TIDMCYAN
RNS Number : 4507A
Cyan Holdings Plc
29 September 2015
Cyan Holdings plc
("Cyan" or "the Company")
Interim results for the six months ended 30 June 2015
Cyan Holdings plc (AIM:CYAN.L), the integrated system and
software design company delivering mesh based flexible wireless
solutions for utility metering and lighting control, announces its
interim results for the six months ended 30 June 2015.
Financial Highlights
-- Turnover of GBP157,328 (H1 2014: GBP65,510)
-- Operating loss of GBP2,289,523 (H1 2014: GBP1,273,333)
-- Basic and diluted loss per share of 0.05p (H1 2014: 0.03p)
-- Cash and cash equivalents at 30 June 2015 of GBP628,069 (H1 2014: GBP716,786)
Operational Highlights
-- GBP1m smart metering order from Enzen Global Solutions
-- Letter of Intent from El Sewedy for prospective US$3m order
-- Successfully deployed over 4,000 smart meters for Tata Power Mumbai
-- Strategic agreements in South Africa with Adenco and XLink
-- Sales and marketing, software and customer delivery teams strengthened
-- Increased investment in research and development of Cyan solutions
-- Indian subsidiary established and commenced trading
Post Period Highlights
-- GBP4.6m (gross) raised via two equity placings to fund
staffing costs for the delivery of customer projects won in India,
development and delivery of managed services solutions, business
development, customer pilot/project deployments in other regions
and further product research and development work
-- This round of funding was substantially supported by
institutional investors, adding Herald Investment Management to the
shareholder base as well as a further investment from Legal &
General
John Cronin, Executive Chairman, commented:
"Having won the GBP1m smart metering contract with Enzen in
January, announced the successful deployment of Cyan's solution for
Tata Power Mumbai in April, the $3M Letter of Intent from El Sewedy
in May and the new funding of GBP4.6m in June, it has been six
months of strong progress for Cyan.
The Company remains well placed to add new customers across
India, Brazil, Africa and China and to develop existing commercial
relationships with utilities through to large scale commercial
rollout. The Company has a pipeline of potential orders for the
remainder of this year and going into 2016 across multiple regions
and I look forward to reporting further progress to shareholders in
due course."
Enquiries:
Cyan Holdings plc Tel: +44 (0) 1954
John Cronin, Executive Chairman 234 400
www.cyantechnology.com
Allenby Capital Limited Tel: +44 (0)20 3328
Nominated Adviser and Joint 5656
Broker
Jeremy Porter / Alex Brearley
Beaufort Securities Limited Tel: +44 (0)20 7382
Joint Broker 8300
Jon Belliss
Walbrook PR Tel: +44 (0)20 7933
Financial PR 8780
Paul Cornelius / Nick Rome cyan@walbrookpr.com
CHAIRMAN'S STATEMENT
This was a busy period for the Company as we focused on
strengthening our geographic reach, balance sheet and marketing
initiatives whilst further commercialising our smart metering
solutions. As such, we believe that we are well placed to further
grow existing relationships and to expand our pipeline of
opportunities via our strong ecosystem of partners.
Commercial Deployments
A key milestone for the Company during the period was the
successful deployment of over 4,000 meters with Tata Power Mumbai
("Tata Power"), which the Directors believe is the first 865MHz
Advanced Metering Infrastructure ("AMI") commercial project in
India. The meters that Tata Power has installed are already
providing data to generate customer bills, real-time information on
electricity outages and other factors related to the quality and
cost of power delivery. In July, Tata Power announced the
successful deployment of this project and this is a strong
endorsement of the quality of the Cyan solution as well as the
commercial benefits achieved to date.
In addition to the commercial deployment with Tata Power, the
Company received a GBP1m purchase order from Enzen Global Solutions
Pvt Ltd ("Enzen") for a large smart metering project being
implemented for the Chamundeshwari Electricity Supply Corporation,
Mysore, Karnataka in southwest India. In addition to supplying over
21,000 smart meters, Cyan is managing the end to end solution
delivery for smart metering, highlighting the strength and
potential scalability of the Company's offering. The Directors
believe that this is the first commercial implementation of AMI
technology by a public utility for consumers in India. The project
is now in the delivery phase (first 500 meters installed in
customer homes and in the process of being commissioned), with both
procurement and invoicing taking place through Cyan's recently
established Indian subsidiary.
