Financial Highlights
- Revenue of £1,637,008 (H1 2017: £573,143), which is 40% higher than 2017 full year revenues
- India being the largest contributing region
- Significant increase in gross margin to 79% (H1 2017: 31%) as a result of increase in software revenues
- Operating loss of £3,315,931 (H1 2017: £4,785,258), significant improvement on loss of £11,153,094 for 2017 full year
- Basic and diluted loss per share of 3.19p (H1 2017: 5.4p)
- Cash and cash equivalents at 30 June 2018 £2,752,791 (H1 2017: £3,046,082; FY 2017: £5,393,922)
Operational Highlights
- Purchase order contract for India won
- USD 3.2 million order from strategic partner, Larsen & Toubro (“L&T”)
- Largest order to date for new IPv6-based, Omnimesh
- Official launch of standards-based, cost-optimised Omnimesh smart metering solution
- End of major development programme, which will result in substantial reduction in development costs
- Ensures the Company’s technology can support global standards for Advanced Metering Infrastructure (“AMI”), further expanding its global reach
- New order worth EUR 184,000, which is part of a larger anticipated order expected to be in excess of EUR 800,000, for a smart metering deployment for a European utility
- New order from L&T for a further 5,000 smart meters in India
- Delivered in H1 2018
- Substantial reduction in operating costs across the business
Post Period Highlights
- Purchase order, worth USD 780,000 and part of a larger potential order expected to commence delivery in H2 2018
- Supply of IPv6 solution based on perpetual software licenses and annual maintenance for an initial period of 10 years
- Approximately 50% of the total order value will be recognised fully in the current financial year
- New order from L&T for a further 10,000 smart metering units in India to be delivered in Q3 2018
- Total units orders by L&T to date, 41,735
- David Johns-Powell, a significant shareholder, appointed to the board as a non-executive director
- Group Finance Director, Heather Peacock, appointed to the board
John Cronin, CyanConnode Executive Chairman, commented: “My focus is to deliver CyanConnode’s order book and for the Company to become cashflow positive as soon as possible.
“I am encouraged by the progress made in India, a key contributor to the revenue growth in H1. CyanConnode’s experience in India and the suitability of its technology has strengthened its market position. I am very confident that India presents CyanConnode with a vast opportunity.
“During the period CyanConnode officially launched Omnimesh, its IPv6 based technology that is designed to support global communication standards.
“With an increasing magnitude of deployments, CyanConnode is seeing increasing opportunities for large scale license-based contracts that offer high-margin business.”