REG - CyanConnode Holdings - Trading Statement

Cyanconnode HoldingsAnnouncement

Mon 07:00

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RNS Number : 3992G  CyanConnode Holdings PLC  28 April 2025

28 April 2025

 

CyanConnode Holdings plc

("CyanConnode" or the "Company")

 

Trading Update

 

CyanConnode Holdings plc (AIM: CYAN), a global provider of IoT communication
and smart metering solutions, provides a trading update for the financial year
ended 31 March 2025 ("FY25").

 

The Company has continued to experience strong demand for its smart metering
solutions, and this is reflected in the substantial increase in its contracted
outstanding order book, which grew from approximately £50 million as at 31
March 2024 and now stands at approximately £180 million. The majority of
these orders are expected to convert into revenue over the next two to three
years, underlining the strength and resilience of CyanConnode's business
model.

 

During FY25, the Company secured its largest contract to date for the
deployment of 6.5 million units, along with associated modules, gateways,
software, and services. Shortly after the financial year-end, CyanConnode
achieved a further significant milestone by winning its first engagement as an
Advanced Metering Infrastructure Service Provider (AMISP) worth c.£70 million
from the Government of Goa.

 

In line with prior years, CyanConnode had anticipated receiving the majority
of its FY25 revenue in Q4 (January to March 2025), and indeed weighted towards
the latter part of the quarter, as historically its major Indian customers -
whose financial year-end is also 31 March - have requested substantial
shipments to be made during this period to utilise their budgets. However,
this year, large shipments expected in March 2025 did not materialise. This
was due in large part to the impact of local and national elections in India,
which temporarily delayed decision-making processes, and also some consumer
resistance to the transition to prepaid smart metering models, which, although
addressed by regulatory frameworks, caused operational delays on the ground.

 

It is important to stress that underlying customer orders remain fully intact,
and there is no change in the Government of India's strong policy commitment
to the nationwide transition to smart metering. The Government of India has
also expanded its ambition, increasing the target deployment of smart meters
from 250 million to 330 million, further reinforcing the scale of the
opportunities for CyanConnode.

 

Consumer resistance is being actively overcome, supported by regulatory
frameworks which require customers to accept the installation of smart meters
once proper notification and procedures are followed. Distribution companies
(DISCOMs) have the statutory authority to enforce the rollout, and this is
providing greater certainty over future deployment schedules.

 

However, as a result of these timing shifts and resultant delay in shipments,
the Board now expects FY25 revenue to be approximately £14 million (subject
to audit which is at a very early stage), and the Company will report an
EBITDA loss for the period. While it is too early in the audit cycle to
determine the precise quantum of loss, it is expected to be in a similar
region to last year. Cash at 31 March 2025 was £5.8 million, and cash
received from customers during the year totalled £14.2 million.

 

The Company is seeing positive momentum entering FY26, with approximately
350,000 Omnimesh modules shipped to customers in April 2025, compared to
39,000 modules in April 2024, reflecting the impact of delayed shipments being
fulfilled.

 

John Cronin, Executive Chairman of CyanConnode, commented:

 

"The growth in our order book over the past year, driven by securing exciting
new contracts both as a subcontractor and as the lead contractor (AMISP), and
by  aligning our strategy with our projected growth plan, has been not only
rewarding but also proof that we are on the right path.

 

Based on historical trends, where a significant percentage of our revenues
were recognised during the month of March, we anticipated a similar surge this
year. However, that surge did not materialise as expected, and it is clear
that we must learn from this experience and take appropriate action going
forward. We will reassess our business forecasts on a more conservative basis
to ensure they align more closely with the implementation rate of the smart
metering roll-out in India.

 

It is important to emphasise that the affected revenues have not been lost.
The order book and pipeline remain strong, showing no signs of a decline in
long-term demand, and we have already observed a substantial increase in
shipments during April 2025.

 

Ultimately, we remain confident in the Group's strategic position, the
resilience of its technology and service offering, and its medium-to-long-term
growth prospects."

 

- Ends -

 

 

Enquiries:

CyanConnode Holdings plc
                                   Tel: +44 (0) 1223 865 750

John Cronin, Executive Chairman
 

www.cyanconnode.com

Strand Hanson Limited (Nominated and Financial Adviser)
 Tel: +44 (0) 20 7409 3494

James Harris, Richard Johnson, David
Asquith
 

 

Zeus Capital Limited (Joint
Broker)                                                         Tel:
+44 (0) 20 3829 5000

Simon Johnson, Louisa Waddell

 

Panmure Liberum (Joint
Broker)
Tel: +44 (0) 20 7886 2500

Rupert Dearden / James Sinclair-Ford

 

Novella (Financial PR)
                                             Tel: +44
(0) 20 3151 7008

Tim Robertson / Safia Colebrook

 

About CyanConnode

 

CyanConnode (AIM:CYAN.L), is a global provider of IoT communication and smart
metering solutions. Its comprehensive technology portfolio includes narrowband
RF mesh, advanced cellular modules, and hybrid communication platforms,
delivering scalable and cost-effective connectivity for smart energy and
infrastructure applications.

 

The Company's flagship Omnimesh platform offers highly reliable, self-forming
and self-healing networks, optimised for deployment across diverse geographic
and environmental conditions. Complemented by innovations such as long-range
RF, in-meter gateways, and AI-enhanced cellular connectivity, CyanConnode
provides flexible solutions tailored to evolving utility needs.

 

CyanConnode's Universal Head-End System (UHES) enables seamless integration
across multiple communication technologies, enhancing interoperability and
simplifying network management at scale.

 

As a trusted AMISP and OEM partner, CyanConnode works with utilities, system
integrators, and meter manufacturers through a global, vendor-agnostic
ecosystem. The Company is playing a central role in the digital transformation
of the energy sector, with projects spanning India, Southeast Asia, the Middle
East, and Europe.

 

For more information, please visit www.cyanconnode.com
(http://www.cyanconnode.com/)

 

The information contained within this announcement is deemed to constitute
inside information for the purposes of Article 7 of EU Regulation 596/2014
(Market Abuse Regulations) which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018. Upon publication of this announcement, this
inside information is now considered to be in the public domain.

 

 

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