Vianet Grp Share News (VNET)

(Sharecast News) - Hospitality, vending and asset management cloud specialist Vianet reported first-half revenue of £7.18m on Tuesday, up from £6.34m year-on-year.

The AIM-traded firm said recurring revenues in the six months ended 30 September totalled £6.18m, making up 86% of turnover, up from 83% in the first half of the 2022 financial year.

Adjusted operating profit improved 48% to £1.21m, while EBITDA was up 38% on the prior year at £1.37m.

Operational cash generation before working capital was £1.43m, up from £1.09m, with the board describing "strong" cash conversion, at 104% of EBITDA.

"The first half has benefitted from increased demand for data, which has positively impacted operating profit and our momentum going into the second half," said chairman and chief executive officer James Dickson.

"Despite the challenging economic backdrop, we are on track to meet market expectations for the full year and have a clear line of sight to achieving pre-pandemic trading levels during 2023 and into the 2024 financial year."

Dickson said the firm had "successfully laid the foundations" for growth, with a "great team", an "exciting" product range, "high-quality" recurring income, and "strong" sales pipelines in its core markets.

"We also see opportunities for our data capture capabilities in several other complimentary new verticals."

At 1356 GMT, shares in Vianet Group were up 3.84% at 64.9p.

Reporting by Josh White for Sharecast.com.