Last checked at 11 May 2015 07:00
Cyan Holdings plc
("Cyan or "the Company")
Results for the year ended 31 December 2014
Cyan Holdings plc (AIM: CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces its audited results for the year ended 31 December 2014.
Operational highlights
· Commercial orders from Tata Power Mumbai and Essel Utilities in India
· Signed a teaming agreement with Vodafone Machine to Machine ("M2M")
· Participated in multiple pilots across India and Brazil
· Received an order for smart street lighting solutions in China
· Grew potential reach to Sub-Saharan Africa
· Increased eco-system of partners in target markets across the globe
· John Cronin agreed to take a more substantive role at Cyan in the Executive Chairman position
· Strengthened Board of Directors with appointments of Peter Mainz and Harry Berry
· Strengthened sales and marketing team with appointment of industry expert Mark Coyle
· Received the Frost and Sullivan Technology Innovation Leadership award
Financial highlights
| 2014 £ | 2013 £ | Percentage change |
Revenue
| 193,550 | 137,996 | +40% |
Research and development expenditure
| 1,843,213 | 1,479, 355 | +25% |
Operating loss
| 3,260,063 | 3,266,757 | 0% |
Cash and cash equivalents
| 2,344,344 | 1,636,149 | +43% |
New funding raised (gross) | 3,500,000 | 2,600,000 | +35% |
Post period end highlights
· Received a smart metering purchase order worth approximately £1m for a publicly owned Indian utility
· Further strengthened sales and marketing team with appointment of industry expert Vikas Kashyap
· Confirmed presence in South Africa through distribution agreement and proof of concept order
· Announced that Tata Power in India have successfully deployed the Cyan smart metering solution
· Named winner of the Innovation of the Year Award
· Submitted R&D tax credit cash refund claim of £401,334 (2013: £270,135)
· Wholly owned subsidiary incorporated in India (Cyan Technology India Private Limited)
John Cronin, Chairman of Cyan, commented:
"During 2014 and post period end, we have successfully built and consolidated our position in multiple emerging markets. We have won multiple contracts in India for the commercial deployment of Cyan's smart metering technology and recently reported that the Tata Power smart metering project has been successful. The Cyan Board and management team have been significantly strengthened and we are now firmly established as a leader in our chosen markets. Over the next twelve months, we expect the rate of adoption of smart metering and smart lighting technology to accelerate in our chosen markets and we remain very well placed to profit from this."
Enquiries:
Cyan Holdings plc John Cronin, Executive Chairman
| Tel: +44 (0) 1954 234 400 www.cyantechnology.com
|
Allenby Capital Limited AIM Nominated Adviser and Joint Broker Jeremy Porter / Alex Brearley
Beaufort Securities Limited Joint Broker Elliot Hance
| Tel: +44 (0)20 3328 5656
Tel: 044 (20) 7832 8300 |
Walbrook PR (Financial PR) Paul Cornelius/Nick Rome | cyan@walbrookpr.com Tel: +44 (0)20 7933 8780
|
Chairman's Statement
Review of the year
2014 proved to be a pivotal period for Cyan as we continued to benefit from incremental orders whilst strengthening existing relationships with a view to securing further commercial contracts.
The flexibility of our product offering and our ability to attract high calibre regional partners, combined with the fact that we secured commercial orders for our smart metering and lighting technology, resulted in 2014 being our strongest year to date. Importantly, geographic expansion further diversified our commercial opportunity base.
During 2014 (and post period-end) we received full smart metering orders from public and privately owned utilities in India, signed a teaming agreement with Vodafone M2M, participated in multiple pilots across India and Brazil, received an order for street lighting solutions in China as well as growing our potential reach into Sub-Saharan Africa.
We also benefited from an increased customer focus on the more advanced Advanced Metering Infrastructure ("AMI") (rather than Automated Meter Reading ("AMR")) solutions as well as winning our first retrofit order in India and our first retrofit pilot in Brazil.
We strengthened our sales and marketing team during the year (and post period-end) with a view to further building a local presence and enabling us to develop and manage strategic relationships while capturing new sales opportunities for smart energy solutions and Internet of Things ("IoT") applications.
