REG - CyanConnode Holdings - Final Results
23/07/2025 07:00
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RNS Number : 1373S CyanConnode Holdings PLC 23 July 2025
23 July 2025
CyanConnode Holdings plc
("CyanConnode", "the "Group" or the "Company")
Final Results for the Year Ended 31 March 2025
CyanConnode Holdings plc (AIM: CYAN), a global provider of narrowband RF smart
mesh networks for smart metering and IoT applications, announces its audited
results for the year ended 31 March 2025.
John Cronin, Chief Executive of CyanConnode commented:
"While FY25 was a transformational year for the Company in India, its largest
smart metering market, as announced in our trading statement on 28 April 2025,
anticipated deployment momentum did not materialise at the expected pace, and
as a result, revenues were 24% lower than the prior year. This was primarily
due to election-related uncertainty amongst businesses and short-term consumer
resistance to smart metering, factors we do not expect to recur.
Importantly, no orders have been lost, only deferred, and the strength of our
current pipeline positions us well for the periods ahead. We've entered FY26
with positive momentum, evidenced by a significant uplift in shipments of
modules, as shown in the table in the Post-Period Highlights on the next page.
Despite these delays on the ground, we more than tripled our contracted
outstanding order book, from £50 million to £180 million, demonstrating the
strong underlying demand for our technology and the success of our commercial
strategy. We are particularly encouraged by our recent success in securing a
landmark c.£70 million contract with the Government of Goa, our first as an
Advanced Metering Infrastructure Service Provider (AMISP). While deployment of
this project has yet to commence, it represents a major step forward and is
expected to be a key contributor to future revenues, underpinning management's
confidence in returning to the strong revenue growth seen in the years prior
to FY25.
In light of the inherent challenges in forecasting revenue timing in large
infrastructure projects, the Board has adopted a more conservative approach to
its forecasting. To enhance transparency and help stakeholders track
operational progress, going forward CyanConnode intends to provide quarterly
updates on business progress."
Financial highlights
· Revenue of £14.2m in FY25 (FY24 1 : £18.7m), largely as a
result of delays in deployments outside of the Group's control
· Gross profit reduced to £4.9m in FY25 (FY24: £5.6m), as a
result of the lower revenue
· Gross margin increased to 35% in FY25 (FY24: 30%), due to the
release of newer, lower cost products (in particular, gateways) not using
end-of-life components purchased at a premium. Targeting a gross margin of
30-37% in the first two years of each project, moving to 90% thereafter
· Operating costs remained stable at £9.1m in FY25 (FY24: £9.0m)
· Operating loss decreased to £3.8m in FY25 (FY24: £4.2m), despite
the lower revenues, due to the improved gross margin %. FY24 had also included
an impairment to intangible assets of £0.75m
· EBITDA loss also decreased to £3.5m in FY25 (FY24: £3.8m)
· Loss before tax decreased to £3.7m (FY24: £4.2m)
· Adjusted EBITDA 2 loss remained constant at £2.8m in FY25 (FY24:
£2.8m loss), with the lower revenues being offset by higher gross margin %
and no impairment to intangible assets
· Increase in cash and other financial assets to £5.8m in FY25
(FY24: £0.8m) following the receipt of a short-term loan for £5m received in
March 2025 from significant shareholder, Axia Investments Limited ("Axia") and
a capital raise of £5.4m (before expenses) in September 2024. The short-term
loan from Axia was repaid in June. The cash figure of £5.8m provided in our
Trading Statement on 28 April 2025 included £2.5 million which is held in a
fixed deposit in the UK (refer to note 19 to the financial statements),
against which an overdraft facility of the equivalent amount in India is
secured. At 31 March 2025, £1.3m of the overdraft had been utilised (refer to
note 25 to the financial statements)
· Cash collected from customers decreased to £14.2m in FY25 (FY24:
£16.9m) as a result of the decrease in revenues
Key Operational Highlights
· Orders for 7.7m modules won in India during the period (FY24:
2.7m modules) taking the cumulative order book to 14m
· CyanConnode India's subsidiary, DigiSmart Networks Private Ltd
successfully empanelled as an Advanced Metering Infrastructure Service
Provider ("AMISP") for both Radio Frequency ("RF") and cellular, making it
eligible to bid for smart metering contracts under the Revamped Distribution
Sector Scheme ("RDSS"). First tender was submitted as an AMISP in November
2024 for a project with the Goa Electricity Department for c. 750,000 meters
· Setup of subsidiary in United Arab Emirates to promote business
in the Middle East and North Africa (MENA) region
· Follow-on order with a value in excess of $1 million won, for
cellular gateways in the Middle East and North Africa ("MENA") region
· Appointment of Non-Executive Director, Lyndon Faulkner
Post-Period Highlights
Modules Shipped Q1 Comparison
Metric Q1 FY26 Q1 FY25 Variance FY 25
Modules 568,000 170,000 398,000 1,257,000
Commentary
CyanConnode shipped 568,000 Omnimesh modules in Q1 26, compared to 170,000 in
Q1 25 - an increase of 398,000 modules, reflecting a significant acceleration
in delivery momentum. It should be noted that not all of the Group's revenue
is recognised from shipment of modules in India,but can include revenue from
software and services in India, as well as shipments of orders in the rest of
the world. In addition, as mentioned in the footnote on the previous page, the
majority of the Group's revenues are received in rupees for India and US
dollars for the rest of world, whilst accounts are reported in Pound Sterling.
