Financial Highlights
- Revenue of £1.0 million (H1 2018 restated: £1.3 million)
- Operating costs reduced by £1.1 million to £3.5 million (H1 2018: £4.6 million)
- Operating losses reduced by 16% to £3.0 million (H1 2018 restated: £3.6 million)
- Basic and diluted loss per share improved by 57% to 1.50p from 3.50 p loss per share in H1 2018
- Cash, cash equivalents and investments at 30 June 2019 was £2.4 million (H1 2018: £2.8 million; FY 2018 £4.6 million). R&D tax credits of £0.8 million to be received bringing total cash available to £3.2 million
- Approximately £2 million cash collected from debtors during the period
Operational Highlights
- £0.7 million follow-on order secured from HM Power to supply several Swedish utilities
- £0.4 million follow-on order from Larsen & Toubro (“L&T”), relating to the order announced in May 2018
- New order from new strategic partner, an Indian state-owned Utility for deployment of 3,000 smart meter modules, which utilise a hybrid radio frequency (“RF”) Smart Mesh and cellular communication network
- New long-range (up to 12 kms) RF module developed
- UK Smart Metering programme (“UK SMIP”) gaining momentum
- Chris Jones and Peter Tyler appointed Non-Executive Directors in March 2019
Post Period Highlights
- Follow-on order for 4,050 modules secured from Genus Power Infrastructures Ltd (“Genus”) for deployment to Uttar Gujarat Vij Company Ltd ("UGVCL")
- £0.2 million order from Toshiba Information Systems (UK) Ltd ("Toshiba") for service enhancements relating to the UK SMIP contract
- Follow-on order received from existing partner for legacy hardware and software for a Nordic Utility
- Memorandum of Understanding signed with Hexing Electrical Co. Ltd (“Hexing”) to expand geographical reach and introduce products and services to new customers
John Cronin, CyanConnode Executive Chairman, commented: "Whilst we have made good progress during H1 2019, securing a number of follow-on orders in India and Europe, the Indian General Election had an impact upon the number of new tenders awarded during the period owing to a prohibition on Government departments awarding contracts during the elections. After the result was announced in May 2019, business activity started to resume in India and we expect to report significantly higher revenues for H2 2019, than that reported for H1 2019. The demand from India remains strong and to the extent that orders have been delayed, other orders from the rest of the world, which had not been anticipated at the beginning of the year, will be recognised in the period. We are currently working on a large number of tenders which we believe will result in substantial new contract wins for the Company by end of October and accordingly we anticipate that the outcome for the year will be in line with Market Expectations.”