Reflecting our growing presence across India and China we welcomed Chinese Minister, Counsellor Zhou, to our Cambridge office in March 2014 while I participated in a Round Table Event with Mr. P K Sinha, Secretary of Ministry of Power, Government of India in October 2014.
As a result of our strong efforts during the year we were named winner of the Innovation of the Year Award at the 6th annual Smart Energy UK & Europe Awards for our CyLec® smart metering solution as well as winning the Frost and Sullivan 2014 award for Technology Innovation Leadership.
Financial Review
During 2014, the company raised £3.5 million before expenses, by way of share placings. This income provided the Company incremental financial resources for general working capital, customer support activities in India and other developing countries and further development to integrate Cyan's AMI solution into high level enterprise software.
Revenue increased from £137,996 in 2013 to £193,550 in 2014. Operating loss for the year ended 31 December 2014 was £3,260,063 (2013: £3,266,757) and net loss decreased to £2,853,963 (2013: £2,992,195) following an increase in the R&D tax credit. Cash at year end was £2,344,344 (2013: £1,636,149).
Pilot Deployments
In December 2014 we received a purchase order for 1,000 CyLec retrofit modules, 25 CyLec Data Concentrator Units and other smart meter components in Brazil. This was as a result of our strategic partner, Nobre de la Torre ("Nobre"), deciding to manufacture and stock enough bespoke retrofit units for planned pilots with Tier 1 Brazil utilities. It will also enable Nobre to fulfil smaller orders on short notice across the country.
This order followed two pilots with different Tier 1 utilities in Brazil (in March 2014 and August 2014). There is significant potential to grow our presence in Brazil where the smart meter market revenues are expected to increase tenfold from $36m in 2013 to $432m by 2020 according to GlobalData's 2014 report.
Commercial Orders
There is a significant opportunity for us to build on ongoing pilots in India, highlighted by commercial orders from end customers Tata Power Mumbai ("Tata") and Essel Utilities ("Essel") during the period. Importantly both companies serve large customer bases across India.
In July 2014 we announced that a consortium led by Larsen & Toubro ("L&T") had been selected by Tata for the deployment of Cyan's CyLec® AMI solution in India. The initial contract with Tata is for the deployment of 5,000 consumer meters in a district in Mumbai, where around 4,000 meters are now live with the remainder expected to be completed before the end of Q2 2015. This order followed our first retrofit order from Essel for 5,000 retrofit modules, each containing Cyan's CyLec 865MHz RF device, highlighting our growing strength and strong ecosystem throughout the region. Given the size and scale of both Tata and Essel's customer bases the Company hopes that the success of the initial implementation at Tata will serve as a strong reference point to further develop these relationships.
We also strengthened our position in China during the period, receiving a purchase order for 15,000 Cyan smart lighting control modules from our China lighting solutions distributor, Aska Technology Limited ("Aska") during July 2014, just three months after signing a distribution agreement with them. We see huge scope for growth in the smart lighting sector across all of our target markets and are excited by the prospects of opening up new potential revenue streams as the industry develops.
Eco-system of Partners
As evidenced by the increased levels of commercial and pilot orders received during the period we already have a strong eco-system of partners in place. This was strengthened further last year as we focused on growing our channels to market. In September 2014 we announced a Memorandum of Understanding with Innologix Consulting Pvt Ltd ("Innologix") to enter into a non-exclusive partnership to develop, market and deploy managed smart metering solutions across India.
This followed similar agreements with global meter vendors El-Sewedy, Ecolibrium Energy and GridSense. In addition we signed a teaming agreement with Vodafone's M2M team to create joint propositions, develop opportunities and submit proposals to customers to enable either party to address the smart metering market in India.
With a view to widening our geographical reach we signed a non-exclusive Partnership Agreement with Dinsmore & Associates ("D&A") in August 2014. D&A will focus on identifying opportunities for development across the sub-Saharan market. The benefits of this partnership have already been evidenced with the post year-end announcement of a proof of concept and distribution agreement with XLink Communications (Pty) Ltd ("XLink").
As a result, XLink, which currently manages M2M solutions for over 68,000 businesses in Africa, facilitating 35 million M2M connections through the XLink Portal monthly, will distribute Cyan's smart metering and lighting solutions as well as related IoT applications in South Africa.
