TIDMCYAN
RNS Number : 8355W
CyanConnode Holdings PLC
23 August 2022
23 August 2022
CyanConnode Holdings plc
("CyanConnode", "the "Group" or the "Company")
Final Results for the Year Ended 31 March 2022
CyanConnode Holdings plc (AIM: CYAN) announces its audited
results for the year ended 31 March 2022.
Financial highlights
-- Increase of 49% in revenue to GBP9.6m in2022 from GBP6.4m in
2021 , the highest annual revenue for the Group to date
-- Increase of 61% in gross profit to GBP5.0m in 2022 from GBP3.1m in 2021
-- Decrease of 62% in operating loss to GBP1.0m in 2022 from
GBP2.7m in 2021 as the Group moves towards profitability
-- Adjusted EBITDA profit of GBP0.1m in 2022 compared to a loss of GBP1.9m in 2021
-- Increase of 58% in cash position from GBP1.5m in 2021 to GBP2.4m in 2022
Operational Highlights
-- 612,000 Omnimesh Radio Frequency (RF) Modules shipped against
current contracts during the year (FY21: 481,000)
-- 152,000 Omnimesh RF Modules ordered for a new customer in northern India
-- 31,000 Omnimesh RF Modules for a follow-on order for the MEA
(Metropolitan Electricity Authority Smart Grid Project in)
Thailand
-- 100,000 Omnimesh RF Modules ordered for a new customer in Africa
-- Two oversubscribed placings completed, raising GBP5.15 million before expenses
-- Award of London Stock Exchange Green Economy Mark
-- Winner of the Frost and Sullivan Global Smart Metering Technology Innovation Leadership Award
Post Year End Highlights
-- 1,000,000 Omnimesh RF Modules and associated products ordered
from Genus Power Infrastructure Limited (Genus)
-- Two orders won from IntelliSmart Infrastructure Pvt Ltd
(IntelliSmart) for a total of 300,000 Omnimesh RF Modules and
associated products
-- New order worth USD 6.7m won from Middle East and North Africa (MENA) for NB-IoT gateways
-- Further new order worth USD 2.5m won from MENA for Cellular gateways
-- GBP2.6 million cash received from customers
-- Omnimesh integration underway with a further nine meter models
-- Revamped Distribution Sector Scheme (RDSS) approved by the
Government of India to help Distribution Companies (DISCOMS) to
improve their operational efficiencies
-- Following an initial delay in the empanelment process,
DISCOMS approved to release tenders under the RDSS Scheme in August
2022
John Cronin, Executive Chairman of CyanConnode, commented:
"We've been delighted with the results achieved during the
financial year being reported, which showed record revenues being
achieved, and a positive adjusted EBITDA. FY22 also saw record
numbers of modules being shipped and record cash being
collected.
Since the year end we have announced orders for a total of 1.3
million units in India, and orders for new products in a new
territory (the MENA region). We're currently integrating with nine
new meter types. In India, the new RDSS has been launched and the
empanelment process is progressing, allowing more tenders to be
released. Momentum in the markets in which we operate continues to
grow, and we're looking forward to continued success in the current
financial year.
We'd like to thank all employees for their ongoing hard work and
dedication to achieve these record results. We'd also like to thank
all shareholders for their continued support and look forward to
continuing to deliver successful results."
- Ends -
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
CyanConnode Holdings plc Tel: +44 (0) 1223 225
060
John Cronin, Executive Chairman www.cyanconnode.com
Cenkos Securities plc (Nomad and Joint Tel: +44 (0) 20 7397
Broker) 8900
Stephen Keys / Charlie Combe
Arden Partners plc (Joint Broker) Tel: +44 (0) 20 7614
Simon Johnson (Corporate Broking) 5900
Ruari McGirr (Corporate Finance)
Chairman's Statement
Operational Review
India
The union budget of 2020-21 paved the way for the replacement of
250 million conventional electricity meters with smart meters by
2025. The Revamped Distribution Sector Scheme (RDSS) was announced
at the union budget of 2021-22, where in the first phase 100
million smart meters are to be installed by December 2023, with the
remainder by March 2025.
