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Good morning all :)
Good to see the SP regaining the lost ground in a cautious manner.Long overdue but market sentiment fully understandable.
Still think we will be looking at a £2-3m loss this year, if a white label licensing deal does not come through by end of Dec 18. Not sure how much we will get from SMETS2, but I am thinking about 3 month contract revenue (10% notspot) of circa £666k (Sep-Dec 2018). Don't know how much revenue will come from India/RoW for sure this financial year.
So funding gap could be circa £3-4m in my book, but closer to the upper figure. So I would expect funding arrangements of about £5m...as JC won't want to risk having to come back to funders for more. I am sure that funding clarity and details will be announced in the next couple of weeks.
Hopefully no more equity dilution. Onwards and upwards and good luck all :)
The 1-2 nature of a $11.6m + $2.9m contracts should get pulses racing in the market - we could see a real scramble for shares starting !!
Good luck all :)
Another fantastic bit of news :)
RNS Number : 6304B
CyanConnode Holdings PLC
24 September 2018
$2.9 million order for support contract for Indian smart metering deployment
CyanConnode (AIM: CYAN), a world leader in narrowband radio frequency (RF) mesh networks, is pleased to announce the receipt of a $2.9 million purchase order for a five-year support and maintenance contract for an Omnimesh smart metering deployment by a State-Owned Utility in India.
This contract relates to the $11.6 million purchase order announced last week, for Omnimesh IPv6-based hardware, perpetual software licenses and services, received from a Tier One Metering Partner. It includes support and maintenance of the RF Canopy, firmware and software support and training. The contract will start within six months from the commencement of meter installations and is for an initial period of five years.
Anil Daulani, Managing Director of CyanConnode Pvt Limited, commented: "We are very pleased to announce this significant, follow-on order for support and maintenance for the Omnimesh smart metering solution being provided to the State-Owned Utility. As an integrated network services company, we have the technology, partners and expertise to provide end-to-end smart metering RF communications solutions that enable utilities to reduce their cost to serve and improve customer experience.
"This contract demonstrates our commitment and ability to provide both world class technology and expert support to customers, from integration to ongoing maintenance. CyanConnode designs, delivers and supports solutions and services which enable organisations to create, improve and operate the smart networks that their businesses depend on. Our comprehensive approach builds customer confidence and loyalty, providing scope for follow-on orders as well as further revenue streams."
The Omnimesh product was officially launched on 27 June 2018 and the total value of orders received for this new product is now more than $18.9 million, which demonstrates its suitability for the Indian smart metering market.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
I agree that the BoD have been unfairly slagged off by some posters for some issues outside their control and for their eagerness to announce "contracts", which then got delayed. I think the political risks of operating in developing countries was underestimated by the BoD but they seem to have learnt from that. Possibly some justifiable criticism about the quality,content and timing of RNS announcements which have adversely affected market sentiment. I have never doubted the integrity, intentions or commitment of the senior people in CYAN, or else I would not have remained invested.
I have been adding today - another tranche of 185k + 15k. It has been very difficult to get the shares, so liquidity appears to be relatively tight at this price. Equally, I think that waiting for absolute, crystal clear clarity on funding and the possibility of another big contract win landing without any notice (as per norm) will cause the SP to potentially run away into the late teens or early 20s. I think I have had my fill for now and comfortable with my average cost which still leaves me very much underwater for now - but thankfully I am a good scuba diver with plenty of oxygen !!
It's only a matter of time before we see a dramatic shift in fortunes IMHO. Good luck all :)
Sounds reassuring that equity funding is not at the forefront of options - I think that the BoD with their significant investments won't want dilution either - particularly the newly appointed NED.
It appears liquidity is very tight with no sellers in quantity at this price - so we may be in a good place for a change with a sharp spike in SP on any fresh news or funding arrangements clarity.
CYAN is looking very good :)
Courtesy of, and with thanks to timb003 who attended yesterday and posted on the other thread....
