TIDMVNET
RNS Number : 4002W
Vianet Group PLC
12 December 2023
Vianet Group plc
("Vianet", "the Company" or "the Group")
Interim Results for half year ended 30 September 2023
Momentum building and on track to deliver sustained growth.
Vianet Group plc (AIM: VNET), is the international provider of
actionable data and business insight to the hospitality, unattended
retail vending and remote asset management sectors through its
ecosystem of connected hardware devices, management software
platforms and smart insights portal, presents its unaudited results
for the six months ended 30 September 2023.
Financial highlights
H1 2024 revenue increased to GBP7.19m (H1 2023: GBP7.18m).
--
Recurring revenues remained strong at 87% (H1 2023: 86%).
--
Gross margin was very healthy and increased by 7.8% to 69%
-- (H1 2023: 64%), driven by recurring revenue growth and operational
cost management.
Adjusted operating profit(a) up 7.4% to GBP1.30m (H1 2023:
-- GBP1.21m).
Like-for-like adjusted operating profit(a) up c 24% at GBP1.5m
-- pre recently acquired BMI operating loss of GBP200k.
PBT on a like-for-like basis was GBP29k (H1 2023: loss GBP107k)
-- pre-BMI.
Operational cash generation, post working capital was GBP1.29m
-- (H1 2023: GBP0.71m), with strong cash conversion at over 105%
of EBITDA.
Net debt reduced to GBP2.09m (H1 2023: GBP3.56m).
--
(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 that despite a challenging economic
environment, the Group has performed in line with management's
expectations, achieving year-on-year growth in key performance
indicators and that the Group is very much on track to meet
management's profit expectations for the full year.
In the hospitality division, we maintained a strong performance
in the UK's leased and tenanted sector and made inroads into the
UK-managed sector. This was bolstered by introducing a new insights
portal and the strategic acquisition of Beverage Metrics Inc
("BMI"), enhancing our ability to offer a comprehensive beverage
management solution.
The Smart Machines division has also seen notable year-on-year
growth, overcoming the initial delays in H1 orders due to
customers' planning for the mobile network operators' ("MNO") 3G
switch-off. Vianet's proactive support in transitioning customers
from 3G to 4G has transformed this initial challenge into a sales
catalyst in H2. The Company is not only upgrading its existing
customer base but also capturing new business by replacing
competitors' 3G units with our advanced 4G LTE products.
Overall, Vianet Group plc continues to demonstrate its industry
leadership and commitment to helping businesses optimise their
operations, increase profitability, and reduce their environmental
impact.
Divisional highlights
1) Smart Machines
-- In H1 2024, Smart Machines achieved sales of 5,264 units, a
decrease from the previous year (6,306 units) primarily due to
transitional delays in the 3G to 4G network upgrade, which we
anticipate unwinding in H2 2024.
-- The division saw a 5.9% annual growth in its operational
estate, which now totals 55,575 devices.
-- We also successfully established 4,246 new contactless
payment connections, further consolidating our strong market
position.
-- The division's adjusted operating profit grew 29.6% to
GBP1.05 million, reflecting our continued commitment to innovation
and customer satisfaction.
-- We secured 37 new contracts, spanning 3-5 years,
demonstrating the success of our market engagement strategy whilst
also achieving our strategic objective of expanding into the
forecourt sector. This marks a significant diversification
milestone.
2) Smart Zones
-- Smart Zones UK reported a solid adjusted operating profit of
GBP1.96 million, a modest increase from GBP1.89 million last
year.
-- Integrating BMI into our US operations and
acquisition-related expenses impacted overall divisional
profitability by GBP0.25m, resulting in an overall profit of
GBP1.71 million.
-- We secured two new long-term contracts and renewed three
existing ones, reinforcing our strong market presence and the
strength of our long-term client relationships.
Operational highlights
Integration of BMI
-- We have integrated the newly acquired BMI with our draught
monitoring platform, creating an advanced beverage management
solution.
-- This integration significantly enhances our market position
in both the USA and UK hospitality sectors.
Unattended Retail divisions' proactive approach
-- Our Unattended Retail division implemented the "Retain &
Gain" strategy in response to the MNO 3G switch-off.
-- This strategy led new and existing customers to commit to
long-term contracts to upgrade to our 4G LTE solutions, expanding
connectivity within their vending networks.
