Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

Vianet Group PLC (VNET)

  Print      Mail a friend

Tuesday 05 December, 2017

Vianet Group PLC

Interim Results

RNS Number : 3412Y
Vianet Group PLC
05 December 2017
 

  

 

Press release                                                                                                                                     5 December 2017

 

Vianet Group plc

 

("Vianet", "Company" or "the Group")

 

Interim Results

 

Vianet Group plc (AIM:VNET), the international provider of actionable data and business insight through devices connected to its Internet of Things platform ("IOT"), is pleased to announce its interim results for the six months ended 30 September 2017.

 

Financial summary

 

Revenue of £6.71 million (H1 2017: £7.06 million) with recurring revenues at 90% (H1 2017: 86%) of turnover

Adjusted operating profit* up 3.97% to £1.70 million (H1 2017: £1.64 million)

Pre-exceptional items, profit before tax was £1.29 million up from £1.26 million last year

Profit before tax £0.90 million (H1 2017: £1.13 million) after expensing £0.19 million of corporate acquisition costs

Basic earnings per share (pre-exceptional items) up 7.02% at 3.66p (H1 2017: 3.42p), including a deferred tax adjustment charge of 1.05p

Operational cash generation of £1.25 million (H1 2017: £1.50 million)

Net cash of £2.72 million (H1 2017: net cash £1.98 million)

Interim dividend of 1.70p (H1 2017: 1.70p)

 

Divisional highlights

 

Smart Zones adjusted operating profit of £2.27 million (H1 2017: £2.39 million)

Smart Machines adjusted operating profit of £0.47 million (H1 2017: £0.45 million)

Smart Machines growth continues with 2,395 new unit sales (H1 2017: 3,335 units), predominantly in coffee vending

 

Post H1 period end

 

Earnings-enhancing strategic acquisition of Vendman, the UK's leading unattended retail management software company

Smart Machines material long term contract win for the pan European and Australia and New Zealand operations of a leading international coffee company

Company reclassified as part of FTSE quarterly ICB classification changes to the ICB subsector of Telecommunication Equipment effective from 18 December 2017

 

* Adjusted operating profit is profit before exceptional costs, amortisation, interest and share based payments

 

Commenting on the interim results, James Dickson, Chairman of Vianet Group plc, said:

"I am pleased to report that the Group's continued focus on growth areas has resulted in a moderate increase in adjusted operating profits for the six months to 30 September 2017, with our recurring revenue streams being strengthened by growth in the Smart Machines division further enhancing the quality of the Group's earnings.

 

I was particularly pleased to report the acquisition of Vendman and a material contract win with a global coffee company post the year end as endorsement of the exciting growth prospects for our Smart Machines division.   The revenue stream transition towards an annuity base will provide greater visibility and quality of future earnings for this division.

 

As we expand the iDraughtTM footprint, develop new revenues from further Pubco data analytics and deliver efficiencies from increased automation in our Smart Zone division, the Group believes that the division's contribution can be sustained notwithstanding the challenges of the end customers' market.

 

Further we were pleased that the company's focus on IOT and data analytics has been recognised by way of the reclassification of Vianet to the Technology Supersector as part of the FTSE ICB quarterly classification changes which becomes effective as from 18 December 2017.    We believe this should also bring Vianet to the attention of a wider audience.

 

Underpinned by high levels of recurring revenue, Group cash flow is strong and there is a solid financial platform to facilitate further expansion and development.   The Board remains confident that Vianet's long term strategy is appropriate and that the Group is capable of delivering consistent and sustained growth."

- Ends -

 

An audio cast of the interim results presentation, given by Stewart Darling (Chief Executive) and Mark Foster (Chief Finance Officer), was released this morning, Tuesday, 5 December 2017 at 07.00hrs and is available on the Group's website, www.vianetplc.com.