The Ministry of Power, Government of India (GOI), also produced
a revised Standard Bidding Document (SBD) and a contract agreement
that can be directly adopted by utilities for rolling out the smart
metering programme. These steps have acted as a catalyst in
spurring forward the smart metering program in India and as a
result the scale of tenders has increased significantly.
During the period, CyanConnode won two new orders, the first one
was for 151,740 Omnimesh RF Modules for Himachal Pradesh State
Electricity Board (HPSEB), marking an entry for CyanConnode into
the hilly regions of the country. The majority of the modules were
dispatched during the period and deployment is expected to be
completed in FY23.
The second order was for 1,000 Omnimesh RF Modules from
IntelliSmart for the state of Assam. This was the first order from
IntelliSmart, and was a precursor to two larger orders which have
been won during FY23 bringing the total orders for this project to
301,000 Omnimesh RF Modules. IntelliSmart is also the first service
provider to use the Design, Build, Finance, Own, Operate, Transfer
(DBFOOT) model and it has also installed the first smart prepaid
meter in India under the RDSS.
Key highlights for CyanConnode India for the financial year
ended March 2022 are set out below:
-- CyanConnode India delivered record annual revenue and cash collection.
-- >562,000 Omnimesh RF Modules and 3,907 Omnimesh Gateways were supplied.
-- >600,000 Omnimesh RF Modules and 3,752 Omnimesh Gateways were commissioned.
-- CyanConnode is now the largest and most experienced supplier
of RF smart mesh networks in India.
-- Dedicated space for CyanConnode in the Virtual Smart Grid
Knowledge Centre (SGKC) facilitated by National Smart Grid Mission
and Power Grid Corporation of India, Ltd. SGKC is a Knowledge
Centre platform, set up by the Ministry of Power GOI, to
demonstrate excellence in Smart Grid (see:
http://sgkc.powergrid.in/cyanconnode.php )
-- Integration with two further meter manufacturers (Avon Meters
and Linkwell) were recommenced, which will result in Omnimesh
modules being compatible with the five leading meter manufacturers
in India.
-- Cyber security certification completed on CyanConnode Head
End System (HES) (CERT-IN certified).
APAC and Middle East North Africa
The smart metering market in the Asia Pacific (APAC) and Middle
East North Africa (MENA) region has continued to mature and
presents a significant opportunity for CyanConnode.
During the year the Group has continued with the deployment of
the order won in 2019 for the Metropolitan Electricity Authority
(MEA), a Thai state enterprise under the Ministry of Interior. The
initial order was for 33,000 Omnimesh RF Modules and associated
products, placed on the Group by its Agent and Partner, The JST
Group (JST), and Forth Corporation Public Company Limited (Forth).
In March 2020, a further 206,000 Omnimesh licenses were ordered
allowing MEA to connect a total of 240,000 meters to the Omnimesh
Head End System (HES). All Omnimesh modules and gateways were
delivered during FY21. During FY22 a follow-on order was received
for a further 31,000 Omnimesh RF Modules and associated
products.
In August 2021, the Group announced an order for 100,000
Omnimesh RF Modules together with Advanced Metering Infrastructure,
Services, Omnimesh Head-End Software, Perpetual License and an
Annual Maintenance Contract from a new customer for a smart
metering deployment in Africa.
Shortly after the financial year end, the Group announced an
order for a smart metering deployment in the MENA region. Under the
contract CyanConnode will supply 65,000 interoperable smart NB-IoT
gateways to Esyasoft Technologies, UAE. The gateways will be
deployed by Abu Dhabi Distribution Company (ADDC) and Al Ain
Distribution Company (AADC). The NB-IoT gateways will communicate
with and control all existing smart meters for both electricity and
water; the gateways will have the capacity to connect up to one
million smart meters.
Europe
In April 2019, a follow-on order worth GBP0.7m was received from
HM Power (HMP), for smart metering of district heating and power,
which further demonstrates the flexibility of CyanConnode's
standards-based Omnimesh products. The order also includes the
newly introduced Omnimesh Long-Range RF Module that has a range of
up to 12km, which thereby increases the resilience of the RF Smart
Mesh Network in rural areas. Delivery of the Omnimesh Long-Range RF
Modules commenced in Q4 2019 with 41,000 modules being delivered
during the year. 90,000 modules have been delivered to date.