Eco-system of Partners
We further extended our geographic reach during the period and
were delighted to be selected by Adenco Construction (Pty) Ltd
("Adenco") as its preferred supplier of smart metering and lighting
solutions as well as related Internet of Things ("IoT")
applications across South Africa. Given the scope and scale of
expected grid modernization in South Africa, we believe this
partnership will help to further boost our presence in this
exciting region.
This relationship builds on the 100 unit proof of concept
project and distribution agreement with XLink Communications (Pty)
Ltd, announced in March, for the distribution of our metering and
lighting solutions and related IoT applications in South
Africa.
The Company also received a Letter of Intent ("LOI") from El
Sewedy Electrometer Group EMG ("El Sewedy") for a prospective US$3
million order to be delivered in Ghana, Western Africa. The LOI
outlines plans for Cyan to provide a full AMI solution for up to
200,000 consumers. We are obviously excited by the potential scale
of this opportunity and to be working with El Sewedy which has a
solid presence in a number of growing geographies and will act as a
channel to market for Cyan in these regions.
Strengthened Team
We were delighted to welcome Vikas Kashyap as Vice President
Asia in January 2015. His focus is on business development across
Asia and managing the Company's strategic relationships in this key
region. His experience and contact base in the region will help us
to further develop our pipeline of opportunities and continue to
grow our ecosystem of partners. Given the number of opportunities,
his near term focus is on converting prospects in India into
commercial orders.
In order to build on the strong momentum achieved in India we
set up a local subsidiary, Cyan Technology India Private Limited,
during the period and have since been building out the customer
delivery team employed by this company. Recruitment in India has
continued post the period end as we continue to grow our sales and
delivery teams on the ground to allow the Company to pursue and
deliver the numerous smart grid opportunities around the
country.
Martin Collar joined Cyan as VP Operations & Development in
August to oversee operations and development and specifically meet
the increasing demands in order fulfilment around the smart energy,
emerging smart city and IoT markets. Martin has significant
experience in managing complex development programs across a wide
range of industries including energy, mobile devices and
telecoms.
Financial Review
For the six months ended 30 June 2015 turnover was GBP157,328
(H1 2014: GBP65,510). Operating loss for the period was
GBP2,289,523 (H1 2014 GBP1,273,333) and net loss after tax
increased to GBP2,019,773 (H1 2014: GBP1,131,589). The increased
operating loss was as a result of our strategic investment in
building out the Cyan team, in order to capture the significant
global opportunity for our solutions, as well as additional
investment in research and development (which was GBP1,455,377 in
the period, H1 2014: GBP833,218) to accelerate the product
development required to deliver on customer orders and extend
Cyan's competitive advantage in the marketplace. Cash as at 30 June
2015 was GBP628,069 (H1 2014: GBP716,786).
During June 2015, Cyan announced it had raised a total of
GBP4,590,000, before expenses, from two equity placings issuing a
total of 2,305,000,000 ordinary shares at a price of 0.2 pence per
share. Given the growing levels of commercialisation, the new
monies will be used to fund staffing costs for the delivery of
customer projects won in India, development and delivery of managed
services solutions, business development, customer deployments and
further product development work. This round of funding was
substantially supported by institutional investors and we welcome
Herald Investment Management to our shareholder base as well as a
further investment from Legal & General.
I would like to take this opportunity to welcome the new
shareholders and thank our existing shareholders for their
continued support.
Outlook
The Company remains well placed to add new utility customers
across India, Brazil, Africa and China and to develop existing
commercial relationships with utilities through to large-scale
commercial rollout of our smart metering solutions.
Myself, the other Board members and the strengthened Cyan
management team firmly believe that Cyan is now in a stronger
position than my last report to shareholders after having
successfully demonstrated the value of our solution at Tata Power,
won the new GBP1M order from Enzen and continued our expansion into
new markets. We also firmly believe this strong position will
deliver considerable value for our shareholders.