Foreign exchange volatility can have an impact, at times significant, on the
reported figures.
Other Post-Period Highlights
· Award of contract for a project for circa 750,000 meters in Goa
which is now fully funded and resourced without any further capital required
from the Group
· Successful issue of convertible loan notes for $15 million in
aggregate, enabling the repayment of the £5m short-term loan from Axia, with
the balance being used to support the Company's broader working capital and
business development activities
· Appointment of Björn Lindblom as Non-Executive Chairman, with
John Cronin moving to role of Group CEO, strengthening corporate governance
· Win ratio of >20% in terms of volumes for RDSS tenders in
India
- Ends -
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.
Enquiries:
CyanConnode Holdings plc Tel: +44 (0) 1223 865 750
John Cronin, Group CEO www.cyanconnode.com (http://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 5900
Simon Johnson / Louisa Waddell
Panmure Liberum (Joint Broker) Tel: +44 (0) 20 7886 2500
Rupert Dearden / James Sinclair-Ford
Novella (Financial Tel: +44 (0) 20 3151 7008
PR)
Tim Robertson / Safia Colebrook
Group CEO's Report
I am pleased to report on the Company's trading performance for the 12 months
ended 31 March 2025. Over the period, the business has made significant
progress and firmly established its position as a leading player in the smart
metering sector-most notably in India, but also in other key international
markets. With the contracted, outstanding order book increasing to £180
million, the Company now has strong visibility over future revenues and is
well positioned to deliver sustained growth.
Key Highlights for CyanConnode India from FY25 are as below:
· New Orders - CyanConnode secured new orders totalling approximately
7.7 million modules during FY25, reinforcing its leadership position in
India's ambitious smart metering rollout.
· Strategic Expansion: Our wholly owned subsidiary, DigiSmart Networks
Pvt.Ltd. ("DigiSmart"), was officially certified as an AMISP under RDSS. This
certification positions DigiSmart to independently execute end-to-end smart
metering projects.
· AMISP Win in Goa: In December 2024, DigiSmart was declared L1
(preferred bidder) for its first AMISP contract to deploy c.750,000 smart
meters in Goa under the RDSS scheme. This landmark win marks a transformative
moment for CyanConnode, as it takes full responsibility for end-to-end project
execution. The contract was signed in May 2025; however, the Letter of Intent
was received from Goa in April 2025.
· Contributions to Policy Standardisation: CyanConnode served as an
active member of the expert committee on standardization and interoperability
of AMI layers. The Ministry of Power, based on the committee's
recommendations, released the Guidelines for Standardization and
Interoperability in AMI Systems in January 2025, covering end-to-end
communication between Smart Meters, HES, and MDMS.
· Industry Engagement and Thought Leadership: During the year,
CyanConnode participated in prominent industry forums, including Metering
India, Elecrama 2025 (IEEMA), and India Smart Utility Week 2025 (ISGF). The
company showcased its hybrid IoT communication solutions and shared insights
on emerging technologies shaping the future of smart energy systems.
· Engagement with Policymakers: CyanConnode engaged directly with
the Chief Ministers of Rajasthan and Madhya Pradesh, fostering strategic
dialogues to accelerate smart metering initiatives and strengthen
public-private collaboration.
· Open Agreement with IntelliSmart: CyanConnode has entered into an
open agreement with IntelliSmart Infrastructure Private Limited
("IntelliSmart") to deploy smart meters on a pan-India basis. Under this
agreement, CyanConnode will provide Consumer Indexing, Meter Installation, and
Operations & Maintenance services for IntelliSmart's ongoing and upcoming
smart metering projects across India. This agreement marks a significant step
in strengthening CyanConnode's role in the execution and long-term management
of Advanced Metering Infrastructure deployments under RDSS.
· Technology Innovation and Product Leadership: CyanConnode
continues to develop solutions tailored to the evolving needs of utilities and
next-generation energy infrastructure:
o In-Meter Gateway: CyanConnode has developed an advanced In-Meter Gateway
solution that integrates communication capabilities directly within smart
meters. This innovation enables meters to operate within an RF mesh network,
dynamically and seamlessly switch to cellular connectivity when required,
based on real-time network conditions.
The In-Meter Gateway significantly reduces deployment time and simplifies
field operations by eliminating the need for external communication modules,
making it faster and easier to deploy at scale. Its compact architecture and
embedded intelligence support edge computing, enabling localized processing,
faster response times, and optimized transmission of small data packets to the
Head-End System (HES).
This design not only improves operational efficiency but also enhances network
resilience and uptime, supporting utilities in achieving higher SLAs. The
gateway's robust connectivity helps address common consumer concerns around
meter reliability and billing accuracy, thereby reducing resistance to
adoption and facilitating smoother rollout across varied terrains.
o Unified Head-End System (UHES): The UHES platform enables seamless
integration and centralized management of both RF and cellular communication
technologies. With a unified interface for data visibility, control, and
diagnostics, it simplifies utility operations, enhances real-time monitoring,
and supports large-scale rollouts across diverse geographies.
India Market
Overview of FY25
India's smart electricity metering landscape entered a decisive phase in FY25,
marked by strong policy backing, and growing private sector participation.
