(Alliance News) - CyanConnode Holdings PLC on Tuesday reported considerable revenue growth for the first half of its financial year as major contracts rolled out.
Shares in CyanConnode were up 8.7% at 5.00 pence in London in late morning trading.
For its financial half-year ended September 30, the narrowband radio frequency smart mesh networks maker posted revenue of GBP1.5 million, up 50% from GBP1.0 million a year before.
This resulted in a much narrowed pretax loss for the interim period of GBP1.7 million, compared to the GBP3.1 million loss a year prior.
In an interview with Alliance News, Chief Financial Officer Heather Peacock said the driver behind the company's revenue growth in the recent six months was a backlog of contracts.
Peacock said the company had "won some large contracts", some during the interim period and some before, that have now entered "full deployment mode" and are "all rolling out".
"Having a big backlog, that's what's driven it," she explained.
The company's revenue for the eight months to the end of November exceeds its revenue for the entirety of the prior 15-month financial period.
In terms of Covid-19, the company said: "Covid-19 poses significant worldwide uncertainty. CyanConnode has been working hard to tackle the risks and has implemented policies to mitigate them, and put in place the most appropriate measures to protect its business. CyanConnode is confident that it has been effectively managing the challenges that Covid-19 presents.
"CyanConnode is managing cash and costs and it expects to meet its obligations as and when they fall due and GBP750,000 of cash has been received from customers since the period end."
Notable post-September events include the appointment of a new senior management team in India. This took place in December, and involved the appointment of a new managing director and chief executive of CyanConnode India, as well as a new CyanConnode India chief operating officer and sales director.
Executive Chair John Cronin said: "With the government of India executing its plan to rollout 250 million meters in the next few years we were very pleased to announce the appointment of a new senior management team, and look forward to utilising their significant experience to take our Indian business to the next stage of its development.
"The world continues to be affected by the Covid-19 pandemic and the wellbeing and safety of our staff is paramount during these unprecedented times. We continue to reassure our customers and stakeholders that, as always, we are monitoring the situation and working tirelessly to ensure that CyanConnode can continue to deliver its products and services."
By Anna Farley; annafarley@alliancenews.com
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Cyanconnode (CYAN)