 

Enquiries:

Vianet Group plc

 

James Dickson, Chairman

Stewart Darling, CEO

Mark Foster, CFO

Tel: +44 (0) 1642 358 800

 

www.vianetplc.com

 

Cenkos Securities plc

 

Stephen Keys / Camilla Hume

Tel: +44 (0) 20 7397 8900

 

www.cenkos.com 

Media enquiries:

Yellow Jersey PR

 

Sarah Hollins

[email protected]

             Tel: +44 (0)7764 947 137

www.yellowjerseypr.com

 

 

Chairman's Statement

 

I am pleased to report that the Group's focus on growth areas has resulted in a moderate increase in adjusted operating profits for the six months to 30 September 2017, as compared to the same period last year.  In addition, the Group's recurring revenue streams have been strengthened further by growth in the Smart Machines division.

 

Against a background of continued pub closures, adjusted operating profit in the Smart Zones division remained stable at £2.27 million (H1 2017: £2.39 million).  Vianet Americas added a further 31 new sites helping to reduce H1 year on year adjusted operating losses to £0.07 million (H1 2017: £0.08 million) despite additional costs associated with continuing some key long term iDraught commercial evaluations by national operators.

 

Notwithstanding our focus on increasing the proportion of recurring revenues thereby reducing the number of capital sales, we were pleased with the 5.6% year on year growth in adjusted operating profit delivered by the Smart Machines division.

 

Results

Turnover of £6.71 million (H1 2017: £7.06 million) was down compared to last year largely due to the transition in Smart Machines from capital to annuity sales, and as described above, the effect of pub closures on Smart Zones.

 

The Group's profit before amortisation, share based payments and exceptional items increased to £1.70 million (H1 2017: £1.64 million) as a result of improved operational efficiencies and administrative cost reductions.

 

Group profit before taxation reduced to £0.90 million (H1 2017: £1.13 million) after expensing £0.19 million in corporate acquisition costs.     

                                                                                                                                                       

Group earnings per share before exceptional costs and deferred tax adjustment amounted to 4.71 pence (H1 2016: 4.63 pence), with a deferred tax adjustment of £0.29 million reducing earnings per share before exceptional costs and post deferred tax adjustment to 3.66 pence (H1 2017: 3.42 pence).

 

Dividend

 

Reflecting the Board's continued confidence in the Group's growth plans and recent strategic news flow, the Board is pleased to maintain the interim dividend at 1.70 pence per share (H1 2017: 1.70 pence per share), payable on 31 January 2018 to shareholders on the register as at 15 December 2017.  A final dividend of 4.00 pence per share was paid in respect of the year ended 31 March 2017 on 28 July 2017.

 

Outlook

 

Whilst growth and profitability in the Smart Zones division continues to be influenced by the challenging backdrop to the UK pub sector, the Group has strong prospects and the Board is confident that the management team can deliver strong growth.  

 

We are excited by the growth prospects for Smart Machines which look increasingly assured following the acquisition of Vendman and the European contract win for a leading international coffee company.  Additionally the transition in this division's revenues towards a significantly greater level of annuity, provide greater visibility and quality of future earnings.

 

As we expand the iDraughtTM footprint, develop new revenues from further Pubco data analytics and deliver efficiencies from increased automation in our Smart Zone division, we are optimistic that the division's contribution can be sustained despite the challenges faced in its customers' core market of UK pub retailing.

 

Underpinned by high levels of recurring revenue, Group cash flow is strong and we have a solid financial platform to facilitate further expansion and development.

 

The Board were pleased with the recent FTSE ICB subsector reclassification of Vianet from Support Services to the Technology subsector of Telecommunications Equipment, effective from 18 December 2017, and believes this classification more accurately reflects the Group's IOT and data analytics driven business model.  We believe that this should also bring Vianet to the attention of a wider audience which would be a favourable development.

 

The Board remains confident that Vianet's long term strategy is appropriate and that the Group is capable of delivering consistent and sustained growth, within the parameters of its influence and control.

