Real time monitoring systems supplier Vianet says that its vending division has moved into profit but uncertainty remains in the core pubs market because of potential government regulation and this means that profit will be lower this year.
The UK government has published proposals on the pub sector that are critical about the use of flow monitoring by the brewers. The uncertainty will continue until the final statutory code is published. Vianet has responded to the current proposals and is lobbying MPs. Capital spending is being hit and more pubs are closing because of this uncertainty. Vianet has beer flow monitoring systems installed at nearly 17,000 sites.
The IDraught roll out in the US is progressing in line with expectations.
The fuels division is moving towards sustainable breakeven in the second half of 2013-14. The vending division expects to win additional contracts.
In the year to March 2014, Vianet expects to report a pre-exceptional operating profit of around £3m, against £3.3m the previous year. Vianet has reduced its annualised overheads by £800,000. The interim and final dividends should be maintained. Last year-s total dividend was 5.7p a share.
Reduced margins on contract extensions, contract delays and higher than expected costs of US expansion were the main factors behind a disappointing second half of last year.
Helium Special Situations increased its stake to 6.38% before the end of September.
At 71p a share, Vianet is valued at £19.7m.
The interim figures will be published on 3 December.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFSeptember2013_48.pdf
© 2022 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.