CyanConnode publishes interim results: reduced operating costs and increased cash from debtors


31-03-2020

CyanConnode Holdings plc (AIM: CYAN), a world leader in narrowband radio frequency (RF) mesh networks, today announces its interim results for the 12 months ended 31 December 2019.

Financial Highlights

  • Revenue of £2.3 million (2018: £4.5 million)
  • Operating costs reduced by £2.2 million to £6.9 million (2018: £9.1 million)
  • Operating losses reduced by 14% to £5.4 million (2018: £6.3 million)
  • Basic and diluted loss per share improved by 41% to 2.51p from 4.26p loss per share in 2018
  • Cash and cash equivalents at 31 December 2019 of £1.1 million (2018: £4.6 million)
  • Approximately £3.9 million cash collected from debtors during 2019 (2018: £2.6 million)

Operational Highlights

  • £1.13 million order received from JST Group for a Thai Utility
  • £3.3 million Letter of Intent (“LOI”) received from Genus Power Infrastructures Ltd (“Genus”)
  • £0.7 million follow-on order received from HM Power
  • £0.4 million follow-on order received from Larsen & Toubro (“L&T”)
  • £0.2 million order received from Toshiba Information Systems (UK) Ltd ("Toshiba")

Post-Period Highlights

  • Circa £1 million cash received from debtors in the first quarter of 2020
  • R&D tax credits of £0.8 million expected to be received during 2020
  • Loan secured against R&D tax credits received in March 2020
  • £3.3 million order for 142,000 modules received from Genus secured by a Letter of Credit (“LOC”)
  • Follow-on order received from Forth Corporation Public Company for a Thai Utility
  • Launch of new Omnimesh Cellular products including Dual SIM Cellular Network Interface Card

John Cronin, CyanConnode Executive Chairman, commented:  “Notwithstanding a number of follow-on orders secured in India, Thailand and Europe throughout and since the financial year, the Board was disappointed not to achieve its original expectation. As previously stated, this was largely as a result of the Indian General Elections, which took place between April and May 2019, and caused a number of new tenders to be delayed and the rollout of one of the orders on its books to be significantly delayed. With demand remaining strong in India and Thailand, the Group has made an encouraging start to the first quarter of 2020, winning a significant order for a smart metering project in South India as well as a follow-on order for the Metropolitan Electricity Authority (MEA) in Thailand.

“The wellbeing and safety of our staff is paramount during these unprecedented times caused by COVID-19.  We would like to reassure our customers and stakeholders that we are continuously monitoring the situation and are working tirelessly to ensure that CyanConnode can continue to deliver its products and services. Further information relating to the ways in which we are mitigating against the COVID-19 risk are set out in the Outlook section of this statement.

“We look forward to updating shareholders on future progress in due course.”

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CyanConnode is a global leader in Internet of Things (IoT) communications.

CyanConnode Limited