Trading Update, Notice of Results and Dividend

VIANET, an international provider of actionable data, business insights and payment solutions through an integrated ecosystem of connected hardware devices, software platforms and smart insights portals, is pleased to provide a positive trading update for the half year ending 30 September 2025, and confirms that the Company's half-year results for the six months ended 30 September 2025 will be published on Tuesday, 2 December 2025.

Financial and Operational Update

The Group delivered a solid H1 2026 performance, reflecting the strength of its resilient business model. Recurring revenues accounted for 84% of total income, supported by healthy gross margins. EBITDA increased by 11.6% to £1.73 million (H1 2025: £1.55 million), in line with expectations, despite a £0.14 million strategic investment in Beverage Metrics in the U.S., reinforcing our commitment to growth and diversification.

Both divisions performed well against a backdrop of general UK economic uncertainty ahead of the November Budget and had notable success in expanding existing customer contracts and winning new clients. We are pleased with this solid performance and it provides the Group with a strong base of recurring income and a healthy pipeline, but as ever the timing of new project starts and rate of deployment continues to be influenced by our customers' current cautious approach to investment.

Financial Highlights

• Revenue resilience: H1 2026 revenue of £7.67m (H1 2025: £7.69).
• High recurring revenue: £6.44m representing over 84% of total revenue, maintained from last year.
• Improved Gross Margin: 68% (H1 2025: 67%) reflecting continued operational efficiency.
• Operating Profit Growth: Up 10.4% to £1.58m (H1 2025: £1.43m), before exceptional items and share-based payments, reinforcing robust underlying performance.
• Strong Cash Generation: Operating cash flow after working capital of £1.7m, equating to around 100% of EBITDA.
• Lower Net Debt: Debt reduced to £0.5m (H1 2025: £1.0m), with cash balances rising to £2.5m (H1 2025: £2.25m) after £0.25m of share buybacks and an increased dividend payment of £0.29m (H1 2025: £0.22m).
• Proposed Interim Dividend Increase: Up 33% to 0.4p (H1 2025: 0.3p)

James Dickson, Chair & CEO of Vianet commented:

"I'm pleased with the progress the business has made in the first half, particularly given the broader economic backdrop. The continued growth in recurring revenues and cash generation, driven by the expansion of existing customer contracts and the addition of new clients, highlights the quality of our business. We remain confident in the Group's outlook for the remainder of the year."