With over 13 million smart meters installed during the year, the country still
has some way to go toward achieving its ambitious target of 250 million meters
(which we understand is likely to increase to 330 million). As the government
considers extending the RDSS deadline to FY27-28, the focus is now shifting to
full-scale execution - integrating data systems, enhancing consumer
engagement, and delivering measurable gains in billing efficiency and loss
reduction. While challenges around scale and coordination remain, India's
power sector is firmly advancing toward a smarter, more resilient grid.
Key Highlights in the market:
· Current Progress: As at the end of March 2025, roughly 23.9
million smart meters were installed across India, which is slightly less than
10% of the original 250 million target. Despite lower than expected
deployments and therefore revenue during the year, momentum picked up towards
the end of FY25, with 13.4 million meters installed in the full financial
year. We have seen a significant increase in our shipments of modules in the
first three months of FY26.
The programme has not yet taken off in several states. Not a single consumer
smart meter has been installed in Karnataka, while Kerala has installed only
805 to date. Bihar and Assam have led in deployments. Uttar Pradesh, Madhya
Pradesh, Punjab, Chhattisgarh, and Andhra Pradesh are among the
better-performing states. Haryana, Maharashtra, and Gujarat have seen moderate
progress.
· Impact on Losses and Efficiency: Smart metering is a core strategy
to cut India's high distribution losses. National aggregate technical and
commercial ("AT&C") losses have already improved from about 22% in FY21
to ~16% in FY24. Smart meters enable accurate billing, real-time consumption
tracking, and prepaid functionality, which are expected to further reduce
losses and improve collection efficiency. Early results are promising, for
instance, about 44% of consumers in Assam saw monthly savings (~50
units) due to better usage awareness and accurate billing with smart meters,
and the state's utilities have begun reducing losses as a result. Overall,
experts anticipate that the full-scale rollout of smart meters will greatly
strengthen distribution companies' financial health over the next couple of
years.
· Consumer Tariff Reforms: Time-of-Day ("ToD") tariffs were
introduced to incentivise consumers to shift usage to off-peak hours. From
April 2024 ToD pricing applies to commercial and industrial consumers with
>10 kW load, and it will extend to all other consumer categories (except
agriculture) this year. This policy change directly ties into smart meters;
ToD tariffs require smart meters to measure and bill electricity consumption
in different time blocks. The government also streamlined the Electricity
(Rights of Consumers) Rules in mid-2023 to simplify smart metering
provisions, making remote connection/disconnection and prepaid recharge rules
more consumer-friendly, thus encouraging smoother adoption of smart meters.
· Financial Incentives in Budget: The Union Budget
2025-26 (announced February 2025) included measures to support smart
metering. Notably, it reduced the basic customs duty on smart meters from 25%
to 20% to make meters more affordable. The budget also continued a policy of
allowing states additional borrowing space, up to 0.5% of Gross State
Domestic Product, if they undertake power sector reforms, which include the
timely installation of smart meters and loss reduction measures.
With stronger policy alignment, increasing private sector participation, and
growing momentum in field-level execution in FY25, the stage has been set for
India's transition to a digitally enabled power distribution system. While
challenges persist around scale, state-level disparities, and consumer
onboarding, the foundational progress achieved this year offers a clear
pathway forward. As installations continue to ramp up and supportive reforms
take hold, smart metering is poised to play a transformative role in
strengthening the operational and financial health of India's power sector.
APAC and Middle East North Africa Markets
The smart metering market in the Asia Pacific ("APAC") and MENA regions across
electricity and water continues to expand, with emerging opportunities in gas
utilities, as more utilities start to adopt smart metering initiatives.
MENA
During the period CyanConnode continued to deploy its contracts for the MENA
region and additionally completed incorporation of its subsidiary, CyanConnode
Communications LLC, in Dubai. In October 2024, the Company was pleased to
announce a follow-on order for this region, and shipments for this order are
expected to complete during this financial year. Further orders for the region
are expected to be won in the near term.
Thailand
CyanConnode, in collaboration with partners JS Technical Service Co Ltd.
("JST") and Forth Corporation Public Company Limited (Forth), continues to
advance the Smart Metro Grid (SMG) project for the Metropolitan Electricity
Authority (MEA), which has now reached Go-Live stage.
Malaysia and Indonesia
As part of its APAC expansion, CyanConnode is actively collaborating with
utilities in Malaysia and Indonesia.
Fundraising
In September 2024 the Company completed an oversubscribed placing and
subscription, raising £5.4 million before expenses. The new shares were
issued at a price of 9 pence per share, reflecting a 17% premium to the
closing mid-market price the day before the announcement of the fundraising.
The net proceeds from this fundraising are being used to strengthen the
Company's balance sheet and to increase working capital. Cash is closely
monitored to ensure alignment with its growth opportunities.
In March 2025 the Group secured a short-term loan for £5 million from Axia, a
significant shareholder, to assist with short-term working capital
requirements. This loan was repaid in June 2025 in accordance with the terms
of the loan.
Board changes
In November 2024, the Company was pleased to announce the appointment of
Lyndon Faulkner as Non-Executive Director, bringing over thirty years of
visionary leadership as a senior business executive. Lyndon has held key
positions at major international organisation such as Chairman and CEO of
Pelican Products and General Manager of Microsoft Corporation.
Post period end and outlook
Momentum picked up from April 2025, when our subsidiary, DigiSmart, which is
an empanelled AMISP, received the Letter of Intent from the Electricity
Department of Goa, for a project for circa 750,000 smart electricity meters.
