CyanConnode (CYAN) , a global provider of narrowband radio frequency smart mesh networks, released unaudited interim results for the 6 months ended September 30 2023 (1H24).
Revenues rose sharply to £5.8m from £1.3m in 1H23, in line with management expectations. Gross profit more than doubled to £1.8m from £0.7m a year ago, and operating loss narrowed to £2.2m from £2.4m. Cash received from customers rose to £7.4m from £4.5m in 1H23, and cash eq at period end was £0.9m from £4.1m a year ago.
Operationally, CyanConnode won 3 orders from IntelliSmart for a total of 1.4 million Omnimesh RF modules and associated products, taking its total order book for India to 5 million Omnimesh modules. An MoU was also signed with Alfanar to explore opportunities in Advanced Metering Infrastructure (AMI) projects, and a letter of award (LOA) was received post-period for a smart metering deployment in the MENA region.
CyanConnode shipped 503,000 modules in 1H24 vs. 391,000 shipped for the entire FY23. Post-period, a further order was won for 300,000 modules from IntelliSmart. Of the 5.3 million modules contracted so far, 3.1 million are yet to be shipped.
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A strong half for CyanConnode as the company continues to gain market share in India in the rapidly growing smart metering market. Revenues quadrupled and gross profit doubled in line with expectations. Revenues for FY24 ending March 31, 2024 is also forecast to meet market expectations.
The Indian smart metering market continues to gather momentum, with current tenders for more than 220 million smart meters sanctioned to the end of November 2023, and almost 100 million awarded to prime bidders, typically Advanced Metering Infrastructure Service Providers (AMISPs).
CyanConnode is growing rapidly, having won orders for a total of 5.3 million Omnimesh RF modules to date in India alone, with a significant portion of these (4 million) having been won in the past 18 months. CyanConnode India was recognised as the second fastest-growing UK company in India by the BMI 2023 report.
CyanConnode market share of installed smart metering base in India is now c. 25%, with a win ratio in the country in terms of tenders to date of 40% and 25% in terms of volumes. Orders continue to be won in other territories too, such as the aforementioned follow-on order from the MENA region. The company remains well-funded following a £2.7m fundraise in November, plus issued warrants which would provide a further £4.1m if fully exercised.
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