Vianet (VNET) , a company using IoT solutions and external data to provide actionable management insights, updated markets on trading for H124, detailing recurring revenues lifting to 87%, healthy gross margins and EBITA growth.
Revenue for H1 2024 slightly increased to £7.19m from £7.18m in H1 2023. Recurring revenue remained strong at 87% (86% in H1 2023), and gross margin improved by 7.8% to 69% (64% in H1 2023).
H1 2024 profits align with management's expectations, reflecting a 7.4% EBITA growth to £1.30m (H1 2023: £1.21m) net of £0.2m support for newly acquired Beverage Metrics, expanding presence in the US.
Despite challenges due to high inflation and 3G-related connectivity issues impacting new installations in H1, the company anticipates increased revenue in H2 from customer upgrades to 4G LTE and recent contract wins. The Smart Machines division responded positively to the transition from 3G, securing new contracts and orders for 4G LTE readers in H2 2024.
Additionally, market expansion initiatives, particularly in the forecourt sector, have shown promise, evidenced by recent contract wins. Collaborations, such as with Oxford Partnership in Smart Zones, have resulted in successful initiatives in the hospitality sector, expected to contribute to future growth in H2 2024.
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A strong performance from Vianet, which is now nearing its pre-Covid position following increased investment in sales, technology and new market verticals, alongside expanded product lines, and collaborations over the last three years.
Vianet is split into two divisions, Smart Machines and Smart Zones. In its Smart Machines division, a data-gathering device with its own communication capability links to a customer's asset or system, sending data through Vianet’s IoT platform to cloud-based servers. Initially developed for retailing machines, its adaptable functionality extends to any machine capable of outputting data.
In the Smart Zones division, multiple data gathering devices connect to systems or assets, transmitting data through a 3G hub to Vianet’s IoT platform and cloud-based servers. Originally designed for flow monitoring and temperature sensors in drinks retailing, this technology suits any device with digital output—like gaming machines, utilities management, and EPOS—linked to the communications hub.
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