Since then, the full contract has been signed with the utility, and we have
set up a Special Purpose Vehicle ("SPV") called GreenMeter Goa Private Limited
("GreenMeter Goa"), which will be responsible for the deployment of the
contract. In July 2025, the Company announced that DigiSmart and GreenMeter
Goa have appointed a specialist subcontractor under an innovative arrangement
whereby all project funding is sourced externally. This forward-looking
structure enables CyanConnode to accelerate execution, preserve its balance
sheet, and retain strategic control over project delivery.
In May and July 2025, we announced two unsecured convertible loan notes for
$15 million in aggregate, which will support the Company's broader working
capital and business development activities as it targets additional
large-scale opportunities across India's national smart metering programme.
The first loan note, for $7.5 million, was mainly used to repay the short-term
loan for £5 million from our large shareholder.
Additionally, in May 2025, changes were made to the Board of Directors to
improve its corporate governance whereby we appointed Björn Lindblom, a
Non-Executive Director, as Non-Executive Chairman of the Company. At the same
time, I moved from the role of Executive Chairman to that of Group CEO.
We've seen a marked increase in the number of modules shipped in the first
quarter of FY26 compared to FY25 with 568,000 being shipped since the year end
compared to 170,000 shipped for the same period of last financial year.
The Group's cash position has been significantly strengthened by the $15
million raised through two convertible loan facilities. A portion of the
proceeds has been used to fully repay the £5 million Axia loan, with the
remaining funds allocated to working capital. This places the Company in a
strong position to support the execution of current projects. However, should
growth exceed current expectations, additional funding may be required to
capitalise on emerging opportunities.
I want to express my sincere gratitude to all our employees for their
exceptional dedication and contributions over the past year. My thanks also go
to our valued partners and other stakeholders, with whom we look forward to
further collaborations on the market opportunity, particularly as we evolve as
an AMISP. Additionally, I extend appreciation to all shareholders for their
continued support.
We are confident that momentum will continue to progress throughout this
financial year, and we eagerly look forward to updating you on our progress
throughout the year.
John Cronin
Group CEO
22 July 2025
Financial Review
Despite a large increase to the Group's contracted order book during Financial
Year 2025, slower than expected deployments on the ground resulted in lower
than expected revenue, due largely to the impact of local and national
elections in India, which temporarily delayed decision-making processes.
Additionally, there was 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 intact, and
there is no change in the Government of India's strong policy commitment to
the nationwide transition to smart metering. We understand 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.
A summary of the key financial and non-financial Key Performance Indicators
("KPIs") for the year and details relating to its financing position at the
year end are set out in the table below and discussed in this section.
Year Year Year Year Year
Mar 2025 Mar 2024 Mar 2023 Mar 2022 Mar 2021
£000 £000 £000 £000 £000
Revenue 14,177 18,730 11,732 9,562 6,437
Gross Margin % 35% 30% 36% 52% 48%
R&D expenditure (including staff costs) 2,267 3,573 2,247 1,755 1,791
Operating costs 9,053 9,817 7,561 6,025 5,788
Operating loss (3,847) (4,204) (3,347) (1,017) (2,685)
Depreciation and amortisation 396 398 489 616 627
EBITDA (3,451) (3,806) (2,858) (401) (2,058)
Stock impairment 17 20 102 62 108
Impairment of intangible assets - 791 968 - -
Share based compensation 220 51 224 363 80
Foreign exchange losses / (gains) 393 194 8 34 (15)
Adjusted EBITDA 3 (2,821) (2,750) (1,556) 58 (1,885)
Cash and cash equivalents 3,332 783 4,070 2,355 1,489
Average monthly operating cash outflow (463) (242) (185) (261) (81)
Mar 2025 Mar 2024 Mar 2023 Mar 2022 Mar 2021
FTE 4 FTE FTE FTE FTE
Average 113 117 64 59 47
Year end 115 120 70 60 54
Gross Margin is higher than FY24 because of the launch of a new gateway at the
start of FY25, which meant that
significant one-off costs linked to the difficulty of sourcing an end-of-life
component for the version of gateways being shipped in FY24 were not incurred
in FY25. There is expected to be some variation in gross margins over the life
of the projects in India as margins in the first two years consist of mainly
lower margin hardware, increasing to greater than 90% after year two when the
main revenue transitions to higher margin support and services.
Included within the table on the previous page are two alternative performance
measures ("APMs" - see note 1), EBITDA and adjusted EBITDA. These are
additional measures which are not required under UK adopted International
Accounting Standards. These measures are consistent with those used internally
and are considered important to understanding the financial performance and
the financial health of the Group.
EBITDA (Loss) before Interest, Tax, Depreciation and Amortisation is a measure
of cash generated by operations before changes in working capital. Adjusted
EBITDA is a measure of cash generated by operations before stock impairment,
impairment of investments, share-based compensation, impairment of intangible
assets and foreign exchange losses. It is used to achieve consistency and
comparability between reporting periods.
