Vianet Group plc (AIM: VNET), the international provider of actionable data and business insight through devices connected to its Internet of Things platform, today provides the following trading update ahead of the Group's preliminary results for the year ended 31 March 2019, which are expected to be released on Tuesday, 4 June 2019.
Trading for the second half of the year has been largely as anticipated and, as a result, the Group's full year profits will be in line with market expectations and ahead of last year's outturn of £3.62 million. As such, the Board intends to recommend a maintained final dividend of 4.0 pence per share.
The Smart Machines division, including the successfully integrated Vendman business, continues to deliver strong growth in connected devices, with increased penetration helped by the transition of capital sales elements to a recurring sales model. Whilst reduced capital sales suppresses short term financial performance, these strong contracted recurring revenues provide greater visibility and higher quality of future earnings.
The Smart Zones divisional contribution is slightly down year on year, with the impact of pub closures being partially offset by transactional process cost savings and system upgrades for customers.
James Dickson, Chairman, commented: "We are pleased to deliver good year-on-year profit growth again and it is notable that this has been achieved whilst shifting the focus within Smart Machines from capital to recurring annuity based sales. The successful integration of Vendman has boosted momentum and we have seen good growth in connections for telemetry and contactless payment solutions for both the coffee vending, and snack and can vending markets."