Business
Vianet : Interim Results for September 2025 (CqRliaotEKXzARKyXJiaXzwZA)
Vianet : Interim Results for September 2025
About this update from Vianet Group Plc
02 December 2025 Vianet Group plc ("Vianet", the "Company" or the "Group") Interim Results for the Six Months Ended 30 September 2025 Vianet Group plc (AIM: VNET), an international provider of actionable data, business insights, and payment solutions through an integrated ecosystem of connected hardware devices, software platforms and smart insights portals, announces its unaudited results for the six months ended 30 September 2025 ("H1 2026"). The Company is pleased to announce that it is on track to deliver continued sustained growth, with confidence demonstrated by the interim dividend increase of 33%. Financial Highlights Revenue resilience: £7.67m (H1 2025: £7.69m) High recurring revenue: £6.44m, representing 84% of total revenue, maintained from last year Gross margin improved: 68% (H1 2025: 67%), reflecting ongoing operational efficiency Adjusted EBITDA: £1.86m, up 20.6% (H1 2025: £1.55m) Adjusted operating profit: up 10.4% to £1.58m (H1 2025: £1.43m), before exceptional items and share-based payments, reinforcing robust underlying performance. PBT: £0.392m (H1 2025: £0.018m) Strong operational cash generation: £1.70m post working capital Net debt reduced: £0.5m (H1 2025: £1.0m) with cash increased to £2.60m (H1 2025: £2.25m) after £0.25m of share buybacks and an increased dividend payment of £0.29m (H1 2025: £0.22m) Refinanced HSBC facilities secured until April 2028 offer improved terms and support further investment Interim dividend increased: Up 33% to 0.4p per share (H1 2025: 0.3p) James Dickson, Chairman s CEO, commented: "I am pleased with the strong progress that we have made in the first half of FY2c. This comes despite a challenging UK and global macro backdrop and more cautious investment behaviour ahead of the UK budget. Our growing pipeline, resilient recurring revenues and robust cash generation continue to demonstrate the effectiveness of our model. Both divisions have delivered solid year-on-year progress, and the business has remained focused on disciplined execution while managing the operational friction created by the 2G transition and elongated customer planning cycles. These factors have not altered the underlying business momentum, and our outlook remains positive and unchanged. With our strategic investments in AI, analytics, energy-efficiency solutions and expansion in the USA and forecourts now translating into clear commercial momentum, the Group is increasingly well positioned for sustained long-term growth." Sarah Bentham, CFO, commented: "We have delivered a solid first-half performance supported by disciplined cost control and an improving margin profile while continuing to invest in our technology roadmap. The 1% improvement in gross margin and stronger cash generation reffect the financial benefits of our business model and the operational efficiencies implemented over the past year. The early transition away from 2G has introduced some short-term operational friction; however, it has not altered the Group's financial trajectory, and our balance sheet remains strong. With increasing visibility from long-term, recurring, subscription revenues and a healthy pipeline supporting second-half activity, we remain confident in the financial outlook for H2 and beyond." Chairman s CEO's Review The Group has delivered a strong H1 performance with increased adjusted profit, improved cash generation, and continued strengthening of our underlying recurring revenue base. There have been headwinds created by a challenging macroeconomic backdrop and cautious investment behaviour ahead of the UK Autumn Budget; however, we are increasingly confident that the business is well positioned to benefit from here. Recurring revenues accounted for 84% of turnover, highlighting the predictable and resilient nature of our long-term subscription model. Operational efficiencies delivered a 1% improvement in gross margin, while adjusted operating profit increased 10.4% year-on-year. Across both divisions, customer engagement remains strong, and the volume and quality of commercial opportunities continue to improve. The Group is trading in line with Board expectations and has a robust pipeline which is expected to underpin further progress into H2. Operational Review Smart Machines (Unattended Retail) The division delivered a resilient performance in the first half, despite temporary timing impacts from customer estate rationalisation and planning for national connectivity transitions. H1 performance: Turnover : £2.97m down £0.27m reflecting lost revenue from the strategic withdrawal from the ERP provision to prioritise our device footprint extension to drive future recurring income Operating Profit : Adjusted operating profit was down £0.07m to £0.91m (H1 2025: £0.98m), as a direct result of our withdrawal from ERP provision. Customer