The slide set from last night’s presentation is here:
https://cyanconnode.com/wp-content/uploads/2018/09/CyanConnode-investor-presentation-Sept-2018-v18-INVESTOR-v2.pdf
I arrived at around 18:20 so missed the presentation but managed to help myself to drinks and canapes
Most of the BOD were in attendance last night, including JH, HP and HB along with a number of employees, I spoke to as many of them as I could during the 45 minutes available before they had to clear the room. I was very impressed with Anil Daulani
On India, the opportunity sounds huge and most of the heavy lifting has now been done with the first major contract announced earlier this week. This was just one contact with one utility in one state. There are over 30 states and typically three utilities per state. There are two main competitors and they were both tendering for this first contract which Cyan won. Cyan had certain distinct advantages over the two competitors, one of which (I think) was that with the two competitors you have to buy the whole kit (including the meter itself), but Cyan’s solution can be used with any meter. One new insight: Electricity loss isn’t just through attaching crocodile clips to transmission cables in rural areas, it is also through the Utility’s meter readers not being able to access affluent gated communities (the gates stay locked). If there is no meter reading, there is no bill to pay. There is also a problem with brown paper envelopes changing hands after meter readings have been altered (downwards).
All the bad press regarding UK smart meters is based on SMET1, which is nothing to do with Cyan, nor is the “fix” which is being employed in an attempt to make the SMET1 meters suitable for switching suppliers. The Cyan SMET2 roll out begins Q4 this year. I suggested a couple of times that this should be seen as a good PR opportunity and perhaps Walbrooks should play a very active role in sending out a message that Smart meter problems were now fixed and the solution was provided by Cyan and partners.
On Finance, Cyan will probably need to raise further cash before they reach break even (I got the impression this would be £4m or less) and I gathered that an equity based raise at the current share price was definitely not the preferred option. Invoice financing was mentioned a couple of times, but doing this through a UK finance operator would probably be difficult, given that the invoices and subsequent revenue will be coming from the Indian operations. An alternative would be to obtain the finance through an Indian based finance provider, I asked whether they had approached the British Business Bank which seemed to feature fairly prominently in the HMT’s recent Patient Capital Review, HP said she would look into that and it sounded like all options were being considered and no decisions had been taken.
Many thanks tonyj and LTI for your thoughts/observations.
Though we have had false dawns before, this time it looks and feels different (famous last words?) - we could be at the cusp of a lot of very interesting news flow - and decent sized contracts ! Also Tonyj's feedback that the contract cycle has shortened is good news.
Looking at the LSE trades section for today, the two buys are being "portrayed" as sells (though I appreciate that these are computer algorithms that take the best guess as to buy/sell depending on when it is reported. Therefore, by controlling the time of reporting, MMs can artificially create the impression of buys/sells.)
I think the market is being held back ? Any other views ?
My buys from yesterday are showing up now. 228660@10.75 reported accurately. The 300k@10.75 appears to have been aggregated to get a net @10.75.
Does anyone know about MM reporting requirements and timeframes ?
My interpretation was that "qualified" meant that CYAN had met the technical and other specifications to be able to bid....in other words qualified in the pre-tender / intention to tender stage.
So they were short listable for the final stage before contract award.
I could be wrong though....
Good morning LTI and all :)
Many thanks for providing the link and look forward to hearing how it felt on the ground from those who attended.
Good luck all !
Many thanks for your best wishes LTI which I wholeheartedly reciprocate to you and all LTHs :)
many thanks for your wishes and please feedback tonyj.....timbo03 from another thread is going to be there and dwall as well. Should be an interesting evening.Many thanks in anticipation....
Well I have thought about the merits of waiting for the funding issue to be clarified before taking some more.
I took 228660 @10.75 and another 300k@10.75
I may lose out in the short term, but once the funding is sorted, there will not be any holding back of the SP.
Anil's presentation confirmed my views - we only need a tiny sliver of the Indian market to he hugely successful as a company.
Good luck all :)
Certainly not a bad day with the market responding to the contract news with surprising enthusiasm - despite the need for funding being announced recently. Despite some predictions that the initial spike will not be sustained, we seem to achieved that minor victory today. Tomorrow could be another day with some of the the gains being given up.
Up 2.95p or about 43%, top of the leader board for the first time in a long long time.....
