DATA monitoring group Vianet says it expects to grow its full-year profits thanks to first half trading in line with its expectations, boosted by the London Olympics.
The AIM-listed business, which employs more than 270 people and is based in Stockton, has secured a number of contract extensions from major customers in its core beer monitoring business.
It now says its strategy is starting to pay off and trading for the six months to the end of September was in line with its expectations.
Vianet, which changed its name from Brulines in April to reflect the larger remit of the business – providing monitoring systems for the leisure, vending and garage forecourt markets – said its vending division is trading at break-even with strong prospects for the second half.
“The improvement arises from further progress in developing significant new sales opportunities with major international companies for the group’s leading end-to-end vending telemetry, and Touch & PayTM cashless and contactless solutions, which were used by Coca Cola and VISA at the recent London 2012 Olympic Games,” the firm said yesterday.
However, it expects to make a first-half loss in its fuel monitoring business, although it remains confident of longer term growth.
The firm said: “Whilst the fuel solutions division has benefited from a reduced cost base and new business gains for the market's only end-to-end solution for forecourt operators, it is anticipated that the division will make a small loss in the first half.
“However trading has improved month-on-month and break-even was achieved in September 2012, and the board anticipates that new contracts should result in further improvement in the second half.”
The update went on to say: “The board fully expects this progress to result in current year profits growth, and anticipates maintaining the current progressive dividend policy as the group continues to generate cash from its core business.”
In June the business announced an annual fall in turnover to £22.9m from £24.28m and a drop in pre-tax profits to £2.3m from £3m after exceptional costs for the year to the end of March.
It said that 2011/12 was a year of transition while it put the building blocks in position for growth.
Vianet will unveil its half-year figures in December.