The UK Government requires UK energy suppliers to rollout
approximately 53 million smart meters to their customers before the
end of 2025. To date, 21.7 million smart meters have been installed
and connected to the digital highway operated by the Data
Communications Company (DCC). CyanConnode has a contract to provide
software licenses and support for its Radio Frequency (RF) Smart
Mesh Networks, which will be deployed in areas where there is an
unreliable or weak cellular signal, and it believes that the
deployment of its technology will gain momentum during the latter
stages of the rollout.
Fundraisings
At the start of June 2021, the Company completed a heavily
oversubscribed placing and subscription, raising GBP3.15 million
before expenses, at a price of 9.5 pence per share. The issue price
represented a premium of approximately 2.2% to the closing market
price of 9.3 pence per share on the last business day prior to the
announcement of the placing and subscription.
In March 2022, CyanConnode completed a further oversubscribed
placing and subscription, raising GBP2 million before expenses at a
price of 14 pence per share.
The net proceeds of the Placings and the Subscriptions are being
used to strengthen the Company's balance sheet, to increase working
capital, to allow the Company to continue to take advantage of its
significant growth opportunities and to execute the Company's
growing order book and pipeline.
Awards
During the year the Group was the recipient of four awards and
classifications, as follows;
-- August 2021, CyanConnode was awarded the Green Economy
Classification & Mark by the London Stock Exchange. This
classification, first introduced in 2019, was created to highlight
companies and investment funds listed on all segments of London
Stock Exchange's Main Market and AIM that are driving the global
green economy. To qualify for the Green Economy Mark, companies and
funds must generate 50% or more of their total annual revenues from
products and services that contribute to the global green
economy.
-- September 2021, CyanConnode won the 2021 Frost & Sullivan
Global Smart Metering Technology Innovation Leadership Award. Frost
& Sullivan was impressed with CyanConnode's innovation in the
smart meter industry and recognised that it has grown from a
regional European pioneer into a global leader.
-- November 2021, CyanConnode won the Cambridge Wireless Best
Connector Business" Award. This award recognises teams or
businesses that are deploying wireless technology to improve
products, increase operational efficiency or bring other benefits.
The award celebrates impactful applications of wireless technology.
CyanConnode was recognised for their success in bringing smart
metering technologies to market.
-- March 2022, CyanConnode won the Megabuyte Fastest Growing Company award.
Outlook
Since the period end, CyanConnode has won five orders, including
the largest-ever order from India. They were as follows;
-- April 2022, an order for a smart metering deployment in the
MENA region. Under this contract CyanConnode will supply 65,000
interoperable smart NB-IoT gateways to Esyasoft Technologies, UAE.
The gateways will be deployed by Abu Dhabi Distribution Company
(ADDC) and Al Ain Distribution Company (AADC). The NB-IoT gateways
will communicate with and control all existing smart meters for
both electricity and water; the gateways will have the capacity to
connect up to one million smart meters.
-- May 2022, an order for 100,000 Omnimesh RF Modules together
with advanced metering infrastructure, standards-based hardware,
services, Omnimesh head-end software, perpetual license and an
annual maintenance contract, for a smart metering project in Assam.
This order was received from IntelliSmart, who were the first
service provider to use the DBFOOT model and also installed the
first smart prepaid meter in India under the RDSS (Revamped
Distribution Sector Scheme).
-- June 2022, CyanConnode announced a further order from
Intellismart for the same project for 200,000 Omnimesh RF Modules
together with advanced metering infrastructure, standards-based
hardware, services, Omnimesh head-end software, perpetual license,
and annual maintenance contract.
-- August 2022, an order was announced for Cellular Gateways to
provide smart communications for an Advanced Metering
Infrastructure project located in the MENA region. This order,
worth USD 2.5 million, was for a new cellular product to be fitted
to existing electricity meters.
-- August 2022, the Group was delighted to announce that its
subsidiary, CyanConnode India Pvt Ltd, won its largest-ever order.
