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Vianet Group PLC (VNET)

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Tuesday 06 December, 2016

Vianet Group PLC

Half-year Report

RNS Number : 0175R
Vianet Group PLC
06 December 2016
 

                                               

 

 

Press release                                                                                                                                     6 December 2016

 

Vianet Group plc

 

("Vianet" or "the Group")

 

Interim Results

Vianet Group plc (AIM:VNET), the leading provider of real time monitoring systems, data management services and business intelligence for the leisure and vending sectors, is pleased to announce its interim results for the six months ended 30 September 2016.

Note - all figures pertain to the continuing operations of Vianet Group plc and as such comparatives are on a like for like basis, excluding the Fuel Solutions division which was sold in January 2016.

Financial summary

 

Revenue up 1.44% to £7.06 million (H1 2016: £6.96 million), principally due to Vending Division growth

Operating profit before amortisation, share based payments and exceptional items up 7.2% to £1.64 million (H1 2016: £1.53 million)

Profit before tax up 8.65% at £1.13 million (H1 2016: £1.04 million)

Basic earnings per share (pre-exceptional items) up 12.1% at 3.42p (H1 2016: 3.05p), including a deferred tax adjustment charge of 1.21p

Interim dividend maintained at 1.70p (H1 2016: 1.70p)

Net cash of £1.98 million (H1 2016: net debt £2.32 million)

 

Divisional highlights

 

Vending Solutions operating profit of £0.45 million (H1 2016: £0.25 million). *On a like for like basis, operating profit was up 40% at £0.35 million

Vending division growth continues with 3,335 new unit sales (H1 2016: 2,410 units) predominantly in coffee vending

Leisure division operating profit of £2.39 million (H1 2016: £2.00 million). *On a like for like basis, operating profit was up 7% at £2.14 million

166 new installations of which 112 were iDraughtTM installations (H1 2016: 179 installations of which 139 iDraughtTM)

6 year contract renewal and extension with Greene King

Vianet Americas operating loss reduced to £0.08 million (H1 2016: £0.15 million)

 

* From 1 April 2016, the Technology division is a separate cost centre and costs are no longer absorbed by the Leisure and Vending divisions.  A notional technology recharge is added to divisional reporting to provide a like for like comparison.

 

 

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

"I am pleased to report that the Group's focus on growth areas has delivered increased profits in our continuing business for this period.   Against a modest improvement in the challenging backdrop to the UK pub sector, our strategy of focussing on newer products such as iDraught, coffee vending telemetry and contactless payment services has progressed well.  We believe there is substantial scope to grow sales of these and other existing products and services as well as bringing new offerings to both the vending and leisure markets through enhanced technology. 

 

Throughout the Group, cash flow is strong, underpinned by high levels of recurring revenue, which supports our investment in strategic insight and mobile application development, which will be a key value driver going forward as we continue to develop our Internet of Things capability to provide greater value to customers.  

 

The Board remains confident that Vianet's long term strategy is appropriate and the Group is capable of delivering consistent and sustained growth."

 

An audio cast of the interim results presentation given by Stewart Darling (Chief Executive) and Mark Foster (Chief Finance Officer), was released at 0700hrs this morning on the Group's website www.vianetplc.com with the link also being distributed by Yellow Jersey PR.

- Ends -

Enquiries:

Vianet Group plc


Stewart Darling, Chief Executive

Tel: +44 (0) 1642 358 800

[email protected]

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 increased profits in our continuing business for the six months to 30 September 2016, as compared to the same period last year.  Vianet's recurring revenue streams have been strengthened further by growth in vending telemetry, new iDraughtTM sales (albeit lower than last year) and several pub company contracts being renewed in the period.

 

New iDraughtTM orders, together with continued cost reductions and efficiencies, continues to offset the impact of pub closures and, against that background, operating profit in the Leisure division was 7% higher year on year at £2.14 million.  In Vianet Americas the streamlined iDraughtTM operation, helped by 25 new installations, reduced H1 year on year losses from £0.15 million to £0.08 million.