Board Changes
We are delighted to have added Peter Mainz and Harry Berry to the Board as Non-Executive Directors during the year. Both Harry and Peter have a wealth of experience in the smart metering sector - with Peter having been the CEO & President of global smart metering leader Sensus USA Inc. and Harry bringing over 30 years' experience in the technology and telecommunications industries.
In addition, Stephen Newton left his position as Non-Executive Director - we would very much like to thank him for his assistance during his time at the Company.
Strengthened Team
We are focused on growing our geographical presence and ability to generate new opportunities. As such, we announced the appointment of Mark Coyle as Vice President, with responsibility for business development and sales in Europe, Africa, Americas and Australasia in December 2014. Before joining Cyan, Mark held the position of Managing Director, UK & Ireland, at US smart metering leader Silver Spring Networks.
Post the period end we announced the appointment of Vikas Kashyap to the role of Vice President Asia, with responsibility for business development and sales across Asia. Before joining Cyan, Vikas held a leadership position at Secure Meters.
Both Mark and Vikas bring plenty of experience and contacts to the table and we are delighted to have secured two such high quality individuals.
Outlook
The current year has started well - post the period end we received a purchase order worth approximately £1m from Enzen Global Solutions Pvt Ltd ("Enzen") for a large pilot project being implemented for Chamundeshwari Electricity Supply Corporation Limited ("CESC"), Mysore, Karnataka in southwest India.
As a result, we will supply over 21,000 smart meters and associated hardware and software while acting as Enzen's end-to-end solution provider for smart metering. We will manage the entire supply chain using local meter manufacturers and will provide management services for a period of two years post deployment. At the time of signing the contract in January 2015, our view was that the first meters were expected to go live before the end of 2015 and full rollout expected to be completed in the first half of 2016. Since then we have started to deliver this project and carried out further project management discussions with both Enzen and CESC. We now expect the first set of 500 meters to be deployed in the next 3-4 months with a significant element of the full 21,824 meters under the contract delivered to the customer by the end of 2015. We believe that this is the first commercial implementation of AMI technology by a public utility for consumers in India. In order to effectively deliver this contract as well as to pursue the substantial commercial opportunity which is now developing for Cyan in India, a local legal entity has been registered (Cyan Technology India Private Limited) which is wholly owned by Cyan Holdings plc. This entity is expected to commence trading by the end of the second quarter of 2015 following the completion of the local tax registration formalities. This local entity will also allow Cyan to bid directly on utility tenders.
We remain focused on commercialising our technology with utilities, municipalities and local authorities initially within the emerging markets of India, Brazil, China and Sub-Saharan Africa where there is a rapidly growing need for innovative energy conservation and control technologies.
We very much look forward to building on an extremely busy year with further commercial agreements and partnerships during the remainder of 2015. There are a large number of opportunities in the pipeline for further customer orders and we are working hard to ensure Cyan technology is selected. Looking ahead, we will continue to tender for more opportunities with a view to further establishing our global credentials. I would like to thank all our staff and shareholders for their considerable efforts and ongoing support and look forward to updating the market with further developments in due course.
John Cronin
Executive Chairman
8 May 2015
Strategy and Business Model
Electricity Metering
Cyan provides a communication platform that enables utilities to transform their power grid infrastructure into a smart grid that intelligently controls millions of electricity meters, providing timely information and control to both utilities and consumers. CyLec powers the next generation of advanced Radio Frequency ("RF") smart meters which enable power utilities to reduce losses and increase revenues through reliable and secure collection of consumer energy consumption data.
Cyan's business model is to provide hardware and software that enables the smart grid. Our revenue is derived from the following principal elements:
· A small hardware communication module that can be integrated into the electricity meter of our meter manufacturer partners (such as L&T), or retrofitted to existing legacy meters. With the addition of this module, the meter is then enabled to communicate back to the utility's data centre.
· A further piece of hardware called a Data Concentrator Unit ("DCU"). This allows meters in consumers' homes to communicate with each other over a self-forming, self-healing mesh network.
· Software "CyLec Server" that sits in the utility's data centre and communicates with the DCU (and therefore all the individual meters) over a secure internet connection (typically a mobile data network).