Activity : 52 new contracts and five renewals were signed on three to five-year agreements, including new LRS clients such as Bannatyne, and Goals, adding to our healthy pipeline Devices Footprint : total deployed devices increased by c1,000 to 36,957, with higher recurring value cashless devices now standing at over 26,000, accounting for 71% of our device footprint (H1 2025: 67%) Cashless Expansion : 2,700 new cashless devices were deployed, of which 125 replaced existing 3G units. The net addition of 2,575 new devices will benefit H2 recurring revenue and operating profit Telemetry Optimisation : The telemetry only estate dropped by 960 to 10,863 devices as large free vend coffee operations were rationalised Impact of 2G Network Restrictions In recent months following on from the closure of 3G networks, the UK's phased withdrawal of 2G services-beginning with O2 restricting inbound roaming SIM access from October 2025-continues to affect operators running legacy IoT estates. Many unattended retail estates still contain ageing 2G-dependent devices, creating a clear operational and commercial risk for operators as network retirement progresses. Whilst this has contributed to short-term delays and estate optimisation decisions during H1 this structural move from 2G/3G to 4G LTE represents a significant growth catalyst for Vianet, supported by: A proven and scalable 4G LTE upgrade pathway, already deployed at pace SmartVend device management platform, critical during technology transitions Strategic partnerships with Scobie Macintosh and Attenda Strong competitive wins, including conversion of competitor estates driven by commercial pilots delivering +18% revenue uplift and 15% lower transaction fees CPI's market exit, creating further market share gain opportunity The Board expects network migration to remain a structural growth driver for the division through to 2027. Smart Zones (Hospitality) The Hospitality division delivered growth in revenue, operating profit and site installations, supported by renewed momentum across both the leased C tenanted and managed pub segments. In Hospitality, the transition from 2G to 4G requires engineer visits across a significant number of pubs to upgrade devices. While this increased workload may impact the timing of some customer activity, the migration will materially improve estate reliability and connectivity resilience and is expected to support future growth through long-term contract extensions. H1 highlights: Turnover: up 5.6% to £4.7m, reflecting strong activity across the estate Operating Profit : Adjusted UK operating profit rose 4% year on year to £2.29m Contract Activity : 6 new long-term contracts and 3 major renewals, including Star Pubs C Bars and Greene King New installations : up 58% YoY to 229 supported by the rollout of the new Beverage Metrics platform across Inglenook, Marstons, Red Oak, and Trust Inns, more than offsetting 210 pub disposals, taking UK estate up to 9,522 sites, with a further 40 sites for BBG Enersave : now installed in over 40 sites across three companies, with growing interest as operators continue to manage sustained energy cost pressures USA : momentum building, with losses reduced to £0.14m (H1 2025: £0.25m) as our new Beverage Metrics platform and recently signed partnership with Fintech accelerates commercial engagement The BMI acquisition continues to materially strengthen Vianet's end-to-end beverage technology and management capability, creating significant opportunities with national hospitality chains in both the UK and the United States. Dividend Reflecting confidence in the Group's strong cash generation and continued earnings visibility, the Board announces an interim dividend of 0.4p, a 33% increase on the prior year. Outlook The Group entered the second half of FY 2026 with a strengthened financial position, robust recurring revenue base, and good commercial momentum. The Company is trading in line with achieving full-year expectations, despite cautious customer investment behaviour. The Board is confident in delivering year-on-year growth and maintaining long-term strategic momentum, anticipating further progress in H2 supported by contract delivery, new installations, and strengthened liquidity providing the flexibility to invest in growth priorities. In particular: Sustained Demand: The retirement of UK 2G and 3G networks is expected to drive demand for upgrades and new multi-year contracts in unattended retail, payments, and remote asset management, leveraging Vianet's market-leading 4G LTE product suite Operational Growth: Expectations include continued H2 pipeline growth and conversion, positive progression of UK/USA hospitality opportunities, and further expansion of our telemetry and payment solutions in new verticals Financial Confidence: Improved banking facilities support future investment, underpinning the Board's confidence in long-term momentum Investor Presentation James Dickson, Chairman