 

Good progress has been achieved in the Vending division with the deployment of new units, particularly with solutions for the coffee vending market. Against that background, year on year profit growth of 40% has been achieved.  The Board is of the firm belief that material growth in vending telemetry should continue given the further interest shown in our services during the period.

 

As outlined in our past statements, the Group continues to defend itself in court in the US against certain claims asserted by third parties.  Following legal advice, the Board continues to consider these claims to lack merit.  Whilst the majority of overall costs are expected to have already been incurred, this process will result in further legal costs in H2 during which period we expect to conclude matters.

 

Results

 

Modest growth in continuing business turnover for the period to £7.06 million (H1 2016: £6.96 million) was principally due to growth in the Vending division whilst new iDraughtTM sales sustained Leisure division turnover.

 

The Group's profit before amortisation, share based payments and exceptional items grew to £1.64 million (H1 2016: £1.53 million), for the reasons outlined above.

 

Group profit before taxation is up 8.65% to £1.13 million (H1 2016: £1.04 million). 
                                                                                                                                                          

Group EPS (on a continuing basis) before exceptional costs and deferred tax adjustment amounted to 4.63 pence (H1 2016: 4.30 pence), with a deferred tax adjustment of £0.33 million reducing EPS before exceptional costs and post deferred tax adjustment to 3.42 pence (H1 2016: 3.05 pence).

 

Dividend

 

Reflecting its continued confidence in the Group's medium term prospects and the strength of its cash flow, the Board is pleased to maintain the interim dividend at 1.70 pence per share (H1 2016: 1.70 pence per share), payable on 31 January 2017 to shareholders on the register as at 16 December 2016.  A final dividend of 4.00 pence per share was paid in respect of the year ended 31 March 2016 on 28 July 2016.

 

Outlook

 

Whilst Vianet's growth and profitability is influenced by the challenging backdrop to the UK pub sector, the exciting prospects for vending telemetry together with iDraughtTM growth and US progress give the Board confidence in the growth ambitions of the Group.  With the rate of pub closures diminishing and the benefits of cost initiatives coming through, the outlook for the core Leisure division is improving. Vending telemetry continues to progress well, particularly in the European coffee vending market.  Throughout the Group, cash flow is strong, underpinned by high levels of recurring revenue.  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                                                             

5 December 2016

 



Chief Executive and Chief Financial Officer Review

 

Underlying trading for the six months to 30 September 2016 has seen decent progress compared to the same period last year.  The Group's strategy to achieve increased sales of newer products such as iDraughtTM and coffee vending telemetry and contactless payment services has progressed well with good growth in each area, although this was offset by the impact of pub disposals which at least are running at a reduced level compared to the same period last year.  The proportion of recurring service revenue has continued at high levels, and exceptional costs were in line with expectations and relate to staff transition and US legal costs amounting to £0.14 million (H1 2016: £0.12 million).

 

Cash generated from operations was £1.50 million (H1 2016: £1.56 million excluding the Fuel division).  Against this background, the Group had an overall net cash position of £1.98 million at 30 September 2016 (H1 2016: net debt £2.32 million).  This has been driven by a combination of cash generative activity and the proceeds from the Vianet Fuel Solutions Ltd ("VFS") sale in January 2016.  In summary, the Group continues to be cash generative which provides a strong financial base to invest in and grow the business.

 

Leisure Division

 

The underlying performance of the Group's core beer monitoring business remained solid over the period with new iDraughtTM sales offset by continued pub closures, albeit at a slower rate. The renewal of our contract with Greene King for a 6 year term was particularly welcome, and due to its continued growth, iDraughtTM now accounts for approximately 25% (H1 2016: 22%) of the Group's beer monitoring base by number of installations, and as a share of both group and divisional revenue will continue to increase.

 

Over the period, the division secured 166 new beer monitoring installations (H1 2016: 179 new installations) of which 112 (H1 2016: 139) were higher value iDraughtTM. Pub disposals have continued albeit at a much reduced rate which overall resulted in a net reduction of just over 280 sites to approximately 14,600 sites.

