Vianet results suffer over pub industry statutory code uncertainty

The trading statement, covering the six months to 30 September, revealed that Vianet has experienced a slowdown in flow monitoring capital expenditure from the UK pub sector, leading to a material shortfall in the anticipated number of new installations of the company’s iDraught system.

This is partly due to an acceleration in 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.

The company said it is continuing to lobby MPs and other stakeholders “to ensure that the factual evidence and arguments are being considered, and is pleased with the response so far received”.

Cautious​

It added: “The board remains hopeful of a positive outcome in the final Statutory Code, however it remains cautious about the short term outlook for the group’s core Leisure division, until the new provisions of the Code are announced, particularly as the process may lead into the Christmas trading period.”

As a result Vianet anticipates that pre-exceptional operating profits for the current year ending 31 March 2014 will now be in the region of £3m, compared to £3.3m last year. However, thanks to strong cash flow, it is expecting to maintain both the interim and final dividend.

It added: “Assuming a satisfactory outcome from the revised Statutory Code being announced in the second half of the current financial year, in the medium to longer term the board remains optimistic for the growth prospects of the company’s flagship iDraught product as well as the other parts of the group which are benefitting from improved performance.”