Newspaper article The Journal (Newcastle, England)

Vianet's Fuel Division Deal Worth PS3.5m

Newspaper article The Journal (Newcastle, England)

Vianet's Fuel Division Deal Worth PS3.5m

Article excerpt

Byline: TECHNOLOGY COREENA FORD coreena.ford@ncjmedia.co.uk

TEESSIDE technology group Vianet has announced the sale of its fuel solutions division in a deal worth PS3.5m.

The firm, which provides real time monitoring systems and data management services for the leisure and vending sectors, has sold Vianet Fuel Solutions Ltd (VFS) to Wayne Fueling Systems UK Limited and the transaction is expected to complete on or around January 31 next year.

VFS supplies management information and other associated services to independent, multi-branded owner, and supermarket petrol forecourt operators.

The Stockton firm will receive a cash consideration of PS3.5m on a debt-free cash-free basis, subject to a potential adjustment for the working capital of VFS at completion.

Intercompany balances will be written off prior to completion.

Chairman James Dickson said: "Over the past two years we have made signifi-cant 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.

"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."

The sale comes as the firm announces a strong set of interim results, with revenues rising by 7.7% to PS9.84m in the six months to September 30.

Operating profit before amortisation, share-based payments and exceptional items was also up by 15.1% to PS1.75m.

During the period, 139 new iDraught system installations were made and there were several five-year contract renewal and extensions made, including with Punch Taverns, Trust Inns, and Heineken's Star Pubs and Bars. …

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