Expansion into the Forecourt sector
-- In a significant strategic move, our Unattended Retail
division has established a presence in the Forecourt sector,
securing an initial order for approximately 800 units from a key
industry player.
Carbon reduction
-- Aligned with our ESG commitments, in H12024, we achieved a
63% reduction in energy consumption year-over-year, essentially
achieving our goal to reduce our annual energy consumption at our
headquarters by over two-thirds by 2025, reinforcing our dedication
to environmental sustainability .
Commenting, James Dickson, Chairman and CEO of Vianet Group plc,
said:
"Overall, we have had a notable improvement in the Group's
performance with a good first half of the year despite challenging
market conditions and the sales drag resulting from unattended
retail customers taking time to understand the UK's 3G switch-off
and develop their upgrade programmes. Although gradual at first,
this transition is now providing a catalyst for continued sales
growth in the second half of the year, underpinned by an increase
in urgency in our customers' transition from 3G to 4G networks.
The efforts and strategies implemented in the first half are now
bearing fruit, leading to robust sales growth across our
hospitality, unattended retail, and forecourt sectors. This
progress reinforces our confidence in meeting management's profit
expectations for the full year.
Our strategic acquisition of BMI in the US for GBP577,500 marked
a significant step in our international expansion, particularly in
the US hospitality market. The acquisition has significantly
bolstered our presence and growth potential in the region,
accelerated our hospitality product roadmap by 12-18 months, and
enabled integration with a leading pay-to-procure provider for
alcohol supply in the USA. Alongside our existing strategic
relationships, this acquisition positions us well to establish a
profitable and expanding footprint in a very large addressable
market.
The receipt of a GBP924,774 HMRC refund and interest, coupled
with our new banking agreement with HSBC, strengthens our financial
foundation, enhances our liquidity position, and supports our
ongoing growth strategy.
Our collaborations with Vendekin Technologies and Suresite have
opened exciting new avenues in the unattended retail and fuel
forecourt sectors, presenting us with opportunities to expand our
market reach and enhance our revenue streams. Although still in its
early stages, we are very excited about the potential of the mobile
checkout market for unattended retail in the UK and the solutions
we can now offer are being warmly received by our customers.
We have established a solid foundation for future growth,
underpinned by a dynamic team, an innovative product range, robust
recurring income streams and a strong sales pipeline in our key
markets. Looking ahead, we are excited about the potential of our
data capture technology in new, complementary verticals. Over the
last four years, our unwavering commitment to becoming the trusted
advisor in our chosen sectors has yielded significant results, with
more operators seeking our expertise.
During this period, the Group has successfully navigated the
post-pandemic landscape, making calculated strategic investments in
sales, technology, new market sectors, product expansion, and
strategic partnerships. These investments demonstrate their value,
placing the Company in a strong position for sustained growth in
recurring revenues and earnings, robust cash flow generation and
dividend distribution.
As we continue implementing our long-term strategic vision and
exploring new opportunities for Vianet, my optimism and confidence
in our prospects have 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 2023 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 meet Vianet Group via:
https://www.investormeetcompany.com/vianet-group-plc/register-investor
Investors who follow Vianet Group plc on the Investor Meet
Company platform will automatically be invited.
Enquiries:
Vianet Group plc
James Dickson, Chairman & CEO Tel: +44 (0) 1642 358
Mark Foster, CFO 800
www.vianetplc.com
Cavendish Capital Markets Limited
Stephen Keys / Camilla Hume Tel: +44 (0) 20 7397
8900
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 achieved year-on-year growth in its core
divisions, resulting in a 7.4% increase in adjusted operating
profit to GBP1.30m, after accounting for approximately GBP200k in
costs related to the BMI acquisition. Despite economic headwinds
and the necessity for a 3G to 4G network upgrade, our strong H1
2024 performance and promising H2 2024 outlook affirm the Board's
expectations of meeting management's profit expectations for the
full year.
Performance
Group turnover stood at GBP7.19m (H1 2023: GBP7.18m). Our
dependable recurring revenue, from 3-5 year contracts, rose to
GBP6.28m, representing 87% of our H1 2024 turnover (H1 2023:
GBP6.18m, 86%).
The Group's adjusted operating profit increased by 7.4% to
GBP1.30m (H1 2023: GBP1.21m), including BMI's acquisition-related
operational costs of about GBP200k. Without these additional
one-off expenses, the growth would have been 24%, or GBP1.50m.
