The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksCyanconnode Regulatory News (CYAN)

Share Price Information for Cyanconnode (CYAN)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 8.30
Bid: 8.20
Ask: 8.40
Change: 0.00 (0.00%)
Spread: 0.20 (2.439%)
Open: 8.30
High: 8.30
Low: 8.30
Prev. Close: 8.30
CYAN Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Trading Update

26 Jan 2016 07:00

RNS Number : 9281M
Cyan Holdings Plc
26 January 2016
 

 

Cyan Holdings plc("Cyan" or the "Company")

 

Trading Update

 

Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces a trading update for the 12 months ended 31 December 2015 as well as the outlook for 2016.

 

The Company built on the momentum achieved during 2014 strengthening relationships with existing partners via repeat orders and establishing new commercial partners across its target markets.

 

India

At present, India has 200 million legacy meters deployed and it is estimated 130 million smart meters will be installed by 20211. In November 20152, the Indian Ministry of Power announced a program to implement smart metering for all consumers serviced by state distribution companies with completion deadlines ranging from December 2017, for high power usage households, through to December 2019 for the remainder. In mid January 20163, the India Union Cabinet approved amendments to the power tariff policy that aims to tighten regulations for setting rates and promote clean energy, with the policy statement including that "it shall be compulsory for consumers to use smart meters with consumption over 500 units per month by December 2017 and with consumption over 200 units per month by December 2019".

 

During the period, the Company continued to make strong inroads into the smart metering market in India and received two contracts worth in aggregate approximately £1.5m from Enzen Global Solutions Pvt Ltd ("Enzen"). These contracts are to be implemented on behalf of Chamundeshwari Electricity Supply Corporation Limited ("CESC") and Paschimanchal Vidyut Vitran Nigam Limited ("PVVNL") respectively. The first 450 CyLec enabled meters for CESC have now been installed at consumer homes and successfully integrated onto the Cyan AMI mesh network. Roll-out of the remaining smart meters is now expected to continue through the first half of 2016.

 

The Company also successfully deployed the Cyan communications solution for 5,000 smart meters for Tata Power Mumbai ("Tata") during the period. Tata is a Tata Group company and part of India's largest integrated power company with a significant international presence and over 600,000 retail customers in Mumbai alone. Importantly, this initial deployment was followed in January 2016 with repeat orders for 5,000 meters for deployment by Tata Power. Discussions are currently underway regarding a larger Framework Order.

 

Rest of World

China's Ministry of Industry and Information Technology released its 12th Five-Year Development Plan in 2012, with the goal of scaling the IoT market to $163 billion by 20204. As such the Company took its first steps into the Chinese smart metering market in December 2015, via a partnership agreement with Newcapec Electronics Company Limited.

 

During the period, Cyan announced that it had received a Letter of Intent ("LOI") from El Sewedy Electrometer Group EMG ("El Sewedy") to supply Cyan's CyLec® Advanced Metering Infrastructure ("AMI") solution for a smart meter contract, which El Sewedy has been awarded in Ghana, Western Africa. The LOI states that, subject to contract, El Sewedy intends to appoint Cyan to provide a full AMI solution for up to 200,000 consumers in batches over three years. The utility has now notified El Sewedy that it will commence a pilot project using Cyan's technology once its existing GPRS sim card based smart metering solution trial has been completed. As stated in the announcement in May 2015, the LOI is a non-binding agreement which provides no guarantee of the terms or timing of any such order, with final terms to be contained within a contract which is yet to be negotiated.

 

Notwithstanding the above, Cyan has recently received an order for a 120 smart meter pilot project from El Sewedy for another project with the same Ghana utility where the potential opportunity size is 40,000 meters and this order is now in the process of being delivered.

 

Outlook

The Company enters 2016 with significant contracted revenue backlog when compared with previous periods. The majority of both the £1 million CESC and the £0.5 million PVVNL contracts will be booked as revenue in 2016, with a significant element in H1 2016. The Tata Power repeat order will be shipped in Q1 2016. Together, the conversion of these existing contracts into revenue provides management with confidence that revenue in 2016 will be significantly higher than that reported in previous years. This increase excludes the incremental revenue the Company expects to receive from identified projects and any additional contract wins in 2016.

 

Across the Company's target markets, there is significant scope for scalability and the contracts generated to date demonstrate the attraction of Cyan's products and provide strong foundations for Cyan's future growth. Given the combination of services, software and hardware provided by the Company, the Directors believe that revenue visibility will improve throughout the year as more meters are deployed.

 

John Cronin, Executive Chairman of Cyan, commented: "This was a busy period for the Company as we further enhanced our position across our key regions. We are very much focused on converting orders into revenues, which in turn can lead to multiple orders and repeat orders from key partners. Additionally, as our model evolves, the Company is benefiting from growing recurring revenues, enhancing forward visibility.

 

"Having further strengthened our foundations for growth during 2015 there is huge opportunity for further scalability throughout India, China, Brazil and sub-Saharan Africa. As such, we expect trading during 2016 to reflect our growing ability to win and service new orders."

