Vianet doubles interim dividend as first-half profit rises 14%
Sales grew only 2.6% in the six months to September. Vianet credits recurring contracts and lower overheads for the profit rise, while revenue in the US climbed 60%
- Adjusted EBITDA rose 12.5% to £2.11m
- Cash generated from operations rose 18% to £2.04m, equal to 97% of adjusted EBITDA
- Gross margin was 68.2%, up from 67.9%
- Cash balances stood at £3.61m at 30 September
- Interim results are due on 1 December 2026
The board is doubling its payout while sales growth stays in low single digits, so returns to shareholders now rest on margin and cash conversion rather than revenue growth. In the US, Vianet is working through a land-and-expand model: it describes the first rollout as a platform from which to explore further opportunities across that customer's wider estate. In unattended retail, its stated focus on long-term contracted income means the division reports its progress on contribution and recurring fees rather than hardware sales.
“The proposed doubling of the interim dividend reflects the Board’s confidence in the recurring income base and cash generation, while retaining capacity for disciplined investment in future growth.”Craig Brocklehurst, chief executive, Vianet Group
Vianet Group, the AIM-listed supplier of beverage analytics to hospitality operators and cashless payment systems for unattended retail, said on 21 October that it would double its interim dividend to 0.8p a share after adjusted operating profit rose 14% to £1.80m in the six months to 30 September 2026.
Revenue rose 2.6% to £7.86m, of which recurring revenue made up about 84%. The company said its contracted recurring income and cost discipline supported the profit growth, with divisional overheads down 6.7%. Adjusted operating margin widened to 22.9% from 20.6%, and statutory profit before tax rose to £0.67m from £0.26m. Free cash flow increased 88% to £0.94m, leaving net cash of £0.75m against net debt of £0.49m a year earlier.
Hospitality revenue rose about 6.3% to £4.99m. Revenue in the US rose 60%, helped by the deployment of Vianet's Beverage Metrics system across an initial 100 restaurants for a US hospitality group with more than 2,000 locations, which it did not name. In June the company said its partnership with Fintech Inc. gives it access to more than 240,000 hospitality businesses.
Unattended retail revenue slipped to £2.87m from £2.97m on lower hardware sales, though divisional contribution rose 7.7% to £0.98m. The division added 1,809 cashless devices, taking its cashless estate to 27,313, about 75% of its connected devices.
Craig Brocklehurst has been chief executive since 1 June 2026, when James Dickson moved from the combined chairman and chief executive role to chairman. Vianet reported revenue of £15.50m for the year to 31 March 2026, and the board expects full-year results in line with its expectations.
Sources
- Vianet Group, “Trading Update, Notice of Results and Dividend”, RNS announcement, 21 October 2026. https://www.investegate.co.uk/announcement/rns/vianet-group--vnet/trading-update-notice-of-results-and-dividend/9832795
- Vianet Group, “Final Results”, RNS announcement, 9 June 2026. https://www.investegate.co.uk/announcement/rns/vianet-group--vnet/final-results/9607729
