 20 7397 8900
www.cavendish.com (http://www.cenkos.com)
About Vianet
Vianet has established itself as an industry leader with its award-winning,
proprietary suite of solutions. Our offerings encompass telemetry,
connectivity, payment solutions, inventory management, ERP software platforms,
energy-saving solutions, and a comprehensive business insights and market data
portal. These innovative solutions empower businesses in hospitality,
unattended retail, and the fuel forecourt sectors to optimise costs, boost
sales, and enhance profitability and cash flow while significantly reducing
their carbon footprint.
Vianet clients, typically engaged in 3-5-year contracts, benefit from our
services by receiving operational alerts, performance dashboards and critical
business insights. These tools are instrumental in transforming their
operational efficiency and become even more vital during periods of economic
downturns and uncertainty.
Chairman and Chief Executive Officer's Statement
The Group has delivered strong year-on-year growth across its core divisions,
achieving a 10.1% increase in adjusted operating profit to £1.43m. This
performance was achieved despite challenges posed by the economic environment
and the gradual but accelerating progress in mobile operators' shutdown of the
3G network.
Performance
Group revenue increased by 6.85% to £7.69m, up from £7.19m in H1 2024, with
recurring revenue from long-term contracts reaching £6.45m, which accounts
for c 84% of total revenue. Adjusted operating profit rose to £1.43m, an
improvement from £1.30m in the previous period. Pre-tax profit stood at
£0.018m, compared to a loss of £0.17m in H1 2024, even after accounting for
£0.11m in exceptional costs primarily related to restructuring and
acquisitions. The Group's earnings per share increased to 0.06p, reversing a
loss of 0.58p in H1 2024.
Unattended Retail
In the Unattended Retail segment, the Group grew both unit sales and revenue.
Sales of new telemetry and contactless payment units, along with upgrades from
3G to 4G LTE, resulted in the deployment of 4,716 units, compared to 3,141 in
the previous year. Turnover increased by £0.19m to £3.24m. Adjusted
operating profit decreased slightly to £0.98m due to lower margins on
hardware upgrades and additional investments in the sales team to secure
long-term contracts and build a robust recurring income pipeline. During the
period, 48 new contracts were secured, with four renewals, primarily spanning
three to five years. While the 3G transition continues to influence the timing
of pipeline conversion, progress remains steady, with significant progress in
the UK fuel forecourt sector, including the installation of 1,900 devices.
During this period, we have focused on positioning SmartVend as a dedicated
device and machine management platform rather than a comprehensive ERP
solution, prioritising an improved experience for end users. Simultaneously,
we are transitioning to integrate our industry leading SmartVend data pipeline
to seamlessly support multiple third-party ERP suppliers and customer ERP
systems, enabling greater flexibility and enhanced functionality.
This strategic adjustment allows us to help customers optimise both free
vending machine connectivity and contactless payment solutions. Our offering
is strengthened by our award-winning hardware, competitive transaction rates,
commitment to exceptional customer service and growing reputation as a trusted
advisor.
Additionally, by deploying 1,900 devices in collaboration with Rontec and
Wilcomatic, we have made significant strides in expanding our footprint in the
UK fuel forecourt sector.
Hospitality
Our UK hospitality business achieved a 7.3% increase in turnover during the
period, reaching £4.45m (H1 2024: £4.08m), while adjusted operating profit
rose by an impressive 12% to £2.20m (H1 2024: £1.97m). The acquisition of
BMI in May 2023 has been fully integrated, combining the Fast Scan bar
inventory platform with our draught monitoring system to deliver a
comprehensive beverage management solution. This integration has significantly
enhanced our market presence and engagement in both the UK and US hospitality
sectors, with negotiations on material rollouts now in advanced stages.
Vianet Americas, which now includes the fully integrated BMI acquisition,
reported a loss of £0.25m for the six-month period. This is consistent with
the £0.25m loss in H1 2024, which accounted for only two months of
operations.
During this period, we launched Enersave, an energy-saving solution for glycol
beer chilling units. Strong customer interest has already resulted in 20
installations and we have a promising pipeline for the second half of the
year.
UK pub closures within our installation base remained relatively stable, with
a net decrease of just 132 contracted sites. This brings the total number of
UK sites to 9,453 (H1 2024: approximately 9,600).