 

James Dickson                                                                                 

Chairman                                                             

4 December 2017

 

 

Chief Executive and Chief Financial Officer Review

 

Underlying trading for the six months to 30 September 2017 has seen improvement as compared to the same period last year.  The Group's strategy to achieve increased sales of newer products in Smart Zones and Smart Machines telemetry and contactless payment services has progressed in each area, albeit partially offset by the continued impact of pub disposals for Smart Zones and the Board's strategic decision to shift towards an annuity revenue model in Smart Machines.  Whilst transitioning to an annuity model was expected to have an adverse impact on the revenue in the short term, the Board believes it will be more profitable for the business over the life of our contracts.  The proportion of recurring service revenue has continued at high levels and exceptional costs, of £0.39 million (H1 2017: £0.14 million), were in line with our expectations and principally relate to costs of £0.19 million associated with corporate acquisitions and staff transitional costs.

 

Although good operational cash generation of £1.25 million (H1 2017: £1.50 million) was down on the previous period due to phasing of collections in the year to March 2017, the Group had an overall increase in its net cash position to £2.72 million at 30 September 2017 (H1 2017: £1.98 million). In summary, the Group continues to be highly cash generative which provides a strong financial base to invest in and grow the business.

 

Smart Zones

 

The underlying performance of the Group's core beer monitoring business remained stable over the period with further new iDraughtTM sales despite the pub industry headwinds.  iDraughtTM continues to account for approximately 25% of the Group's beer monitoring base by number of installations. Over the period, Smart Zones secured 119 new beer monitoring installations (H1 2017: 166). Pub disposals resulted in a net reduction of circa 550 sites for the division to approximately 14,000 sites.

 

Our continued confidence in the future growth prospects for iDraughtTM in the UK, despite the challenging backdrop of pub closures, is driven by installations for new customers and replacement systems for existing beer monitoring customers.  In addition, our continued investment in new technology and the migration of data and services to the cloud has significantly increased the business opportunity for Smart Zones to roll-out enhanced insight and data services to our Pubco customers.  

 

In the US, the roll out of iDraughtTM has increased the installation base to 247 sites and we are moving towards increasing the pace of the roll out.  The increase in installation bases combined with a refined cost base contributed to a further small reduction in losses and we expect the loss position to narrow further as we drive improved sales traction.

 

Smart Machines

 

Smart Machines continued to increase new telemetry and contactless payment sales although the top line revenue growth was lower as a result of circa 70% of sales coming from our new annuity-based model.  This transition from capital plus annuity based income streams to annuity only is a key part of our strategy.  The Board believes that this model will be more profitable over the life of the contract and provides for a clearer projection of business performance as it lessens the impact of variable capital sales. 

 

Post the period end we were pleased to announce both the acquisition of Vendman, one of our distributors, and the significant contract win with an existing global customer in the coffee market, both of which we expect to stimulate substantially increased momentum for Smart Machines as well as bringing greater scale to the division.   Naturally, whilst negotiations with both of these were ongoing, orders were at a slower pace than during the previous year. 

 

The acquisition of Vendman Systems, a leading Enterprise Resource Planning and mobile software provider for unattended retailing, is a highly complementary fit with the Smart Machines division, and offers a compelling strategic, commercial and financial rationale as it will:

 

·   Establish a comprehensive portfolio of market leading solutions for unattended retail through the combining existing expertise, products and services.

·     Create significant cross selling opportunities for the combined commercial team as it will:

Provide a larger market for the sale of IOT connectivity and real-time data

Accelerate the rollout of contactless payment technology for unattended retail

Create new opportunities for the ERP and mobile platform capability

·     Unlock incremental big data revenue opportunity through building market leading analytics and insight from combined data sets

·     Significantly enhance route to market and distribution opportunities across Continental Europe through establishing a strong network and footprint

 

Combined with the major contract win, it is anticipated that the Smart Machines telemetry and contactless business growth will enhance earnings through accelerated growth in the coming year and further into the future.

 

Looking forward

 

The Board believes there is also substantial scope to maximise the potential of existing products and services as well as bringing new offerings to both Smart Machines and Smart Zones through continued accelerated investment in new technology.  This investment, primarily in new infrastructure and cloud based capability, enables the creation and delivery of new data and insight based services and mobile applications which further enhance the value of the toolsets we can offer to customers.

