CyanConnode Holdings plc (AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, will be holding its Annual General Meeting today at 14:00hrs at Trowers & Hamlins LLP, 3 Bunhill Row, London, EC1Y 8YZ.
John Cronin, Chairman of CyanConnode, will update shareholders with the following statement:
“2018 was a transformational year for CyanConnode, seeing revenue growth of 281% to £4.5m, improved gross margins of 452% to £2.7m and a 22% reduction in operating costs to £9.1m (or £8.1m excluding stock impairment, foreign exchanges gains / losses and share based payments).
“Our significant revenue growth in 2018 was attributable to the launch of the standards-based Omnimesh Advanced Metering Infrastructure (AMI) platform, which allows easy integration and deployment into multiple markets. Omnimesh was launched in June 2018 and within six months it had gained considerable commercial traction, especially in our largest market, India, where orders for the period totalled £15m.
“India is poised to be the second fastest growing adopter of smart metering globally, with the estimated number of smart meters targeted to increase from the current level of less than 0.5 million meters to c.250 million meters by 2021. Following Narendra Modi’s re-election as India’s Prime Minister, CyanConnode now expect to see renewed activity of the Smart Meters National Programme, resulting in further significant orders for our Omnimesh AMI platform.
“During 2018, CyanConnode signed its first licensing agreement with a well-established Chinese meter manufacture, Beijing Instruments, who will incorporate the Company’s technology into its smart meters. In addition to a fee paid each time a unit is manufactured, CyanConnode will receive a separate income stream from its Omnimesh AMI platform, which is required to activate a deployment.
“After several years of delay, UK SMIP version 2 is now being rolled out in force, with approximately 200,000 SMET2 smart meters being connected to the Data Communications Company, (DCC) each month. The CyanConnode SMET2 contract relates to the Central and Southern regions, where approximately 24 million SMET2 smart meters will be connected to the DCC. The Company estimates that 2.4 million SMET2 smart meters will be fitted with RF mesh enabled communication hubs and that the momentum of such installations will increase during 2020.
“As announced in March 2019 Paul Ratcliff will step down from the board of CyanConnode immediately following the AGM. I would like to thank him for his contribution and support during his tenure at the Company.
“The first five months of 2019 are performing in line with our expectations and we remain confident that the Company has sufficient capital to execute our business plan. We look forward to updating the market on future developments and take this opportunity to thank our shareholders, employees and advisors for their continued support.”