Member Article

Stockton’s Vianet Group sells fuel solutions arm for £3.5m

Stockton on Tees technology firm, Vianet Group plc has sold its fuel solutions division, Vianet Fuel Solutions Ltd, to Wayne Fueling Systems UK Limited.

A provider of real time monitoring systems and data management services for the leisure, vending and forecourt services sectors, Vianet will receive a cash sum of £3.5m on the deal advised by a team at Yorkshire law firm Gordons, led by Peter Barton.

The sale comes as the firm reports a healthy set of interim results, with revenues rising by to £9.84m in the six months to September 30 2015, an increase of 7.7% on last year.

VFS reported a pre-exceptional £0.026m profit on revenue of £4.2m in the 12 months to 31 March 2015 and a profit of £0.224m in the six months ended 30 September 2015 on revenue of £2.89m.

The disposal of VFS will enable Vianet to focus on the core businesses of Leisure and Vending Solutions and consolidate its financial resources.

In addition, the firm will make a further announcement to the market on completion of the transaction, which is expected to occur on or around 31st January 2016.

James Dickson, Chairman, stated: “Over the past two years we have made significant progress to establish a strong reputation for Vianet Fuel Solutions in the UK forecourt sector and to turn the business around to a good level of profit this year.

“VFS operates in a competitive landscape which is increasingly dominated by major global players, such as Wayne, and therefore we believe it is now, strategically, a good time for the Group to sell VFS to Wayne who will continue to build on the strong foundations we have built.”

Wayne is a global provider of fuel dispensing, payment, automation, and control technologies for retail and commercial fuel stations. Through a global network of distributors and service partners, Wayne products are sold and supported in over 140 countries around the world.

James continued: “Whilst it will be sad to say farewell to the VFS team, I am pleased that there is a great fit with Wayne who will take VFS to the next stage of development and growth.”

He added: “The Board is confident of the medium and long term prospects of the Group and its Leisure and Vending businesses where the focus will fully turn. The Group’s progress provides an encouraging outlook for 2016 and the Board remains committed to delivering shareholder value”.