 

Stewart Darling

Chief Executive

Mark Foster

Chief Financial Officer                                                    

4 December 2017

 

 

 

 

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 September 2017

 

 

 

Before Exceptional

6 months

Exceptional

6 months

Total Unaudited

6 months

Unaudited

6 months

Audited

Year

 

 

Ended

Ended

Ended

Ended

Ended

 

 

30 Sept

30 Sept

30 Sept

30 Sept

31 March

 

 

2017

2017

2017

2016

2017

 

Note

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Continuing operations

 

 

 

 

 

 

Revenue

3

6,714

-

6,714

7,057

14,263

Cost of sales

 

(2,016)

-

(2,016)

(2,109)

(4,327)

Gross profit

 

4,698

-

4,698

4,948

9,936

Administration and other operating expenses

4

 

(2,995)

 

(388)

 

(3,383)

 

(3,445)

 

(7,585)

3

 

 

1,703

 

 

(388)

 

 

1,315

 

 

1,503

 

 

2,351

Intangible asset amortisation

 

(344)

-

(344)

(347)

(693)

Share based payments

 

(73)

-

(73)

(24)

(206)

Operating profit post amortisation and share based payments

 

 

1,286

 

(388)

 

898

 

1,132

 

1,452

Net finance income/(costs)

 

1

-

1

(3)

(5)

Profit from continuing operations before tax

 

 

1,287

 

(388)

 

899

 

1,129

 

1,447

5

(287)

-

(287)

(330)

(417)

Profit from continuing operations

 

 

1,000

 

(388)

 

612

 

799

 

1,030

 

 

-

 

-

 

-

 

-

 

100

3

 

 

1,000

 

 

(388)

 

 

612

 

 

799

 

 

1,130

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Continuing Operations

 

 

 

 

 

 

- Basic

6

 

 

2.24p

2.93p

3.77p

 

 

 

 

 

 

 

6

 

 

2.23p

2.91p

3.76p

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

- Basic

6

 

 

0.0p

0.0p

0.37p

 

 

 

 

 

 

 

6

 

 

0.0p

0.0p

0.36p

 

 

Consolidated Balance Sheet

At 30 September 2017

 

 

Unaudited

As at

30 Sept

2017

Unaudited

As at

30 Sept

 2016

Audited

As at

31 March 2017

 

 

£'000

£'000

£'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

 

17,946

17,440

17,503

Property, plant and equipment

 

3,078

3,058

3,069

Total non-current assets

 

21,024

20,498

20,572

Current assets

 

 

 

 

Inventories

 

1,012

1,666

1,308

Trade and other receivables

 

2,995

3,155

2,708

Deferred tax asset

 

173

152

460

Cash and cash equivalents

 

3,864

3,834

4,549

 

 

8,044

8,807

9,025

 

 

 

 

 

Total assets

 

29,068

29,305

29,597

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

3,578

3,239

3,728

Borrowings

 

443

996

325

Provisions

 

-

-

62

 

 

4,021

4,235

4,115

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

699

858

778

Provisions

 

-

-

48

Deferred tax

 

395

-

395

 

 

1,094

858

1,221

 

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Share capital

 

2,843

2,843

2,843

Share premium account

 

11,287

11,287

11,287

Share based payment reserve

 

466

235

418

Own shares

 

(1,115)

(1,221)

(1,221)

Merger reserve

 

310

310

310

Retained profit

 

10,162

10,758

10,624

Total equity

 

23,953

24,212

24,261

 

 

 

 

 

Total equity and liabilities

 

29,068

29,305

29,597

 

 

 

 

 

 

 

 

Summarised Consolidated Cash Flow Statement

For the six months ended 30 September 2017

 

 

Unaudited

6 months

Unaudited

6 months

Audited

Year

 

 

Ended

Ended

Ended

 

 

30 Sept

30 Sept

31 March

 

 

2017

2016

2017

 

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Profit for the period

 

