CyanConnode revenue rockets ahead in first half

Narrowband mesh network technology company CyanConnode reported a 172% improvement in first-half revenue on Monday, to £4.1m.

The AIM-traded firm said its gross profit was ahead 104% at £1.7m for the six months ended 30 September, while its operating loss narrowed by 26% to £1.2m.

Cash received from customers grew by 138% year-on-year to £3.8m for the period, with cash and cash equivalents at period end totalling £1.7m, up from £1m a year earlier.

On the operational front, CyanConnode said ‘Omnimesh’ modules shipped to customers were up by 3.4 times to 315,000, with 152,000 Omnimesh modules being ordered for a new customer in northern India.

A follow-on order was received from the Metropolitan Electricity Authority (MEA) smart grid project in Thailand, meanwhile, and 100,000 Omnimesh modules were ordered for a new customer in Africa.

A key memorandum of understanding was signed with Intellismart Infrastructure, and a “heavily oversubscribed” placing was completed in the period, at a premium to the then-share price, raising £3.15m before expenses.

CyanConnode was selected by Energy Efficiency Services as its technology partner for the Middle East and Africa in the half-year, and signed a ‘global strategic alliance’ with Smart Energy Water.

“I am pleased with the continued successful deployment of projects, which has resulted in a significant increase of revenue for the first half of the financial year,” said executive chairman John Cronin.

“As with many companies, there have been challenges which impacted our business during the period.

“The year started with further Covid-19 lockdowns and ongoing component shortages, which resulted in higher costs and longer lead times.”

Cronin said that notwithstanding, the company was able to continue manufacturing and shipping its products to meet customer requirements on time.

“Despite these challenges, I believe CyanConnode will meet market expectations for the current financial year.”

At 1511 GMT, shares in CyanConnode Holdings were up 3.26% at 19.62p.