Breaking business news: Vianet warns of profits drop

This morning's breaking news - Vianet expects profits to drop. SBV acquires new Teesside premises. Reece Group expects drop in sales

James Dickson of Vianet
James Dickson, Chief Executive of Vianet

Teesside data monitoring company Vianet Group has warned to expect a drop in operating profits.

The Stockton-based outfit says its beer flow monitoring products could be adversely affected by uncertainties created by proposed UK Government regulations, with installations of its iDraught product falling behind expectations.

The company –formerly known as Brulines – also claims uncertainty in the sector has also accelerated the number of pub closures and disposals, leading to a reduction in traditional beer monitoring installations to almost 17,000 sites at the half year.

In a trading update, Vianet said it is now forecasting an operating profit of close to £3m for the year ended March 2014, down from £3.3m last year.

However, the board said it is pleased that progress is being made in Vianet’s newer businesses, including in the coffee vending market.

SBV expands

Engineering firm SBV has acquired new Teesside premises as it gears up for new markets.

SBV, which provides heavy industrial steel fabrication, pipework and related services to the nuclear, offshore, subsea, oil and gas, steel, and mining sectors has taken a long lease on an additional 27,000sq ft.of high bay fabrication facilities at Teesside Offshore Base.

This is in addition to the current 2.4 acre fabrication site in Middlesbrough and the company’s machining and fabrication facility based in Hartlepool.

Reece expects sales drop

North East engineering company the Reece Group has reported an expected drop in sales after a reduction in defence projects.

Reece Group is a holding company for businesses including Pearson Engineering, Newcastle, Responsive Engineering, Gateshead, and Sunderland-based Velocity UK.

In the year to December 31, 2012, Reece reported turnover of £92.5m, down from £211.7m.

Utilitywise and Vertu Motors win at AIM Awards

North East companies Utilitywise and Vertu Motors were in the frame at the annual AIM Awards.

South Shields-based Utilitywise won for Best Use of AIM and Robert Forrester of Vertu was Entrepreneur of the Year.

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