If the funding is sorted thru' other means (rather than issue of equity at a discount), we will rapidly gain traction. I feel that JST and DPW could be offered some favourably priced convertible loan notes to reward their loyalty and support in exchange for a £2-3m - I have no problem with that.
As someone pointed out, $16m in contracts involving Omnimesh which was only launched in June 18 is a fantastic sign of the real potential.
Onwards and upwards and once funding is clearer, I may actually take a few more. Was sorely tempted today, but resisted. May be the tide is turning...or is it the famous last words ?
Good morning LTI and all :)
Very positive news and could herald the smart meter roll out in India. I feel the partner is Genus (but just a guess).This bit is tasty as well....."In addition to this order the Company is also negotiating a five year support and maintenance contract...."
Let's see how the market reacts in terms of SP....I am deliberating keeping my expectations very low and hope to be surprised !! Good luck all :)
RNS
RNS Number : 0841B
CyanConnode Holdings PLC
18 September 2018
CyanConnode Holdings plc
("CyanConnode" or the "Company")
$11.6 million order from India
Largest order to date for Omnimesh IPv6-based smart metering solution in India
CyanConnode (AIM: CYAN), a world leader in narrowband radio frequency mesh networks, is pleased to announce the receipt of a $11.6 million purchase order relating to a smart metering deployment by an Indian State-Owned Utility.
This major purchase order, from a Tier One Metering Partner, is for Omnimesh IPv6-based hardware, perpetual software licenses and installation services. In addition to this order the Company is also negotiating a five year support and maintenance contract. The end customer is a State-Owned Utility and the agreed deployment schedule is expected to result in H2 2018 revenue.
The Company forecasts revenues of c.£700k under this order in this financial year to 31 December 2018, contributing to the delivery of management's existing full year expectations. The Company now has a total order book in excess of $110 million.
Anil Daulani, Managing Director of CyanConnode Pvt Limited, commented: "We are very pleased to announce the Company's largest order to date for Omnimesh. The product was launched in 2018 and this brings the total value of orders received for this new product to in excess of $16 million, and demonstrates its suitability for the Indian smart metering market. The size and scale of this opportunity reflects the rapidly evolving Indian market as well as the ability of CyanConnode's Tier One Partners to offer highly innovative and workable solutions."
India is a key market for CyanConnode, contributing revenues from existing contracts for State-Owned Utility end customers, such as Uttar Gujarat Vij Company Ltd and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd.
Wonder what the placing is going to come in at ? I think circa 5p could be all the market has an appetite for. Then the question of how much funding is needed - could be £3-4m possibly (just to be on the safer side) though revenues coming in should help us. I am reasonably optimistic about the licensing deal before end of FY18 as well. The closure of the Sweden base (rent + personnel ?) appears to save about £100k per month - which is a decent saving in the context of our revenues.
I feel that atleast 1 software licence is close to being closed - could be that it has been agreed in principle including payment but being held up by (usual) delays stemming from two legal teams thrashing out the T&Cs to safeguard the interests of their clients.
Once, the first one licensing deal is done, then there is a blueprint for the follow on deals. Hopefully, NED Pete Hutton (ex-ARM) is able to inform the important licensing and revenue considerations from our perspective? He should have seen plenty of the same when in ARM.
From the RNS..."The Company remains on track to deliver full year management expectations, including an expected high margin license sale opportunity expected late in FY18...." I interpret this as the first of the anticipated "white label" licence sale with upfront payment and on going royalties. The upfront payment was thought to be worth several £ million, I seem to recall.
The performance bonuses re shares to JC and HB would kick in only after £7m revenues this year...so it is probable that they expect to achieve it.
Hi tonyj,
In the current SP and market sentiment context, the string of buys today immediately caught my attention.
Looks interesting....I am speculating that there may be some good news around the corner - if CYAN remains as leaky as it has been in the past for the wrong reasons (placement news being leaked) in the past ? I would say that wouldn't I ? ;)
O/T - my large investments regarding ARC, LTG and IDEA have provided excellent capital appreciation (with some decent dividends to boot). Maybe I can complete a fantastic quartet if CYAN comes off too ?