 

Vianet remains confident for the future growth prospects for iDraughtTM in the UK which will be driven by installations for new customers and replacement systems for existing beer monitoring customers.  Investment in new technology and the migration of data and services to the cloud has significantly increased business capability which supports the roll-out of new insight and data services to customers.   

 

In the US, the ongoing roll out of iDraughtTM saw the installation base reach 208 sites, and combined with a refined cost base contributed to reduced loses.  We remain conscious that further traction is now required to achieve an improved financial performance.

 

Vending Solutions

 

The Group's vending telemetry business continues to grow and trade profitably with pre-exceptional like for like profit of £0.35 million (H1 2016: £0.25 million). Year on year, like for like results demonstrate good sales growth with turnover up 18% at £1.19 million in the period (H1 2016: £1.01 million). New connectivity and contactless payment pilots have been initiated with major international businesses and UK based operators through a newly established partnership and we are confident that these will deliver further growth.

 

Outlook

 

Given the challenges of the UK pub sector, the overall result and contribution from each of Vianet's trading divisions is robust and provides a solid platform for further growth.  We recognise that there is substantial scope to maximise the potential of existing products and services as well as bringing new offerings to both vending and leisure markets through investing 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 that further enhance the value based toolsets we can offer to customers.

 

Risk

 

In preparing the condensed, consolidated financial statements, management are required to make accounting assumptions and estimates.  The assumptions and estimation methods are consistent with those applied to the Annual Report and financial statements for the year ended 31 March 2016.  Additionally the principal risks and uncertainties that may have a material impact on activities and results of the Group remain materially unchanged from those described in the Annual Report.

 

 

Stewart Darling

Chief Executive

Mark Foster

Chief Financial Officer   

5 December 2016


 

 

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 30 September 2016



 

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



2016

2016

2016

2015

2016


Note

£'000

£'000

£'000

£'000

£'000








Continuing operations







Revenue

3

7,057

-

7,057

6,956

14,290

Cost of sales


(2,109)

-

(2,109)

(1,981)

(4,279)

Gross profit


4,948

-

4,948

4,975

10,011

Administration and other operating expenses

4

 

(3,310)

 

(135)

 

(3,445)

 

(3,568)

 

(7,433)

Operating profit pre amortisation and share based payments

3

 

 

1,638

 

 

(135)

 

 

1,503

 

 

1,407

 

 

2,578


(347)

-

(347)

(313)

(661)

Share based payments


(24)

-

(24)

(26)

(28)

Operating profit post amortisation and share based payments


 

1,267

 

(135)

 

1,132

 

1,068

 

1,889

Net finance costs


(3)

-

(3)

(25)

(44)

Profit from continuing operations before tax


 

1,264

 

(135)

 

1,129

 

1,043

 

1,845

Income tax expense

5

(330)

-

(330)

(340)

(553)

Profit from continuing operations


 

934

 

(135)

 

799

 

703

 

1,292

Profit/(loss) from discontinued operations:


 

-

 

-

 

-

 

112

 

(275)

Profit and other comprehensive income for the year

3

 

 

934

 

 

(135)

 

 

799

 

 

815

 

 

1,017










 

Earnings per share







Continuing Operations







- Basic

6



2.93p

2.60p

4.76p








- Diluted

6



2.91p

2.59p

4.73p








Discontinued Operations







- Basic

6



0.0p

0.40p

(1.02)p








- Diluted

6



0.0p

0.40p

(1.01)p

 



Consolidated Balance Sheet

At 30 September 2016



Unaudited

As at

30 Sept

2016

Unaudited

As at

30 Sept

 2015

Audited

As at

31 March 2016



£'000

£'000

£'000

Assets





Non-current assets





Intangible assets


17,440

20,149

17,485

Property, plant and equipment


3,058

3,561

3,143

Total non-current assets


20,498

23,710

20,628

Current assets





Inventories


1,666

1,801

1,810

Trade and other receivables


3,155

4,376

3,564

Deferred tax asset


152

684

482

Cash and cash equivalents


3,834

216

3,605



8,807

7,077

9,461






Total assets


29,305

30,787

30,089






Equity and liabilities










Liabilities





Current liabilities





Trade and other payables


3,239

3,627

4,016

Borrowings


996

1,184

489



4,235

4,811

4,505






Non-current liabilities





Borrowings


858

1,350

1,103



858

1,350

1,103






Equity attributable to owners of the parent





Share capital


2,843

2,831

2,843

Share premium account


11,287

11,198

11,287

Share based payment reserve


235

236

217

Own shares


(1,221)