Financial items of note during the year:
· Cash received from customers during FY25 was £14.2 million
(2024: £16.9 million)
· Trade and other receivables increased by £3.7 million during the
year to £17.2 million (including retentions) largely as a result of increased
contract assets
· R&D cash tax credit of £0.4 million for FY25 (FY24: £0.7
million) as a result of legislative changes regarding R&D Tax Credit
Claims reducing the amounts to be claimed
· Short-term working capital facility entered into by CyanConnode
Private Limited with ICICI Bank Limited for INR500 million. A deposit account
held in CyanConnode Holdings plc has been set up with ICICI Bank in the UK and
this has been used to secure this facility, via a Standby Letter of Credit
(SBLC), therefore restricting the use of the deposit limited to the amount of
the short-term working capital facility. As at 31 March 2025 £ 1.3 million
had been drawn down against the SBLC of £2.5 million.
· Working capital continued to be a challenge through FY25
o Under the business model which drives revenue recognition, contract assets
with financing components increased during the year, but the cash for these
contractual obligations won't be recovered for multiple years
o Trade and other payables increased from £8.5 million in FY24 to £9.9
million in FY25 due to increased demand for future deliverables on new
contracts
o Creditor days increased to 276 in FY25 from 124 in FY24
o The cash inflow from the equity raise in September 2024 (£5.4 million
before expenses) and the £5 million short-term loan provided by a large
shareholder in March 2025 contributed to ensuring that working capital during
the year for the continued growth of the Group
During the year an advance of £400,000 against the FY24 R&D tax credit
was received and was repaid out of the FY24 R&D tax credit funds received
from HMRC during FY25. Two loans for the value of £200,000 each have been
secured from two directors against the FY25 R&D tax credit since the year
end and will be repaid out of the FY25 R&D tax credit funds received from
HMRC.
The new merged Research and Development Expenditure Credit (RDEC) scheme came
into effect and applies for accounting periods beginning on or after 1 April
2024. The RDEC is given as a taxable credit on the amount of qualifying
R&D expenditure payable as cash or as an offset against the company's
corporation tax liabilities. The RDEC is classified as other income under the
new scheme rules. See note 9 to the financial statements.
Letters of credit, invoice discounting and advance payments have been
negotiated on recently won contracts to help with working capital
requirements. Subcontracting arrangements have been finalised whereby the
Group has appointed a specialist subcontractor under an innovative
arrangement, where all project funding is sourced externally, resulting in no
project funding requirement from CyanConnode.
Key Performance Indicators (KPIs)
The financial and non-financial KPIs for the Group are as set out in the table
above and described below.
· Revenues for FY25 were 24.3% down on FY24 revenues, largely as a
result of delays to deployments caused by state and local elections.
· Gross margin for the year increased from 30% to 35%, largely due
to the release of our new gateway which no longer required an end-of-life
component. During FY24 we were required to purchase this component at a
significant premium due to its scarcity. Gross margin will however vary from
year to year depending on the stage of deployment of each contract. Hardware,
for which revenue is recognised typically during the first two years of a
contract, is at a lower gross margin than software and services for which
revenue can be recognised later in the deployment.
· Operating costs for the year reduced by 8% compared to FY24,
largely because FY24 operating costs included an impairment of intangible
assets for £0.8 million.
· Adjusted EBITDA loss remained constant at a loss of £2.8 million
in FY25 despite lower revenues as a result of improved gross margin.
· Cash and other financial assets at the end of FY25 were £5.8
million compared to £0.8 million at the end of FY24 following the receipt of
a short-term loan for £5 million and share placing of £5.4 million in
September (before related expenses). The cash figure of £5.8m provided in our
Trading Statement on 28 April 2025 included £2.5 million (refer to note 19 to
the financial statements) which is held in a fixed deposit in the UK, against
which an overdraft facility of the equivalent amount in India is secured. At
31 March 2025, £1.3m of the overdraft had been utilised (refer to note 25 to
the financial statements).
· Average headcount decreased to 113 (FY24: 117), and FTEs at year
end decreased from 120 in FY24 to 115 in FY25.
Non-financial KPIs included the number of modules shipped which decreased from
1,371,000 in FY24 to 1,257,000 in FY25. Furthermore, 14,000 NBIot gateways
(FY24: 55,000) and 7,000 Omnimesh gateways (FY24: 6,000)
were delivered during the year collectively across MENA and India regions.
The Group's long-term strategy is to deliver shareholder returns by generating
revenue and moving into profitability.
It seeks to do this by focusing its resources on emerging but fast-growing
markets where it believes it can reach a market leading position with its
technology. Management uses KPIs to track business performance, to understand
general trends and to consider whether the Group is meeting its strategic
objectives. As it grows it intends to review these KPIs and adapt them as
appropriate, in response to how the business and strategy evolves.
The Group's key focus for the financial year ending March 2025 was winning its
first project as an AMISP and following the submission of the tender for the
contract for the Goa Electricity Department in November 2024, focus has been
to secure project funding for this project. In July 2025, the Group announced
that It has appointed a specialist subcontractor under an innovative
arrangement whereby all project funding is sourced externally, preserving the
Group's balance sheet, while retaining control of project execution.
It has also continued to streamline and improve its processes from order to
delivery and working to close further orders. A further focus of the Group was
ensuring collection of cash from customers as Group revenues continued to
grow.
Going concern
To assess the ability of CyanConnode Holdings plc (the "Group") and company to
continue as a going concern, the directors have prepared a business plan and
cash flow forecast for the period to 31 March 2027 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, the timing of customer payments and the level of
working capital requirements.