Cyan generally sells and delivers solutions through local partners in each country. Our revenues are derived from sales to local meter manufacturers or system integrators ("SIs") and in 2014/15 we have concluded sales through both channels. Over time we expect SIs to take a lead role in providing a complete solution to utility customers and will bring in software/hardware from Cyan and meter manufacturers. We believe that our approach to the market is ideally suited to the dynamics of emerging countries where local partnerships, local manufacturing and price competitive hardware are critical.
Cyan licenses its CyLec software to either the end utility customer to host themselves or on the basis of a Cyan hosted Software as a Service ("SaaS") solution. In both cases, we receive either an upfront or a recurring revenue stream that is based on both the size of the customer's meter installation base as well as the features (such as tamper alerts and remote disconnect) that have been enabled for the utility customer.
Lighting
The business model for lighting is very similar to that of electricity metering. In the case of lighting, the Cyan module is contained in the lighting ballast. The rest of the solution and the business model remains the same as metering above and this commonality enables us to benefit from economies of scale in development and manufacturing.
Competitive Position
The Cyan solution has had over 200 man years of development to date by a very capable engineering team in Cambridge, UK and this has created a substantial barrier to entry. The Cyan solutions solve large, complex, cross domain problems utilising skills such as RF hardware design, regulatory approval experience, mesh network firmware design, communications infrastructure development, meter protocol and interoperability techniques, security, enterprise software, scalability and robustness.
The Cyan solution has been designed and built for emerging markets, whilst our competition has generally chosen western markets. It can be integrated into new meters, or retrofitted to existing meter infrastructure to avoid rip-and-replace costs. Our solution is inherently low power and this has helped us to achieve a competitive price point for emerging market mass adoption. The Cyan mesh network is self-healing and self-configuring, which results in significant time (and therefore cost) savings for customers. The Cyan Data Concentrator Unit (DCU) has also been designed to be highly functional, but in a small package which also results in a competitive price point. Cyan offers sub-GHz wireless mesh solutions which are inherently suited to typical dense housing conditions in emerging markets. We also use license free ISM (Industrial, Scientific and Medical) radio bands, which means that our customers do not need to invest in or pay for costly tower structures to carry the radio signals.
A FAIR REVIEW OF THE BUSINESS
Metering
Cyan has made good progress in smart metering in both India and Brazil during 2014 and in the subsequent period up until the date of preparation of this report. It has also expanded its global focus to include Sub Saharan Africa and other potential emerging markets worldwide.
The Government of India produced and released a Smart Grid Vision and Roadmap for India in 2013, which contains plans for 14 smart grid pilot projects. Several of these pilot projects are now underway and Cyan (through partners) has bid on several of them throughout 2013 and 2014. As a result of the first of these 14 smart grid projects to be awarded, in early 2015 Cyan received a purchase order worth approximately £1m from Enzen Global Solutions for a large pilot project being implemented for CESC, Mysore, Karnataka in southwest India. Cyan will supply over 21,000 smart meters and associated hardware and software and act as Enzen's end-to-end solution provider for smart metering. Cyan's management believes this is the first commercial implementation of AMI technology by a public utility for consumers in India.
Opportunities have also emerged with private utilities in India and Cyan has progressed both commercial and pilot project orders throughout 2014. In June, Cyan received its first order for 5,000 retrofit modules in a commercial deployment by Essel Utilities in India, as part of a consortium with Aquameas Instrument Pvt. This was quickly followed in July by another order for 5,000 units by Tata Power Mumbai for Cyan's integrated CyLec solution as part of a consortium led by L&T. Later in the same month, Cyan signed Memoranda of Understanding with Ecolibrium and Innologix Consulting to develop, market and deploy further smart metering solutions in India.
The Indian market is a huge opportunity for the Company, with an estimated 120-200 million meters that need to be installed/replaced over the next 10 years as well as the Indian utilities' pressing need to reduce losses due to theft of electricity. In addition, following the election of a new Prime Minister, one of the top priorities of the new government is to provide stable 24 x 7 supply to all households by 2019. For this initiative to be successful, most utilities would have to resort to Demand Response (curtailing or shifting certain loads) for which AMI is essential.
