TIDMCYAN
RNS Number : 0182R
Cyan Holdings Plc
23 April 2009
Embargoed Release: Thursday 23 April 2009
Cyan Holdings Plc
("Cyan" or "the Group")
Final Results
Cyan Holdings plc (AIM:CYAN.L), a fabless semiconductor company providing
configurable application software and production ready modules based on feature
rich, low power, microcontroller chips announces its Final Results for the year
ended 31 December 2008.
Summary of 2008
* Substantial progress with Multiple Cy-Solved products and product families
released to market for evaluation
* Cyan achieving increasing levels of interest in products for Automatic Meter
Reading/ Advanced Meter Infrastructure, Wireless Industrial Control and Asset
Tracking markets.
* New Gateway Products (access points to industrial wireless networks) offer
extended features at very competitive prices providing Cyan with products to
access installed networks and support a broader range of international network
standards.
* Cyan secured two very valuable partnerships, the first with Micrel Inc, a
global manufacturer of integrated circuits, and the second with Future
Electronics Inc, a global electronics distributor operating in 41
countries. These partnerships significantly enhance Cyan's credibility with its
customers, while simultaneously providing the Company with a global sales and
support network
* Successfully raised GBP2.8million net of expenses to enable the Company to
deliver revenue growth and profitability in 2009.
* Investment in new product development was completed on plan in 2008 with only
nominal expenditure required for 2009
Post Year end
In the first three months of the year, Cyan received orders for 2009 delivery
with a cumulative value in excess of $1.0 million. The orders, which came from
significant customers in China, were for a range of Cyan products across
automated meter modules and streetlamp controllers, in addition to a Hong Kong
order for microcontrollers in a USB Printer application destined for an end user
OEM. Meanwhile in Europe, orders were for microcontrollers within a jointly
designed gateway for automated metering networks.
Kenn Lamb, CEO of Cyan, commented:
"During 2008 we successfully developed a strong range of products and some key
distribution partners. I am delighted to be able to tell shareholders that
despite the prevailing economic conditions we are now seeing sales coming
through from significant customers who are embracing the benefits of our product
range.
We have a very efficient cost base. The four new sales orders clearly
demonstrate that our products are highly competitive both technically and in
terms of price. The size of the markets our customers address combined with the
margins that we can achieve mean that relatively few such customers are required
to take the company to cash flow break even and profitability. Given the number
of companies already actively engaged in serious evaluation of Cyan products,
the prospects for the second half of 2009 and beyond are exciting."
For further information, please contact:
+-------------------------------------+---------------------------------------+
| Cyan Holdings plc | |
+-------------------------------------+---------------------------------------+
| Kenn Lamb, CEO | Tel: +44 (0) 1954 234 400 |
+-------------------------------------+---------------------------------------+
| | |
+-------------------------------------+---------------------------------------+
| | www.cyantechnology.com |
+-------------------------------------+---------------------------------------+
+-------------------------------------+---------------------------------------+
| Cenkos Securities plc | |
+-------------------------------------+---------------------------------------+
| Stephen Keys / Adrian Hargrave | Tel: +44 (0) 20 7397 8900 |
| | |
+-------------------------------------+---------------------------------------+
| | www.cenkos.com |
+-------------------------------------+---------------------------------------+
Media enquiries:
+-------------------------------------+---------------------------------------+
| Hansard Group | |
+-------------------------------------+---------------------------------------+
| John Bick / Adam Reynolds | Tel: +44 (0) 20 7245 1100 |
+-------------------------------------+---------------------------------------+
| | www.hansardgroup.co.uk |
+-------------------------------------+---------------------------------------+
Chairman's Statement
2008 was another challenging year for Cyan as the management team continued to
reposition the Group. This has successfully led to several customer engagements
moving to pilot production and now in 2009 we have seen the first substantial
orders.
In last year's statement I reported that under Kenn's leadership as CEO the
Group was addressing the twin issues of competing at component level with the
major semiconductor manufacturers and of producing product which was technically
excellent but could not be manufactured at a cost that customers were willing to
pay.
