CyanConnode Holdings plc (AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, announces its audited results for the 15-month period ended 31 March 2020.
CyanConnode report reflects 'challenging circumstances'
Financial and Operational Highlights
- Revenue of £2.5 million achieved for the fifteen months to March 2020 (2018 year: £4.5 million)
- Orders received during the period totalled £6.8 million, including:
March 2020 - Follow-on order from Forth Corporation Public Company for a Thai Utility bringing the total value of Thai orders to more than £2.3 million
January 2020 - £3.3 million order for 142,000 modules from Genus Power Infrastructures Ltd (“Genus”) secured by a Letter of Credit (“LOC”)
December 2019 - £1.1 million order from JST Group for a Thai Utility
- Follow-on orders from HM Power (April 2019), Larsen & Toubro (“L&T”) (February 2019) and Toshiba (July 2019) totaling £1.3 million
- £4.1 million of cash received from customers during the fifteen-month period (2018: £2.6 million)
- Launch of new Omnimesh Cellular products including Dual SIM Cellular Network Interface Card and In-Meter Gateway for improved security and increased capacity
- Chris Jones and Peter Tyler appointed as Non-Executive Directors in March 2019
- Change of External Auditor to RSM UK Audit LLP
- Change of financial year end to 31 March
Post Year End Highlights
- Resumption of previously delayed INR 1 billion Indian contract. Inspection, dispatch and cash received for first 20,000 units. Cash received for a further 20,000 units and Letter of Credit secured for remaining deliveries
- Commencement of rollout of recently announced projects in India and Thailand following easing of COVID-19 lockdown, with more than 30,000 modules delivered against these projects since period end
- Continued rollout of Sweden projects with 34,000 modules delivered against these projects since period end
- A further 5,000 modules delivered to Larsen & Toubro for legacy projects
- £1.3 million cash received from customers since the period end. Current cash balance at the same level as end of December 2019 (£1.1 million)
John Cronin, Executive Chairman of CyanConnode, commented: “In 2019 we were disappointed not to achieve the Board’s expectations as a result of a delayed contract for the Indian Utility, Jaipur Vidyut Vitran Nigam Ltd (JVVNL). The positive news in the first half of 2020 is that this significant contract has resumed and we are receiving cash payments for the rollout. We are also encouraged to see demand for our products increasing.
“CyanConnode has adapted to working under COVID-19 conditions and continues to remain on track with its current development plans. Nevertheless, the Company has encountered challenging circumstances in the markets in which it operates, which are reflected in these historical figures.
“During 2020, as existing contracts started to roll out, the Company began to utilise Letters of Credit to meet its working capital requirements, thereby mitigating the need to raise further funding. The Company is focused on delivering significant volumes of its products to customers and we are pleased to report that we are at an advanced stage of agreeing a significant contract for a large number of units.
“I would like to thank all employees for their hard work and commitment during this period, and all shareholders for their continued support.”
CyanConnode is a global leader in Internet of Things (IoT) communications.