Trading Update

RNS Number : 7867P

Vianet Group PLC

30 October 2012

 



Press Release

30 October 2012

Vianet Group plc

("Vianet" or "the Group")

Trading Update

Vianet Group plc (AIM:VNET), the leading provider of real time monitoring systems and data management services for the leisure, vending, and forecourt services sectors, announces that the Group's results for the six months ended 30 September 2012 will be released on Tuesday, 4 December 2012 and is pleased to provide the following update on trading. 

The Group's strategy to reduce costs and drive sales of its newer products has started to deliver the anticipated benefits, resulting in H1 trading being in line with management expectations. 

Trading in the Group's core beer monitoring business has been strong as a result of several major customer contract extensions which included the installation of iDraughtTM as a replacement for standard Beer Monitoring.   iDraughtTM, which now accounts for almost fifteen per cent of the Group's total installation base, has continued to increase penetration of the on-premise draught beer market, with many major retailers conducting extensive evaluations.

In addition, the Group is encouraged by the early interest in iDraught^TM from national retail chains resulting from increased investment in the USA as Vianet Americas extends its foot print beyond the Colorado on-premise beer market.

The Group's Vending Telemetry business continued to trade at breakeven in H1 however the prospects for H2 are strong.  The improvement arises from further progress in developing significant new sales opportunities with major international companies for the Group's leading end-to-end vending telemetry, and Touch & Pay^TM cashless and contactless solutions, which were used by Coca Cola and VISA at the recent London 2012 Olympic Games.

This compelling end-to-end proposition for brand owners and vending operators provides a strong platform as Vianet aims to become the market leader in the provision of these solutions for the global vending market.

Whilst the Fuel Solutions Division has benefitted from a reduced cost base and new business gains for the market's only end-to-end solution for forecourt operators, it is anticipated that the division will make a small loss in H1. However trading has improved month-on-month and breakeven was achieved in September 2012, and the Board anticipates that new contracts should result in further improvement in H2.

Whilst the overall economic environment remains difficult, the future growth prospects across the Group's Leisure, Vending and Fuel Solutions businesses are very encouraging and management continues to view the future with confidence.  The Board fully expects this progress to result in current year profits growth, and anticipates maintaining the current progressive dividend policy as the Group continues to generate cash from its core business.

An audio cast of the interim results presentation given by James Dickson, Chief Executive, Mark Foster, Finance Director, and Stewart Darling, Chief Operating Officer will be released at 7.00 am on Tuesday, 4 December 2012 on the Group's website www.vianetplc.com with the link also being distributed by Abchurch Communications. 

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Enquiries:

Vianet Group plc
James Dickson, Chief Executive	Tel: [phone]
[e-mail]	www.vianetplc.com
Cenkos Securities plc
Stephen Keys / Camilla Hume	Tel: [phone]
	www.cenkos.com

Media enquiries:

Abchurch Communications
Sarah Hollins / Joanne Shears  [e-mail]	Tel: [phone] www.abchurch-group.com

About Vianet

Vianet Group is focused on the provision of real time monitoring systems and data management services for the UK's leisure and petrol forecourt sectors. Since its admission to AIM in 2006, the Group has grown both organically and through a series of strategic acquisitions to give the Group access to key vertical markets. The Group operates two divisions which comprise five key product groups:

LEISURE DIVISION

Beer Monitoring (BMS)	The Group's core product, BMS, is widely used by owners and operators within the UK licensed on-trade, especially the tenanted / leased pub sector. Flow meters connected to draught beer dispense lines send data via an on-site communication panel to a secure central database. Liquid volumes by fount, draught wine or post mix are tracked as they are served, thereby helping customers to maximise sales, service and quality as well as managing their costs. BMS is installed in over 18,000 pubs and manages data for more than one in three UK pubs.
i-draughtTM	A more recent and rapidly growing product offer is i-draughtTM, an extension of the Group's BMS, which scrutinises the quality of products running through beer lines in a bar; measuring volume, temperature, flow rate and liquid type (e.g. beer, cleaning fluid or water) at the point of dispense. i-draughtTM is the first system to provide effective measurement of true yields on draught products. Actual dispense volumes are compared with till transactions to identify shrinkage from products given away, pilferage and wastage. i-draughtTM measures the precise temperature of every pint as it is dispensed, the time taken to dispense each drink, and automatically identifies the liquid allowing customers to know exactly when lines are cleaned. Wherever they are, customers can stay in control through accessing their information on a secure web site.
Gaming  Machine Data Services	The acquisition of Coin Metrics in May 2007 was a strong strategic fit with Vianet's existing Machine Insite business which already provides gaming machine data management and consultancy services to operators within the pub, club and leisure markets. Customers benefit from state-of-the-art real-time data capture and reporting systems that deliver improved machine profitability and operational security.
Vending  Telemetry	The Group's subsidiary Vianet Limited is a pan-European provider of telemetry solutions and data applications to the vending industry. It provides services for all vending management needs; from operations, sales, field services, national accounts to senior management.

FUEL SOLUTIONS DIVISION

UK Petrol Forecourt Fuel Asset Management Services

Vianet Fuel Solutions ("VFS"), supplies key management information and associated services to independent, multi branded owner, and supermarket petrol forecourt operators to ensure they have total visibility and control of their end-to-end business via a single web-based solution. VFS offers the only one stop shop offering for end-to-end fuel asset management  products and services, which allow customers to maximise ROI from fuel stocks and assets which store, control and issue fuels. Our wet stock analysis provides key management information to independent, multi branded owner, and supermarket petrol forecourt operators helping them to reduce loss of fuel and improve profitability. VFS is the UK market leader in fuel pump calibration, adjustment and legal verification, and also a leading provider of forecourt audit and compliance services. Our proprietary web-based contract management solutions for forecourt operations have been designed to significantly simplify management of multiple contractors for both reactive and preventive maintenance, as well as ensuring regulatory compliance in a sector where exemplary control measures are essential. In addition, VFS offers forecourt engineering and project management solutions to a number of forecourt operators. VFS is the UK distributor for OPW Fuel Management System's tank gauging solutions and also performs tank relining, liquefied petroleum gas and small forecourt service works.

Headquartered in Stockton-on-Tees, Vianet employs more than 270 people. 

For further information, please visit www.vianetplc.com

 

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