(Alliance News) - Vianet Group PLC on Tuesday said its loss widened in its latest half year, although revenue remained stable "despite challenging market conditions".
The Stockton-on-Tees, England-based provider of retail sales and volume monitoring systems reported a GBP171,000 pretax loss for the six months that ended on September 30, compared with a GBP107,000 loss the year before.
Vianet said revenue rose slightly but remained broadly unchanged year on year at GBP7.2 million. Recurring revenue "remained strong" at 87%, up from 86%.
Thanks to that recurring revenue growth, as well as operational cost management, Vianet's "very healthy" gross margin increased to 69% from 64% . Adjusted operating profit - excluding exceptional costs, amortisation, interest and share-based payments - rose 7.4% to GBP1.3 million from GBP1.2 million.
"We are pleased to report that despite a challenging economic environment, the group has performed in line with management's expectations, achieving year-on-year growth in key performance indicators," Vianet commented.
Vianet did not declare an interim dividend, but expects to pay a final dividend for the current year in October 2024. It previously declared a 0.5 pence per share final payout in October this year.
Going forward, Vianet believes it is "very much on track" to meet its profit expectations for the full year. Additionally, it said it is optimistic it can continue to deliver sustainable growth.
Shares in Vianet were trading 0.6% lower at 78.50p each on Tuesday in London.
By Emma Curzon, Alliance News reporter
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Vianet Grp (VNET)