C CEO, and Sarah Bentham, CFO, will present the interim results via the Investor Meet Company platform today at 10:30am GMT. Investors can register at: https://www.investormeetcompany.com/vianet-group-plc/register-investor Enquiries Vianet Group plc James Dickson, Chairman C CEO Sarah Bentham, CFO Tel: +44 (0) 1642 358 800 https://www.vianetplc.com Cavendish Capital Markets Limited Stephen Keys / Isaac Hooper Tel: +44 (0) 20 7220 0500 Investor enquiries: Dale Bellis Tel: +44 (0) 20 7397 1928 https://www.cavendish.com About Vianet Vianet is a leading provider of actionable management information and business insight derived from connected IoT devices, cloud-based software platforms, and advanced data analytics. With over 250,000 connected devices transmitting data daily, the Group delivers mission-critical insight to customers across hospitality, unattended retail, vending, coffee and fuel forecourts. Vianet's end-to-end solutions include telemetry, connectivity, contactless payment solutions, inventory management, energy-saving services, and advanced business intelligence platforms, enabling customers to optimise profitability, improve operational efficiency and enhance cashflow performance. For further information, please visit https://www.vianetplc.com Consolidated Statement of Comprehensive Income For the six months ended 30 September 2025 Before Exceptional 6 months Total Unaudited 6 months Before Exceptional 6 months Total Unaudited 6 months Audited Year Ended Ended Ended Ended Ended 30 Sept 30 Sept 30 Sept 30 Sept 31 March 2025 2025 2024 2024 2025 Note £'000 £'000 £'000 £'000 £'000 Continuing operations Gross Revenue 3 7,665 7,665 7,687 7,687 15,266 Rebates (158) (158) (175) (175) (242) Net Revenue 7,507 7,507 7,512 7,512 15,024 Cost of sales (2,296) (2,296) (2,393) (2,393) (4,603) Gross profit 5,211 5,211 5,119 5,119 10,421 Administration and other operating expenses 4 (3,635) (3,741) (3,691) (3,804) (7,019) Operating profit pre amortisation and share based payments 3 1,576 1,470 1,428 1,315 3,402 Intangible asset amortisation (1,081) (1,081) (1,107) (1,107) (2,292) Share based payments (40) (40) (40) (40) (79) Operating profit post amortisation and share based payments 455 349 281 168 1,031 Net finance costs (93) (93) (150) (150) (349) Other Income 136 136 - - 247 Profit from continuing operations before tax 498 392 131 18 929 Income tax 5 (163) (163) - - (72) Profit and other comprehensive income for the year 3 335 229 131 18 857 Earnings per share Continuing Operations - Basic 6 0.79p 0.06p 2.92p - Diluted 6 0.79p 0.06p 2.86p Consolidated Balance Sheet At 30 September 2025 Unaudited As at 30 Sept 2025 As Restated Unaudited As at 30 Sept 2024 Audited As at 31 March 2025 £'000 £'000 £'000 Assets Non-current assets Intangible assets 22,826 23,358 23,109 Property, plant and equipment 3,400 3,308 3,379 Total non-current assets 26,226 26,666 26,488 Current assets Inventories 1,327 1,886 1,503 Trade and other receivables 3,610 3,409 3,242 Cash and cash equivalents 2,569 2,248 2,777 7,506 7,543 7,522 Total assets 33,732 34,209 34,010 Equity and liabilities Liabilities Current liabilities Trade and other payables 2,595 2,644 2,329 Borrowings 192 179 185 Leases 93 125 110 2,880 2,948 2,624 Non-current liabilities Deferred tax liability 928 1,076 901 Borrowings 2,870 3,072 2,974 Leases - 94 47 Contingent Consideration 191 230 322 3,989 4,472 4,244 Equity attributable to owners of the parent Share capital 2,872 2,943 2,900 Share premium account 11,770 11,770 11,770 Capital redemption 98 32 75 Share based payment reserve 695 623 655 Merger reserve 818 818 818 Retained profit 10,610 10,603 10,924 Total equity 26,863 26,789 27,142 Total equity and liabilities 33,732 34,209 34,010 Summarised Consolidated Cash Flow Statement For the six months ended 30 September 2025 Unaudited 6 months Unaudited 6 months Audited Year Ended Ended Ended 30 Sept 30 Sept 31 March 2025 2024 2025 £'000 £'000 £'000 Cash flows from operating activities Profit for the period 229 18 857 Adjustments for Net Interest payable 93 150 349 R&D tax credit (136) - (247) Income tax charge 163 - 72 Amortisation of intangible assets 1,081 1,107 2,292 Depreciation 297 270 541 Disposal of property, plant and equipment 14 23 32 Share-based payments expense 40 40 79 Operating profit before changes in working capital and provisions 1,781 1,608 3,975 Change in inventories 176 299 683 Change in receivables (368) 464 631 Change in payables 135 (455) (678) (57) 308 636 Net cash from operating activities 1,724 1,916 4,611 Income tax refund - - - Net cash from operating activities 1,724 1,916 4,611 Purchases of property, plant and equipment (332) (274) (625) Purchase of intangible assets (798) (724) (1,657) Purchases of other intangible assets - - (4) Net cash used in investing activities (1,130) (998) (2,286) Cash flows used in financing activities Net Interest payable (93) (150) (349) Issue of share capital - 25 25 Repayment of leases (64) (62) (123) Repayments