Vianet Group plc (AIM: VNET), the international provider of actionable data and business insight through devices connected to its Internet of Things platform, is pleased to announce its final results for the year ended 31 March 2019.
Financial highlights (continuing operations)
- Revenue increased 7.7% to £15.68 million (2018: £14.56 million)
- Recurring revenues remain strong at 94% (2018: 90%) helped by the Vendman acquisition in October 2017 and transition from capital to annuity based sales in Smart Machines
- Gross margin stable at 68% (2018: 70%)
- Operating profit pre-amortisation of intangibles, share options and exceptional costs up 6.4% to £3.85 million (2018: £3.62 million)
- Profit before taxation was up 29.8% to £2.66 million post exceptional items (2018: £2.05 million) with profit after tax up 37.1% to £2.48 million (2018: £1.81 million)
- Basic earnings per share (before tax) and post-exceptional costs at 8.87 pence (2018: 6.55 pence)
- Final dividend of 4.00 pence per share proposed giving a full year total of 5.70 pence per share (2018: 5.70 pence)
- Smart Machines adjusted operating profit of £1.41 million, including Vendman contribution of £0.42 million, grew 31.8% from £1.07 million
- Smart Machines added 10,285 new connected devices (2018: 4,490) - helped by the highly encouraging roll-out of cloud-based contactless payment solutions
- Smart Zones adjusted operating profit of £4.48 million (2018: £4.53 million) - a positive result given the headwinds in the UK pub sector
- Smart Zones Technology upgrades in 1,901 pubs creating IOT hubs, with a further 2,497 in pipeline for 2019/20
- £3.0 million investment in cloud and mobile technology to modernise the Smart Zones platform and support growth in the Smart Machines division
Commenting on the final results, James Dickson, Chairman of Vianet Group plc, said:
"Vianet has made very good progress towards delivery of earnings breakthrough and continues to benefit from the focus on exploiting growth opportunities in the Smart Machines division whilst managing performance back towards growth in the Smart Zones division. In the year, the historic Smart Zones contribution was broadly maintained whilst Smart Machines would have nearly doubled its operating profit had the Group not moved to an annuity-based model for new sales. As it was, reported profits rose by 31.8% to £1.41 million.
"Smart Machines leading end-to-end product suite and established presence is continuing to create strong growth opportunities across the UK and Europe. The combined business capability and potential of Vianet and Vendman and the roll-out of the global coffee contract will be transformational for this division. In the coming years, Smart Zones will aim to maintain contribution from the UK pub market whilst taking advantage of growth prospects in the significant US hospitality sector.
"Our recent £3.0 million investment in cloud infrastructure and mobile technology will help develop existing revenues in both Smart Zones and Smart Machines, and also provide the scalability, flexibility and speed to support rapid growth in existing and potential new verticals.
"The Group is in good shape to deliver strong earnings growth and enters FY2020 with solid momentum and focus on our exciting opportunities."