(1,221)

(1,221)

Merger reserve


310

310

310

Retained profit


10,758

11,272

11,045

Total equity


24,212

24,626

24,481






Total equity and liabilities


29,305

30,787

30,089






 

 



Summarised Consolidated Cash Flow Statement

For the six months ended 30 September 2016



Unaudited

6 months

Unaudited

6 months

Audited

Year



Ended

Ended

Ended



30 Sept

30 Sept

31 March



2016

2015

2016



£'000

£'000

£'000

Cash flows from operating activities





Profit for the period


                  799

815

1,017

Adjustments for





Net Interest payable


3

25

44

Income tax expense


330

340

553

Amortisation of intangible assets


347

407

818

Depreciation


177

267

449

Payment of deferred consideration


-

(22)

(22)

Loss on sale of property, plant and equipment


45

2

(207)

Share-based payments


24

29

43

Operating profit before changes in

working capital and provisions


 

1,725

 

1,863

 

2,695

Change in inventories


145

97

(34)

Change in receivables


409

(187)

(338)

Change in payables


(777)

(257)

1,099



(223)

(347)

727

Cash generated from operations


1,502

1,516

3,422

Income tax refunded


-

-

-

Net cash from operating activities


1,502

1,516

3,422

Cash flows from investing activities





Proceeds on disposal of property, plant and equipment


-

1

-

Proceeds on disposal of subsidiary division


-

-

3,400

Cash disposed with subsidiary


-

-

(90)

Purchases of property, plant and equipment


(137)

(293)

(383)

Purchase of intangible assets


(302)

(438)

(855)

Net cash used in investing activities


(439)

(730)

2,072

Cash flows from financing activities





Net Interest payable


(3)

(25)

(44)

Issue of share capital


-

-

101

Share options exercised


-

101

100

Repayments of borrowings


(244)

(243)

(486)

Dividends paid


(1,092)

(1,087)

(1,549)

Net cash used in financing activities


(1,339)

(1,254)

(1,878)






Net (decrease)/increase in cash and cash equivalents


(276)

(468)

3,616






Cash and cash equivalents at beginning of period


3,605

(11)

(11)






Cash and cash equivalents at end of period


3,329

(479)

3,605



Statement of changes in equity

 

Six months ended 30 September 2015

 


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 2015

2,831

11,198

209

(1,381)

310

11,601

24,768

Dividends

-

-

-

-

-

(1,087)

(1,087)

Exercised options

-

-

-

160

-

(59)

101

Share based payment

-

-

29

-

-

-

29

Share option forfeitures

-

-

(2)

-

-

2

-

Transactions with owners

-

-

27

160

-

(1,144)

(957)

Profit and total comprehensive income for the period

-

-

-

-

-

815

815

Total comprehensive income less owners transactions

-

-

27

160

-

(329)

(142)

At 30 September 2015

2,831

11,198

236

(1,221)

310

11,272

24,626

 

12 months ended 31 March 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 2015

2,831

11,198

209

(1,381)

310

11,601

24,768

Dividends

-

-

-

-

-

(1,549)

(1,549)

Issue of shares

12

89

-

-

-

-

101

Share based payment

-

-

43

-

-

-

43

Share option forfeitures

-

-

(35)

-

-

35

-

Exercise of options

-

-

-

160

-

(59)

101

Transactions with owners

12

89

8

160

-

(1,573)

(1,304)

Profit and total comprehensive income for the year

-

-

-

-

-

1,017

1,017

Total comprehensive income less owners transactions

12

89

8

160

-

(556)

(287)

At 31 March 2016

2,843

11,287

217

(1,221)

310

11,045

24,481









 

 

 

 

 

 

 

 

 

 

 

 

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

 


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 2016 is set out on page 13.

