REG - Vianet Group PLC - Trading Update and Board Change

VianetAnnouncement

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RNS Number : 3742C  Vianet Group PLC  29 April 2026

29 April 2026

 

Vianet Group plc

 

("Vianet", the "Company" or the "Group")

 

Trading Update, Notice of Results, Proposed Final Dividend and Board Change

Vianet, the international provider of actionable data, business insights and
payment solutions through its integrated ecosystem of connected hardware
devices, software platforms and smart insights portals, is pleased to provide
a trading update for the financial year ended 31 March 2026, and confirms that
the Company's full-year results for the year ended 31 March 2026 will be
published on Tuesday, 09 June 2026.

The Group has delivered a resilient financial performance in the year,
underpinned by the strength of its recurring revenue model, and continued
operational discipline, despite a more cautious customer investment
environment as flagged in the Group's update in February.

Financial Highlights

·      Turnover: £15.5 million (FY25: £15.3 million), demonstrating
continued year-on-year steady growth.

·      Recurring revenue: £13.6 million representing 88% of total
revenue, reinforcing the strength and visibility of the Group's business
model.

·      Gross margin: Maintained at 69%, reflecting ongoing operational
efficiency and pricing discipline.

·      Adjusted EBITA (pre-exceptional and share based payments): £3.61
million (FY25: £3.59 million), evidencing stable profitability.

·      Net cash: £0.44 million at year end (FY25: net debt of £0.38
million), which was ahead of expectations and reflected strong cash generation
and balance sheet improvement.

·      Proposed final dividend: Increased to 2.0p per share,
demonstrating confidence in the Group's financial position and future
prospects.

·      Total dividend for FY26: 2.4p per share (interim: 0.4p paid
January 2026), representing an 85% increase on FY25's total dividend of 1.3p
per share, reflecting the Board's progressive dividend policy and growing
confidence in the business.

Operational Overview

Both the Smart Machines and Smart Zones divisions continued to expand their
installed base through a combination of new contract wins and extensions with
existing customers. As previously announced, while the Group experienced some
delays in deployment and conversion of pipeline opportunities during the
second half, reflecting timing delays rather than loss of contracts, overall
demand for Vianet's solutions remains robust, supported by the clear value
delivered to customers through enhanced operational insight and efficiency.

In addition, the Group's strategic focus on long-term contracts and recurring
income continues to underpin performance, providing strong revenue visibility
and resilience. This model positions the business well to benefit when
customer investment cycles begin to normalise, and delayed deployments convert
into revenue.

In the United States, the Group has continued to build its presence, securing
key customer agreements and establishing a platform for future growth. The
level of revenues in the year reflects the early stage of this expansion and
the Board remains encouraged by the scale of the opportunity and the strength
of the pipeline.

Cash Generation and Capital Allocation

Vianet has delivered a standout cash performance this year, with its
high-quality recurring revenue base and tight working capital discipline
converting strongly into cash. The Group has crossed a significant threshold,
moving from a net debt position of £0.38 million last year to a net cash
balance of £0.44 million at year end. This cash-generative model is no
accident. With 88% of revenues locked in under multi-year contracts, Vianet
enjoys exceptional revenue visibility and predictability - a rare quality that
funds continued investment in product innovation and geographic expansion,
while simultaneously supporting a growing return to shareholders. Reflecting
that confidence, the Board is proposing an increased final dividend of 2.0p
per share - bringing the total FY26 dividend to 2.4p (including the 0.4p
interim paid in January). This represents an 85% uplift on FY25's total of
1.3p, and underscores the Board's commitment to a progressive, sustainable
dividend policy as the business scales.

Leadership and Succession Planning

Progressing from the combined CEO - Chairman role implemented during the
pandemic, Vianet enters its next chapter with a clear plan and the right
leadership team in place. The Board has been engaged in a thorough and
deliberate succession process - one designed to ensure continuity of momentum
while equipping the Group with the leadership profile best suited to its next
phase of growth: sharper operational execution, deeper customer engagement,
and the scaling of its technology platforms.

The result of that process is the appointment of Craig Brocklehurst as Chief
Executive Officer, effective 31 May 2026. Craig, who has a strong commercial
instinct, has been a central figure within the business for several years,
accumulating deep operational knowledge and an intimate understanding of the
Group's customers, markets, and technology. He has been at the heart of
several of Vianet's most significant milestones including the expansion of its
recurring revenue base, the development of the hospitality and unattended
retail platforms, and the cultivation of key long-term customer relationships.
His track record of delivery makes him the natural choice to drive the Group
forward.

