North East firm's sales and profits slump as beer device flops

A North East data management specialist has announced a marked drop in revenue for the six months ended 30 September.

Vianet Group plc, based in Stockton, reported revenue at just over £9 million, compared with almost £11.2 million in the first half of 2013.

Profit also fell by £570,000 in the same period, to £1.3 million.

Vianet provide real time monitoring and data management systems for the leisure, vending and forecourt services sectors, and say its iDraught sales are being impacted by the uncertainty surrounding the Statutory Code and their exit from lower margin activity in Fuel Solutions.

iDraught is Vianet’s flagship product, and has been beset by weak sales. iDraught aims to improve pub and restaurant margins by tracking each and every pour of beer to identify over or under pouring. It also ensures drinks are served at the correct temperature to customers.

Over the period, Vianet made 150 new beer-monitoring installations, of which 79 were higher value iDraught installations. This compares to 716 new installations in the corresponding period in 2013, including 669 for iDraught.

Vianet have, however, reported solid progress in their Vending division, particularly with major players in coffee vending, and a cost reduction programme has delivered approximately £440,000 year-on-year savings.

Commenting on the interim results, James Dickson, executive chairman of Vianet Group plc, said: “The Board is pleased with the operational progress that has been made across all of the Group’s businesses during the period, although the uncertainty surrounding the Government’s proposed Statutory Code for Pub Companies has held back our beer flow monitoring performance.

“Assuming that a satisfactory outcome from the revised Statutory Code is announced in the second half of the current financial year, the Board remains optimistic for the growth prospects of Vianet’s flagship iDraught product in the medium to longer term as well as for the other parts of the Group, which are already seeing improved performance. I believe the Group has the right products and structure in place to secure additional blue chip customers and grow income across all divisions.”