 

The financial information for the year ended 31 March 2016 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 2016. 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 2016. 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. Operations are analysed into three segments. Technology does not meet the quantitative threshold ordinarily required for segmental reporting but the directors believe that it is important to separately disclose its results given the importance of its activity to the group.

 

The products/services offered by each operating segment are:

 

Leisure Services: design, product development, sale and rental of fluid monitoring equipment, data management and related services

 

Vending: design product development, sale and rental of machine monitoring equipment, data management and related services.

 

Technology: provision of technology related services to the Group.

 

Prior to 1 April 2016, the Technology division recharged certain costs to Leisure Services and Vending. There is no change to segmental results for the year to 31 March 2016 and period to 30 September 2015 as a result of this change in operations.

 

 

 

 

 

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 2016 are as follows:

 

 

 

Continuing Operations


 

 

Leisure Services

 

 

 

Vending

 

 

 

Technology

 

 

 

Corporate

 

 

 

Total



£'000

£'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

 

 

(533)

 

 

(662)

 

 

1,638








Pre-exceptional segment result


2,313

272

(620)

(698)

1,267

Exceptional costs


(68)

-

(32)

(35)

(135)

Post exceptional segment result


2,245

272

(652)

(733)

1,132

Finance income


-

-

-

5

5

Finance costs


(8)

-

-

-

(8)

Profit/(loss) before taxation


2,237

272

(652)

(728)

1,129

Taxation






(330)

Profit for the year from continuing operations






799








 



 

 

Leisure Services

 

 

 

Vending

 

 

 

Technology

 

 

 

Corporate

 

 

 

Total



£'000

£'000

£'000

£'000

£'000

Segment assets


25,438

-

-

3,715

29,153

Unallocated assets


-

-

-

152

152

Total assets


25,438

-

-

3,867

29,305

Segment liabilities


4,709

-

-

384

5,093

Unallocated liabilities


-

-

-

-

-

Total liabilities


4,709

-

-

384

5,093








 

The asset base of the leisure division cannot be split across Leisure Services, Vending and Technology so has been allocated to Leisure Services

Notes to the interim report (continued)

 

The segmental results for the six months ended 30 September 2015 are as follows:

 

 

 

Continuing Operations


 

 

Leisure Services

 

 

 

Vending

 

 

 

Technology

 

 

 

Corporate

 

 

 

Total



£'000

£'000

£'000

£'000

£'000








Total revenue


5,915

1,010

31

-

6,956








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


 

 

2,000

 

 

251

 

 

(60)

 

 

(661)

 

 

1,530








Pre-exceptional segment result


1,915

101

(145)

(680)

1,191

Exceptional costs


(100)

(5)

(15)

(3)

(123)

Post exceptional segment result


1,815

96

(160)

(683)

1,068

Finance costs


(14)

-

-

(11)

(25)

Profit/(loss) before taxation


1,801

96

(160)

(694)

1,043

Taxation






(340)

Profit for the year from continuing operations






703








 


 

 

Leisure Services

 

 

 

Vending

 

 

 

Technology

 

 

Fuel Solutions

 

 

 

Corporate

 

 

 

Total


£'000

£'000

£'000

£'000

£'000

£'000

Segment assets

25,325

-

-

4,565

214

30,104

Unallocated assets

-

-

-

-

683

683

Total assets

25,325

-

-

4,565

897

30,787

Segment liabilities

4,963

-

-

1,036

162

6,161

Unallocated liabilities

-

-

-

-

-

-

Total liabilities

4,963

-

-

1,036

162

6,161








 

 

The asset base of the leisure division cannot be split across Leisure Services, Vending and Technology so has been allocated to Leisure Services

Fuel Solutions has been included in the segmental assets as they are included in the consolidated balance sheet

 

Notes to the interim report (continued)

 

The segmental results for the 12 months ended 31 March 2016 are as follows:

 

 

 

Continuing Operations


 

 

Leisure Services

 

 

 

Vending

 

 

 

Technology

 

 

 

Corporate

 

 

 

Total



£'000

£'000

£'000

£'000

£'000








Total revenue


12,051

2,179

60

-

14,290








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


 