At the outset of the year we were developing a cost-reduced microcontroller
which we felt would be the key to profitable sales penetration in China. This
development was successfully completed in mid-2008. The specification and
performance of the new microcontroller is extremely competitive both technically
and on cost with similarly targeted designs from the major semiconductor
manufacturers.
We also began development of a range of module solutions that demonstrate the
use of Cyan microcontrollers for several specific application areas. These are
to provide ready-made solutions to customers to facilitate rapid prototyping for
their product development programs. The initial take-up of these through our
agreements with catalogue suppliers Farnell and RS in the UK and Mouser in the
US plus our direct sales gave us further insight into some key developing market
segments. This, together with specific customer discussions led us to
improve our range of RF enabled modules together with robust, proprietary
mesh-networking software that has resulted not only directly in the new orders
announced in March but also to a number of other exciting potential engagements.
We have been presented with the opportunity to supply not just low-cost
microcontrollers but modules and larger parts of our customer's systems
requirements together with our mesh-networking software at substantially higher
selling prices than microcontrollers alone. While this approach will still lead
eventually to the higher volumes of chip sales that were the original aim of the
module strategy they should also ease the path to earlier significant revenues
than would otherwise have been the case.
The results of these actions only began to materialize towards the end of the
year and we closed 2008 with a turnover of GBP145,627 (2007:GBP32,596). The loss
for the year was lower at GBP3,999,326 (2007:GBP4,287,626).
We believe that the group has reacted well to the challenges and is now in a
position to grow revenues strongly in 2009.
Board Changes
In the early part of the year David Gutteridge joined the board as a
non-executive with financial background. He also chairs the Audit committee.
David's experience and advice are invaluable and have been particularly so
during the difficult second half of 2008 and early 2009.
Andrew Lee, CFO, was taken ill in late August and terminated his employment in
February. We thank Andy for his contributions since the founding of the Company
and wish him well and to restored health for the future. The position of Finance
Director was terminated and the company hired Heather Peacock as full-time
financial controller.
Placing of New Shares
The company sought and secured a further round of finance in August 2008 with
the support of several major existing shareholders and some new ones and I would
like to take this opportunity to thank them for their support..
We believe that the Company will continue to benefit from the changes that were
put in place during 2008 and indeed we are already seeing orders coming through
as a result of those actions and the continued hard work by everyone at the
Company.
Dr John Read
Chairman
22 April 2009
Chief Executive's Review
Twelve months ago the Cyan team were deeply engaged in executing the new
strategic business plan. Organisational changes had been completed, investment
in enhancements and extensions to the technology were under way, the first
module products had been defined and marketed under the Cy-Solved brand and
significant manufacturing cost reductions had been realised by a new operations
team.
Today Cyan has taken the first steps to becoming a major supplier to the global
Automated/Smart metering market, the global street lamp control market and to
become a leading supplier of gateways (access points) to a wide range of
industrial wireless networks.
Cyan has secured valuable partnerships with Micrel Inc and Future Electronics
Inc providing a global network of sales and support and for the first time
offering Cyan access to worldwide markets through major established players.
Cyan has secured working relationships with established suppliers of meters,
street lamps and wireless networking standards and is actively engaged in
multiple field trials and joint development of customised products.
Cyan has realised a number of key features in our new products that offer prices
and functionality that customers demand and require. These features include the
low power and cost saving capability of our microcontrollers, the system
development capacity of our software tools and the application knowledge of our
engineering teams. Cyan has targeted markets that, even in the current economic
climate, are receiving new investment and benefit from government incentives as
they contribute to reducing energy consumption.