One of the obstacles the utilities face is collecting data from millions of meters deployed in rapidly growing and typically unplanned urban conditions. It is often problematic trying to locate and gain physical access to the meters and the process is at best slow or error prone. Cyan's AMR and AMI solutions address these key issues by providing high quality and timely information from each meter. Cyan's 865MHz based solution has been specifically designed to cope with demanding specifications such as a communication range of more than 60 metres and to be able to be read through concrete walls in order to cope with the dense urban conditions in India. By comparison, a 2.4GHz Zigbee solution has been observed to struggle to achieve a reliable communication range greater than 30 metres in the same challenging conditions.
India's transmission and distribution losses are among the highest in the world. When non-technical losses such as energy theft are included in the total, these losses increase to as high as 65% in some Indian States against an overall average of 30%-40%. The financial loss has been estimated at 1.7% of the national GDP. To address the issue of Aggregate Transmission and Commercial ("AT&C") losses, the Government of India implemented an Accelerated Power Development Reforms Programme ("APDRP"). Its key objectives were to reduce AT&C losses, improve customer satisfaction, introduce greater transparency and improve the financial viability of the State Distribution Companies ("SDCs"). It was against this backdrop that the Restructured APDRP ("R-APDRP") was conceived in September 2008 for the 11th Five Year Plan (2007-12). Monies are provided by the Indian Government as loans for the provision of advanced metering solutions and once in place, the loans are converted into grants. Frost & Sullivan have estimated that US$32Bn of power generated in India is not accounted for through billing to customers.
Cyan provides a platform product (CyLec) to enable deployment of AMI. AMI is an architecture for automated end-to-end two way communications between a utility company and electricity meters (smart meters). The CyLec solution provides utilities with real time data about power consumption and allows customers to make informed choices about energy usage based on price at time of use. The Cylec solution includes hardware and software to enable this communication and allows easy interfacing to existing meter data management systems ("MDMS"), billing systems and other Smart Grid infrastructure monitoring tools within the utility such as outage detection and load management. Consumer meter tamper and electricity theft detection features are included and this helps utilities ensure they collect revenue for electricity that is used by consumers. The CyLec retrofit solution has proven easy to integrate to existing meters from various metering companies to upgrade them to be AMI compatible smart meters.
In South America, the situation is similar to India. Cyan's initial target market (Brazil) has a dynamic population of 200 million, and Brazil's Energy Research Corporation (Empresa de Pesquisa Energética) has estimated that generating capacity will need to grow by 56% in the next decade to keep up with demand and not stifle economic growth. The distribution loss rate of 15.5% in South America is the highest in the world due to pervasive electricity theft (power outages are a continuing problem). In some parts of Brazil, power losses reach as high as 20%. Spend in South America on smart metering will reach $19bn with 80.7m meters by 2023. One Brazilian electricity distribution company has estimated that 11GW of power (equivalent to $6Bn) is lost in the country due to AT&C losses.
In March 2014, Nobre de la Torre, Cyan's strategic partner in Brazil, deployed its first smart electricity meter pilot project for a Tier 1 utility in Brazil, which has over two million consumers. In August, Nobre announced that a second pilot with another Tier 1 utility, with six million consumers, had also been successfully deployed in three different locations selected by the utility.
In December, Cyan announced receipt of a purchase order from Nobre. The order was for 1,000 CyLec retrofit modules, 25 CyLec DCUs and other smart meter components to fulfil Nobre's requirement to manufacture and stock enough bespoke retrofit units for its planned pilots with Tier 1 Brazil utilities, as well as enable them to fulfil smaller orders on short notice across the country.
Sub-Saharan Africa is on the threshold of a decade of strong economic growth, yet 68% of its 880 million inhabitants lack access to electricity. To put this into perspective, only 32% of the population has access to electricity, comparable to other emerging countries such as India at 40%. Across the African continent, only 10% of the population has access to the electrical grid and in these areas power is often unreliable.
In August, Cyan signed a partnership agreement with Dinsmore and Associates, who will act as a business development partner to identify opportunities for Cyan's smart metering, smart lighting and M2M solutions across the Sub-Saharan African market. This was followed in March 2015 by a proof of concept order and distribution agreement with XLink to distribute Cyan's smart metering and lighting solutions as well as related IoT applications in South Africa.
Lighting
Cyan has received a lighting order through its China lighting solutions distributor, Aska. The order is for 15,000 Cyan smart lighting control modules, for 15,000 street lights, as well as the associated licenses for Cyan's server software.