Despite challenges posed by recent budget pressures on the hospitality sector,
we are confident in the growth potential of our hospitality division. This
optimism is driven by several factors:
· Hospitality operators face increasing cost pressures and reduced
pricing flexibility, prompting a greater need for efficiency. Our solutions
address these needs by focusing on waste reduction, shrinkage elimination,
quality assurance, enhanced customer experience, productivity improvements
through automation and optimum working capital.
· The leased and tenanted pub sector has shown remarkable resilience,
underpinned by quality operators personally invested in their businesses.
These operators are financially and emotionally committed, often viewing their
pubs as both a livelihood and a home. As the cost threshold for managed pubs
rises, some venues are transitioning back to the leased and tenanted model,
further supporting recurring revenues.
· The successful integration of BMI has bolstered our offering,
providing UK and US operators with advanced beverage management and
energy-saving solutions that deliver a return on investment within four to
seven months. Our collaboration with Fintech in the US has further
strengthened our position, and we are making good progress towards agreements
for material rollouts in managed chains across both markets.
Dividend
Robust trading and increasing momentum together with improved banking
facilities and prudent cash management have enabled the Group to reduce net
debt to £1.00m, compared to £2.09m in H1 2024, and re-instate an interim
dividend. An interim dividend, for the period ended 30 September 2024, of
0.3p per ordinary share will be payable on 29 January 2025 to shareholders who
are registered as such at the close of business on the record date of 13
December 2024.
Outlook
Our strategic investments in technology, our commercial team, and
customer-focused solutions, combined with the strategic entry into the
forecourt sector and the full integration of BMI, have established a strong
foundation for sustained growth heading into the second half of 2025.
Collaborative efforts with partners, customers, and suppliers are unlocking
excellent opportunities in remote asset management, contactless payments,
beverage management and market data insights. The integration of BMI and
expansion into the forecourt sector are proving to be significant growth
accelerators.
The Board is enthusiastic and optimistic about the growing importance of our
products, which we believe will continue to drive growth, generate
high-quality recurring income, and improve cash flow. We have continued to
build on the momentum generated in H1 as we have entered the second half of
the year. and the Group continues to trade in line with our expectations for
the full year. We are well-positioned to deliver sustainable growth for our
shareholders while also effectively addressing new strategic opportunities and
look forward to the future with increased confidence.
James Dickson
Chairman &
CEO
3 December 2024
Chief Financial Officer's Review
Our operational cash generation before working capital adjustments reached
£1.61m (H1 2024: £1.26m), reflecting a continued strong cash conversion rate
of approximately 104% of EBITDA. After working capital adjustments of £0.31m,
cash generation increased to £1.92m (H1 2024: £1.28m, excluding a one-off
tax rebate), equating to over 124% of EBITDA and 134% of adjusted operating
profit. This positive cash performance was primarily driven by unwinding stock
levels and a reduction in trade debts, maintaining the strong profit-to-cash
conversion trends characteristic of our business.
Despite ongoing economic uncertainties, the combination of commercial progress
and robust cash generation, supported by improved banking facilities, provides
a strong cash flow trajectory to underpin our operations. Net debt improved
significantly to £1.00m (H1 2024: £2.09m), reflecting strong trading
performance and the benefits of enhanced banking arrangements. Gross debt
decreased slightly to £3.25m (H1 2024: £3.42m), while gross cash improved to
£2.25m (H1 2024: £1.32m), reinforcing our financial resilience.
Exceptional costs for the period totaled £0.11m (H1 2024: £0.33m), primarily
related to restructuring and acquisition activities. Looking ahead, we expect
these positive trends in cash generation and debt reduction to continue,
strengthening our ability to support future growth.
Un-attended Retail
Turnover was £3.24m (H1 2024: £3.05m). Recurring revenue remained strong at
c70% (H1 2024: c77%) even amidst the network operators' transition from 3G and
ongoing refinement of their vending estates by customers.
Hospitality
Our core draught beer monitoring operations in the UK and USA delivered a
combined turnover of £4.45m (H1 2024: £4.14m), reflecting a resilient
performance. Recurring revenue accounted for over 94% of the total (H1 2024:
95%), demonstrating the strength of this revenue base.