As part of this transition, James Dickson, who has led the business with
distinction, will step down as Chief Executive Officer and return to his role
as Chairman of the Board. The Group will continue to draw on James's strategic
insight, his relationships in the US market, and his enduring commitment to
Vianet's success - ensuring this transition is truly additive.

The Board is mindful of best practice corporate governance and is confident
this is a planned, orderly, handover that preserves leadership continuity
while injecting fresh operational energy at the top. Craig's appointment is a
powerful signal of the strength of Vianet's internal talent pipeline - and of
a management team that is ready to deliver.

Additional Disclosures Required under the AIM Rules for Companies

In accordance with AIM Rule 17 and Schedule 2(g) of the AIM Rules, Craig
Brocklehurst (aged 50) currently holds no other directorships.

Mr Brocklehurst does not have any previous directorships or partnerships of
which he has been a director or partner over the last five years.

There is no further information to be disclosed in respect of the above
appointment pursuant to Rule 17 or paragraph (g) of Schedule 2 of the AIM
Rules for Companies.

Outlook

The Board remains confident in the Group's long-term prospects. The strength
of Vianet's recurring revenue model, combined with a growing installed base
and a healthy pipeline of opportunities, provides a solid platform for future
growth.

As customer investment activity eventually normalises and delayed deployments
convert, the Group is well positioned to capture improved momentum across both
divisions. Ongoing investment in technology, alongside expansion in the US
market, adds further potential to an already compelling growth trajectory.

The Board enters the new financial year with conviction - and a clear focus on
delivering sustained, long-term value for shareholders.

James Dickson, Chairman of Vianet, commented:

"This has been a year of genuine progress for Vianet. Our recurring revenue
model has once again demonstrated its strength - converting reliably into
cash, enabling us to move from a net debt position to a healthy net cash
balance, and giving us the financial firepower to both invest in growth and
increase returns to shareholders.

While some customers understandably took longer than anticipated to finalise
deployment decisions, the underlying demand for what we do is real, growing,
and not going away. Our pipeline gives us every reason to be optimistic.

I am also immensely proud to be announcing Craig Brocklehurst as our incoming
Chief Executive Officer. Craig has been instrumental in building the Vianet of
today - from the growth of our recurring revenue base to the development of
our Smart Zones and Smart Machines platforms. He steps into this role with the
trust of the Board, a deep understanding of our customers and markets, and a
clear vision for where we go next. I look forward to supporting him as
Chairman as we capitalise on the significant opportunity ahead."

This announcement contains inside information.

Investor Presentation

The Vianet management team will provide a live presentation of the FY results
via the Investor Meet Company ('IMC') platform on Tuesday 09 June 2026 at 10
am. The presentation is open to all existing and potential shareholders. Via
your IMC dashboard questions can be submitted pre-event until 9am on the day
or during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet VIANET
GROUP PLC via:
https://www.investormeetcompany.com/vianet-group-plc/register-investor
(https://links.uk.defend.egress.com/Warning?crId=69e77bfa427d26c5f5e46e7e&Domain=vianetplc.com&Threat=eNpzrShJLcpLzAEADmkDRA%3D%3D&Lang=en&Base64Url=eNo1yzEOgDAIAMAXUXZ_0zSkklgggCX-Xhenm-7MtDgQq6qxbIpUX0Q5dFmXp33i5i6UMF1vA7sGOk2OJId_vM5rG58%3D&@OriginalLink=www.investormeetcompany.com)

Enquiries:

 Vianet Group PLC
 James Dickson, Chairman            Tel: +44 (0) 1642 358 800

 Sarah Bentham, CFO                 www.vianetplc.com (http://www.vianetplc.com/)
 Cavendish Capital Markets Limited
 Stephen Keys / Isaac Hooper        Tel: +44 (0) 20 7220 0500

 Investor Enquiries:
 Dale Bellis                        Tel: +44 (0) 20 7397 1928
                                    www.cavendish.com (http://www.cavendish.com/)

About Vianet

Vianet Group is a leading provider of IoT-driven data insights and payment
solutions, combining smart device data with external sources to deliver
actionable intelligence. Since joining AIM in 2006, the Group has expanded
beyond its core beer monitoring roots into inventory solutions, vending
telemetry, and contactless payment solutions for unattended retail.

Serving 300+ customers globally and processing data from over 250,000
connected devices daily, Vianet is a leading European B2B provider with over
85% recurring revenues and strong blue-chip relationships. The Group is also
expanding its presence in the USA hospitality market, securing key contracts,
and building a platform for future growth.

Its Smart Machines unattended retail division enables device-level
connectivity and payments, while Smart Zones division integrates multiple
devices through a central hub to deliver system-wide insights and inventory
management solutions for hospitality operators.

For more information, visit www.vianetplc.com (http://www.vianetplc.com)

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