(Alliance News) - CyanConnode Holdings PLC on Friday said it was disappointed its results did not meet expectations as its performance was hindered by a delayed contract for Indian utility company Jaipur Vidyut Vitran Nigam Ltd.
Shares in the wireless communication technology provider were trading 7.4% higher at 4.19 pence each late Friday morning in London.
For the 15 months to March 31, Cyanconnode posted pretax loss of GBP6.2 million on revenue of GBP2.5 million. As part of its efforts for operational efficiency and cost management, Cyanconnode has aligned its financial year-end with its Indian subsidiary, CyanConnode Private Ltd, to 31 March.
Pretax loss for calendar 2018 was GBP6.3 million on revenue of GBP4.5 million.
The Cambridge, England-based company said that while its results were hurt by the delay to the Indian contract - which related to two projects worth over INR1 billion, around GBP10.3 million - the contract has now resumed. It stated inspection, dispatch and cash have been received for the first 20,000 units, adding that it has received cash for a further 20,000 units and secured a letter of credit for remaining deliveries.
The firm also highlighted that it has seen an increase in demand for its products.
Looking ahead, Executive Chair John Cronin said: "Since the end of the period, the group has seen good progress on contracts and opportunities in the Indian market despite the Covid-19 lockdown. The company is focused on delivering significant volumes of its products to customers and we are pleased to report that we are at an advanced stage of agreeing a significant contract for a large number of units."
Cyanconnode said it currently has cash of GBP1.1 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Cyanconnode (CYAN)