The Order was for one million Omnimesh Modules, together with
Advanced Metering Infrastructure, Standards-Based Hardware,
Omnimesh Head-End Software, Perpetual License and a Support and
Maintenance Contract.
In addition, CyanConnode's business has continued on its growth
path and is currently integrating with a further nine meter models,
giving access to a larger number of opportunities.
In India the market has continued to move forward with its plans
to implement 250 million smart meters. In August 2022, the
Government of India approved the Revamped Distribution Sector
Scheme (RDSS) to help DISCOMs improve their operational
efficiencies and financial sustainability by providing
result-linked financial assistance to DISCOMs to strengthen supply
infrastructure. The scheme has an outlay of Rs 3,03,758 Crore
(GBP30 billion) over 5 years. in addition, following an initial
delay in the empanelment process, DISCOMS were approved to release
tenders under the RDSS Scheme in August 2022. Eight companies are
currently empanelled.
I would once again like to thank all shareholders for their
ongoing support during what has been our most successful year to
date. We look forward to further order announcements during this
financial year as the Indian smart metering market continues to
mature, and to delivering the backlog of orders won in current and
previous periods.
John Cronin
Executive Chairman
Financial Review
Despite the year having started during the second wave of the
Covid-19 pandemic, with many countries being in lockdown, the Group
managed to continue with its deployments and is pleased to have
achieved record revenues for the year.
A summary of the key financial results for the year and details
relating to its financing position at the yearend are set out in
the table below and discussed in this section.
12 months Mar 2022 12 months Mar 2021 15 months Mar 2020 12 months Dec 2018 12 months Dec 2017
GBP000 GBP000 GBP000 GBP000 GBP000
================== ================== ================== ================== ==================
Revenue 9,562 6,437 2,451 4,465 1,171
================== ================== ================== ================== ==================
R&D expenditure
(including staff
costs) 1,755 1,791 2,381 2,466 4,148
================== ================== ================== ================== ==================
Operating costs 6,025 5,788 7,600 9,061 11,650
================== ================== ================== ================== ==================
Operating loss (1,018) (2,685) (6,230) (6,320) (11,153)
================== ================== ================== ================== ==================
Depreciation and
amortisation 616 627 773 472 489
================== ================== ================== ================== ==================
EBITDA (401) (2,058) (5,457) (5,848) (10,664)
================== ================== ================== ================== ==================
Stock impairment 62 108 4 578 55
================== ================== ================== ================== ==================
Share based
compensation 363 80 267 445 422
================== ================== ================== ================== ==================
Underlying
operating loss (38) (1,978) (5,190) (5,403) (10,242)
================== ================== ================== ================== ==================
Foreign exchange
(gain)/losses (131) (15) 267 16 52
================== ================== ================== ================== ==================
Adjusted EBITDA
[1] 58 (1,885) (4,919) (4,809) (9,868)
================== ================== ================== ================== ==================
Cash and cash
equivalents 2,355 1,489 1,172 4,564 5,394
================== ================== ================== ================== ==================
Average monthly
operating cash
outflow (261) (81) (245) (487) (808)
================== ================== ================== ================== ==================
Mar 2022 Mar 2021 Mar 2020 Dec 2018 Dec 2017
FTE [2] FTE FTE FTE FTE
Average 59 47 50 52 44
======== ======== ======== ======== ========
Year end 60 54 48 61 52
======== ======== ======== ======== ========
Included within the table above are two alternative performance
measures, 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 changes in working capital and after
other items have been adjusted for as set out in the table above.
It is used to achieve consistency and comparability between
reporting periods.
Notably from the table on the previous page:
-- Revenue of GBP9.6 million was 49% higher than for FY21 (GBP6.4 million)
-- Operating loss for the year to March 2022 was GBP1.7 million lower than previous year
-- EBITDA (loss) for the year to March 2022 was GBP1.7 million
lower than previous year (2021: GBP2.1 million loss)
-- Cash and cash equivalents at the end of FY22 of GBP2.4
million was GBP0.9 million higher than the end of FY21
-- Share based compensation charges reflect the fair value of
share options granted to employees over the vesting period of these
options.