The detailed cash flow scenarios include:
· invoice Letters of Credit which have been secured from customers
against certain contracts
· The cash flow scenario also includes the assumption that no cash
is required for the Goa contract recently won due to an innovative
subcontracting arrangement in place for the deployment of the contract
At 31 March 2025 the Group had cash and other financial assets of £5.8
million (FY24: £0.8 million) and based on detailed cash flows provided to the
Board within the FY26/27 budget, there is sufficient cash to see the Group
through to profitability based on its standard operating model. In the first
quarter of FY26, £2.8 million has been received from customers. At the end of
June 2025, the Group had cash and other financial assets of £5 million which
included £4.5 million held in a fixed deposit in the UK against which an
overdraft facility of the equivalent amount in India is secured. At 30 June
2025, £3.8 million of the overdraft had been utilised.
This followed the receipt of the first convertible loan note for $7.5 million,
which was used to repay the £5 million short-term loan received in March
2025. The cash from the second $7.5 million loan was only received in
mid-July. Interest will be charged at 7% per annum. Repayment of the first
$7.5 million is due at the earliest of April 2028 and no later than April
2030, after which the Lender is entitled to convert the loan notes into equity
if the loan is not repaid. The second repayment of $7.5 million is due to be
repaid at the earliest date of July 2028 and no later than July 2030 after
which the Lender is entitled to convert the loan into equity if not repaid.
However, should the Group require additional cash to cover working capital, as
a result of the targeted rapid growth, there could be a requirement for
additional funding for this. The Group is discussing working capital funding
solutions with banks, particularly in India, and it is believed that since the
Indian entity was profitable for FY24 and FY25, a suitable additional facility
could be secured.
A loan previously granted from one director of £400,000 to assist with
working capital was repaid during the year. The Group also received an advance
of £400,000 from two of its directors, secured against the Company's R&D
tax credit after 31 March 2025. The advance against the R&D tax credit
will be repaid out of the HMRC receipt which is expected to be received by
October 2025.
Notwithstanding the material uncertainties described above, which may cast
significant doubt on the ability of the Group and company to continue as a
going concern, on the basis of sensitivities applied to the cash flow
forecast, the directors have a reasonable expectation that the company can
continue to meet its liabilities as they fall due, for a period of at least 12
months from the date of approval of this report.
Financial Risk Management Objectives and Policies
Details of the Group's financial risk management objectives and policies are
disclosed in note 36 to the financial statements.
Dividends
The directors do not recommend the payment of a dividend (2024: £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 its industry sector and stage of its
development.
Heather Peacock
Chief Financial Officer
22 July 2025
CyanConnode Holdings plc
Consolidated income statement
For the year ended 31 March 2025
Note Year Year
31 March 31 March
2025 2024
£000 £000
Continuing operations
Revenue 4 14,177 18,730
Cost of sales (9,239) (13,117)
Gross profit 4,938 5,613
Exceptional item: impairment of intangible assets 14 - (791)
Other operating costs 6 (9,053) (9,026)
Other operating income 9 268 -
Operating loss (3,847) (4,204)
Amortisation and depreciation 396 398
Share based payments 35 220 51
Stock impairment 21 17 20
Impairment of intangible assets 14 - 791
Foreign exchange losses 393 194
Adjusted EBITDA (2,821) (2,750)
Finance income 10 216 92
Financing expense 11 (106) (113)
Loss before tax (3,737) (4,225)
Tax (charge) / credit 12 (88) 395
Loss for the year (3,825) (3,830)
Loss per share (pence)
Basic 13 (1.17) (1.41)
Diluted 13 (1.17) (1.41)
Consolidated statement of comprehensive income
Derived from continuing operations and attributable to the equity owners of
the Company.
For the year ended 31 March 2025 Year Year
31 March 31 March
2025 2024
£000 £000
Loss for the year (3,825) (3,830)
Exchange differences on translation of foreign operations (234) (112)
Total comprehensive income for the year (4,059) (3,942)
CyanConnode Holdings plc
Consolidated statement of financial position
As at 31 March 2025
31 March 31 March
Note 2025 2024
£000 £000
Non-current assets
Intangible assets 14 4,529 3,759
Goodwill 15 1,930 1,930
Property, plant and equipment 16 188 196
Right of use asset 17 363 474
Other financial assets 19 443 51
Trade and other receivables 20 5,500 3,085
Total non-current assets 12,953 9,495
Current assets
Other financial assets 19 2,500 -
Inventories 21 2,290 1,686
Trade and other receivables 22 11,745 10,491
R&D tax credit receivables 367 665
Cash and cash equivalents 23 3,332 783
Total current assets 20,234 13,625
Total assets 33,187 23,120
Current liabilities
Trade and other 24 (9,902) (8,450)
payables
Borrowings 25 (6,731) -
Corporation tax liability (956) (508)
Lease liabilities 17 (118) (110)
Total current liabilities (17,707) (9,068)
Net current assets 2,527 4,557
