Trading Update

RNS Number : 9022B

Vianet Group PLC

24 April 2012

 



Press Release

24 April 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 and forecourt services sectors is pleased to announce that its results for the financial year ended 31 March 2012,  will be announced on Tuesday, 12 June 2012 and provides the following trading update. 

The Group's trading for H2 is likely to be as anticipated resulting in the full year profits expected to be around £4.0 million^* and in line with market expectations.  The Group's strategy to reduce costs and drive sales, particularly of the Group's newer products, has started to gain traction and the Board expects benefits to be realised in the current financial year.

Despite trading remaining challenging, the progress on the Group's key products has been encouraging and the Board is confident that such progress will drive a return to growth in the coming year.

The re-launch of i-draught™ and the introduction of the Group's Nucleus Smart Tills™ were received very positively by customers, many of whom have been carrying out extensive evaluations of i-draught™ on new sites and as a replacement for standard Beer Monitoring. Increased i-draught™ penetration is being achieved across the on-premise draught beer market, where it now accounts for over ten per cent of the Group's installation base.  

The losses associated with the Group's Vending Telemetry business continued to reduce during the year, to the point where monthly trading is at breakeven going into the current year. There has been good progress in developing significant new sales opportunities for the Group's end-to-end vending telemetry solution with major international companies, including the Group's cashless and contactless solutions being used at the upcoming Olympic Games.

The Group's technology arm, Viatelemetry continued to make good progress in developing horizontal market opportunities and sales of our leading edge data capture and transmission technologies which help businesses talk to machines.

Although the Fuel Solutions Division's H2 losses were higher than anticipated due to delayed activity, there was good progress in downsizing the cost base and in gaining new business as the market's only end-to-end solution for forecourt operators and it is anticipated that the division will trade positively during the current year.

Whilst the Board expects the testing economic environment and challenging trading conditions to continue, the future growth prospects across the Group's Leisure and Fuel Solutions divisions are very encouraging and management views the future with confidence.  The Board anticipates maintaining the current dividend policy as the Group continues to generate cash from its core business.

An analyst briefing on the full year results to be given by James Dickson, Chief Executive, and Mark Foster, Finance Director, will be held at 9.30 am on Tuesday, 12 June 2012 at Abchurch Communications, 125 Old Broad Street, London, EC2N 1AR. 

^* Operating profit before intangible amortisation, share based payments, and exceptional costs 

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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
Joanne Shears / Mark Dixon / Oliver Baxendale [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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