Financial items of note during the year other than those set out
above were:
-- Cash received from customers during FY22 was GBP8.2 million (2021: GBP5.3million)
-- Trade and other receivables increased by GBP2.1 million
during the year to GBP7.5 million (including retentions), largely
due to the higher revenues recognised during the year
-- R&D tax credit of GBP0.6 million for FY22 at a similar level to FY21
During the year an advance against the R&D tax credit was
received. This will be repaid out of the R&D tax credit funds
when received from HMRC. In addition, the loan from two directors
remained in place at yearend, and letters of credit, invoice
discounting and advance payments have been negotiated on recently
won contracts to help with working capital requirements. The loan
from Peter Tyler for GBP0.1 million was repaid in April 2022.
Key Performance Indicators (KPIs)
The financial key performance indicators for the Group are as
set out in the key financial results table above. FY2022 revenues
were 49% up on the previous year FY21 comparatives as a result of
major contracts in India which started rolling out during the year.
Operating costs for the year increased by 4% compared to FY21,
EBITDA (loss) decreased from GBP2.1 million in FY21 to GBP0.4
million in FY22 and adjusted EBITDA (loss) decreased from GBP1.9
million in FY21 to less than GBP0.1 million in FY22. The Group's
average headcount increased by 12. Non-financial KPIs included the
number of modules shipped which increased from 481,000 in FY21 to
612,000 in FY22. The Group will be agreeing additional
non-financial KPIs to be monitored during FY23.
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, and as highlighted
in the previous paragraph, 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 2022
was to streamline its processes from order to delivery and working
to close further orders. A further focus was ensuring collection of
cash from customers as Group revenues continued to grow. Avenues
continue to be pursued to secure working capital facilities to help
ease cash flows and mitigate against any unforeseen delays in
deliveries or customer payments.
Going concern
To assess the ability of CyanConnode Holdings plc ("Group") to
continue as a going concern, the directors have prepared a business
plan and cash flow forecast for the period to 31 March 2024 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 and the timing of customer payments. The detailed cashflow
scenarios include Letters of Credit which have been secured from
customers against contracts recently won.
At 31 March 2022 the Group had cash reserves of GBP2.4 million
(FY21: GBP1.5m) and based on detailed cash flows provided to the
Board within the FY23/24 budget, there is sufficient cash to see
the Group through to profitability based on its standard operating
model. If a more pessimistic scenario were taken and an assumption
were taken that no cash is received within the next twelve months
from any new orders not currently contracted, and that there were
significant delays to receipts from customers, there is a material
uncertainty relating to the Group's ability to continue as a going
concern. Should the Group experience such downside sensitivities
the directors would first continue to look at measures such as cost
reduction and working capital facilities as ways to conserve cash
within the business. The Company has offers for convertible and
secured loans which it could accept should such a requirement
arise.
To assist with working capital, two directors extended
short-term loans of GBP400,000 in November 2020. These were still
in place at the end of March 2022. GBP100,000 was repaid to Peter
Tyler in April 2022. The Company received an advance of GBP500,000
secured against its R&D tax credit in December 2021 and an
invoice discounting facility secured against Letters of Credit for
deliveries of Omnimesh modules in India. The advance against the
R&D tax credit will be repaid out of the HMRC receipt which is
expected to be received by October 2022.
Notwithstanding the material uncertainties described above which
may cast significant doubt on the ability of the Group 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.
Dividends
The directors do not recommend the payment of a dividend (2021:
GBPnil). 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
CyanConnode Holdings plc
Consolidated income statement
For the year ended 31 March 2022
Note Year Year
31 March 2022 31 March
GBP000 2021
GBP000
============================== ==== ============== =========
Continuing operations
Revenue 9,562 6,437
Cost of sales (4,554) (3,334)
=============================== ==== ============== =========
Gross profit 5,008 3,103
Other operating costs (6,025) (5,788)
------------------------------- ---- -------------- ---------
Underlying operating loss (38) (1,978)
Amortisation and depreciation (616) (627)
Share-based payments (363) (80)
Operating loss (1,017) (2,685)
Finance income 3 13
Finance expense (164) (62)
------------------------------- ---- -------------- ---------
Loss before tax (1,178) (2,734)
Tax credit 307 677
------------------------------- ---- -------------- ---------
Loss for the year (871) (2,057)
=============================== ==== ============== =========
Loss per share (pence)
Basic 2 (0.42) (1.18)
Diluted 2 (0.42) (1.18)
=============================== ==== ============== =========
Consolidated statement of comprehensive income
Derived from continuing operations and attributable to the
equity owners of the Company.