John Cronin
Executive Chairman
29 September 2015
Consolidated Income Statement
(MORE TO FOLLOW) Dow Jones Newswires
September 29, 2015 02:00 ET (06:00 GMT)
Six months ended 30 June 2015
Unaudited
six Unaudited
months six months
ended ended Year ended
30 June 30 June 31 December
2015 2014 2014
Notes GBP GBP GBP
Continuing operations
Revenue 157,328 65,510 193,550
Cost of sales (93,126) (30,170) (123,099)
Gross profit 64,202 35,340 70,451
Operating costs (2,353,726) (1,308,673) (3,330,514)
Operating loss (2,289,523) (1,273,333) (3,260,063)
Investment
revenue 2,485 1,856 5,157
Finance costs (657) (112) (391)
------------------------ --- ------ ------------ ------------ -------------
Loss before tax (2,287,695) (1,271,589) (3,255,297)
Tax 267,922 140,000 401,334
Loss for the period (2,019,773) (1,131,589) (2,853,963)
Loss per share
(pence)
Basic 3 (0.05) (0.03) (0.01)
Diluted 3 (0.05) (0.03) (0.01)
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2015
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
2015 2014 2014
GBP GBP GBP
Loss for period (2,019,773) (1,131,589) (2,853,963)
Exchange differences on
translation of foreign
operations (3,316) - -
------------------------------ ------------ ------------ -------------
Total comprehensive income
for the period (2,023,089) (1,131,589) (2,853,963)
------------------------------ ------------ ------------ -------------
Consolidated Balance Sheet
At 30 June 2015
Unaudited Unaudited
30 June 30 June 31 December
2015 2014 2014
GBP GBP GBP
Non-current
assets
Leasehold Improvements 7,669 - -
Property, plant and
equipment 29,694 11,901 23,726
37,363 11,901 23,726
--- --- ----------------------------- ------------- ------------------------ --------------------
Current Assets
Inventories 528,298 593,967 574,530
Trade and other receivables 466,103 210,181 574,248
Cash and cash equivalents 628,069 716,786 2,344,344
--------------------------------------- ------------- ------------------------ --------------------
1,622,470 1,520,934 3,493,122
--- --- ----------------------------- ------------- ------------------------ --------------------
Total assets 1,659,833 1,532,835 3,516,848
---------------------------------- --- ------------- ------------------------ --------------------
Current liabilities
Trade and
other payables (649,675) (318,630) (508,290)
---------------------------------- --- ------------- ------------------------ --------------------
Total liabilities (649,675) (318,630) (508,290)
---------------------------------- --- ------------- ------------------------ --------------------
Net current
assets 972,795 1,202,304 2,984,832
---------------------------------- --- ------------- ------------------------ --------------------
Net assets 1,010,158 1,214,205 3,008,558
---------------------------------- --- ------------- ------------------------ --------------------
Equity
Share capital 447,662 345,126 446,493
Share premium account 33,935,138 30,642,130 33,911,618
Own shares
held (808,856) (808,856) (808,856)
Share option
reserve 522,562 376,690 522,562
Translation
reserve (153,058) (149,742) (149,742)
Retained loss (32,933,290) (29,191,143) (30,913,517)
--------------------------------------- ------------- ------------------------ --------------------
Total equity being
attributable to
owners of the Company 1,010,158 1,214,205 3,008,558
----------------------------------- ------------- ------------------------ --------------------
Consolidated Statement of Changes in Equity
At 30 June 2015
Own Share
Share Share shares Option Translation Retained Total
Capital Premium held Reserve Reserve Losses Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at
30 June 2014 345,126 30,642,130 (808,856) 376,690 (149,742) (29,191,143) 1,214,205
--------------- ------------------------------------------- -------------------------- ------------- ---------------- ------------- ------------
Loss for
the period - - - - - (1,722,374) (1,722,374)
Other
comprehensive
income for
the period - - - - - - -
--------------- ------------------------------------------- -------------------------- ------------- ---------------- ------------- ------------
Total
comprehensive
income for
the period - - - - - (1,722,374) (1,722,374)
Issue of
share capital 101,367 3,269,488 - - - - 3,370,855
Debit to
equity for
share options - - - 145,872 - - 145,872
--------------- ------------------------------------------- -------------------------- ------------- ---------------- ------------- ------------
Balance at
31 December
2014 446,493 33,911,618 (808,856) 522,562 (149,742) (30,913,517) 3,008,558
--------------- ------------------------------------------- -------------------------- ------------- ---------------- ------------- ------------
Loss for
the period - - - - - (2,019,773) (2,019,773)
Other
comprehensive
income for
the period - - - - (3,316) - (3,316)
--------------- ------------------------------------------- -------------------------- ------------- ---------------- ------------- ------------
Total
comprehensive
income for
the period (3,316) (2,019,773) (2,023,089)
Issue of
share capital 1,169 23,520 - - - - 24,689
Balance at
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