 

1Source: http://asian-power.com/sites/default/files/asianpower/print/APMay_2013_lr_12.pdf

 

2Source: http://powermin.nic.in/upload/pdf/Uday_Ujjawal_Scheme_for_Operational_and_financial_Turnaround_of_power_distribution_companies.pdf

 

3Source:

http://smartinvestor.business-standard.com/market/story-361348-storydet-New_power_tariff_policy_supports_low_rates_smart_tech.htm#.VqIMH4WLT3Q

 

4 Source: http://www.gsma.com/newsroom/wp-content/uploads/16531-China-IoT-Report-LR.pdf

 

 

Enquiries:

 

Cyan Holdings plc

Tel: +44 (0) 1954 234 400

John Cronin, Executive Chairman

www.cyantechnology.com

 

Cantor Fitzgerald Europe (Nomad and Broker)

Tel: +44 20 7894 7000

Andrew Craig / Chris Viggor /Richard Salmond

 

 

 

Beaufort Securities Limited (Broker)

Tel: +44 (0) 20 7382 8300

Jon Belliss

 

 

 

Walbrook PR - Financial PR

Tel: +44(0) 20 7933 8780

Paul Cornelius / Nick Rome

 

cyan@walbrookpr.com

About Cyan

 

Cyan provides a communication platform for energy, lighting and emerging applications in the wider 'Internet of Things' network. Its integrated platform and partner collaborations deliver end-to-end solutions that connect millions of devices and support bidirectional communication with the end customer. Cyan's smart metering and lighting solutions enhance quality of service in emerging regions, through power savings, lower operating costs and increased cost efficiency. Our vision to create improved value through Smart City solutions has provided our customers with the foundation upon which to build incremental services as these markets evolve.

 

For more information, please visit www.cyantechnology.com.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTUVSNRNUAAUAR
Date   Source Headline
14th Dec 20227:00 amRNSInterim results
8th Dec 20227:00 amRNSInvestor Presentation
1st Dec 20227:00 amRNSTrading Update and Notice of Results
9th Nov 20227:00 amRNSHardman & Co - Indian smart meter programme update
27th Oct 20227:00 amRNSConference of Indian Power Ministers
25th Oct 20227:00 amRNSHolding(s) in Company
18th Oct 20226:12 pmRNSApplication to List Shares
18th Oct 20227:00 amRNSShare Subscription
13th Oct 20222:00 pmRNSHardman October 2022 Investor Forum - CyanConnode
6th Oct 20227:00 amRNSDirector Share Purchase
5th Oct 20227:00 amRNSDirector Share Purchase
4th Oct 20227:00 amRNSDirector Share Purchase
3rd Oct 202212:35 pmRNSHardman Research - Smart meter breadth and depth
30th Sep 20225:01 pmRNSDirector/PDMR Shareholding
28th Sep 20227:00 amRNSPresentation in LSEG Shareholder Forum
22nd Sep 20222:04 pmEQSHardman & Co Announcement: CyanConnode presenting at the October Investor Forum 'Shareholder value in ESG investing' on 4 October 2022
21st Sep 202212:07 pmRNSResult of AGM
23rd Aug 20227:00 amRNSFinal Results
22nd Aug 20227:00 amRNSOrder For One Million Omnimesh Modules
4th Aug 20227:00 amRNSOrder for New Product in the MENA region
18th Jul 20227:00 amRNSTrading Update
27th Jun 20227:00 amRNSFollow-on Order
8th Jun 20227:00 amRNSCompletion of Nominated Adviser due diligence
12th May 20227:00 amRNSAppointment of Adviser
10th May 20227:00 amRNSNew Order for Smart Metering Project in India
27th Apr 20227:00 amRNSChange of Adviser
11th Apr 20227:00 amRNSNew contract, fundraising and Indian developments
5th Apr 20227:00 amRNSOrder from Middle East and North Africa (MENA)
25th Mar 20228:28 amRNSResult of Oversubscribed Placing and Subscription
25th Mar 20227:00 amRNSProposed Placing and Subscription
4th Feb 20224:25 pmRNSBlock listing update
4th Feb 20229:07 amRNSHolding(s) in Company
1st Feb 202212:45 pmEQSHardman & Co Research: CyanConnode (CYAN) - 3Q22 update: smart meter showtime in India
28th Jan 20227:00 amRNSDirector dealing
12th Jan 20227:00 amRNSTrading Update
31st Dec 202112:20 pmRNSTotal Voting Rights
26th Nov 20218:00 amRNSAIM Application
18th Nov 20217:00 amRNSInauguration of IoT Innovation Centre in India
10th Nov 20218:50 amRNSCambridge Wireless Best Connector Business
8th Nov 20217:00 amRNSInterim Results
21st Oct 20214:41 pmRNSSecond Price Monitoring Extn
21st Oct 20214:35 pmRNSPrice Monitoring Extension
20th Oct 20217:30 amRNS1H’22 update: strong shipments and cash inflows
19th Oct 20217:00 amRNSImplementing Ambition in the UK-India Partnership
11th Oct 20217:00 amRNSTrading Update
15th Sep 20213:06 pmRNSResult of AGM
9th Sep 20217:00 amRNSCyanConnode Wins Frost & Sullivan Innovation Award
31st Aug 20211:50 pmEQSHardman & Co Research: Q&A with Milan Radia on CyanConnode (CYAN): Substantial market opportunity
17th Aug 20217:10 amEQSHardman & Co Research: CyanConnode (CYAN): FY'21 results; revisiting addressable markets
10th Aug 20217:00 amRNSInvestor Presentation

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.