In the UK, pre-exceptional profit rose to £2.20m (H1 2024: £1.97m), a growth
of around 12%. When including US operations and factoring in BMI's full
integration costs, the Smart Zones division reported an overall profit of
£1.95m (H1 2024: £1.71m) for the first half of the year.
Carbon Reduction
Whilst we continue to evaluate ways of reducing our carbon footprint, we have
already made good progress in achieving a 63% reduction in energy consumption
for our office-based operations.
Looking Forward
Despite economic uncertainties and the challenges associated with
transitioning from 3G to 4G during H1, the Group delivered solid year-on-year
growth. This performance has been driven by strong cash generation and a
reduction in net debt. These results, along with expanding commercial
opportunities in both established and new sectors and enhanced flexibility in
banking facilities, reinforce confidence in the Group's growth strategy moving
forward.
Mark H Foster
Chief Financial Officer
3 December 2024
Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2024
Total Unaudited Total Unaudited Audited
6 months 6 months Year
Before Exceptional Before Exceptional
6 months 6 months
Ended Ended Ended Ended Ended
30 Sept 30 Sept 30 Sept 30 Sept 31 March
2024 2024 2023 2023 2024
Note £'000 £'000 £'000 £'000 £'000
Continuing operations
Revenue 3 7,687 7,687 7,194 7,194 15,176
Cost of sales (2,568) (2,568) (2,203) (2,203) (4,745)
Gross profit 5,119 5,119 4,991 4,991 10,431
Administration and other operating expenses 4
(3,691) (3,804) (3,694) (4,024) (7,107)
Operating profit pre amortisation and share based payments 3
1,428 1,315 1,297 967 3,324
Intangible asset amortisation
(1,107) (1,107) (1,042) (1,042) (2,164)
Share based payments
(40) (40) (20) (20) (100)
Operating profit/(loss) post amortisation and share based payments
281 168 235 (95) 1,060
Net finance costs
(150) (150) (76) (76) (276)
Profit/(loss) from continuing operations before tax
131 18 159 (171) 784
Income tax credit 5 - - - - 17
Profit/(Loss) and other comprehensive income for the year 3
131 18 159 (171) 801
Loss/earnings per share
Continuing Operations
- Basic 6 0.06p (0.58p) 2.76p
- Diluted 6 0.06p (0.58p) 2.69p
Consolidated Balance Sheet
At 30 September 2024
Unaudited Unaudited Audited
As at As at As at
30 Sept 30 Sept 31 March 2024
2024 2023
£'000 £'000 £'000
Assets
Non-current assets
Intangible assets 23,358 23,495 23,740
Property, plant and equipment 3,308 3,249 3,327
Deferred Tax asset - - -
Total non-current assets 26,666 26,744 27,067
Current assets
Inventories 1,886 2,371 2,185
Trade and other receivables 3,409 3,295 3,873
Cash and cash equivalents 2,248 1,323 1,822
7,543 6,989 7,880
Total assets 34,209 33,733 34,947
Equity and liabilities
Liabilities
Current liabilities
Trade and other payables 2,644 2,892 3,061
Borrowings 179 206 177
Leases 125 50 123
2,948 3,148 3,361
Non-current liabilities
Deferred tax liability 810 827 810
Borrowings 3,072 3,209 3,159
Leases 94 124 157
Contingent Consideration 230 - 268
4,206 4,160 4,394
Equity attributable to owners of the parent
Share capital 2,943 2,955 2,940
Share premium account 11,770 12,245 11,748
Capital redemption 32 15 32
Share based payment reserve 623 583 583
Merger reserve 818 310 818
Retained profit 10,869 10,317 11,071
Total equity 27,055 26,425 27,192
Total equity and liabilities 34,209 33,733 34,947
Summarised Consolidated Cash Flow Statement
For the six months ended 30 September 2024
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2024 2023 2024
£'000 £'000 £'000
Cash flows from operating activities
Profit/(loss) for the period 18 (171) 801
Adjustments for
Net Interest payable 150 76 276
Income tax credit - - (17)
Amortisation of intangible assets 1,107 1,042 2,164
