North East technology company Vianet Group has confirmed the signing of a substantial new contract with a prominent full-service restaurant group based in the United States. The Stockton-based business, which specialises in advanced telemetry and data collection systems, revealed that its American subsidiary, Vianet Americas Inc, has entered into a long-term, multi-year agreement with the large hospitality operator.
Strategic Expansion in the US Market
While the precise financial value of the deal remains confidential, the arrangement will see the US restaurant firm implement Vianet's Beverage Metrics solution across numerous sites nationwide, focusing initially on one of its major brands. This inventory management software, originally acquired by Vianet in 2023, is designed to help hospitality businesses monitor and control their stock levels efficiently, delivering measurable operational and financial advantages.
James Dickson, who serves as President of Vianet Americas Inc and CEO of the parent Vianet Group PLC, emphasised the strategic importance of this agreement. He stated that it reflects ongoing progress in the group's overall strategy and reinforces their long-term commitment to the US hospitality market, which continues to demonstrate strong performance.
Validation of Technology and Market Position
Mr Dickson highlighted that deploying the Beverage Metrics system to a leading restaurant operator validates the relevance of Vianet's technology for large, multi-site businesses. This deal follows other recent successes, including a contract with World of Beer and a new partnership agreement with Fintech.com, further solidifying the company's foothold in the competitive American market.
Robust Trading Update Amid Economic Challenges
The announcement coincides with a trading update provided to shareholders, detailing a robust performance in the first half of 2026. During this period, Vianet reported a 10.5% increase in EBITDA, reaching £1.88 million. The company's two core divisions—hospitality and unattended retail—have been expanding their installation footprint by extending existing customer contracts and securing new clients.
However, the update also noted that, despite a healthy pipeline and recurring income streams, activities in the second half of the year have been slower than previously anticipated. This slowdown is attributed to customers' cautious approach to investment, particularly within the UK hospitality sector, which faces ongoing economic uncertainty.
Financial Performance and Future Outlook
For the full 2026 financial year, Vianet expects profits to be similar to those achieved in 2025, when the company reported EBITDA of £4.14 million. Net debt is projected to align with market forecasts, which should support a continued increase in the group's final dividend. Last November, Vianet disclosed earnings growth of 11.6% to £1.73 million for the six months ending September, with recurring revenues constituting 84% of total income and gross margins described as healthy.
Mr Dickson expressed satisfaction with the business's progress despite the challenging economic environment. He pointed to the expansion of existing contracts, acquisition of new clients, and advancements in the USA as evidence of the strength and quality of Vianet's operations. These developments are expected to drive growth in recurring income and enhance cash generation, with the group remaining optimistic about its outlook and committed to delivering increased returns for shareholders.