New Hires
As part of Cyan's extended focus on emerging smart metering and lighting markets, Cyan has hired a new Vice President for Asia - Vikas Kashyap, formerly Director of Sales at Secure Meters (UK) - and a new Vice President with responsibility for business development and sales in Europe, Africa, Americas and Australasia - Mark Coyle. Before joining Cyan, Mark was the Managing Director, UK & Ireland, at Silver Spring Networks.
Operational Review
Key financials
Commercial orders remained well below the level required to sustain the business. In 2014, the company raised £3.5 million before expenses, by way of share placings. This income provided the Company incremental financial resources for general working capital, customer and partner development activities in India and further development to integrate Cyan's AMI solution into high level enterprise software.
A summary of the key financial results is set out in the table below and discussed in this section.
| 2014 £'000 | 2013 £'000 | 2012 £'000 | 2011 £'000 |
Revenue | 194 | 138 | 315 | 456 |
Research and development expenditure |
1,843 |
1,479 |
1,141 |
1,866 |
Operating loss | 3,260 | 3,267 | 3,104 | 3,575 |
Cash and cash equivalents |
2,344 |
1,636 |
1,619 |
365 |
Average monthly operating cash outflow |
253 |
247 |
278 |
296 |
Going Concern
To assess the ability of Cyan Holdings plc ("Group") to continue as a going concern, the directors have prepared a business plan and cash flow forecast for the period to 31 December 2019 which, together, represent the directors' best estimate of the future development of the Group. The forecast contains certain assumptions, the most significant of which are the level and timing of sales and the gross margin on those sales, together with the need to secure additional finance in order to fund working capital within the next six months.
The directors have recognised that the Group is trading principally in four emerging country markets, namely India, Brazil, China and Sub-Saharan Africa. These markets have an inherent level of uncertainty associated with them and this may result in the predicted level of sales not being achieved and/or the timing of orders being delayed, as has been the case for the Group in the past. The directors have taken reasonable steps to satisfy themselves about the robustness of sales forecasts but acknowledge that the timing of customer orders in the Group's target markets is fundamentally uncertain. This may impact both the Group's ability to generate positive cash flow and to raise new finance. Consequently, there is a significant risk that the level of sales achieved is materially lower than the forecast or at materially lower margins. This constitutes a material uncertainty.
Given the commercial prospects at the time of the preparation of this report, together with the prior track record of the Group in raising new equity financing, the directors consider that the Group has a good opportunity to secure the additional funding that will be required. There remains a significant risk that the required level of new funding will not be received in the necessary timescales or at all. This constitutes a material uncertainty.
There is a material uncertainty related to the assumptions described above which may cast significant doubt on the company's ability to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern. In the event the company ceased to be a going concern, the adjustments would include writing down the carrying value of assets, including stocks, to their recoverable amount and providing for any further liabilities that might arise.
Notwithstanding the material uncertainties described above, the directors have a reasonable expectation that the Company and Group can continue to meet their liabilities as they fall due, for a period of at least 12 months from the date of approval of this report.
Dividends
The directors do not recommend the payment of a dividend (2013: £nil). The Group has no plans to adopt a dividend policy in the immediate future and all funds generated by the Group will be invested in the further development of the business, as is normal for a company operating in this industry sector and at this stage of its development.