Cyan is inevitably affected by the global slowdown. The first half of 2008 saw
the release of a generation of products that could be rapidly developed and
launched onto the market. These products addressed a broad range of applications
so as to maximise the prospects of early sales. The initial market reaction was
positive but as the slowdown progressed these failed to achieve initial sales
expectations but instead guided us to the metering, street lamp and industrial
control markets. The company then developed proprietary, application specific
software, targeted directly at these markets, including features that customers
had specifically requested. This second generation of products, (only recently
fully released), is rapidly gaining traction, but the delay in realising sales
necessitated a substantial reduction in the cost base of the business, a
reduction that has now been fully implemented.
Looking Forward
Cyan now has the products, partners, customers and prospective customers that
have more than sufficient capacity to drive growth and profitability for the
business. Proprietary application software ensures that good margins can be
consistently realised, our targeted markets demonstrably support annual sales
volumes in tens of millions and our partnerships support a roadmap of product
and technology enhancements that ensures that Cyan can grow market share.
The Cyan team have worked diligently and have developed valuable intellectual
property further enhancing our technology leadership, a process that has
accelerated, as we understand more of the requirements of our target markets.
Once again I wish to acknowledge and thank Cyan employees for their enthusiasm
and dedication.
In developing new products Cyan has delivered all that we set out to achieve.
Customer's reaction to the price, specification and ease of use confirms this
view. Cyan would not have secured its partnerships if we had not developed
attractive and competitive products and together with these partners we now have
our first customer orders, across a range of products, each targeted at a fast
growing global market.
The rate at which customers can fund the purchase and deployment of our products
now determines how soon Cyan will achieve profitability, however we must
recognise that in the current economic climate not even our customers can
predict timing with any certainty. I am nonetheless enormously encouraged by the
announcement on 31st March of four new customers spread across our range of new
products. These four clearly demonstrate the potential that relatively few such
customers are all that is required to take the company into profitability. When
compared with the number of prospective companies where Cyan is currently
actively engaged in product evaluation the prospects for the remainder of 2009
and beyond are exciting.
Kenn Lamb
Chief Executive Officer
22 April 2009
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2008
+----------------------------------+-------+---------------+-------------+----------------+
| | | | 2008 | 2007 |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | GBP | GBP |
+----------------------------------+-------+---------------+-------------+----------------+
| Continuing Operations | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Revenue | | | 145,627 | 32,596 |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Cost of sales | | | (86,321) | (26,934) |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Gross profit | | | 59,306 | 5,662 |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Administrative expenses | | | (2,485,486) | (2,264,076) |
| Research and development costs | | | (1,953,937) | (1,486,619) |
+----------------------------------+-------+---------------+-------------+----------------+
| Restructuring costs | | | (177,800) | (1,047,267) |
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Operating loss | | | (4,557,917) | (4,792,300) |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Investment revenues | | | 92,885 | 144,795 |
+----------------------------------+-------+---------------+-------------+----------------+
| Finance costs | | | (1) | (121) |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Loss before tax | | | (4,465,033) | (4,647,626) |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Tax | | | 465,707 | 360,000 |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Loss for the period attributable | | | (3,999,326) | (4,287,626) |
| to equity holders of the parent | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Loss per share (pence) | | | | |
+----------------------------------+-------+---------------+-------------+----------------+
| Basic | | | (1.7) | (4.0) |
+----------------------------------+-------+---------------+-------------+----------------+
| Diluted | | | (1.7) | (4.0) |
+----------------------------------+-------+---------------+-------------+----------------+
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31 December 2008
+--------------------------------------------+--+----------+--------------+--------------+
| | | | 2008 | 2007 |
+--------------------------------------------+--+----------+--------------+--------------+
| | | | GBP | GBP |
+--------------------------------------------+--+----------+--------------+--------------+
| Exchange differences on translation of | | | (373,948) | 31,876 |
| foreign operations | | | | |
+--------------------------------------------+--+----------+--------------+--------------+
| | | | | |
+--------------------------------------------+--+----------+--------------+--------------+
| Net income recognised directly in equity | | | (373,948) | 31,876 |
+--------------------------------------------+--+----------+--------------+--------------+
| | | | | |
+--------------------------------------------+--+----------+--------------+--------------+
| Loss for the period | | | (3,999,326) | (4,287,626) |
+--------------------------------------------+--+----------+--------------+--------------+