Our pre-tax loss was GBP0.17m (H1 2023: GBP0.11m loss), after
considering GBP0.33m in exceptional costs primarily from
acquisition activities.
Without the BMI-related operational costs of GBP200k, the
pre-tax figure would have been a profit of approximately
GBP0.03m.
T he Group's loss per share was 0.58 pence (H1 2023: loss 0.27
pence), with earnings per share at 0.02p before accounting for BMI
costs.
Smart Machines
Sales of new telemetry and contactless payment devices have
driven a notable 29% increase in the adjusted operating profit of
our Smart Machines division, reaching GBP1.05m from GBP0.81m in H1
2023. Year-on-year, our installed base expanded by approximately
5.9%, growing from around 52,500 to just under 55,600 connected
units. The first half of the year saw a slower pace due to
customers adapting to the 3G network phase-out and transitioning to
4G technology. This initial slowdown, combined with accumulated
demand, is expected to boost sales in the second half of the
year.
Our sales team in the Smart Machines division successfully
secured 37 new contracts and renewed 8 existing ones, mainly on
five-year agreements. The second half of 2024 is already showing
promising signs, with more contracts being secured as operators
increasingly choose our comprehensive offerings. Furthermore, we
have made inroads into the petrol forecourt sector, attracting
orders from key industry players.
The division is well-positioned, benefiting from our
comprehensive end-to-end solution, industry-leading Suresite
transaction rates, supportive commercial strategies for operators,
a reputation for exceptional customer experience and growing status
as a trusted advisor in the market. We are confident that the
combination of these strengths and our strategic commercial
initiatives will enable us to attract new customers and continue to
propel our growth.
Smart Zones
Our core UK hospitality business in the UK delivered a 4% rise
in adjusted operating profit to GBP1.97m (H1 2023: GBP1.89m). After
deducting approximately GBP200k associated with Vianet Americas and
the post-acquisition phase of BMI, the overall return for the Smart
Zone division stood at GBP1.71m (H1 2023: GBP1.81m).
During this period, we saw a deceleration in the closure rate of
pubs within our core UK installation base. The net decrease was
limited to 150 contracted sites, bringing the total number of our
UK sites to 9,720. The acquisition of BMI has significantly
bolstered our operations in the US, adding around 120
revenue-generating sites to our portfolio. Whilst headlines on
closures and the health of the pub industry may cause
understandable concern, I am very confident that the Group's
hospitality division is positioned to deliver growth for the
following reasons:
-- The leased and tenanted sector has a high degree of
resilience, which underpins existing recurring revenues. Having
undergone decades of rationalisation, the remaining UK leased and
tenanted estate is of decent quality. Leased and tenanted licensees
are personally invested in the success of their business, both
financially and in sweat equity. For the majority, the pub is also
their home.
-- Following the successful integration of BMI, the Group now
has comprehensive beverage management and energy-saving solutions
that enable UK and USA hospitality operators to significantly
improve performance with 4 -7 months payback periods.
The BMI acquisition has opened significant new avenues in the
American market and accelerated our hospitality product roadmap by
an estimated 12 to 18 months. This acquisition has also facilitated
a partnership with a prominent alcohol procurement provider in the
US. These developments and our strategic alliances have laid the
groundwork for fruitful engagements with major US chains, setting
the stage for a profitable expansion in a substantially larger
addressable market by FY2025.
Dividend
We continue proactively managing our cash reserves, focusing on
funding operations and growth initiatives. Our newly arranged
banking facilities with HSBC enhance our financial flexibility and
reduce loan repayments. In October 2023, the Board declared a final
dividend of 0.5p for FY2023 but continues to adopt a cautious
approach as we navigate the second half of the year. Consequently,
we have not declared an interim dividend for H1 2024. However,
subject to stable market conditions and sustained financial
improvement, we anticipate the potential for a final dividend in
October 2024 for FY2024, backed by our H2 2024 cash flow.
Outlook
Our strategic investments in technology and customer solutions,
alongside our strategic launch into the forecourt sector and the
acquisition of BMI, have laid a solid foundation for sustained
momentum into H2 2024. These factors instil confidence in our
ability to meet management's full-year profit expectations.
Our team's collaborative efforts with customers and suppliers in
intelligent cash management solutions are generating good prospects
in remote asset management, contactless payments, and market data
insights. We see the integration of BMI and our expansion into the
forecourt sector as exciting business accelerators.
