Key Developments
This was a busy period for the Company with key existing relationships strengthened and the Company’s global reach enhanced. This was demonstrated by a combination of both new orders and follow on contract wins in Bangladesh, India and Sweden worth a total of £7.6 million, which were won and will now be delivered through the well-established partner eco-system.
Financial Highlights
Revenue for the period was in line with management's expectations at £0.6 million as the revenue mix transitioned from low-margin third party electricity meters, delivered to a specific customer in India in the corresponding period, towards the more regular revenue mix of CyanConnode hardware, software and professional services.
The Company is pleased with progress on its software recurring revenue model, with approximately 50% of the £7.1 million order for Bangladesh for the period from recurring software licenses.
The order book, representing the value of purchase orders received but not yet delivered, grew significantly over the six month trading period from £13.0 million to £20.1 million, which is in addition to the expected £25.0 million of software licence and support fees from the UK smart metering contract.
During the first six months of 2017, the Company collected customer payments of £1.1 million. As of 30 June 2017, net cash was £3.1 million compared with £3.9 million at the end of the financial year to December 2016 and £2.4 million at the end of June 2016.
Outlook
The Company continues to develop its software recurring revenue model, underpinning revenue visibility with further margin expansion expected from both existing and new opportunities. The order book, which the Company will commence delivering on during the second half, new opportunity pipeline and growing global presence underpin management’s confidence in a strong performance during the remainder of the current financial year and beyond.
Immediately following the period end, CyanConnode announced a £0.9 million order from India, which has further increased the order book to £21 million.
As the Company services and delivers against the order book above, management is confident that trading during the second half will be significantly ahead of the period under review.
John Cronin, CyanConnode Executive Chairman, commented: “The progress made during the period ensures we are well placed to build on the momentum achieved by expanding our capabilities and strengthening our brand globally. We have now built a world class development and delivery organisation and the value of this has directly resulted in the follow on orders from Tata Power and in Bangladesh in the period.
“We are extremely excited by the continued opportunity, security and visibility provided by the growing number of deployments as we now start to deliver on our significant order book. The quality of our products and customer base signify the strength of our operations and reflect our continued efforts to deliver results for shareholders on a growing number of fronts. CyanConnode is now becoming a well-established business, with highly competitive solutions which industry leading customers like Tata Power are buying and then re-ordering on a repeat basis.”
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Enquiries:
CyanConnode Holdings plc
Tel: +44 (0) 1223 225 060
John Cronin, Executive Chairman
www.cyanconnode.com
FinnCap Ltd (Nomad and Broker)
Tel: +44 20 7220 0500
Adrian Hargrave/Giles Rolls (Corporate Finance)
Alice Lane (Corporate Broking)
Walbrook PR (Financial PR)
Tel: +44(0) 20 7933 8780
Paul Cornelius/Nick Rome
cyanconnode@walbrookpr.com
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