 

4,120

 

 

527

 

 

(256)

 

 

(1,374)

 

 

3,017








Pre-exceptional segment result


3,946

240

(428)

(1,430)

2,328

Exceptional costs


(438)

-

(49)

48

(439)

Post exceptional segment result


3,508

240

(477)

(1,382)

1,889

Finance costs


(30)

-

-

(14)

(44)

Profit/(loss) before taxation


3,478

240

(477)

(1,396)

1,845

Taxation






(553)

Profit for the year from continuing operations






1,292








 



 

 

Leisure Services

 

 

 

Vending

 

 

 

Technology

 

 

 

Corporate

 

 

 

Total



£'000

£'000

£'000

£'000

£'000

Segment assets


25,938

-

-

3,669

29,607

Unallocated assets


-

-

-

482

482

Total assets


25,938

-

-

4,151

30,089

Segment liabilities


5,161

-

-

447

5,608

Unallocated liabilities


-

-

-

-

-

Total liabilities


5,161

-

-

447

5,608








 

The asset base of the leisure division cannot be split across Leisure Services, Vending and Technology so has been allocated to Leisure Services



Notes to the interim report (continued)

 

4.            Exceptional items

 



6 months

6 months

Year



Ended

Ended

Ended



30 Sept

30 Sept

31 March



2016

2015

2016



£'000

£'000

£'000






Exceptional costs


                135

123

439



135

123

439

 

 

Exceptional costs principally relate to employee exit and US legal costs as described in the Chairman's statement.

 

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



2016

2015

2016



£'000

£'000

£'000






United Kingdom corporation tax


330

340

553

 

 

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 (£799k) 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 2016

30 September 2015


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

1,129

4.14p

4.11p

1,043

3.85p

3.83p

Post-tax profit attributable to equity shareholders

799

2.93p

2.91p

703

2.60p

2.58p

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

1,264

4.63p

4.61p

1,166

4.30p

4.29p

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

934

3.42p

3.40p

826

3.05p

3.04p

 

 

 


      30 Sept 2016 Number

         30 Sept 
    2015 Number

Weighted average number of ordinary shares

  27,302,694

  27,127,136

Dilutive effect of share options

        142,164

          97,532

Diluted weighted average number of ordinary shares

  27,444,858

  27,224,668



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 2016 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, 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 2016 is not prepared, in all material respects, in accordance with the basis of accounting described in note 2.

 

 

 

 

 

GRANT THORNTON UK LLP
AUDITOR

LEEDS
5 December 2016



Consolidated Statement of Comprehensive Income

For the six months ended 30 September 2016



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



2016

2016

2016

2015

2016


Note

£'000

£'000

£'000

£'000

£'000








Revenue

3

7,057

-

7,057

9,844

19,241

Cost of sales


(2,109)

-

(2,109)

(4,233)

(8,086)

Gross profit


4,948

-

4,948

5,611

11,155

Administration and other

operating expenses

 

 

4

 

 

(3,310)

 

 

(135)

 

 

(3,445)

 

 

(3,995)

 

 

(8,680)

Profit before amortisation and share based payments

 

 

 

3

 

 

 

1,638

 

 

 

(135)

 

 

 

1,503

 

 

 

1,616

 

 

 

2,475

Intangible asset amortisation


 

(347)

 

-

 

(347)

 

(407)

 

(818)

Share based payments


 

(24)

 

-

 

(24)

 

(29)

 

(43)

Operating profit


1,267

(135)

1,132

1,180

1,614

Finance costs


(3)

-

(3)

(25)

(44)

Profit before tax


1,264

(135)

1,129

1,155

1,570








Income tax expense

5

(330)

-

(330)

(340)

(553)

Profit and total comprehensive income

for the period attributable

to the owners of the parent

 

 

 

 

 

3

 

 

 

 

 

934

 

 

 

 

 

(135)

 

 

 

 

 

799

 

 

 

 

 

815

 

 

 

 

 

1,017















Earnings per share

6






Basic




2.93p

3.00p

3.74p

Diluted




2.91p

2.99p

3.72p








 

 


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