| Total recognised income and expense for | | | (4,373,274) | (4,255,750) |
| the period attributable to equity holders | | | | |
| of the parent | | | | |
+--------------------------------------------+--+----------+--------------+--------------+
| | | | | |
+--------------------------------------------+--+----------+--------------+--------------+
CONSOLIDATED BALANCE SHEET
At 31 December 2008
+--------------------------------------+--------+----------+--------------+--------------+
| | | | 2008 | 2007 |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | GBP | GBP |
+--------------------------------------+--------+----------+--------------+--------------+
| Non-current assets | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Intangible assets | | | - | 28,792 |
+--------------------------------------+--------+----------+--------------+--------------+
| Property, plant and equipment | | | 99,769 | 96,680 |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | 99,769 | 125,472 |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Current assets | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Inventories | | | 847,351 | 180,240 |
+--------------------------------------+--------+----------+--------------+--------------+
| Trade and other receivables | | | 617,636 | 503,225 |
+--------------------------------------+--------+----------+--------------+--------------+
| Cash and cash equivalents | | | 1,356,886 | 4,079,534 |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | 2,821,873 | 4,762,999 |
+--------------------------------------+--------+----------+--------------+--------------+
| Total assets | | | 2,921,642 | 4,888,471 |
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Current liabilities | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Trade and other payables | | | 274,695 | 704,223 |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | 274,695 | 704,223 |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Total liabilities | | | 274,695 | 704,223 |
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Net assets | | | 2,646,947 | 4,184,248 |
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| EQUITY | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| Share capital | | | 954,259 | 279,252 |
+--------------------------------------+--------+----------+--------------+--------------+
| Share premium account | | | 16,391,994 | 13,600,291 |
+--------------------------------------+--------+----------+--------------+--------------+
| Own shares held | | | (690,191) | |
+--------------------------------------+--------+----------+--------------+--------------+
| Share option reserve | | | 268,852 | 209,398 |
+--------------------------------------+--------+----------+--------------+--------------+
| Translation reserve | | | (373,948) | - |
+--------------------------------------+--------+----------+--------------+--------------+
| Retained earnings | | | (13,904,019) | (9,904,693) |
+--------------------------------------+--------+----------+--------------+--------------+
| Total equity being equity | | | 2,646,947 | 4,184,248 |
| attributable to equity holders of | | | | |
| the parent | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
| | | | | |
+--------------------------------------+--------+----------+--------------+--------------+
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2008
+----------------------------------+------+--------------+---------------+---------------+
| | | | 2008 | 2007 |
+----------------------------------+------+--------------+---------------+---------------+
| | | | GBP | GBP |
+----------------------------------+------+--------------+---------------+---------------+
| Net cash from operating | | | (5,609,327) | (3,927,362) |
| activities | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Investing activities | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Interest received | | | 92,885 | 144,795 |
+----------------------------------+------+--------------+---------------+---------------+
| Purchases of property, plant and | | | (30,008) | (73,426) |
| equipment | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Net cash used in investing | | | 62,877 | 71,369 |
| activities | | | | |
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Financing activities | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Interest paid | | | (1) | (121) |
+----------------------------------+------+--------------+---------------+---------------+
| Proceeds on issue of shares | | | 2,776,519 | 5,081,843 |
+----------------------------------+------+--------------+---------------+---------------+
| Net cash from financing | | | 2,776,518 | 5,081,722 |
| activities | | | | |
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Net increase/(decrease) in cash | | | (2,769,932) | 1,225,729 |
| and cash equivalents | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Cash and cash equivalents at | | | 4,079,534 | 2,820,801 |
| beginning of year | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Effect of foreign exchange rate | | | 47,284 | 33,004 |
| changes | | | | |
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| | | | | |
+----------------------------------+------+--------------+---------------+---------------+
| Cash and cash equivalents at end | | | 1,356,886 | 4,079,534 |
| of year | | | | |
+----------------------------------+------+--------------+---------------+---------------+
NOTES TO THE FINANCIAL INFORMATION
For the year ended 31 December 2008
1. Basis of Preparation
The financial information set out in this announcement has been based on the
Company's financial statements which are prepared in accordance with
International Financial Reporting Standards as adopted for use in the EU. The
Company's specific IFRS accounting policies are available in the 2007 Annual
Report. The financial information does not constitute statutory financial
statements within the meaning of section 240 of the Companies Act 1985.
