CyanConnode Holdings plc, ( AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, announces its full year results for the year ended 31 December 2018.
CyanConnode Holdings Plc announces exceptional FY 2018 results
Financial and Operational Highlights
- Revenue of £4.5m achieved for 2018, being more than three and half times higher than the prior year revenue, (2017: £1.17m)
- The innovative Omnimesh smart metering platform, launched in June 2018, has generated over £15m worth of orders to the end of 2018, with £3m of revenues recognised against those orders during 2018
- The first Licensing Agreement for CyanConnode’s smart metering technology was signed with Beijing Instruments, (a well-established Chinese meter manufacturer), potentially worth $4m (£3.1m)
- A significant improvement of the financial position with a 43% decrease in operating loss to £6.3m (2017: £11.2m), and adjusted LBITDA improving from £9.9m in 2017 to £4.8m in 2018
- Consolidation of European operations into the Company’s centre of excellence based in Cambridge, with knowledge transfer and the closure of Swedish engineering facilities concluded
- 22% reduction in operating costs
- Cash and cash equivalents at the year-end of £4.6m (2017: £5.4m)
- Strong growth delivered as CyanConnode continues to establish itself as a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks
Post Year End Highlights
- Follow-on order from Larsen & Toubro (“L&T”) resulting in incremental increase to order received in May 2018 of £0.4m
- Follow-on order from HM Power for £0.7m for smart metering implementation for Swedish utility
- Order received from a new partner in India for a deployment of a hybrid RF smart mesh and cellular communications network
- R&D tax credit cash refund claim of £0.8m (2017: £1.4m) to be submitted to HMRC in May 2019 and expected to be paid in June/July 2019
- New Board appointments made to assist the Company’s growth
- Q1 2019 trading performing well against company budget and, in line with expectations, operating costs are consistently below budget averaging £0.48m per month
John Cronin, Executive Chairman of CyanConnode, commented: "With the launch of the innovative Omnimesh smart metering platform, 2018 was a significant year for CyanConnode. The Company also consolidated its European operations to its centre of excellence in Cambridge, which helped to significantly reduce operating costs.
“During the year, £15m of orders were received and in addition CyanConnode executed its first Licensing Agreement with Chinese Partner, Beijing Instruments, a well-established Chinese meter manufacturer.
“The Company’s focus for 2019 is to restore shareholder value by converting existing and new orders into revenue and by carefully controlling operating costs.
“I look forward to updating the market with further developments as CyanConnode capitalises upon the increasing global demand for smart city solutions. I would also like to take this opportunity to thank our staff, contractors and partners for their hard work during 2018, it is their dedication and commitment that will set CyanConnode apart from its competitors.”
CyanConnode is a global leader in Internet of Things (IoT) communications.