25th Apr 2024 14:29
(Alliance News) - Vianet Group PLC on Thursday gave an update on its first quarter trading, and said it has secured a multi-year contract with a UK-based car wash company.
Vianet shares were up 11% at 115.18 pence each in London on Thursday afternoon.
The Stockton-on-Tees, England-based provider of retail sales and volume monitoring systems said in the year ended March 31, its turnover rose 7.6% to GBP15.2 million from GBP14.1 million the year before.
Recurring revenue was GBP13.0 million, up 4.0% from GBP12.5 million.
Vianet also saw its gross margin improve to 68.7% from 66.4% in financial 2023, and posted an 11% increase in adjusted earnings before interest, tax, depreciation and amortisation to GBP3.5 million from GBP3.1 million a year ago.
Chair & Chief Executive Officer James Dickson commented: "The past twelve months have been both productive and rewarding. While the 3G upgrade deliberations initially held back new installations, we have made significant financial and operational progress, and we saw a rebound in demand during [the fourth quarter] and into the new financial year. The switch-off provided a unique opportunity to engage with our customers effectively. We've secured long-term contracts and have a good pipeline for [the first half of 2025], which supports our optimism for the future. Our strategic investments in sales, technology, and new markets provide a strong platform for growth, and I am delighted with the momentum we are building as we move into [financial 2025].
"The group remains well-positioned to continue delivering growth, generating strong free cash flow that allows us to continue dividend distributions. I look forward to the future with optimism and confidence."
Vianet also announced that it has secured a five-year contract with Wilcomatic Wash Systems Ltd, through which it will roll out its contactless payment solution.
Wilcomatic is a Croydon, England-based car wash company.
Dickson said: "This contract win consolidates our entrance into an exciting new vertical and demonstrates the group's ability to expand into adjacent industry verticals that we have previously highlighted. We are delighted that our efforts with new initiatives are yielding positive results as we continue to capitalise on the considerable opportunities with manufacturers and retailers within the forecourt sector and beyond."
By Sabrina Penty, Alliance News reporter
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