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Turnover and pre-tax profits down for Vianet Group

By BFN News | 08:36 AM | Tuesday 12 June, 2012


Vianet reports turnover for the year was £22.98 million (2011: £24.28 million). Turnover in the Leisure division decreased from £18.00 million to £16.43 million. This was a due to a combination of factors; predominantly it was due to several of the Group's pub company customers taking their lower margin cellar audit management in house but also due to some pub closures, as well as a number of delayed projects. The level of contractual and recurring revenues remains consistent at just over 70% of Group turnover and the recent contract extensions, both in beer monitoring and vending sectors will ensure that this level of contractual business remains steady in the current year. The Group's overall operating gross margins remained stable at 53% which the Board believes is encouraging in an increasingly competitive environment. The Leisure division's gross margin increased to over 60% (2011: 58%) although, due to lower sales and other costs factors, the margins in the Fuel Division fell to 22% (2011: 42%). Due to the amount of reorganisation and integration in the year exceptional and amortisation costs were significantly higher than normal. As a result, underlying operating profit before exceptional items was £3.9 million (2011: £4.0 million). Group profit before taxation amounted to £2.34 million compared to £3.03 million in 2011. Basic earnings per share post-exceptional costs decreased to 8.00 pence from 8.61 pence in 2011. Despite the overall underlying trading performance remaining flat, the Board remains confident of the longer term prospects for the Group and is maintaining its progressive dividend policy. The Board is recommending the payment of a final dividend of 4p per share in respect of the year ended 31 March 2012. At 8:36am: (LON:VNET) share price was 0p at 96p Story provided by StockMarketWire.com

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