CyanConnode slashes loss after revenue surge

The narrowband radio frequency smart mesh network firm scored revenue of £4.5m for 2018, an increase of 281% when compared to the year before, while its loss before tax improved from £11.1m to £6.3m.

The jump in revenue came on the back of a strong contribution from India, where highlights included a £9.1m order for its newly launched Omnimesh smart metering platform, and the Nordics, where the company won two orders worth £0.8m.

The AIM traded company's results were delayed from last week as it had to carry out extra work to meet accounting standards.

John Cronin, executive chairman of CyanConnode, said: "With the launch of the innovative Omnimesh smart metering platform, 2018 was a significant year for CyanConnode. The company also consolidated its European operations to its centre of excellence in Cambridge, which helped to significantly reduce operating costs. During the year, £15m of orders were received and in addition CyanConnode executed its first licensing agreement with Chinese partner, Beijing Instruments."

Despite the positive progress, CyanConnode warned that the scale of its current projects mean that changes to the level and timing of sales, or to the timing of customer payments, could create material uncertainty and impact its funding requirements.

Cash and cash equivalents stood at £4.6m at the end of the year, down from £5.4m at the end of 2017, following a successful share placing of £5.4m in November 2018.

In a statement, the company said that trading in the first quarter indicated that full year results will be in line with market expectations, though the business faces an uncertain macroeconomic outlook.

"The company's focus for 2019 is to restore shareholder value by converting existing and new orders into revenue and by carefully controlling operating costs. I look forward to updating the market with further developments as CyanConnode capitalises upon the increasing global demand for smart city solutions," said Cronin.

Cyanconnode Holdings' shares were down 12.00% at 5.94p at 0953 BST.