Non-current liabilities
Lease liabilities 17 (245) (364)
Deferred tax liability 26 (11) (170)
Other payables 27 (135) (87)
Total non-current liabilities (391) (621)
Total liabilities (18,098) (9,689)
Net assets 15,089 13,431
Equity
Share capital 28 7,178 5,982
Share premium account 29 84,411 80,196
Own shares held 30 (3,525) (3,611)
Share option reserve 31 1,632 1,412
Translation reserve 32 (294) (60)
Accumulated losses 33 (74,313) (70,488)
Total equity being equity attributable to owners of the Company 15,089 13,431
CyanConnode Holdings plc
Consolidated Statement of Changes in Equity
For the year ended 31 March 2025
Share Share Own Share Translation Retained Total
Capital Premium Shares Option Reserve Losses Equity
£000 Account Held Reserve £000 £000 £000
£000 £000 £000
Balance at 31 March 2023 5,438 78,671 (3,611) 804 52 (66,584) 14,770
Loss for the year - - - - - (3,830) (3,830)
Other comprehensive income for the year - - - - (112) - (112)
Total comprehensive income for the year - - - - (112) (3,830) (3,942)
Issue of share capital (net of expenses) 544 1,525 - - - - 2,069
Issue of share warrants - - - 483 - - 483
Credit to equity for share options
- - - 51 - - 51
Transfer on exercise of share options - - - 74 - (74) -
Total transactions with owners 544 1,525 - 608 - (74) 2,603
Balance at 31 March 2024 5,982 80,196 (3,611) 1,412 (60) (70,488) 13,431
Loss for the year - - - - - (3,825) (3,825)
Other comprehensive income for the year - - - - (234) - (234)
Total comprehensive income for the year - - - - (234) (3,825) (4,059)
Issue of share capital (net of expenses) 1,196 3,948 - - - - 5,144
Issue of share warrants - - - - - - -
Disposal of shares - 267 86 - - - 353
Credit to equity for share options - - - 220 - - 220
Transfer on exercise of share options - - - - - - -
Total transactions with owners 1,196 4,215 86 220 - - 5,717
Balance at 31 March 2025 7,178 84,411 (3,525) 1,632 (294) (74,313) 15,089
CyanConnode Holdings plc
Consolidated cash flow statement
For the year ended 31 March 2025
Year Year
Note 31 31 March
March
2025 2024
£000 £000
Net cash outflow from operating activities 34 (5,540) (2,860)
Investing activities
Interest received 16 15
Purchases of property, plant and equipment 16 (121) (224)
Disposal of property, plant and equipment 16 15 -
Purchases of intangible assets 14 (927) (1,384)
Net cash outflow from investing activities (1,017) (1,593)
Financing activities
Interest paid on borrowings (81) (93)
Proceeds on sale of shares 353 -
Money released from deposit as security 19 - 11
Money put on deposit as security 19 (2,943) -
Cash inflow from borrowings 25 5,000 -
Cash inflow from director's loans 25 1,060 -
Cash outflow from director's loans 25 (660) (300)
Cash net outflow from debt factoring 25 - (426)
Loan repayment 25 - (500)
Capital repayments of lease liabilities 17 (111) (74)
Interest paid on lease liabilities 17 (25) (19)
Proceeds on issue of shares 28 5,383 2,719
Share issue costs (239) (167)
Net cash inflow from financing activities 7,737 1,151
Net increase in cash and cash equivalents 1,180 (3,302)
Effects of exchange rate changes on cash and cash equivalents 38 15
Cash and cash equivalents at beginning of the year 783 4,070
Cash and cash equivalents at end of the year 2,001 783
Analysis of changes in net cash / (debt)
Other non-cash movements £000 Net foreign
At 1 April 2024 exchange difference At 31 March 2025
£000 Cash flow £000 £000 £000
For the year ended 31 March 2025
Cash 783 2,511 - 38 3,332
Bank overdraft - (1,331) - - (1,331)
Cash and cash equivalents 783 1,180 - 38 2,001
Short-term borrowings - (5,400) - - (5,400)
Lease liabilities (474) 136 (25) - (363)
(474) (5,264) (25) - (5,763)
Net cash at end of year 309 (4,084) (25) 38 (3,762)
Other non-cash movements £000 Net foreign
At 1 April 2023 exchange difference At 31 March 2024
£000 Cash flow £000 £000 £000
For the year ended 31 March 2024
Cash and cash equivalents 4,070 (3,302) - 15 783
Short-term borrowings (1,226) 1,226 - - -
Lease liabilities (123) 93 (444) - (474)
(1,349) 1,319 (444) - (474)
Net cash at end of year 2,721 (1,983) (444) 15 309
Notes to the Financial Information
For the year ended 31 March 2025
1. General information
CyanConnode Holdings plc, (Company Registered No. 04554942), is a company
limited by shares, incorporated in the United Kingdom under the Companies Act
2006. The address of the registered office is Suite 2, Ground Floor, The
Jeffreys Building, Cowley Road, Cambridge CB4 0DS.
The final results announcement is based on the financial statements which have
been prepared in accordance with UK-adopted International Accounting
Standards. The financial information has been prepared in accordance with the
accounting policies used in the statutory financial statements for the year
ended 31 March 2025.
The financial information set out in the announcement does not constitute the
company's statutory accounts for the years ended 31 March 2024 or 31 March
2025 within the meaning of section 434 of the Companies Act 2006 but is
derived from those audited financial statements. The auditor's report on the
consolidated financial statements for the years ended 31 March 2024 and the
year ended 31 March 2025 is unqualified, does not contain statements under
s498(2) or (3) of the Companies Act 2006 but referred to a material
uncertainty regarding the Group's ability to continue as a going concern.
