Vianet warns of shrinking full-year profit

Real-time monitoring systems provider Vianet said it expects full-year operating profit to fall below last year's level after a slowdown in spending from UK pubs. The group, whose beer monitoring technology is used in one in three British pubs and claims to be able to measure the perfect pint, said it now anticipates that pre-exceptional operating profits for the current year ending March 31st 2014 will now be in the region of £3.0m compared to the £3.3m achieved last year.In the UK pub sector there has been a slowdown in flow monitoring spending, which has led to a 'material shortfall' in the anticipated number of new installations of iDraught for this year, the group said. This same uncertainty has also accelerated the number of pub closures and disposals with a consequent reduction in the traditional beer monitoring installations to almost 17,000 sites at the half-year, it added.As previously announced, Vianet said it remains, "highly conscious of the uncertainty surrounding the government's proposed Statutory Code for Pub Companies and the adverse impact that the proposals for controlling beer flow monitoring...may have on the core leisure business". "Against that background and taking account of all of the factors described above, the board said it feels it is appropriate to exercise caution."The group, which also provides monitoring systems for service station forecourts, said trading in its Fuel Solutions division has improved despite a slow start in the first quarter and ithas made progress towards trading at break-even level during the second half of 2013.Vianet said its newer businesses, including the coffee vending market, is trading profitably and it believes there are good prospects for further contract developments in the second half of the year. Its operations in the US also continue to make positive progress, with the performance of initial installations of iDraught in both full commercial and pilot contracts with several national leisure chains meeting expectations. Based on the trading outcome now anticipated and given the strength of the group's cash flow, which is underpinned by high levels of recurring revenue, the board expects to maintain both the interim and final dividend.CJ