Key Developments
-- The migration to our SmartVend vending management platform,
set to be completed by Summer 2024, is being well received. It
promises significant operational benefits, leading to new
installations as operators recognise the advantages of an
integrated system and a fully connected vending estate. This will
further cement Smart Machines' position as the market's leading
end-to-end solution.
-- Our proactive approach to the MNO 3G Switch and competitive
Suresite transaction rates are enhancing customer retention and
attracting new business, securing long-term recurring income.
-- Material progress in the forecourt sector with our
contactless payment solutions, including a recent major contract
for approximately 800 devices that signals exciting growth
potential .
-- Despite economic challenges, the Smart Zones division is
poised for growth in the UK and USA hospitality markets, driven by
the launch of our Beverage Metrics bar management solution and
energy-saving initiatives.
-- The growing scope of unattended retail, the demand for
machine connectivity solutions, and contactless payment systems are
driving new sales opportunities, which we are actively addressing
with support from our key partners.
The Board remains optimistic that the increasing relevance of
our products will continue to drive growth, high-quality recurring
income and cash generation and positions us well to continue
delivering sustainable growth for our shareholders whilst
successfully addressing new strategic opportunities.
James Dickson
Chairman & CEO
12 December 2023
Chief Financial Officer's Review
Our operational cash generation before working capital
adjustments stood at GBP1.26m, continuing our track record of
strong cash conversion, approximately 104% of EBITDA (H1 2023:
GBP1.43m), even after accounting for BMI costs. Post working
capital adjustments, our cash generation increased to GBP1.29m (H1
2023: GBP0.71m), over 105% of EBITDA. A significant boost came from
a GBP922k tax rebate, raising our post-working capital figure to
GBP2.21m, which is over 181% of EBITDA. Our working capital
remained stable during this period, and we are seeing a return to
the healthy profit-to-cash conversion trends typical for our
business.
On 1 August, we transitioned to more flexible banking
facilities, which have a more favourable repayment profile than the
previous CBIL loans, easing our cash requirements.
Despite economic uncertainties, the progress we have made,
together with our new banking facilities give us confidence in a
robust cash flow trajectory to support our business operations. At
the half-year, our net debt position improved to GBP2.09m (H1 2023:
GBP3.56m), a result of solid trade performance, tax rebate, and the
benefits of our new banking arrangements. Our gross debt was at
GBP3.42m (H1 2023: GBP4.01m). We anticipate this positive trend
will continue.
Exceptional costs were GBP0.33m (H1 2023: GBP0.04m), primarily
due to BMI acquisition-related expenses.
Smart Machines
Turnover was GBP3.05m (H1 2023: GBP3.00m). Recurring revenue
grew by GBP0.11m, 5% in the period and remained strong at over 77%
(H1 2023: c76%).
Smart Zones
Our core draught beer monitoring operations turnover of GBP4.14m
(H1 2023: GBP4.18m), is a resilient overall performance, with a
strong base of recurring revenue accounting for over 94% of the
total (H1 2023: 93%)
In the UK, pre-exceptional profit reached GBP1.97m (H1 2022:
GBP1.81m), representing growth of around 4%. Including the US
operations and considering the post-acquisition costs of BMI, the
Smart Zones division's overall profit for H1 was GBP1.71m.
Looking Forward
Despite the ongoing economic uncertainties and the challenges of
transitioning from 3G to 4G in H1, it is encouraging to see the
business achieve solid year-on-year growth. This success is
supported by the commercial opportunities in both existing and new
sectors, coupled with more flexible banking facilities, bolstering
our confidence in our growth plans.
