(Alliance News) - Vianet Group PLC on Tuesday reported a huge jump in revenue, as it expects sales to return to pre-pandemic levels by mid-2023.
Vianet is a Stockton-on-Tees, England provider of retail sales and volume monitoring systems.
The company posted a narrowed pretax loss of GBP174,000, compared to GBP2.8 million a year ago. It said the small loss was due to the impact of the tail-end of pandemic customer support measures in its Smart Zones division and some impact on brands and manufacturers in the Smart Machines division.
Revenue was up 58% to GBP13.2 million, compared to GBP8.4 million, with recurring revenues remaining at 88%, compared to 89% in 2021.
Vianet Group Chair James Dickson said: "The business has recovered strongly, with revenue increasing to over 81% of pre-pandemic levels. Although pressures regarding global semi-conductor supply chains and uncertainty from the conflict in Ukraine remain, we are confident that our sales will continue to grow and that we will return to pre-pandemic levels around the mid-year financial 2023."
Vianet has delayed the reintroduction of a dividend for 2022, unchanged from 2021. "The board considers it would not be appropriate to pay a final dividend as it is prudent to conserve cash until the trading has returned to pre-pandemic performance levels," it noted.
Looking ahead, Vianet said it is confident in the long-term growth strategy, saying it is well positioned to deliver earnings growth and expand its future strategic options.
In the meantime, Vianet said its focus remains on sales growth and cash management, particularly with respect to stock premium costs.
Vianet shares were untraded at 82.50 pence each in London on Tuesday.
By Xindi Wei; xindiwei@alliancenews.com
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Vianet Grp (VNET)