The results for the year ended 31 December 2007 have been extracted from the
statutory financial statements of Cyan Holdings plc. Statutory financial
statements for the year ended 31 December 2007 are available on the Company's
website and have been filed with the Registrar of Companies. The Company's
auditors issued a report on those financial statements that was unqualified and
did not contain a statement under section 237(2) or section 237(3) of the
Companies Act 1985; however the auditor's report was modified to emphasise the
uncertainty around the Company's ability to continue as a going concern.
The statutory accounts for the year ended 31 December 2008 have been finalized
on the basis of the financial information presented by the directors in this
announcement and will be delivered to the Registrar of Companies shortly. The
audit report for the year ended 31 December 2008 was unqualified and did not
contain a statement under section 237(2) or section 237(3) of the Companies Act
1985; however the auditor's report has been modified to reflect uncertainty
around the Company's ability to continue as a going concern. Note 6 to this
announcement contains further information about this uncertainty.
2. Restructuring costs
During the latter half of 2007 the group undertook a radical restructuring of
its senior management and product portfolio. Costs of GBP177,800 relating to
that restructuring only came through in early 2008. In addition the Group
implemented a cost cutting exercise which resulted in a number of redundancies
at the end of 2008, the costs of which are included in the relevant functional
areas on the income statement. Total restructuring costs in 2008 were as
follows:
Restructuring
+--------------------------------------------+--------------+--------------+
| | 2008 | 2007 |
+--------------------------------------------+--------------+--------------+
| | GBP | GBP |
+--------------------------------------------+--------------+--------------+
| Impairment loss recognised in respect of | - | 147,090 |
| assets | | |
+--------------------------------------------+--------------+--------------+
| Compensation for loss of office | - | 350,619 |
+--------------------------------------------+--------------+--------------+
| Cost of senior management time in respect | - | 104,000 |
| of restructuring | | |
+--------------------------------------------+--------------+--------------+
| Costs to commercialise product range | 177,800 | 287,778 |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| | 177,800 | 889,487 |
+--------------------------------------------+--------------+--------------+
Non recurring costs
+--------------------------------------------+--------------+--------------+
| Write off of a bad debt | - | 157,780 |
+--------------------------------------------+--------------+--------------+
| | 177,800 | 1,047,267 |
+--------------------------------------------+--------------+--------------+
3. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
+--------------------------------------------+--------------+--------------+
| Earnings | | |
+--------------------------------------------+--------------+--------------+
| | 2008 | 2007 |
+--------------------------------------------+--------------+--------------+
| | GBP | GBP |
+--------------------------------------------+--------------+--------------+
| Earnings for the purposes of basic | | |
| earnings per share being net loss | | |
| attributable to equity holders of the | | |
| parent | | |
+--------------------------------------------+--------------+--------------+
| | 3,999,326 | 4,287,626 |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Number of shares | | |
+--------------------------------------------+--------------+--------------+
| | 2008 | 2007 |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Weighted average number of ordinary shares | | |
| for the purposes of basic and diluted | | |
| earnings per share | | |
+--------------------------------------------+--------------+--------------+
| | 239,626,314 | 107,962,482 |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
4. Share capital
+--------------------------------------------+--------------+--------------+
| | 2008 | 2007 |
+--------------------------------------------+--------------+--------------+
| | number | number |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Authorised: | | |
+--------------------------------------------+--------------+--------------+
| Ordinary shares of 0.2 pence each | 600,000,000 | 200,000,000 |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| | 2008 | 2007 |
+--------------------------------------------+--------------+--------------+
| | GBP | GBP |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Issued and fully paid: | | |
+--------------------------------------------+--------------+--------------+
| 477,129,314 (2007: 139,626,314) ordinary | 954,259 | 279,252 |
| shares of 0.2 pence each | | |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
On 3 September 2008 the Company completed a placing as a result of which
300,000,000 ordinary shares of 0.2 pence each were issued at a price of 1 pence
per share to raise GBP2,774,681 after expenses. The funds were raised to develop
and execute on the group's new strategy. No shares (2007: 1,291,500) were
issued as a result of the exercise of share options.
