Operating profits have risen at drinks and vending tech specialist Vianet amid increased sales and strong customer interest in new products.
The Stockton firm published results for the year to the end of March showing adjusted operating profits grew by around 12% to £3.47m on 8% sales growth to £15.2m. Chairman James Dickson said performance had been strong across the firm's unattended retail and hospitality divisions, through which it offers telemetry and data collection services that help businesses manage stock levels and assess performance.
Vianet said its 'internet of things' technology is at the forefront of the industry and that it sees opportunities in contactless payments and data services in places such as petrol forecourts where it saw a "breakthrough" with two orders for a combined 1,800 units. Across its Smart Machines division catering for vending operators, the firm saw a 22% rise in operating profit to £2.46m and within its Smart Zones division selling to pub, restaurant and hotel operators, operating profits were boosted 4% to £3.49m.
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Meanwhile at Vianet Americas Inc - the group's vehicle for tackling the sizeable US market - losses widened to £387,000. Bosses expect the business to be loss making through 2025 but for losses to have narrowed by the year end. Last year the group acquired Denver-based Beverage Metrics Inc (BMI), which provides inventory software solutions to the USA hospitality sector, and is using the business as a springboard into what it has called a "huge" market.
The acquisition of BMI will also help Vianet in the º£½ÇÊÓƵ where it hopes to attract more hospitality operators beyond its current customer base of mainly leased and tenanted landlords.
Mr Dickson said: "I am especially pleased with this set of results as it showcases the company's proactive measures, along with the dedication of our staff. This has resulted in excellent financial results and strong sales momentum. The combined challenges of supply chain pressures, the 3G switch off and geopolitical uncertainties have been successfully navigated.
"I am confident that Vianet will drive continued sales and profit growth from its core markets, whilst also achieving expansion of our footprint into wider markets. Smart Machine's unattended retail division is experiencing significant growth, with key contract extensions and rollouts driving new connected devices. The Smart Zones hospitality division continues to secure new business and contract renewals while leveraging market data to drive customer profitability.
"The current financial year has started strongly, and the company is well-positioned to enter new vertical markets and continue to drive its strong subscription revenue and earnings growth."
Vianet's board has proposed a final dividend payment of 75p per share, up from 50p per share last year.