Mark Foster
Chief Financial Officer
12 December 2023.
Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2023
Before Before Exceptional
Exceptional Total Unaudited 6 months Total Unaudited Audited
6 months 6 months 6 months Year
Ended Ended Ended Ended Ended
30 Sept 30 Sept 30 Sept 30 Sept 31 March
2023 2023 2022 2022 2023
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Continuing
operations
Revenue 3 7,194 7,194 7,181 7,181 14,115
Cost of sales (2,203) (2,203) (2,574) (2,574) (4,737)
==================== ===== =================== ================ ==================== ================ ==========
Gross profit 4,991 4,991 4,607 4,607 9,378
Administration and
other operating
expenses 4 (3,694) (4,024) (3,397) (3,439) (6,395)
==================== ===== =================== ================ ==================== ================ ==========
Operating profit
pre amortisation
and share based
payments 3 1,297 967 1,210 1,168 2,983
-------------------- ----- ------------------- ---------------- -------------------- ---------------- ----------
Intangible asset
amortisation (1,042) (1,042) (1,170) (1,170) (2,254)
Share based
payments (20) (20) (42) (42) (71)
==================== ===== =================== ================ ==================== ================ ==========
Operating
profit/(loss) post
amortisation and
share based
payments 235 (95) (2) (44) 658
Net finance costs (76) (76) (63) (63) (206)
==================== ===== =================== ================ ==================== ================ ==========
Profit/(Loss) from
continuing
operations before
tax 159 (171) (65) (107) 452
Income tax
credit/(charge) 5 - - 30 30 (291)
-------------------- ----- ------------------- ---------------- -------------------- ---------------- ----------
Profit/(Loss) and
other
comprehensive
income for the
year 3 159 (171) (35) (77) 161
-------------------- ----- ------------------- ---------------- -------------------- ---------------- ----------
Loss/earnings per
share
Continuing
Operations
- Basic 6 (0.58p) (0.27p) 0.56p
- Diluted 6 (0.58p) (0.27p) 0.56p
Consolidated Balance Sheet
At 30 September 2023
Unaudited Unaudited Audited
As at As at As at
30 Sept 30 Sept 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ----------
Assets
Non-current assets
Intangible assets 23,495 23,597 23,281
Property, plant and equipment 3,249 3,265 3,370
Deferred Tax asset - 416 -
Total non-current assets 26,744 27,278 26,651
================================ ========== ========== ==========
Current assets
Inventories 2,371 1,846 2,275
Trade and other receivables 3,295 2,948 3,781
Cash and cash equivalents 1,323 449 69
-------------------------------- ---------- ---------- ----------
6,989 5,243 6,125
=============================== ========== ========== ==========
Total assets 33,733 32,521 32,776
================================ ========== ========== ==========
Equity and liabilities
Liabilities
Current liabilities
Trade and other payables 2,892 2,798 2,348
Borrowings 206 2,143 1,925
Leases 50 13 70
3,148 4,954 4,343
=============================== ========== ========== ==========
Non-current liabilities
Deferred tax liability 827 - 827
Borrowings 3,209 1,867 1,517
Leases 124 - 122
4,160 1,867 2,466
------------------------------- ---------- ---------- ----------
Equity attributable to owners
of the parent
Share capital 2,955 2,880 2,880
Share premium account 11,737 11,711 11,711
Capital redemption 15 15 15
Share based payment reserve 583 541 563
Merger reserve 818 310 310
Retained profit 10,317 10,243 10,488
-------------------------------- ---------- ---------- ----------
Total equity 26,425 25,700 25,967
================================ ========== ========== ==========
Total equity and liabilities 33,733 32,521 32,776
================================ ========== ========== ==========
Summarised Consolidated Cash Flow Statement
For the six months ended 30 September 2023
Unaudited Unaudited Audited
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'000
---------------------------------------- ---------- ---------- ---------
Cash flows from operating activities
(Loss)/profit for the period (171) (77) 161
Adjustments for
Net Interest payable 76 63 206
Income tax (credit)/charge - (30) 1,213
Amortisation of intangible assets 1,042 1,170 2,254
Depreciation 273 243 519
Loss on sale of property, plant
and equipment 23 15 24
Share-based payments expense 20 42 71
Operating cashflow before changes
in
working capital and provisions 1,263 1,426 4,448
Change in inventories (96) (273) (702)
Change in receivables (418) (258) (1,091)
Change in payables 540 (185) (618)
26 (716) (2,411)
Net cash from operating activities 1,289 710 2,037
----------------------------------------- ---------- ---------- ---------
Income tax refund 922 - -
---------------------------------------- ---------- ---------- ---------
Net cash from operating activities 2,211 710 2,037
----------------------------------------- ---------- ---------- ---------
Purchases of property, plant and
equipment (175) (260) (651)
Purchase of intangible assets (695) (936) (1,699)
Purchases of other intangible
assets - - (4)
Net cash from/(used) in investing
activities (870) (1,196) (2,354)