Depreciation 270 273 544
Loss on sale of property, plant and equipment 23 23 61
Share-based payments expense 40 20 100
Operating profit before changes in
working capital and provisions 1,608 1,263 3,929
Change in inventories 299 (96) 91
Change in receivables 464 (436) (996)
Change in payables (455) 544 646
308 12 (259)
Net cash from operating activities 1,916 1,275 3,670
Income tax refund - 922 922
Net cash from operating activities 1,916 2,197 4,592
Purchases of property, plant and equipment (274) (175) (577)
Purchase of intangible assets (724) (695) (1,724)
Purchase of subsidiary - (563) -
Purchases of other intangible assets - - (8)
Net cash used in investing activities (998) (1,433) (2,309)
Cash flows used in financing activities
Net Interest payable (150) (76) (276)
Issue of share capital 25 609 44
New leases - 31 190
Repayment of leases (62) (49) (84)
New borrowings - 3,440 3,440
Repayments of borrowings (85) (2,297) (2,378)
Dividends paid (220) - (148)
Shares repurchased and cancelled - - (150)
Net cash used in financing activities (492) 1,658 638
Net increase in cash and cash equivalents 426 2,422 2,921
Cash and cash equivalents at beginning of period 1,822 (1,099) (1,099)
Cash and cash equivalents at end of period 2,248 1,323 1,822
Reconciliation to the cash balance in the Consolidated Balance Sheet
Cash balance as per consolidated balance sheet 2,248 1,323 1,822
Bank overdrafts - - -
Balance per statement of cash flows 2,248 1,323 1,822
Statement of changes in equity
Six months ended 30 September 2024
Share Share Share based payment reserve Merger Retained profit Total
capital premium reserve Capital
account Redemption
£000 £000 £000 £000 £000 £000 £000
At 1 April 2024 2,940 11,748 583 818 32 11,071 27,192
Share based payment - - 40 - - - 40
Dividends paid - - - - - (220) (220)
Issue of share capital 3 22 - - - - 25
Transactions with owners 3 22 40 - - (220) (155)
Profit and total comprehensive income for the period - - - -
- 18 18
Total comprehensive income less owners transactions 3 22 40 - (202) (137)
-
At 30 September 2024 2,943 11,770 623 818 32 10,869 27,055
Six months ended 30 September 2023
Share Share Share based payment reserve Merger Retained profit Total
capital premium reserve Capital
account Redemption
£000 £000 £000 £000 £000 £000 £000
At 1 April 2023 2,880 11,711 563 310 15 10,488 25,967
Share based payment - - 20 - - - 20
Issue of share capital 75 534 - - - - 609
Transactions with owners 75 534 20 - - - 629
Loss and total comprehensive income for the period - - - -
- (171) (171)
Total comprehensive income less owners transactions 75 534 20 - (171) 458
-
At 30 September 2023 2,955 12,245 583 310 15 10,317 26,425
12 months ended 31 March 2024
Share Share Share based payment reserve Merger Retained profit Total
capital premium reserve Capital
account Redemption
£000 £000 £000 £000 £000 £000 £000
At 1 April 2023 2,880 11,711 563 310 15 10,488 25,967
Dividends - - - - - (148) (148)
Issue of shares 77 37 - 508 - - 622
Cancellation of shares (17) - - 17 (150) (150)
Share option forfeitures - - (80) - - 80 -
Share based payment - - 100 - - - 100
Transactions with owners
60 37 20 508 17 (218) 424
Profit and total comprehensive income for the year - - - - - 801 801
Total comprehensive income less owners transactions 60 37 20 508 583 1,225
17
At 31 March 2024 2,940 11,748 583 818 32 11,071 27,192
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 2024 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 2024, 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 and more flexible bank
facilities following the refinance of August 2023, 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 existing banking facilities.
