LONDON (Alliance News) - Cyan Holdings PLC Monday said its losses widened in 2013 due to lower revenue and a provision for stock obsolescence.
The utility metering and lighting control product firm said its losses widened in 2013 to GBP3.0 million, compared with GBP2.9 million in 2012, largely due to a provision for possible stock obsolescence of GBP473,448.
Revenue fell to GBP137,996 from GBP315,194 a year earlier, as Cyan said "commercial orders remained well below the level required to sustain the business."
"2013 has been one where we have made investments to consolidate our position by building out our partnership network and sales pipeline across multiple markets," Executive Chairman John Cronin said in a statement.
Cyan did not pay out a dividend for the year, and reiterated that it has no plans to adopt a dividend policy in the immediate future, instead using funds generating to invest in the further development of the business.
"Given the positive progress we are currently making, I remain confident that Cyan's solutions are well matched to the demands of the emerging markets that we are pursuing," Cronin said.
In March, the group said that its CyLec smart meter had been deployed in a pilot project in Brazil for the first time. It said it had launched a CyLec retrofit module specifically designed to fit to static electricity meters in Brazil in December, allowing utility firms to read meters wirelessly. At the time it said its partner in Brazil has now fitted a pilot advanced metering infrastructure set-up on a small number of retrofit units for an unnamed utility and will fit more later.
"Our partners in India, Brazil and China have indicated that they have good prospects to close sales during 2014 and we remain determined to continue to deliver further progress for shareholders through the remainder of 2014," the Cyan chairman said.
Cyan shares were trading 2.6% lower Monday morning at 0.159 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Cyanconnode (CYAN)