For the year ended 31 March 2022 Year Year
31 March 31 March
2022 2021
GBP000 GBP000
========================================================== ========= =========
Loss for the year (871) (2,057)
Exchange differences on translation of foreign operations 76 (25)
========================================================== ========= =========
Total comprehensive income for the period (795) (2,082)
========================================================== ========= =========
CyanConnode Holdings plc
Consolidated statement of financial position
As at 31 March 2022
31 March 31 March
Note 2022 2021
GBP000 GBP000
================================================================ ====== ======== ========
Non-current assets
Intangible assets 4,093 4,266
Goodwill 1,930 1,930
Other financial assets 58 44
Property, plant and equipment 31 36
Right of use asset 153 98
Trade receivables 458 -
================================================================ ====== ======== ========
Total non-current assets 6,723 6,374
Current assets
Inventories 159 211
Trade and other receivables 6,993 5,355
R&D tax credit receivables 562 577
Cash and cash equivalents 2,355 1,489
================================================================ ====== ======== ========
Total current assets 10,069 7,632
================================================================ ====== ======== ========
Total assets 16,792 14,006
================================================================ ====== ======== ========
Current liabilities
Trade and other payables (2,364) (3,969)
Short-term borrowings (1,867) (2,118)
Corporation tax liabilities (193) -
Lease liabilities (28) (98)
---------------------------------------------------------------- ------ -------- --------
Total current liabilities (4,452) (6,185)
================================================================ ====== ======== ========
Net current assets 5,617 1,447
================================================================ ====== ======== ========
Non-current liabilities
Lease liabilities (125) -
Deferred tax liability (746) (812)
Other payables (38) -
================================================================ ====== ======== ========
Total non-current liabilities (909) (812)
Total liabilities (5,361) (6,997)
================================================================ ====== ======== ========
Net assets 11,431 7,009
================================================================ ====== ======== ========
Equity
Share capital 3 4,726 3,735
Share premium account 73,883 69,662
Own shares held (3,611) (3,253)
Share option reserve 1,068 925
Translation reserve 31 (45)
Retained losses (64,666) (64,015)
================================================================ ====== ======== ========
Total equity being equity attributable to owners of the Company 11,431 7,009
================================================================ ====== ======== ========
CyanConnode Holdings plc
C onsolidated Statement of Changes in Equity
For the year ended 31 March 2022
Share Own Share
Share Premium Shares Option Translation Retained Total
Capital Account Held Reserve Reserve Losses Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ --------- --------- -------- --------- ------------ --------- --------
Balance at 31 March
2020 3,656 69,547 (3,253) 2,028 (20) (63,141) 8,817
------------------------ --------- --------- -------- --------- ------------ --------- --------
Loss for the year - - - - - (2,057) (2,057)
Other comprehensive
income for the year - - - - (25) - (25)
------------------------ --------- --------- -------- --------- ------------ --------- --------
Total comprehensive
income for the year - - - - (25) (2,057) (2,082)
Issue of share capital 79 115 - - - - 194
Credit to equity
for share options - - - 80 - - 80
Transfer - - - (1,183) - 1,183 -
------------------------ --------- --------- -------- --------- ------------ --------- --------
Total transactions
with owners 79 115 - (1,103) - 1,183 274
------------------------ --------- --------- -------- --------- ------------ --------- --------
Balance at 31 March
2021 3,735 69,662 (3,253) 925 (45) (64,015) 7,009
Loss for the year - - - - - (871) (871)
Other comprehensive
income for the year - - - - 76 - 76
------------------------ --------- --------- -------- --------- ------------ --------- --------
Total comprehensive
income for the year - - - - 76 (871) (795)
Issue of share capital 991 4,221 (358) - - - 4,854
Credit to equity
for share options - - - 363 - - 363
Transfer - - - (220) - 220 -
------------------------ --------- --------- -------- --------- ------------ --------- --------
Total transactions
with owners 991 4,221 (358) 143 - 220 5,217
------------------------ --------- --------- -------- --------- ------------ --------- --------
Balance at 31 March