of borrowings (97) (85) (178) Dividends paid (290) (220) (309) Shares repurchased and cancelled (258) - (436) Net cash used in financing activities (802) (492) (1,370) Net (decrease)/increase in cash and cash equivalents (208) 426 955 Cash and cash equivalents at beginning of period 2,777 1,822 1,822 Cash and cash equivalents at end of period 2,569 2,248 2,777 Reconciliation to the cash balance in the Consolidated Balance Sheet Cash balance as per consolidated balance sheet 2,569 2,248 2,777 Bank overdrafts - - - Balance per statement of cash flows 2,569 2,248 2,777 Statement of changes in equity Six months ended 30 September 2025 Share capital Share premium account Share based payment reserve Merger reserve Capital Redemption Retained profit Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2025 2,900 11,770 655 818 75 10,924 27,142 Share based payments - - 40 - - - 40 Dividends paid - - - - - (290) (290) Share options purchased - - - - (5) - (5) Issue of share capital - - - - - - - Shares cancelled (28) - - - 28 (253) (253) Transactions with owners (28) - 40 - 23 (542) (507) Profit and total comprehensive income for the period - - - - - 229 229 Total comprehensive income less owners transactions (28) - 40 - 23 (313) (278) At 30 September 2025 2,872 11,770 695 818 98 10,610 26,863 Six months ended 30 September 2024 Share capital Share premium account Share based payment reserve Merger reserve Capital Redemption Retained profit Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2024 (as previously stated) 2,940 11,748 583 818 32 11,071 27,192 Prior year adjustment - - - - - (266) (266) At 1 April 2024 (as restated) 2,940 11,748 583 818 32 10,805 26,926 Share based payments - - 40 - - - 40 Dividends paid - - - - - (220) (220) Issue of share capital 3 22 - - - - 25 Transactions with owners 3 22 40 - - (220) (155) Profit and total comprehensive income for the period - - - - - 18 18 Total comprehensive income less owners transactions 3 22 40 - - (202) (137) At 30 September 2024 2,943 11,770 623 818 32 10,603 26,789 12 months ended 31 March 2025 Share capital Share premium account Share based payment reserve Merger reserve Capital Redemption Retained profit Total £000 £000 £000 £000 £000 £000 £000 At 1 April 2024 (as restated) 2,940 11,748 583 818 32 10,850 26,926 Dividends paid - - - - - (309) (309) Issue of share capital 3 22 - - - - 25 Cancellation of shares (43) - - 43 (436) (436) Share option forfeitures - - (7) - - 7 - Share based payments - - 79 - - - 79 Transactions with owners (40) 22 72 - 43 (738) (641) Profit and total comprehensive income for the year - - - - - 857 857 Total comprehensive income less owners transactions (40) 22 72 - 43 119 216 At 31 March 2025 2,900 11,770 655 818 75 10,924 27,142 Notes to the interim report Statutory information The interim financial statements are neither audited nor reviewed and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the year ended 31 March 2025 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 https://www.vianetplc.com/investors . Accounting policies The interim financial statements have been prepared in accordance with the AIM Rules for Companies and on a basis consistent with the accounting policies and methods of computation as published by the Group in its Annual Report for the year ended 31 March 2025, which is available on the Group's website. The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements and therefore the Interim financial information is not in full compliance with International Financial Reporting Standards. Having considered current trading performance and more flexible bank facilities following the facility renewals of June 2025, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Financial forecasts and projections, taking account of reasonable possible changes and sensitivities in future trading performance and the market value of the Group's assets, have been prepared and show that the Group is expected to be able to operate within the level of cash and existing banking facilities. The Directors are confident that the Company will be able to meet its liabilities as they fall due over the next 12 months and beyond. As a result, this financial information has been prepared on a going concern basis. 