  612

799

1,130

Adjustments for

 

 

 

 

Net Interest (received)/payable

 

(1)

3

5

Income tax expense

 

287

330

417

Amortisation of intangible assets

 

344

347

693

Depreciation

 

177

177

348

Loss on sale of property, plant and equipment

 

7

45

(50)

Share-based payments

 

73

24

207

Operating profit before changes in

working capital and provisions

 

 

1,499

 

1,725

 

2,750

Change in inventories

 

296

145

502

Change in receivables

 

(288)

409

857

Change in payables

 

(149)

(777)

(289)

Change in provisions

 

(110)

-

110

 

 

(251)

(223)

1,180

Cash generated from operations

 

1,248

1,502

3,930

Income tax refunded

 

-

-

-

Net cash from operating activities

 

1,248

1,502

3,930

Cash flows from investing activities

 

 

 

 

Proceeds on disposal of subsidiary division

 

-

-

100

Purchases of property, plant and equipment

 

(193)

(137)

(325)

Purchase of intangible assets

 

(788)

(302)

(711)

Net cash used in investing activities

 

(981)

(439)

(936)

Cash flows from financing activities

 

 

 

 

Net Interest receivable/(payable)

 

1

(3)

(5)

Share options exercised

 

103

-

-

Repayments of borrowings

 

(245)

(244)

(488)

Dividends paid

 

(1,096)

(1,092)

(1,557)

Net cash used in financing activities

 

(1,237)

(1,339)

(2,050)

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

(970)

(276)

944

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

4,549

3,605

3,605

 

 

 

 

 

Cash and cash equivalents at end of period

 

3,579

3,329

4,549

 

Statement of changes in equity

 

Six months ended 30 September 2017

 

 

Share

capital

Share

premium

account

Share based payment reserve

Own shares

Merger

reserve

Retained profit

Total

 

£000

£000

£000

£000

£000

£000

£000

At 1 April 2017

2,843

11,287

418

(1,221)

310

10,624

24,261

Dividends

-

-

-

-

-

(1,096)

(1,096)

Share based payment

-

-

73

-

-

-

73

Share option forfeitures

-

-

(26)

-

-

26

-

Exercise of options

-

-

1

106

-

(4)

103

Transactions with owners

-

-

48

106

-

(1,074)

(920)

Profit and total comprehensive income for the period

-

-

-

-

-

612

612

Total comprehensive income less owners transactions

-

-

48

106

-

(462)

(308)

At 30 September 2017

2,843

11,287

466

(1,115)

310

10,162

23,953

 

Six months ended 30 September 2016

 

 

Share

capital

Share

premium

account

Share based payment reserve

Own shares

Merger

reserve

Retained profit

Total

 

£000

£000

£000

£000

£000

£000

£000

At 1 April 2016

2,843

11,287

217

(1,221)

310

11,045

24,481

Dividends

-

-

-

-

-

(1,092)

(1,092)

Share based payment

-

-

24

-

-

-

24

Share option forfeitures

-

-

(6)

-

-

6

-

Transactions with owners

-

-

18

-

-

(1,086)

(1,068)

Profit and total comprehensive income for the period

-

-

-

-

-

799

799

Total comprehensive income less owners transactions

-

-

18

-

-

(287)

(269)

At 30 September 2016

2,843

11,287

235

(1,221)

310

10,758

24,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12 months ended 31 March 2017

 

 

Share

capital

Share

premium

account

Share based payment reserve

Own shares

Merger

reserve

Retained profit

Total

 

£000

£000

£000

£000

£000

£000

£000

At 1 April 2016

2,843

11,287

217

(1,221)

310

11,045

24,481

Dividends

-

-

-

-

-

(1,557)

(1,557)

Share based payment

-

-

207

-

-

-

207

Share option forfeitures

-

-

(6)

-

-

6

-

Transactions with owners

-

-

201

-

-

(1,551)

(1,350)

Profit and total comprehensive income for the year

-

-

-

-

-

1,130

1,130

Total comprehensive income less owners transactions

-

-

201

-

-

(421)

(220)

At 31 March 2017

2,843

11,287

418

(1,221)

310

10,624

24,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Notes to the interim report

 

1.            Statutory information

 

The interim financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The auditor's review report on the interim financial information for the six months ended 30 September 2017 is set out on page 16.