2022 4,726 73,883 (3,611) 1,068 31 (64,666) 11,431
------------------------ --------- --------- -------- --------- ------------ --------- --------
CyanConnode Holdings plc
C onsolidated cash flow statement
For the year ended 31 March 2022
Year Year
Note 31 March 2022 31 March
GBP000 2021
GBP000
======================================================== ====== =============================== ===================
Net cash outflow from operating activities 4 (3,134) (977)
Investing activities
Interest received 3 13
Purchases of property, plant and equipment (26) (23)
Purchases of intangible assets (259) (129)
(Purchase) / disposal of other financial assets (14) 49
======================================================== ====== =============================== ===================
Net cash outflow from investing activities (296) (90)
======================================================== ====== =============================== ===================
Financing activities
Interest paid on borrowings (157) (51)
Cash inflow from borrowings 500 385
Cash net (outflow) / inflow from debt factoring (366) 1,333
Cash inflow from Directors' loan - 400
Loan repayment (385) (560)
Capital repayments of lease liabilities (153) (176)
Interest paid on lease liabilities (7) (11)
Proceeds on issue of shares 5,177 75
Share issue costs (327) -
======================================================== ====== =============================== ===================
Net cash inflow from financing activities 4,282 1,395
======================================================== ====== =============================== ===================
Net increase in cash and cash equivalents 852 328
Effects of exchange rate changes on cash and cash
equivalents 14 (11)
Cash and cash equivalents at beginning of the year 1,489 1,172
-------------------------------------------------------- ------ ------------------------------- -------------------
Cash and cash equivalents at end of the year 2,355 1,489
-------------------------------------------------------- ------ ------------------------------- -------------------
Analysis of changes in net cash / (debt)
Other Net foreign
At 1 April non-cash exchange At 31
2021 Cash flow movements difference March 2022
For the year ended 31 GBP000 GBP000 GBP000 GBP000 GBP000
March 2022
--------------------------- ------------- ------------ ----------- ------------ -------------
Cash and cash equivalents 1,489 852 - 14 2,355
--------------------------- ------------- ------------ ----------- ------------ -------------
Short-term borrowings (2,118) 251 - - (1,867)
Lease liabilities (98) 160 (215) - (153)
--------------------------- ------------- ------------ ----------- ------------ -------------
(2,216) 411 (215) - (2,020)
--------------------------- ------------- ------------ ----------- ------------ -------------
Net cash / (debt) at
end of year (727) 1,263 (215) 14 335
--------------------------- ------------- ------------ ----------- ------------ -------------
Other Net foreign
At 1 April non-cash exchange At 31
2020 Cash flow movements difference March 2021
For the year ended 31 GBP000 GBP000 GBP000 GBP000 GBP000
March 2021
--------------------------- ------------- ------------ ----------- ------------ ---------------
Cash and cash equivalents 1,172 328 - (11) 1,489
--------------------------- ------------- ------------ ----------- ------------ ---------------
Short-term borrowings (560) (1,558) - - (2,118)
Lease liabilities (274) 187 (11) - (98)
--------------------------- ------------- ------------ ----------- ------------ ---------------
(834) (1,371) (11) - (2,216)
--------------------------- ------------- ------------ ----------- ------------ ---------------
Net cash / (debt) at
end of year 338 (1,043) (11) (11) (727)
--------------------------- ------------- ------------ ----------- ------------ ---------------
Other non-cash movements include interest on lease liabilities and
new leases taken out in the year.
Notes to the Financial Information
For the year ended 31 March 2022
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 Merlin Place, Milton Road, Cambridge CB4 0DP.
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
2021.
The financial information set out in the announcement does not
constitute the company's statutory accounts for the years ended 31
March 2021 or 31 March 2022 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 2021 and the year ended 31
March 2022 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 ("Group") to
continue as a going concern, the directors have prepared a business
plan and cash flow forecast for the period to 31 March 2024 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 and the timing of customer payments. These detailed
cashflow scenarios include Letters of Credit which have been
secured from customers against contracts recently won.