Consolidated income statement For the year ended 31 December 2014
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|
|
|
| |
| Note |
| 2014 £ |
| 2013 £
|
| Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
| 193,550 |
| 137.996 |
|
|
|
|
|
|
| Cost of sales |
|
| (123,099) |
| (87,366) |
|
|
|
|
|
|
| Gross profit |
|
| 70,451 |
| 50,630 |
|
|
|
|
|
|
Operating costs |
|
| (3,330,514) |
| (2,843,939) |
Provision for stock obsolescence |
|
| - |
| (473,448) |
| Operating loss |
|
| (3,260,063) |
| (3,266,757) |
Investment revenue |
|
| 5,157 |
| 4,437 |
Finance costs |
|
| (391) |
| (10) |
|
|
|
|
|
|
| Loss before tax |
|
| (3,255,297) |
| (3,262,330) |
|
|
|
|
|
|
| Tax |
|
| 401,334 |
| 270,135 |
|
|
|
|
|
|
| Loss for the year |
|
| (2,853,963) |
| (2,992,195) |
|
|
|
|
| |
| Loss per share (pence) |
|
|
|
|
|
| Basic and diluted | 2 |
| (0.1) |
| (0.1) |
Consolidated Statement of Comprehensive Income
| For the year ended 31 December 2014 |
|
2014 |
|
2013 |
| £ |
| £
| |
| Loss for the year |
|
(2,853,963) |
|
(2,992,195) |
| Items that may be reclassified subsequently to profit and lossExchange differences on translation of foreign operations |
|
- |
|
65,075 |
|
|
|
| |
| Total comprehensive loss for the period |
| (2,853,963) |
| (2,927,120) |
|
|
|
|
Consolidated balance sheet
At 31 December 2014
| Note |
| 2014 £ |
| 2013 £
|
|
|
|
|
|
|
| Non-current assets Intangible assets |
|
|
- |
|
- |
Property, plant and equipment |
|
| 23,726 |
| 3,875 |
|
|
|
23,726 |
|
3,875 |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
Inventories |
|
| 574,530 |
| 583,200 |
Trade and other receivables |
|
| 574,248 |
| 345,794 |
Cash and cash equivalents |
|
| 2,344,344 |
| 1,636,149 |
|
|
| 3,493,122 |
| 2,565,143 |
| Total assets
|
|
| 3,516,848 |
| 2,569,018 |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
Trade and other payables |
|
| (508,290) |
| (298,441) |
| Total liabilities
|
|
| (508,290) |
| (298,441) |
| Net current assets
|
|
|
2,984,832
|
| 2,266,702 |
| Net assets
|
|
| 3,008,558 |
| 2,270,577 |
|
|
|
|
|
|
|
|
|
|
| |
| Equity |
|
|
|
|
|
| Share capital |
| 3 | 446,493 |
| 341,638 |
| Share premium account |
|
| 33,911,618 |
| 30,570,401 |
| Own shares held |
|
| (808,856) |
| (808,856) |
| Share option reserve |
|
| 522,562 |
| 376,690 |
| Translation reserve |
|
| (149,742) |
| (149,742) |
| Retained losses |
|
| (30,913,517) |
| (28,059,554) |
|
|
|
|
| |
| Total equity being equity attributable to owners of the Company |
|
| 3,008,558 |
| 2,270,577 |
|
|
|
|
|
Consolidated Statement of Changes in Equity
At 31 December 2014
|
|
|
|
|
|
| ||||||||
|
| Share Capital | Share Premium | Own shares held | Share Option Reserve | Translation Reserve | Retained Losses | Total Equity | ||||||
| £ | £ | £ | £ | £ | £ | £ | |||||||
Balance at 31 December 2012 | 232,681 | 27,779,215 | (808,856) | 776,190 | (214,817) | (25,067,359) | 2,697,054 | |||||||
Loss for the year | - | - | - | - | - | (2,992,195) | (2,992,195) | |||||||
Other comprehensive income for the year | - | - | - | - | 65,075 | - | 65,075 | |||||||
Total comprehensive income for the year |
|
|
|
| 65,075 | (2,992,195) | (2,927,120) | |||||||
Issue of share capital | 108,957 | 2,791,186 | - | - | - | - | 2,900,143 | |||||||
Debit to equity for share options | - | - | - | (399,500) | - | - | (399,500) | |||||||
Balance at 31 December 2013 | 341,638 | 30,570,401 | (808,856) | 376,690 | (149,742) | (28,059,554) | 2,270,577 | |||||||
Loss for the year | - | - | - | - | - | (2,853,963) | (2,853,963) | |||||||
Total comprehensive income for the year | - | - | - | - | - | (2,853,963) | (2,853,963) | |||||||
Issue of share capital | 104,855 | 3,341,217 | - | - | - | - | 3,446,072 | |||||||
Credit to equity for share options | - | - | - | 145,872 | - | - | 145,872 | |||||||
Balance at 31 December 2014 | 446,493 | 33,911,618 |
(808,856) | 522,562 | (149,742) | (30,913,517) | 3,008,558 | |||||||
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Consolidated cash flow statement
For the year ended 31 December 2014
|
Notes |
2014 |
|
2013 |
|
| £ |
| £ |
Net cash outflow from operating activities | 4 | (2,713,621) |
| (3,001,981) |
|
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|
Investing activities |
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|
Interest received |
| 5,157 |
| 4,437 |
Purchases of property, plant and equipment |
| (29,022) |
| (5,198) |
Net cash used in investing activities
|
| (23,865) |
| (761) |
|
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|
|
Financing activities |
|
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|
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Interest paid |
| (391) |
| (10) |
Proceeds on issue of shares |
| 3,655,274 |
| 3,037,961 |
Share issue costs |
| (209,203) |
| (137,818) |
Net cash from financing activities |
| 3,455,680 |
| 2,900,133 |
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|
|
|
|
Net increase / (decrease) in cash and cash equivalents |
| 708,195 |
| (102,609) |
Cash and cash equivalents at beginning of year |
| 1,636,149 |
| 1,618,574 |
Effect of foreign exchange rate changes
|
| - |
| 120,184 |
Cash and cash equivalents at end of year
|
|
2,344,344 |
|
1,636,149 |
Notes to the Financial Information
For the year ended 31 December 2014
1. General information
Cyan Holdings plc is a Company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is Cyan Holdings plc, Buckingway Business Park, Swavesey CB24 4UQ.