 

The financial information for the year ended 31 March 2017 has been derived from the published statutory accounts. A copy of the full accounts for that period, on which the auditor issued an unmodified report that did not contain statements under 498(2) or (3) of the Companies Act 2006, has been delivered to the Registrar of Companies.

 

These interim financial statements will be posted to all shareholders and are available from the registered office at One Surtees Way, Surtees Business Park, Stockton on Tees, TS18 3HR or from our website at www.vianetplc.com/investors

 

 

2.            Accounting policies

 

These interim financial statements are for the six months ended 30 September 2017. As is permitted, the Group has chosen not to adopt IAS 34 'Interim Financial Statements' and therefore the interim financial information is not in full compliance with International Financial Reporting Standards but have been prepared using consistent accounting policies as applied in the full year accounts to 31 March 2017. The accounts have been prepared on a going concern basis and are presented to the nearest £000 except as otherwise stated. They have been prepared using the recognition and measurement principles of IFRS as adopted by the European Union using the historic cost convention.

 

 

3.            Segmental information

                                                                                                                                            

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses. The segment operating results are regularly reviewed by the Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance. Vianet Group is analysed into to two trading segments (defined below) being Smart Zones (mainly adopted in the leisure sector, including US (particularly in pubs and gaming)) and Smart Machines (mainly adopted in the vending sector (particularly in vending machines)) supported by Corporate/Technology costs.

The products/services offered by each operating segment are:

Smart Zones: design, product development, sale and rental of fluid monitoring equipment, data insights and related services

Smart Machines: design product development, sale and rental of machine monitoring equipment, data insights and related services.

Corporate/Technology: Centralised Group overheads along with technology related costs for the Group

The inter-segment sales are immaterial. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated assets and liabilities comprise items such as cash and cash equivalents, certain intangible assets, taxation, and borrowings. Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one period.

 

The segmental results for the six months ended 30 September 2017 are as follows:

 

 

 

Continuing Operations

 

 

 

 

Smart Zones

 

 

Smart Machines

 

 

Corporate/Technology

 

 

 

Total

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Total revenue

 

 

5,662

1,052

-

6,714

 

 

 

 

 

 

 

Profit/(loss) before amortisation, share based payments and exceptional costs

 

 

 

 

2,270

 

 

473

 

 

(1,040)

 

 

1,703

 

 

 

 

 

 

 

Pre-exceptional segment result

 

 

2,185

318

(1,217)

1,286

Exceptional costs

 

 

(229)

(161)

2

(388)

Post exceptional segment result

 

 

1,956

157

(1,215)

898

Finance income

 

 

-

-

7

7

Finance costs

 

 

(6)

-

-

(6)

Profit/(loss) before taxation

 

 

1,950

157

(1,208)

899

Taxation

 

 

 

 

 

(287)

Profit for the year from continuing operations

 

 

 

 

 

612

 

 

 

 

 

 

 

 

 

 

 

 

 

Smart Zones

 

 

Smart Machines

 

 

Corporate/Technology

 

 

 

Total

 

 

 

£'000

£'000

£'000

£'000

Segment assets

 

 

24,888

-

4,007

28,895

Unallocated assets

 

 

173

-

-

173

Total assets

 

 

25,061

-

4,007

29,068

Segment liabilities

 

 

4,384

-

336

4,720

Unallocated liabilities

 

 

395

-

-

395

Total liabilities

 

 

4,779

-

336

5,115

 

 

 

 

 

 

 

 

The asset base of the Vianet Group plc cannot be split across Smart Zones, Smart Machines or Technology, so has been allocated to Smart Zones.