At 31 March 2022 the Group had cash reserves of GBP2.4 million
(2021: GBP1.5 million) and based on detailed cash flows provided to
the Board within the FY2023/24 budget, there is sufficient cash to
see the Group through to profitability based on its standard
operating model. If a more pessimistic scenario were taken and an
assumption were taken that no cash is received within the next
twelve months from any new orders not currently contracted, and
that there were significant delays to receipts from customers,
there is a material uncertainty relating to the Group's ability to
continue as a going concern. Should the Group experience such
downside sensitivities the directors would first continue to look
at measures such as cost reduction and working capital facilities
as ways to conserve cash within the business. The Company has
offers of convertible and secured loans which it could accept
should such a requirement arise.
To assist with working capital, two directors extended
short-term loans of GBP400,000 in November 2020. These were still
in place at the end of March 2022. GBP100,000 was repaid to Peter
Tyler in April 2022. The Company received an advance of GBP500,000
secured against its R&D tax credit in December 2021 and an
invoice discounting facility secured against Letters of Credit for
deliveries of Omnimesh modules in India. The advance against the
R&D tax credit will be repaid out of the HMRC receipt which is
expected to be received by October 2022.
Notwithstanding the material uncertainties described above,
which may cast significant doubt on the ability of the Group 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.
2. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
2022 2021
============================================================================================ =========== ===========
Loss for the purposes of basic loss per share being net loss attributable to equity holders
of the parent (GBP000) (871) (2,057)
============================================================================================ =========== ===========
Weighted average number of ordinary shares for the purposes of basic and diluted loss per
share (excluding own shares held) 205,173,434 174,755,445
============================================================================================ =========== ===========
Loss per share (pence) (0.42) (1.18)
============================================================================================ =========== ===========
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 No GBP000
of 2.0 pence each
As at 31 March 2020 182,798,523 3,648
Issue of new shares 3,944,375 79
----------------------------------------------- ------------ ---------
As at 31 March 2021 186,742,898 3,735
Issue of new shares 49,566,137 991
----------------------------------------------- ------------ ---------
As at 31 March 2022 236,309,035 4,726
----------------------------------------------- ------------ ---------
In the year, shares were issued at prevailing market prices as
settlement for professional services provided. GBP4,710 was raised
this way during the year (2021: GBP118,700).
In June 2021 the Company successfully raised funding of GBP3.15m
before expenses through a placing of 33,170,076 ordinary shares. In
March 2022 the Company successfully raised further funding of GBP2m
before expenses through a placing of 14,285,718 ordinary
shares.
During the year 201,250 shares were issued as a result of the
exercise of share options (2021: none). 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 2022 2021
GBP000 GBP000
========================================================= ======= =======
Operating loss for the year: (1,017) (2,685)
Adjustments for:
Depreciation of property, plant and equipment 31 30
Amortisation of Intangible assets 432 421
Depreciation on right of use assets 153 176
Foreign exchange 20 (15)
Shares issued in lieu of bonus 5 119
Share-option payment expense 363 80
---------------------------------------------------------- ------- -------
Operating cash flows before movements in working capital (13) (1,874)
Decrease in inventories 52 97
Increase in receivables (2,054) (2,463)
(Decrease)/increase in payables (1,568) 2,468
---------------------------------------------------------- ------- -------
Cash reduction from operating activities (3,583) (1,772)
Income taxes received 449 795
========================================================== ======= =======
Net cash outflow from operating activities (3,134) (977)
========================================================== ======= =======
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 27 August 2022 and
made available on the Company's website shortly thereafter. The AGM
will be held on 21 September 2022 at 11.00 a.m. at the office of
Cenkos Securities plc, 6-8 Tokenhouse Yard, London EC2R 7AS .
Further information regarding the AGM will be included in the
Notice of the AGM.
[1] Where Adjusted EBITDA is EBITDA after stock impairment,
share-based compensation and foreign exchange losses have been
added back
[2] Where FTE is the equivalent number of full-time
equivalents
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END
FR SEEFWEEESESA
(END) Dow Jones Newswires
August 23, 2022 02:00 ET (06:00 GMT)
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