On 9 April 2008, 3 directors of the Company were awarded interests in 10,200,000
shares under the Cyan Joint Ownership Scheme.
On 18 December 2008, 2 directors and 6 senior staff of the Company were awarded
interests in 27,303,000 shares under the Cyan Joint Ownership Scheme.
The Company has one class of ordinary shares which carry no right to fixed
income.
In August 2008, 25,000,000 warrants were issued to Cenkos, the Company's broker,
the exercise price of which is GBP0.01 per share.
At 5pm on 31 December 2008 the 43,595 outstanding C warrants to buy shares at 20
pence per share lapsed.
5. Notes to the consolidated cash flow statement
+--------------------------------------------+--------------+--------------+
| | 2008 | 2007 |
+--------------------------------------------+--------------+--------------+
| | GBP | GBP |
+--------------------------------------------+--------------+--------------+
| Operating loss for the year | (4,557,917) | (4,792,300) |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Adjustments for: | | |
+--------------------------------------------+--------------+--------------+
| Depreciation of property, plant and | 67,100 | 54,282 |
| equipment | | |
+--------------------------------------------+--------------+--------------+
| Amortisation of intangible assets | 28,793 | 28,794 |
+--------------------------------------------+--------------+--------------+
| Share-based payment expense | 59,454 | 21,903 |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Operating cash flows before movements in | (4,402,570) | (4,687,321) |
| working capital | | |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Increase in inventories | (667,111) | (73,318) |
+--------------------------------------------+--------------+--------------+
| Decrease/(increase) in receivables | (114,411) | 17,716 |
+--------------------------------------------+--------------+--------------+
| Increase/(decrease) in payables | (429,528) | 454,561 |
| | | |
+--------------------------------------------+--------------+--------------+
| Cash reduced by operations | (5,613,620) | (4,287,362) |
+--------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------+--------------+--------------+
| Income taxes paid | 4,293 | 360,000 |
+--------------------------------------------+--------------+--------------+
| Interest paid | - | - |
| | | |
+--------------------------------------------+--------------+--------------+
| NET CASH FROM OPERATING ACTIVITIES | (5,609,327) | (3,927,362) |
+--------------------------------------------+--------------+--------------+
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.
6. Going Concern
The directors have prepared a business plan and cash flow forecast for the
period to 30 April 2010. The forecast contains certain assumptions about the
level of future sales and the level of gross margins and also identified the
imminent need for additional finance to fund working capital. On this basis, the
directors have assumed that the Company is a going concern. These assumptions
are the directors' best estimate of the future development of the business.
The directors acknowledge that the Group is trading in a difficult economic
environment and in markets that are new to the Group. This may impact both the
Group's ability to generate positive cashflow and to raise new finance. There is
a risk that the level of sales achieved is materially lower than the level
forecast. The directors have taken steps to satisfy themselves about the
robustness of sales forecasts. In addition, the directors have been in
communication with a number of potential investors, including current
shareholders, who have expressed interest in providing the necessary funding.
There does remain a significant risk that the required level of funding will not
be received in the necessary timescale.
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 Group was unable to continue as
a going concern. In the event the Group ceased to be a going concern, the
adjustments would include writing down the carrying value of assets to their
recoverable amount and providing for any further liabilities that might arise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ITMRTMMMTBJL
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Jul 2023 to Jul 2024
