Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Interesting read "Connected Nations" Spring 2018 report re coverage....
https://www.ofcom.org.uk/research-and-data/multi-sector-research/infrastructure-research/connected-nations-update-spring-2018
Hi tonyj,
We know that we are the "communication brains" in Genus, L&T and HPL smart meters. So the "Cyan inside" model is already in play and royalty/recurrent revenues is not dissimilar to an ARM like business model. And the Indian market alone is massive and we are the "picks and shovels" end of the story - often the most profitable part of any business. Like Levis jeans in the California gold rush....
JC also notes that to crack the Rest of the World market, he needs alliances - so I wonder which other global names we are talking to ?
I think we will have at least one "white label" deal before the calendar end of 2018. That will allow JC and HB to hit their performance bonuses....
Genus, L&T and now HPL - as LTI pointed out...HPL is an addition. So irrespective of which contract it is likely we will be "Cyan inside" the smart meters and prepaid smart meters.
Getting interesting.....
O/T:
Delighted that ARC where I have a notified interest has added about 36p to the SP (now circa 110p) since trading update a couple of days ago. Trading update confirms £3.2m cash and "comfortably ahead of market expectations". It is profitable and dividend paying. Worth checking out IMHO.
The burning question of cash position is addressed....
"...The Company ended the period with GBP2.8 million of net cash, including GBP1.4 million from R&D tax credits..."
Good luck all :)
Good morning LTI and all :)
The deployment/implementation of the smart metering programme In India would be truly massive in scale if you pause to think about the logisitics given the size of the country, the population to be served, existing basic infrastructure, issues around finances and the political split between Centre/State. There are so many things that can go wrong at various times and in various places - so teething problems and the delays, that they will cause are virtually inevitable.
For comparison, us in the UK, have a population of about 63m and the entire country could almost "fit inside" a single or a couple of states in India. Also given we already have first world infrastructure and finances to match, the SMETS2 roll out seems to be plagued by delays and a much slower than expected rollout.
So no surprises that EESL appear to be struggling to keep up....
However, Genus seem to be switched on and given we have hitched our wagon to their star and that of L&T in terms of our modules being integrated in their smart meters, our position in India is definitely going to be well placed.
At the AGM in 2017, I asked who are manufacturer of the comm modules were to one of the BoD and he mentioned it was Syrmatech and they have the capacity to scale up production. They are based in Chennai, India and they have been supplying CYAN over the last 4-5 years with no quality issues.
https://www.syrmatech.com
So hopefully we/Syrma can keep up with the anticipated demand !
Interesting times....good luck all :)
Keonics is the Karnataka state (state level public sector company) and ITI is Bengaluru based as well...CESC is in Mysuru which is also in the state of Karnataka.. So for this particular aspect, we have three govt owned/public players in one state..so people in these various organisations are very likely to know each other. However, I would think that political interests would sway whatever any of these organisations get upto or involved in....
Whether that is good or bad, I don't know.
No worries Vascular....could it be that you are enjoying Johnnie Cronin White Label far too much ?
It will be pretty intoxicating when it comes off...5-6 "bottles" from your local Off "Licence" !!
EESiLy done ;)
Enjoy the sunshine and weekend :)
More grist to the mill and the use of ITI and ITT interchangeably (or accidentally as a typo) could be confusing matters more. ITI or Indian Telephone Industries is a creaking public sector/govt owned business and hence could have been awarded contracts for political reasons - basically to preserve jobs. I don't know who ITT are.
I won't be surprised if we are in serious discussions with both Genus and L&T regarding our white label solution. As it an upfront payment of $4-6m + royalty, this would be our take on the ARM business model. Either way, the plot thickens....
Good luck all :)
Hi Chianti1974,
A while ago it was mentioned that CESC Mysuru was a reference site for smart metering and that the CESC pilot was the only smart metering project in India that successfully delivered on its specifications. So CYAN credibility is there and I am sure it was showcased in the various trade shows we have supported/sponsored along with other players.
As dwall says we haven't seen nothing yet in terms of scale from India - when the Indian elephant gets out of its slumber, we will reap some rich rewards.
Patience in abundance is required as always...we are running to Indian Standard Time ...or as many Indians will tell you Indian Stretchable Time...where delays are expected culturally :)
Hi dwall,
It is reassuring to hear you corroborate what is being said about Anil by colleagues in CC. Business in India is relationship based largely...so having the right contacts counts for a lot.
Where is he based in India or did you meet him at a trade show ? I do go to India on and off, so could use that opportunity to meet him.
Hi Vascular,
I'm not expert on contract law but I would not see using a white label product by a vendor who has won the contract as breaching it. At the end of the day, any contract is about someone offering to do something in exchange for something else...so as long as the product delivers to contract specification, it shouldn't really matter how it got there unless there are specific exclusions.
The fact that the Indian smart meter roll out is gathering momentum (despite glitches as would be expected in a roll out of that size, political wrangling and lobbying) and we have tied up with 2 of the largest meter manufacturers in India and meet the Bureau of Indian Standards specification is a very strong signal. L&T is a multibillion dollar turnover company and they have bought from us on at least 3 occasions....and Genus seems to be nimble on its feet. Powerful partners both.
At the AGM, Omnimesh demo and in private conversations, words to the effect of "they are snatching it out of our hands, hungry for meters" were used on several occasions. A couple of BoD members said that Anil Daulani and his team was working really hard and making an impact on the market.
Good afternoon LTI !
Yes the Ukraine NIK contract was the big one that got all of us excited. But they were the guys doing Bangladesh roll out (I seemed to draw that conclusion at that time ) and NIK have been delayed - the 100k units. So though I am hopeful at least some of it will come good in due course, the timelines are an unknown at this stage I would think - so I am not making any decisions based on that.
