CyanConnode still hoping to bask in an Indian summer
Stringent cash management helped CyanConnode offset declining revenues in a tough year to December 31.
Revenue of £2.3 million was almost half the 2018 figure of £4.5m but operating costs were reduced by £2.2m to £6.9m (2018: £9.1 million) and operating losses by 14 per cent to £5.4m.
Despite collecting more cash from debtors last year compared to the previous 12 months CyanConnode still saw a huge cash burn.
Cash and equivalents at December 31 £1.1m compared to £4.6m at the end of 2018.
CyanConnode is managing cash and costs and it expects to meet its obligations as and when they fall due. Almost £1 million of cash has been received from customers since the period end.
To further improve its financial position, the specialist in narrowband radio frequency mesh network technology has secured funding against future R & D tax credits.
The company continues to see India as a route to greater things. It reports that the Indian government has stated a target of replacing 250 million conventional electricity meters with pre-paid smart meters within three years.
Finance Minister Nirmala Sitharaman has allocated Rs 22,000 crore ($3 billion) for the power and renewable sector in the Union Budget 2020 and has urged state governments to implement smart meters in three years, which would give the consumers the right to choose suppliers and the rate.
CyanConnode says it continues to make significant progress with various Indian tenders and anticipates the receipt of material orders in due course.
Executive chairman John Cronin said: “Notwithstanding a number of follow-on orders secured in India, Thailand and Europe throughout and since the financial year, the board was disappointed not to achieve its original expectation.
“As previously stated, this was largely as a result of the Indian General Elections, which took place between April and May 2019 and caused a number of new tenders to be delayed and the rollout of one of the orders on its books to be significantly delayed.
“With demand remaining strong in India and Thailand, the group has made an encouraging start to the first quarter of 2020, winning a significant order for a smart metering project in South India as well as a follow-on order for the Metropolitan Electricity Authority (MEA) in Thailand.”