----------------------------------------- ---------- ---------- ---------
Cash flows used in financing
activities
Net Interest payable (76) (63) (206)
Issue of share capital 32 - -
New leases 31 231
Repayment of leases (49) (12) (65)
New borrowings 3,440 - -
Repayments of borrowings (2,297) (558) (992)
Payment of contingent consideration - - (16)
Net cash from/(used in) financing
activities 1,081 (633) (1,048)
----------------------------------------- ---------- ---------- ---------
Net increase/(decrease) in cash
and cash equivalents 2,422 (1,119) (1,365)
Cash and cash equivalents at beginning
of period (1,099) 266 266
Cash and cash equivalents at
end of period 1,323 (853) (1,099)
----------------------------------------- ---------- ---------- ---------
Reconciliation to the cash balance in the Consolidated Balance
Sheet
Cash balance as per consolidated
balance sheet 1,323 449 69
Bank overdrafts - (1,302) (1,168)
----------------------------------------- ---------- ---------- ---------
Balance per statement of cash
flows 1,323 (853) (1,099)
----------------------------------------- ---------- ---------- ---------
Statement of changes in equity
Six months ended 30 September 2023
Share
Share based Capital
Share premium payment Merger Redemption Retained
capital account reserve reserve profit Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
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 26 - 508 - - 609
Transactions with
owners 75 26 20 508 - - 629
------------------------------ --------- --------- --------- --------- ------------- --------- --------
Loss and total comprehensive
expense for the period - - - - - (171) (171)
------------------------------ --------- --------- --------- --------- ------------- --------- --------
Total comprehensive
incomeless owners
transactions 75 26 20 508 - (171) 458
At 30 September 2023 2,955 11,737 583 818 15 10,317 26,425
============================== ========= ========= ========= ========= ============= ========= ========
Six months ended 30 September 2022
Share
Share based Capital
Share premium payment Merger Redemption Retained
capital account reserve reserve profit Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2022 2,880 11,711 499 310 15 10,320 25,735
Share based payment - - 42 - - - 42
Issue of share capital - - - - - - -
Transactions with
owners - - 42 - - - 42
------------------------------ --------- --------- --------- --------- ------------- --------- -------
Loss and total comprehensive
expense for the period - - - - - (77) (77)
------------------------------ --------- --------- --------- --------- ------------- --------- -------
Total comprehensive
income less owners
transactions - - 42 - - (77) (35)
At 30 September 2022 2,880 11,711 541 310 15 10,243 25,700
============================== ========= ========= ========= ========= ============= ========= =======
12 months ended 31 March 2023
Share
Share based Capital
Share premium payment Merger Redemption Retained
capital account reserve reserve profit Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2022 2,880 11,711 499 310 15 10,320 25,735
Issue of shares - - - - - - -
Cancellation of shares - - - - - -
Share option forfeitures - - (7) - - 7 -
Share based payment - - 71 - - - 71
Transactions with
owners - - 64 - - 7 71
-------------------------- --------- --------- --------- --------- ------------- --------- -------
Profit and total
comprehensive income
for the year - - - - - 161 161
-------------------------- --------- --------- --------- --------- ------------- --------- -------
Total comprehensive
income less owners
transactions - - 64 - - 168 232
At 31 March 2023 2,880 11,711 563 310 15 10,488 25,967
========================== ========= ========= ========= ========= ============= ========= =======
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 2023 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 2023, 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 change of bank
facilities on 1 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 2023
are as follows:
Continuing Operations Smart Smart Machines Corporate/Technology
Zones Total
GBP'000 GBP'000 GBP'000 GBP'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 Smart Machines Corporate/Technology
Zones Total
GBP'000 GBP'000 GBP'000 GBP'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 six months ended 30 September 2022
are as follows:
Continuing Operations Smart Smart Machines Corporate/Technology
Zones Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ -------- ----------------- ----------------------- --------
Total revenue 4,175 3,006 - 7,181
-------------------------------------- -------- ----------------- ----------------------- --------
Profit/(loss) before amortisation,
share based payments and
exceptional costs 1,814 814 (1,418) 1,210
-------------------------------------- -------- ----------------- ----------------------- --------
Pre-exceptional segment
result 1,519 652 (2,173) (2)
Exceptional costs - (19) (23) (42)
-------------------------------------- -------- ----------------- ----------------------- --------
Post exceptional segment
result 1,519 633 (2,196) (44)
Finance income - - - -
Finance costs (63) - - (63)
