LONDON (Alliance News) - Vianet Group PLC Monday confirmed plans to maintain its final dividend at 4 pence for the full-year ended Monday, as trading in the second-half was broadly in line with expectations.
Vianet expects to post a full-year pre-exceptional operating profit of GBP3.0 million. It plans to maintain its final dividend, taking its total dividend to 5.7 pence.
The company, which designs and develops fluid monitoring equipment, is presently contesting a proposed alteration of statutory code which says that flow monitoring equipment may not be used to determine whether a tenant is complying with purchasing obligations, nor can it be used as evidence.
Vianet argued in its response to the consultation document that it felt this proposed change was "unjust and would have both a profound impact on [its] business and have far reaching negative consequences generally." It is arguing that the proposals relating to beer flow monitoring are not based on fact or substantial evidence.
Vianet remained hopeful for a satisfactory outcome to the ongoing consultation process on the proposed statutory code, although it said it continues to exercise caution, as the timing of any announcement remains unclear.
Outside of the core business, the company said it had made good progress in its Vending Telemetry business, as it saw continued growth in profits in the second-half. Vianet said its existing orders within this market are being installed ahead of plan, and remained positive it would secure a significant new business win the first-half of the financial year 2014/15.
Its Fuel Solutions division also made good progress during the year, benefiting from a reduced cost base and higher margin activity, bringing it to profit.
Shares in Vianet were trading down 2.2% at 79.25 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Vianet Grp (VNET)