CyanConnode warns of contract delays despite new Indian project

The AIM company said it now expected operating cost savings of £0.8m per year rather than £0.5m previously anticipated, though it added that this was due to delays in the award of some of the "substantial Indian contracts" it had expected to secure back in October.

Meanwhile, CyanConnode also confirmed it had received a letter of intent (LOI) from its partner, concerning the deployment of 142,000 smart meter units on behalf of one of the largest government-owned utilities in South India.

The project is expected within the next 15 months, with approximately 80% of the revenue being recognised during the first two years and the balance being received during a further seven-year support and maintenance contract.

The parties were still in the process of agreeing detailed contractual terms and scope of work for the order.

CyanConnode India chief executive Anil Daulani said: "We are delighted to have received a LOI from Genus, which relates to an order they have received from a new end customer in South India.

"As India begins to evolve into the world's largest smart metering market, utilities have begun to realise the benefits of CyanConnode's robust RF mesh technology, and I therefore look forward to giving further updates in due course."

CyanConnode Holdings shares were down by 10.40% at 1.68p at 1553 GMT.