Profit/(loss) before taxation 1,456 633 (2,196) (107)
Taxation 30
-------------------------------------- -------- ----------------- ----------------------- --------
Loss for the year from
continuing operations (77)
-------------------------------------- -------- ----------------- ----------------------- --------
Smart Smart Machines Corporate/Technology
Zones Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- ----------------- ----------------------- --------
Segment assets 27,614 4,083 408 32,105
Unallocated assets - - 416 416
----------------------- -------- ----------------- ----------------------- --------
Total assets 27,614 4,083 824 32,521
----------------------- -------- ----------------- ----------------------- --------
Segment liabilities 6,647 - 174 6,821
Unallocated assets - - - -
--------------------- -------- ----------------- ----------------------- --------
Total liabilities 6,647 - 174 6,821
----------------------- -------- ----------------- ----------------------- --------
Notes to the interim report (continued)
The segmental results for the 12 months ended 31 March 2023 are
as follows:
Continuing Operations Smart Smart Machines Corporate/
Zones Technology Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ -------- ----------------- ------------- --------
Total revenue 8,163 5,952 - 14,115
-------------------------------------- -------- ----------------- ------------- --------
Profit/(loss) before amortisation,
share based payments and
exceptional costs 3,423 2,012 (2,330) 3,105
-------------------------------------- -------- ----------------- ------------- --------
Pre-exceptional segment
result 3,174 1,667 (4,061) 780
Exceptional costs - (19) (103) (122)
-------------------------------------- -------- ----------------- ------------- --------
Post exceptional segment
result 3,174 1,648 (4,164) 658
Finance costs (206) - - (206)
Profit/(loss) before taxation 2,968 1,648 (4,164) 452
Taxation (291)
-------------------------------------- -------- ----------------- ------------- --------
Profit for the year from
continuing operations 161
-------------------------------------- -------- ----------------- ------------- --------
Smart Smart Machines Corporate/
Zones Technology Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- ----------------- ------------- --------
Segment assets 28,593 4,083 100 32,776
Unallocated assets - - - -
--------------------- -------- ----------------- ------------- --------
Total assets 28,593 4,083 100 32,776
----------------------- -------- ----------------- ------------- --------
Segment liabilities 5,743 - 239 5,982
Unallocated assets - - 827 827
----------------------- -------- ----------------- ------------- --------
Total liabilities 5,743 - 1,066 6,809
----------------------- -------- ----------------- ------------- --------
Notes to the interim report (continued)
4. Exceptional items
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'000
Corporate activity and Acquisition
costs 254 23 103
Corporate restructuring and
transitional costs 26 18 17
Contingent consideration costs - - -
Bank facility restructure 50 - -
Other - 1 2
330 42 122
------------------------------------ ------------------------ ------------------ ---------
Corporate activity and acquisition costs relate to the trade and
asset acquisition of Beverage Metrics Inc. in the main. 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 charge/(credit) for tax is based on the profit/(loss) for
the period and comprises:
6 months 6 months Year
Ended Ended Ended
30 Sept 30 Sept 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'000
United Kingdom corporation
tax - 30 (291)
----------------------------- --------- --------- ---------
No tax charge provision is made given the tax losses brought
forward and the immaterial likely deferred tax position. The tax
credit for Sept 22 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 GBP171k) 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 2023 30 September 2022
(Loss) Basic Diluted (Loss) Basic Diluted
(loss) (loss) (loss) (loss)
per share per share per share per share
GBP000 GBP000
Post-tax loss attributable
to equity shareholders (171) (0.58p) (0.58p) (77) (0.27p) (0.27p)
Operating profit 1,297 - - 1,210 - -
Operating profit pre
BMI costs 1,475 - - N/A - -
Post tax profit attributable
to equity shareholders
pre BMI costs 7 0.02p 0.02p N/A N/A N/A
30 Sept 30 Sept
2023 2022
Number Number
Weighted average number of ordinary shares 29,353,449 28,808,914
Dilutive effect of share options - -
--------------------------------------------- ----------- -----------
Diluted weighted average number of ordinary
shares 29,353,449 28,808,914
--------------------------------------------- ----------- -----------
Due to the loss in the period no dilutive effect of share
options is required to be calculated.
INDEPENDENT REVIEW REPORT TO VIANET GROUP PLC
For H1 2023, we have chosen not to undertake an independent
audit review which is an agreed standard approach.
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END
IR NKDBQOBDDPBD
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December 12, 2023 02:00 ET (07:00 GMT)
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