 

Notes to the interim report (continued)

 

The segmental results for the six months ended 30 September 2016 are as follows:

 

 

 

Continuing Operations

 

 

 

 

Smart Zones

 

 

Smart Machines

 

 

Corporate/Technology

 

 

 

Total

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Total revenue

 

 

5,866

1,191

-

7,057

 

 

 

 

 

 

 

Profit/(loss) before amortisation, share based payments and exceptional costs

 

 

 

 

2,385

 

 

448

 

 

(1,195)

 

 

1,638

 

 

 

 

 

 

 

Pre-exceptional segment result

 

 

2,313

272

(1,318)

1,267

Exceptional costs

 

 

(68)

-

(67)

(135)

Post exceptional segment result

 

 

2,245

272

(1,385)

1,132

Finance income

 

 

-

-

5

5

Finance costs

 

 

(8)

-

-

(8)

Profit/(loss) before taxation

 

 

2,237

272

(1,380)

1,129

Taxation

 

 

 

 

 

(330)

Profit for the year from continuing operations

 

 

 

 

 

799

 

 

 

 

 

 

 

 

 

 

 

 

 

Smart Zones

 

 

Smart Machines

 

 

Corporate/Technology

 

 

 

Total

 

 

 

£'000

£'000

£'000

£'000

Segment assets

 

 

25,438

-

3,715

29,153

Unallocated assets

 

 

152

-

-

152

Total assets

 

 

25,590

-

3,715

29,305

Segment liabilities

 

 

4,709

-

384

5,093

Unallocated liabilities

 

 

-

-

-

-

Total liabilities

 

 

4,709

-

384

5,093

 

 

 

 

 

 

 

 

The asset base of the Vianet Group plc cannot be split across Smart Zones, Smart Machines or Technology, so has been allocated to Smart Zones.

 

 

 

Notes to the interim report (continued)

 

The segmental results for the 12 months ended 31 March 2017 are as follows:

 

 

 

Continuing Operations

 

 

 

 

Smart Zones

 

 

Smart Machines

 

 

Corporate/Technology

 

 

 

Total

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

Total revenue

 

 

11,935

2,328

-

14,263

 

 

 

 

 

 

 

Profit/(loss) before amortisation, share based payments and exceptional costs

 

 

 

 

4,822

 

 

891

 

 

(2,398)

 

 

3,315

 

 

 

 

 

 

 

Pre-exceptional segment result

 

 

4,677

539

(2,800)

2,416

Exceptional costs

 

 

(325)

(25)

(614)

(964)

Post exceptional segment result

 

 

4,352

514

(3,414)

1,452

Finance income

 

 

-

-

-

-

Finance costs

 

 

(17)

-

12

(5)

Profit/(loss) before taxation

 

 

4,335

514

(3,402)

1,447

Taxation

 

 

 

 

 

(417)

Profit for the year from continuing operations

 

 

 

 

 

1,030

 

 

 

 

 

 

 

 

 

 

 

 

 

Smart Zones

 

 

Smart Machines

 

 

Corporate/Technology

 

 

 

Total

 

 

 

£'000

£'000

£'000

£'000

Segment assets

 

 

25,350

-

3,787

29,137

Unallocated assets

 

 

460

-

-

460

Total assets

 

 

25,810

-

3,787

29,597

Segment liabilities

 

 

4,584

-

357

4,941

Unallocated liabilities

 

 

395

-

-

395

Total liabilities

 

 

4,979

-

357

5,336

 

 

 

 

 

 

 

 

The asset base of the Vianet Group plc cannot be split across Smart Zones, Smart Machines or Technology, so has been allocated to Smart Zones.

 

 

 

Notes to the interim report (continued)

 

4.            Exceptional items

 

 

 

6 months

6 months

Year

 

 

Ended

Ended

Ended

 

 

30 Sept

30 Sept

31 March

 

 

2017

2016

2017

 

 

£'000

£'000

£'000

 

 

 

 

 

Exceptional costs

 

           388

135

864

 

 

388

135

864

 

 

Exceptional costs principally relate to employee transition costs and corporate transaction costs.