The final results announcement is based on the financial statements which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.
The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2014 or 2013, but is derived from those accounts. Statutory accounts for 2013 have been delivered to the Registrar of Companies and those for 2014 will be delivered following the company's annual general meeting. The auditors have reported on those accounts: their reports were unqualified and did not contain statements under s498 (2) or (3) Companies Act 2006 or equivalent preceding legislation but did contain an emphasis of matter concerning the uncertainties around the Group's ability to continue as a going concern. While the financial information included in this preliminary announcement has been prepared in accordance with the measurement and recognition criteria of IFRS, this announcement itself does not contain sufficient information to comply with IFRS. The company expects to publish full financial statements that comply with IFRS, as adopted by the EU, a copy of which will be posted to the shareholders.
The financial statements were approved by the Board of Directors on 8 May 2015 and authorised for issue. The Group's specific IFRS accounting policies can be found in the 2013 annual report.
2. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
Loss
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| 2014 |
| 2013 | |
|
| £ |
| £ | |
|
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|
| |
Loss for the purposes of basic loss per share being net loss attributable to equity holders of the parent |
| 2,853,963 |
| 2,992,195 | |
Number of shares
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2014 |
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2013 |
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| No. |
| No. |
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Weighted average number of ordinary shares for the purposes of basic and diluted loss per share |
| 3,279,766,136 |
| 2,797,766,136 | |||
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3. Share capital
|
| 2014 |
| 2013 |
|
| £ |
| £ |
Issued and fully paid: |
|
|
|
|
4,464,176,891 ordinary shares of 0.01 pence each (2013: 3,416,381,300 ordinary shares of 0.01 pence each) |
| 446,493 |
| 341,638 |
|
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4. Notes to the consolidated cash flow statement
2014 | 2013 | |||
£ | £ | |||
Operating loss for the year | (3,260,063) | (3,266,757) | ||
Adjustments for: | ||||
Depreciation of property, plant and equipment | 9,171 | 9,334 | ||
Share-based payment expense / (credit) | 145,872 | (399,500) | ||
Operating cash flows before movements in working capital | (3,105,020) | (3,656,923) | ||
Decrease | 8,670 | 441,041 | ||
Increase in receivables | (97,255) | (12,773) | ||
Decrease / (increase) in payables | 209,849 | (10,669) | ||
Cash reduced by operations | (2,983,756) | (3,239,324) | ||
Income taxes received | 270,135 | 237,343 | ||
Net cash outflow from operating activities | (2,713,621) | (3,001,981) | ||
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-term highly liquid investments with maturity of three months or less.
5. Annual Report and Accounts and Notice of Annual General Meeting
The Company's Annual Report and Accounts in word format are available on the Company's website. The full colour Annual Report and Accounts along with Notice of AGM and Proxy Form will be posted to shareholders on Friday 22 May 2014. The AGM will be held on 16 June 2015 at 11.00 a.m. at the Hotel Felix, Whitehouse Lane, Huntingdon Road, Cambridge, CB3 0LX.