Going concern
To assess the ability of CyanConnode Holdings plc (the "Group") and company to
continue as a going concern, the directors have prepared a business plan and
cash flow forecast for the period to 31 March 2027 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, the timing of customer payments and the level of
working capital requirements. The detailed cash flow scenarios include invoice
Letters of Credit which have been secured from customers against certain
contracts recently won. The cash flow scenario also includes the assumption
that no cash is required for the Goa contract recently won due to an
innovative subcontracting arrangement in place for the deployment of the
contract.
At 31 March 2025 the Group had cash and other financial assets of £5.8
million (FY24: £0.8 million) and based on detailed cash flows provided to the
Board within the FY26/27 budget, there is sufficient cash to see the Group
through to profitability based on its standard operating model. In the first
quarter of FY26, £2.8 million has been received from customers. At the end of
June 2025, the Group had cash and other financial assets of £5 million which
included £4.5 million held in a fixed deposit in the UK against which an
overdraft facility of the equivalent amount in India is secured. At 30 June
2025, £3.8 million of the overdraft had been utilised.
This followed the receipt of the first convertible loan note for $7.5 million,
which was used to repay the £5 million short-term loan received in March
2025. The cash from the second $7.5 million loan was only received in mid-
July. Interest will be charged at 7% per annum. Repayment of the first $7.5
million is due at the earliest of April 2028 and no later than April 2030,
after which the Lender is entitled to convert the loan notes into equity if
the loan is not repaid. The second repayment of $7.5 million is due to be
repaid at the earliest date of July 2028 and no later than July 2030 after
which the Lender is entitled to convert the loan into equity if not repaid.
However, should the Group require additional cash to cover working capital, as
a result of the targeted rapid growth, there could be a requirement for
additional funding for this. The Group is discussing working capital funding
solutions with banks, particularly in India, and it is believed that since the
Indian entity was profitable for FY24 and FY25, a suitable facility could be
secured.
A loan previously granted from one director of £400,000 to assist with
working capital was repaid during the year. The Group also received an advance
of £400,000 from two of its directors, secured against the Company's R&D
tax credit after 31 March 2025. The advance against the R&D tax credit
will be repaid out of the HMRC receipt which is expected to be received by
October 2025.
Notwithstanding the material uncertainties described above, which may cast
significant doubt on the ability of the Group and company to continue as a
going concern, on the basis of sensitivities applied to the cash flow
forecast, the directors have a reasonable expectation that the company can
continue to meet its liabilities as they fall due, for a period of at least 12
months from the date of approval of this report.
Alternative Performance Measures
The Group presents Alternative Performance Measures ("APMs") in addition to
the statutory results of the Group. These are presented in accordance with the
Guidelines on APMs issued by the European Securities and Markets Authority
("ESMA").
2. Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
2025 2024
Loss for the purposes of basic loss per share being net loss attributable to (3,825) (3,830)
equity holders of the parent (£000)
Weighted average number of ordinary shares for the purposes of basic and 326,247,246 271,910,382
diluted loss per share (excluding own shares held)
Loss per share (pence) (1.17) (1.41)
The weighted average number of shares and the loss for the year for the
purposes of calculating diluted loss per share are the same as for the basic
loss per share calculation. This is because the outstanding share options
would have the effect of reducing the loss per share and would not, therefore,
be dilutive under the terms of IAS 33.
3. Share capital
Issued and fully paid, ordinary shares of 2.0 pence each No £000
As at 31 March 2023 271,887,364 5,438
Issue of new shares 27,188,500 544
As at 31 March 2024 299,075,864 5,982
Issue of new shares 59,815,172 1,196
As at 31 March 2025 358,891,036 7,178
In September 2024 the Company successfully raised funding of £5.38m before
expenses through a placing of 59,815,172 ordinary shares.
During the year, 333,333 shares were issued to directors as part payment for
their remuneration. £30,000 was raised this way during the year (2024:
£50,000).
During the year no shares were issued as a result of the exercise of share
options (2024: nil shares). The Company has one class of ordinary share which
carries no right to fixed income.
4. Reconciliation of operating loss to net cash outflow from operating activities
Group 2025 2024
£000 £000
Operating loss for the year (3,847) (4,204)
Adjustments for:
Depreciation of property, plant and equipment 128 58
Amortisation of Intangible assets 157 267
Depreciation on right of use assets 111 73
Impairment of intangible assets - 791
Share based payments 220 51
Operating cash flows before movements in working capital (3,231) (2,964)
Increase in inventories (621) (913)
Increase in receivables (3,688) (4,348)
Increase in payables 1,500 4,662
Cash outflow from operating activities (6,040) (3,563)
Net income taxes received 500 703
Net cash outflow from operating activities (5,540) (2,860)
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 Notice of AGM and Proxy Form and full colour Annual Report and Accounts
will be sent to shareholders by 28 July 2025 and made available on the
Company's website shortly thereafter.
1 The majority of the Group's revenues are received in rupees for India and
US dollars for the rest of world, whilst accounts are reported in Pound
Sterling. Foreign exchange volatility can have an impact, at times
significant, on the reported figures.
2 Where Adjusted EBITDA is operating loss before amortisation, depreciation,
stock impairment, impairment of intangible assets, share-based compensation
and foreign exchange losses.
3 Where Adjusted EBITDA is Operating loss before amortisation, depreciation,
stock impairment, impairment of intangible assets, share-based compensation
and foreign exchange losses.
4 Where FTE is the equivalent number of full-time employees
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. END FR SEWESEEISEFWRecent news on Cyanconnode Holdings
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