 

5.            Tax

 

 

The charge for tax is based on the profit for the period and comprises:

 

 

 

6 months

6 months

Year

 

 

Ended

Ended

Ended

 

 

30 Sept

30 Sept

31 March

 

 

2017

2016

2017

 

 

£'000

£'000

£'000

 

 

 

 

 

United Kingdom corporation tax

 

287

330

417

 

 

The tax charge reflects the utilisation of brought forward trading losses, which had previously been recognised as a deferred tax asset, against the taxable profit for the period within Vianet Limited

 

6.            Earnings per share 

 

Earnings per share has been impacted by the reversal of a deferred tax asset provision realised in previous years.

 

Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders (£612k) by the weighted average number of ordinary shares outstanding during the period.

 

Diluted earnings per share are calculated on the basis of profit for the year after tax divided by the weighted average number of shares in issue in the year plus the weighted average number of shares which would be issued if all the options granted were exercised

 

The table below shows the earnings pre and post the impact of the movement in the deferred tax asset.

 

 

30 September 2017

30 September 2016

 

Earnings

 

 

£000

Basic earnings per share

Diluted earnings per share

Earnings

 

 

£000

Basic earnings per share

Diluted earnings per share

Pre-tax profit attributable to equity shareholders

899

3.29p

3.27p

1,129

4.14p

4.11p

Post-tax profit attributable to equity shareholders

612

2.24p

2.23p

799

2.93p

2.91p

Pre-tax, pre-exceptional profit attributable to equity shareholders

1,287

4.71p

4.68p

1,264

4.63p

4.61p

Post-tax, pre-exceptional profit attributable to equity shareholders

1,000

3.66p

3.64p

934

3.42p

3.40p

 

 

 

 

30 Sept

2017

Number

30 Sept

2016

Number

Weighted average number of ordinary shares

27,302,694

27,302,694

Dilutive effect of share options

184,041

142,164

Diluted weighted average number of ordinary shares

27,486,735

27,444,858

 

 

7.            Business combinations after the reporting period

 

On 3 October 2017, the group acquired 100% of the share capital of Vendman Systems Limited for a total consideration of £4.0 million, comprising cash of £1.9 million and estimated contingent consideration of £2.1 million that will become payable by January 2019 and January 2020.

 

Principal reasons for the acquisition have been covered in the Executive Review.

 

The assets acquired from Vendman Systems Limited were as follows. As the acquisition took place after the end of the accounting period, the directors have yet to complete their initial accounting.  Accordingly the book and fair values presented below are provisional and goodwill is not presented separately from other intangibles that may be identified.

 

 

Provisional book and provisional fair value

 

£'000

Non-current assets

155

Trade and other receivables

479

Cash and cash equivalents

11

Trade and other payables

(513)

Borrowings

(74)

Total identifiable assets

58

Goodwill and other intangibles

3,946

Total consideration

4,004

 

 

 

During the period to 30 September 2017, Vendman Systems Limited recorded turnover of £1,015,095 and an operating profit before exceptional items of £104,191.

 

 

 

 

 

INDEPENDENT REVIEW REPORT TO VIANET GROUP PLC

 

Introduction

We have been engaged by the company to review the financial information in the half-yearly financial report for the six months ended 30 September 2017 which comprises the consolidated statement of comprehensive income, the consolidated balance sheet, the summarised consolidated cash flow statement, the statement of changes in equity and the related explanatory notes. We have read the other information contained in the half yearly financial report which comprises only the Chairman's Statement, and the Chief Executive and Chief Financial Officer Review and considered whether they contain any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed.

 

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

 

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in note 2.

 

Our responsibility

Our responsibility is to express to the company a conclusion on the financial information in the half-yearly financial report based on our review.

 

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 

 

 

 

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly financial report for the six months ended 30 September 2017 is not prepared, in all material respects, in accordance with the basis of accounting described in note 2.

 

 

GRANT THORNTON UK LLP
AUDITOR

LEEDS
4 December 2017


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR USONRBBAURAA

a d v e r t i s e m e n t