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 USA (particularly in pubs and bars)) and Smart Machines (mainly adopted in the vending sector (particularly in unattended retail vending machines)) supported by Corporate/Technology & Stores costs. The products/services offered by each operating segment are: Smart Zones (Hospitality): Data insight & actionable data services, design, product development, sale and rental of fluid monitoring equipment. Smart Machines (Unattended Retail): Data insight & actionable data services, design product development, sale and rental of machine monitoring and contactless payment equipment and services. Corporate/Technology: Centralised Group overheads along with technology and stores 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. Notes to the interim report (continued) The segmental results for the six months ended 30 September 2025 are as follows: Continuing Operations Smart Zones Smart Machines Corporate/ Technology Total £'000 £'000 £'000 £'000 Total revenue 4,698 2,967 - 7,665 Profit/(loss) before amortisation, share based payments and exceptional costs 2,147 910 (1,481) 1,576 Pre-exceptional segment result 1,753 678 (1,976) 455 Exceptional costs (1) (1) (104) (106) Post exceptional segment result 1,752 677 (2,080) 349 Finance costs (93) - - (93) Other income - - 136 136 Profit/(loss) before taxation 1,659 677 (1,944) 392 Taxation (163) Profit for the year from continuing operations 229 Smart Zones Smart Machines Corporate/ Technology Total £'000 £'000 £'000 £'000 Segment assets 29,245 4,083 404 33,732 Unallocated assets - - - - Total assets 29,245 4,083 404 33,732 Segment liabilities 5,846 - 95 5,941 Unallocated assets - - 928 928 Total liabilities 5,846 - 1,023 6,869 Notes to the interim report (continued) The segmental results for the six months ended 30 September 2024 are as follows: Continuing Operations Smart Zones Smart Machines Corporate/ Technology Total £'000 £'000 £'000 £'000 Total revenue 4,447 3,240 - 7,687 Profit/(loss) before amortisation, share based payments and exceptional costs 1,949 976 (1,497) 1,428 Pre-exceptional segment result 1,538 764 (2,021) 281 Exceptional costs (5) (7) (101) (113) Post exceptional segment result 1,533 757 (2,122) 168 Finance costs (150) - - (150) Profit/(loss) before taxation 1,383 757 (2,122) 18 Taxation - Profit for the year from continuing operations 18 Smart Zones Smart Machines Corporate/ Technology Total £'000 £'000 £'000 £'000 Segment assets 29,366 4,083 760 34,209 Unallocated assets - - - - Total assets 29,366 4,083 760 34,209 Segment liabilities 6,219 - 125 6,344 Unallocated assets - - 1,076 1,076 Total liabilities 6,219 - 1,201 7,420 Notes to the interim report (continued) The segmental results for the 12 months ended 31 March 2025 are as follows: Continuing Operations Smart Zones Smart Machines Corporate/ Technology Total £'000 £'000 £'000 £'000 Total revenue 9,020 6,246 - 15,266 Profit/(loss) before amortisation, share based payments and exceptional costs 3,767 2,134 (2,307) 3,594 Pre-exceptional segment result 3,342 1,677 (3,796) 1,223 Exceptional costs (7) (8) (177) (192) Post exceptional segment result 3,335 1,669 (3,973) 1,031 Finance costs (349) - - (349) Other income - - 247 247 Profit/(loss) before taxation 2,986 1,669 (3,726) 929 Taxation (72) Profit for the year from continuing operations 857 Smart Zones Smart Machines Corporate/ Technology Total £'000 £'000 £'000 £'000 Segment assets 28,519 4,083 1,408 34,010 Unallocated assets - - - - Total assets 28,519 4,083 1,408 34,010 Segment liabilities 5,746 - 221 5,967 Unallocated assets - - 901 901 Total liabilities 5,746 - 1,122 6,868 Notes to the interim report (continued) Exceptional items 6 months 6 months Year Ended Ended Ended 30 Sept 30 Sept 31 March 2025 2024 2025 £'000 £'000 £'000 Corporate activity and Acquisition costs 81 59 118 Corporate restructuring and transitional costs 24 49 64 Bank facility restructure - - - 3G Project 1 11 15 Recovered Corporate costs - (6) (5) 106 113 192 Corporate activity and acquisition costs relate to corporate review costs. Corporate restructuring and transitional costs relate to the transition of people and management to ensure we have the succession and calibre of people on board to deliver the strategic aims and aspirations of the Group. Tax The charge for tax is as follows: 6 months 6 months Year Ended Ended Ended 30 Sept 30 Sept 31 March 2024 2024 2025 £'000 £'000 £'000 United Kingdom corporation tax 163 - 72 A tax charge provision has been made reflecting the full expected utilisation of the brought forward trading losses in Vianet Group plc and the likely movement in the deferred tax position. The tax charge for March 2025 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. Earnings per share Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders (profit of £229k) 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 period after tax (H1 2025: profit for the period) 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 per share result. 30 September 2025 30 September 2024 Profit £000 Basic profit per share Diluted profit per share Profit £000 Basic profit per share Diluted (loss) per share Post-tax profit attributable to equity shareholders 229 0.79p 0.79p 18 0.06p 0.06p Operating profit 1,576 - - 1,428 - - 30 Sept 2025 Number 30 Sept 2024 Number Weighted average number of ordinary shares 28,808,071 29,437,290 Dilutive effect of share options 167,800 659,636 Diluted weighted average number of ordinary shares 28,975,871 30,096,926 INDEPENDENT REVIEW REPORT TO VIANET GROUP PLC For H1 2026, we have chosen not to undertake an independent audit review which is an agreed standard approach.