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(Sharecast News) - Vianet reported higher annual revenue and recurring income on Tuesday, as stronger hospitality trading and improved cash generation helped the group move into a net cash position.
The AIM-traded data, insights and payments technology provider said revenue rose 1.5% to 15.50m in the year ended 31 March, from 15.27m a year earlier.
Recurring revenue increased 3.3% to 13.60m and accounted for 88% of group revenue, up from 86% in the prior year.
Gross margin was maintained at 68%, while adjusted EBITA edged up to 3.61m from 3.59m. Adjusted EBITDA rose 2.1% to 4.22m.
Vianet said its hospitality division delivered revenue growth of 6.4% to 9.59m, while operating profit increased 7.7% to 4.51m.
The division completed 448 new site installations during the year, secured eight new contracts and four long-term renewals, and maintained recurring revenue at 92% of divisional turnover.
In Smart Machines, its unattended retail division, Vianet secured 99 new contracts and eight major renewals.
It deployed 4,637 new cashless devices, including 2,520 3G upgrades, taking its installed base to about 36,133 connected devices.
Recurring revenue increased to 81% of divisional turnover from 75%.
The group said it had seen continued expansion across unattended retail, premium coffee and fuel forecourt markets, while its AI and data warehouse initiatives were aimed at extracting greater value from machine telemetry data.
Vianet said losses at Vianet Americas narrowed to 243,000 from 385,000, reflecting improving commercial traction and cost discipline.
The US business secured a long-term enterprise agreement with a major full-service restaurant operator, while momentum continued with other chains including World of Beer and Margaritaville.
The company said its partnership with Fintech Inc gave it access to more than 240,000 hospitality locations and about 90% of major US restaurant chains, leaving Vianet Americas well positioned in the world's largest hospitality technology market.
Cash at year end rose 22% to 3.40m, while the group moved to net cash of 0.44m from net debt of 0.38m a year earlier.
Cash conversion represented 96% of EBITDA.
The board proposed a final dividend of 2.00p per share, up from 1.00p last year, taking the total dividend for the year to 2.40p from 1.30p.
That represented an 84.6% increase and a historical dividend yield of 3.93% based on the 61.00p share price at 31 March.
Vianet also confirmed a planned leadership succession.
James Dickson reverted from the combined chair and chief executive officer role to chairman from 1 June, while Craig Brocklehurst was appointed chief executive officer and Sarah Bentham moved into the chief financial officer role following Mark Foster's departure from the board.
Dickson said Vianet had "materially strengthened the quality" of its earnings through higher recurring revenues, improved its balance sheet and expanded strategic customer relationships.
"Our hospitality business now occupies a stronger strategic position than at any point in the group's history," he said, adding that the integration of Beverage Metrics with Vianet's analytics and draught management capability had created a differentiated platform generating increasing engagement from large operators in the UK and US.
At 1006 BST, shares in Vianet Group were up 4.16% at 72.39p.
Reporting by Josh White for Sharecast.com.
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