My strongest case for investment is the UKSMETS2 rollout with growing realisation that "not spot" problem is going to be worse than anticipated, partnership with the 2 of the largest meter manufacturers in India, White labelling discussions x 5 with upfront+royalty payments and now Omnimesh.
Any over and above this is a real bonus...and probable in the fullness of time.
Good luck all :)
Hi tonyj,
I have recently read "The Art of Execution: How the world's best investors get it wrong and still make millions in the markets" by Lee Freeman - Shor.. Good book worth reading.
Having reflected on my investment strategy with CYAN and having attended the AGM, I feel emboldened to morph from a Rabbit to a Hunter (terms that he uses to describe investment styles).
Let's see what happens, but I am optimist and feel that we will be on the move over the next few months :)
Good morning 2cvguy and all :)
I think the the disproportionate weighting to H2 is more to do with timing of contracts and revenue recognition this year.
If the pace of roll outs in various countries picks up and IoT grows, we could be seeing growth rates of 25-35% year on year for a 3-5 years at least - provided our tech offering is not displaced by some left field zero cost solution. Even if that were to happen, then there would still be a legacy market in communications interoperability that is not going to go away - so we would be well placed with our Omnimesh solution.
It has been a frustrating journey with many unexpected setbacks and a dire share price which reflects this nihilism. I feel that we don't have much longer to wait to see some growth in SP despite having to possibly raise funds through some mechanism.
Investors getting at this price could have a decent margin of safety IMHO.
I have been adding...though puzzlingly not all trades are showing up. A recent buy of mine for about 231k showed up only a day later. A 240k trade on the day of the AGM morning, didn't show up at all. I have not been able to see where else they could have been traded ? ISDX. Any thoughts ?
Good luck all :)
Good morning LTI and all :)
Two salient sentences IMHO...
"...This changing dynamic has created enormous interest in Omnimesh and built positive momentum across the market....
....Furthermore, this launch signifies the end of a major development programme for the Company, which will result in a substantial reduction in development costs at the same time as opening up new revenue streams."
So potentially high demand for Omnimesh, reduced R&D spend and opening of new revenue streams....all positive and hope the SP picks up in due course.
Good luck all :)
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Official Launch of Omnimesh Smart Metering Solution
CyanConnode (AIM: CYAN), the world leader in narrowband radio mesh networks, has today officially launched its cost-optimised standards-based Omnimesh smart metering application at Asia Utility Week in Bangkok.
The benefits of this additional route to market have already been highlighted by orders won in India worth $4.3m and the Board believes the Company is well placed to take advantage of growing demand for standards-based solutions.
The Omnimesh Application
Delivered as part of CyanConnode's Omni IoT Platform, Omnimesh provides electricity metering capability. Based on IPv6 6 LoWPAN narrowband RF mesh technology, Omnimesh is a scalable, robust system that provides cost-effective communication capabilities, supporting the Smart Grid.
In July 2016, the Company acquired Connode Holding AB, a leading provider of IPv6-based solutions including a software license and support contract for the UK Smart Metering Implementation Programme. Following the acquisition, CyanConnode has rapidly engineered a cost optimised standards-based smart metering solution, designed to enable utilities to remotely monitor and control energy usage to reduce distribution losses. Omnimesh is designed to support global and country-specific Advanced Metering Infrastructure (AMI) standards, including those developed by Bureau of Indian Standards.
Global Opportunity
Omnimesh is designed to enable utilities to gather complete, accurate and timely customer metering data. This supports loss reduction programmes and reduces energy costs by maximising billing revenues and increasing power quality and customer experience. In addition, energy distribution reliability and resilience is improved by rapidly identifying and responding to peaks in demand, quickly locating and resolving faults and implementing real time controls to prevent minor faults developing into wider outages. Utilities can also implement real time pricing and enable customers to control energy consumption and costs. Most importantly, Omnimesh allows utilities to maximise smart grid investment by extending existing and new command and control capabilities over dedicated communication networks which reduce total cost of ownership.
The global AMI market is growing rapidly with much more demanding operating requirements. Omnimesh features, functionality and widely adopted standards meet the requirements of increasingly complex tenders, at a price point that supports utilities' business cases at all deployment scales. This changing dynamic has created enormous interest in Omnimesh and built positive momentum across the market.
John Cronin, CyanConnode Executive Chairman commented: "The development of our new Omnimesh product expands our global reach and ensures our technology can support global and country-specific standards for AMI. Furthermore, this launch signifies the end o
Good morning all :)
Of interest regarding trading/dealing with Iran...positive for us and further safeguards our position though we already have the option of trading through our Indian subsidiary.
"....Last month, the EU said it would revive legislation to allow European companies to continue doing business with Iran, despite US rules...."
Source: https://www.bbc.co.uk/news/business-44621127
Good morning LTI and all :)
You are absolutely right - this is a bold move and backed by strong confidence in future prospects. It also further corroborates my view that no funds are required in the short term.
Let's see what the market thinks....but I would expect it to be positive and potentially some previous sellers buying back in ?
Looks like £7m is revenue this year is in the bag and allows for the remaining £3m as "margin of safety".
Reduction is salary is very significant in cash terms - given that both have agreed to the same and not walked is a sign that they see the commercial potential in the near future for CYAN. They are playing the long game.May be this is the short term Stamp effect.This will also allow them to negotiate a bigger remuneration package when things come to fruition. Good on JC and HB - shows committment.
If share holder value is created, most will not grudge the package for their efforts - though some on the BB will never be satisfied.
I can't recall another company where this level of pay reduction has gone through - though I am sure that there are.
Could we see a minor share price uplift today ? I won't be surprised as I see this as a major development.
Good luck all :)
Strong signal of intent with key performance targets attached.
Sorry could not post the whole RNS due to length restrictions..