CyanConnode raises £8.6m scale-up capital
Smart metering company CyanConnode has raise around £8.6 million of new growth capital through an issue of shares.
The net proceeds will be used to fund future expansion by investing in staff, R & D and working capital to execute on the company's order book, pipeline and growth roadmap.
The news came with the half-year results to June 30 which saw lower revenues and widening losses – down to the company’s investment in global expansion.
CyanConnode won new order wins of £7.6 million in the six months and reports a period-end order book of £20m.
Revenue was considerably down at £573,143 (H1 2016: £1.029m) – in line with management expectations. The operating loss widened to £4.785m from £2.858 year-on-year due to investment in R & D and new contract wins.
The company ended the half with cash and equivalents of £3.046m – up from £2.37m year-on-year.
Executive chairman John Cronin said: “We are delighted with the progress made during the period. The size and frequency of contract wins with new and existing clients reflects the strength of our operations and the value our partners see in our end to end solutions.
“Following the successful integration of the acquired Connode Sweden business, we have established and built a world class development and delivery organisation.
“We believe that deployments, which are set to commence during the second half, will result in significant revenue growth as we focus on delivering revenues and ultimately profitability.
“We have a strong and growing order book and the nature of our model, focusing on hardware installations followed by the commencement of long-term software license payments, provides high levels of recurring revenues while also enabling further margin improvements.
“These key fundamentals underpin our significant confidence in our ability to deliver substantial continued growth while there is significant scope for scalability within all the markets we are operating in – with over 100 million potential customers across Iran, Bangladesh and the UK, where customer contracts are already in place, in addition to the huge growth opportunity in India.”
• PHOTOGRAPH SHOWS: John Cronin