TIDMCYAN
RNS Number : 9281M
Cyan Holdings Plc
26 January 2016
Cyan Holdings plc
("Cyan" or the "Company")
Trading Update
Cyan (AIM:CYAN.L), the integrated system and software design
company delivering mesh based flexible wireless solutions for
utility metering and lighting control, announces a trading update
for the 12 months ended 31 December 2015 as well as the outlook for
2016.
The Company built on the momentum achieved during 2014
strengthening relationships with existing partners via repeat
orders and establishing new commercial partners across its target
markets.
India
At present, India has 200 million legacy meters deployed and it
is estimated 130 million smart meters will be installed by 2021(1)
. In November 2015(2) , the Indian Ministry of Power announced a
program to implement smart metering for all consumers serviced by
state distribution companies with completion deadlines ranging from
December 2017, for high power usage households, through to December
2019 for the remainder. In mid January 2016(3) , the India Union
Cabinet approved amendments to the power tariff policy that aims to
tighten regulations for setting rates and promote clean energy,
with the policy statement including that "it shall be compulsory
for consumers to use smart meters with consumption over 500 units
per month by December 2017 and with consumption over 200 units per
month by December 2019".
During the period, the Company continued to make strong inroads
into the smart metering market in India and received two contracts
worth in aggregate approximately GBP1.5m from Enzen Global
Solutions Pvt Ltd ("Enzen"). These contracts are to be implemented
on behalf of Chamundeshwari Electricity Supply Corporation Limited
("CESC") and Paschimanchal Vidyut Vitran Nigam Limited ("PVVNL")
respectively. The first 450 CyLec enabled meters for CESC have now
been installed at consumer homes and successfully integrated onto
the Cyan AMI mesh network. Roll-out of the remaining smart meters
is now expected to continue through the first half of 2016.
The Company also successfully deployed the Cyan communications
solution for 5,000 smart meters for Tata Power Mumbai ("Tata")
during the period. Tata is a Tata Group company and part of India's
largest integrated power company with a significant international
presence and over 600,000 retail customers in Mumbai alone.
Importantly, this initial deployment was followed in January 2016
with repeat orders for 5,000 meters for deployment by Tata Power.
Discussions are currently underway regarding a larger Framework
Order.
Rest of World
China's Ministry of Industry and Information Technology released
its 12th Five-Year Development Plan in 2012, with the goal of
scaling the IoT market to $163 billion by 2020(4) . As such the
Company took its first steps into the Chinese smart metering market
in December 2015, via a partnership agreement with Newcapec
Electronics Company Limited.
During the period, Cyan announced that it had received a Letter
of Intent ("LOI") from El Sewedy Electrometer Group EMG ("El
Sewedy") to supply Cyan's CyLec(R) Advanced Metering Infrastructure
("AMI") solution for a smart meter contract, which El Sewedy has
been awarded in Ghana, Western Africa. The LOI states that, subject
to contract, El Sewedy intends to appoint Cyan to provide a full
AMI solution for up to 200,000 consumers in batches over three
years. The utility has now notified El Sewedy that it will commence
a pilot project using Cyan's technology once its existing GPRS sim
card based smart metering solution trial has been completed. As
stated in the announcement in May 2015, the LOI is a non-binding
agreement which provides no guarantee of the terms or timing of any
such order, with final terms to be contained within a contract
which is yet to be negotiated.
Notwithstanding the above, Cyan has recently received an order
for a 120 smart meter pilot project from El Sewedy for another
project with the same Ghana utility where the potential opportunity
size is 40,000 meters and this order is now in the process of being
delivered.
Outlook
The Company enters 2016 with significant contracted revenue
backlog when compared with previous periods. The majority of both
the GBP1 million CESC and the GBP0.5 million PVVNL contracts will
be booked as revenue in 2016, with a significant element in H1
2016. The Tata Power repeat order will be shipped in Q1 2016.
Together, the conversion of these existing contracts into revenue
provides management with confidence that revenue in 2016 will be
significantly higher than that reported in previous years. This
increase excludes the incremental revenue the Company expects to
receive from identified projects and any additional contract wins
in 2016.
Across the Company's target markets, there is significant scope
for scalability and the contracts generated to date demonstrate the
attraction of Cyan's products and provide strong foundations for
Cyan's future growth. Given the combination of services, software
and hardware provided by the Company, the Directors believe that
revenue visibility will improve throughout the year as more meters
are deployed.
John Cronin, Executive Chairman of Cyan, commented: "This was a
busy period for the Company as we further enhanced our position
across our key regions. We are very much focused on converting
orders into revenues, which in turn can lead to multiple orders and
repeat orders from key partners. Additionally, as our model
evolves, the Company is benefiting from growing recurring revenues,
enhancing forward visibility.
"Having further strengthened our foundations for growth during
2015 there is huge opportunity for further scalability throughout
India, China, Brazil and sub-Saharan Africa. As such, we expect
trading during 2016 to reflect our growing ability to win and
service new orders."
(1) Source:
http://asian-power.com/sites/default/files/asianpower/print/APMay_2013_lr_12.pdf
(2) Source:
http://powermin.nic.in/upload/pdf/Uday_Ujjawal_Scheme_for_Operational_and_financial_Turnaround_of_power_distribution_companies.pdf
(3) Source:
http://smartinvestor.business-standard.com/market/story-361348-storydet-New_power_tariff_policy_supports_low_rates_smart_tech.htm#.VqIMH4WLT3Q
(4) Source:
http://www.gsma.com/newsroom/wp-content/uploads/16531-China-IoT-Report-LR.pdf
Enquiries:
Cyan Holdings plc Tel: +44 (0) 1954
234 400
John Cronin, Executive Chairman www.cyantechnology.com
Cantor Fitzgerald Europe (Nomad Tel: +44 20 7894
and Broker) 7000
Andrew Craig / Chris Viggor
/Richard Salmond
Beaufort Securities Limited Tel: +44 (0) 20
(Broker) 7382 8300
Jon Belliss
Walbrook PR - Financial PR Tel: +44(0) 20 7933
8780
Paul Cornelius / Nick Rome cyan@walbrookpr.com
About Cyan
Cyan provides a communication platform for energy, lighting and
emerging applications in the wider 'Internet of Things' network.
Its integrated platform and partner collaborations deliver
end-to-end solutions that connect millions of devices and support
bidirectional communication with the end customer. Cyan's smart
metering and lighting solutions enhance quality of service in
emerging regions, through power savings, lower operating costs and
increased cost efficiency. Our vision to create improved value
through Smart City solutions has provided our customers with the
foundation upon which to build incremental services as these
markets evolve.
For more information, please visit www.cyantechnology.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUVSNRNUAAUAR
(END) Dow Jones Newswires
January 26, 2016 02:00 ET (07:00 GMT)
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Jul 2023 to Jul 2024