CyanConnode revenues up 560 per cent
Cambridge clean technology front runner CyanConnode reports 2016 revenues of around £1.8 million – an increase of 560 per cent over 2015. The smart metering and IoT business also predicted a period of strong growth as it issued a trading update to the UK’s AIM market.
The company specialises in narrowband radio mesh networks. In the year to December 3, it says trading was in line with management's expectations. Cash at December 31 was £3.9mn.
It said a significant portion of revenue growth was underpinned by the PVVNL and CESC deployments in India. CyanConnode added that the long-term nature of subsequent contract wins provides improved visibility going forward, with order backlog from existing contracts going into 2017.
As well as its global successes in the last 12 months, the company is licking its lips at the upcoming smart metering rollout in the UK. This will involve the rollout of 53 million gas and electricity meters nationwide by the UK government target date of 2020.
CyanConnode was selected by Telefonica and Toshiba to provide a software platform that uses narrowband mesh technology to complement Telefonica's existing cellular network, allowing previously off-grid households to be reached as part of the UK SMIP.
Telefonica was awarded a contract as the preferred communications service provider in two out of the three regions tendered by the Government. Telefonica's SMIP solution is based on its existing cellular network in the UK, supported by CyanConnode's C4 solution, which connects households without reliable cellular coverage (known as ‘not-spots’ by the mobile phone network operators).
The CyanConnode software licence and support fees revenue is expected to be £25m over the life of the contract and the company says the 2016 milestones under the contract were successfully delivered.
Executive chairman John Cronin said the group had now established itself around the world with the leading system integrators and end users of smart metering solutions.
He said: “We are delighted by the strong performance during the period with record revenues reflecting the strength and growing maturity of our model. We have good backlog of orders from India, Iran and the UK.
“The global opportunity is clear and our ability to generate revenues in a number territories looks set to underpin a strong period of growth for CyanConnode.”