The Directors are confident that the Company will be able to meet its
liabilities as they fall due over the next 12 months and beyond. 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 USA (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 2024 are as
follows:
Continuing Operations Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Total revenue 4,447 3,240 - 7,687
Profit/(loss) before amortisation, share based payments and exceptional costs
1,949 976 (1,497) 1,428
Pre-exceptional segment result 1,538 764 (2,021) 281
Exceptional costs (5) (7) (101) (113)
Post exceptional segment result 1,533 757 (2,122) 168
Finance income - - - -
Finance costs (150) - - (150)
Profit/(loss) before taxation 1,383 757 (2,122) 18
Taxation -
Profit for the year from continuing operations 18
Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Segment assets 29,366 4,083 760 34,209
Unallocated assets - - - -
Total assets 29,366 4,083 760 34,209
Segment liabilities 6,219 - 125 6,344
Unallocated assets - - 810 810
Total liabilities 6,219 - 935 7,154
The segmental results for the six months ended 30 September 2023 are as
follows:
Continuing Operations Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Total revenue 4,144 3,050 - 7,194
Profit/(loss) before amortisation, share based payments and exceptional costs
1,711 1,048 (1,462) 1,297
Pre-exceptional segment result 1,384 866 (2,015) 235
Exceptional costs (155) - (175) (330)
Post exceptional segment result 1,229 866 (2,190) (95)
Finance income - - - -
Finance costs (76) - - (76)
Profit/(loss) before taxation 1,153 866 (2,190) (171)
Taxation -
Loss for the year from continuing operations (171)
Smart Zones Smart Machines Corporate/Technology
Total
£'000 £'000 £'000 £'000
Segment assets 29,552 4,083 98 33,733
Unallocated assets - - - -
Total assets 29,552 4,083 98 33,733
Segment liabilities 6,290 - 191 6,481
Unallocated assets - - 827 827
Total liabilities 6,290 - 1,018 7,308
Notes to the interim report (continued)
The segmental results for the 12 months ended 31 March 2024 are as follows:
Continuing Operations Smart Zones Smart Machines Corporate/ Technology
Total
£'000 £'000 £'000 £'000
Total revenue 8,615 6,561 - 15,176
Profit/(loss) before amortisation, share based payments and exceptional costs
3,214 2,070 (4,079) 1,205
Pre-exceptional segment result 3,214 2,070 (4,079) 1,205
Exceptional costs (181) 325 (289) (145)
Post exceptional segment result 3,033 2,395 (4,368) 1,060
Finance costs (276) - - (276)
Profit/(loss) before taxation 2,757 2,395 (4,368) 784
Taxation 17
Profit for the year from continuing operations 801
Smart Zones Smart Machines Corporate/ Technology
Total
£'000 £'000 £'000 £'000
Segment assets 30,730 4,083 134 34,947
Unallocated assets - - - -
Total assets 30,730 4,083 134 34,947
Segment liabilities 6,619 - 335 6,954
Unallocated assets - - 801 801
Total liabilities 6,619 - 1,136 7,755
Notes to the interim report (continued)
4. Exceptional items
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2024 2023 2024
£'000 £'000 £'000
Corporate activity and Acquisition costs 59 254 346
Corporate restructuring and transitional costs 49 26 65
Bank facility restructure - 50 59
3G Project 11 - 25
Recovered Corporate costs (6) - (350)
113 330 145
Corporate activity and acquisition costs relate to corporate review costs.
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
2024 2023 2024
£'000 £'000 £'000
United Kingdom corporation tax - - 17
No tax charge provision is made given the tax losses brought forward and the
immaterial likely deferred tax position. The tax credit for March 2024
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. Earnings/(loss) per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders (profit of £18k) by the weighted average number of
ordinary shares outstanding during the period.
Diluted earnings per share are calculated on the basis of profit for the
period after tax (H1 2023: loss for the period) 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 2024 30 September 2023
Profit Basic profit per share Diluted profit per share (Loss) Basic (loss) per share Diluted (loss) per share
£000 £000
Post-tax profit/(loss) attributable to equity shareholders 18 0.06p 0.06p (171) (0.58p) (0.58p)
Operating profit 1,428 - - 1,297 - -
30 Sept 30 Sept
2024 2023
Number Number
Weighted average number of ordinary shares 29,437,290 29,353,449
Dilutive effect of share options 659,636 -
Diluted weighted average number of ordinary shares 30,096,926 29,353,449
The diluted earnings per share for H1 2025 is also 0.06p. No comparative for
H1 2024 due to it being a loss in that period.
INDEPENDENT REVIEW REPORT TO VIANET GROUP PLC
For H1 2024, we have chosen not to undertake an independent audit review which
is an agreed standard approach.
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