28th Apr 2025 14:26
(Alliance News) - CyanConnode Holdings PLC shares fell on Monday, after it warned of decreased revenue for its latest year as expected "large shipments...did not materialise".
Shares in CyanConnode were trading 22% lower at 7.89 pence in London on Monday afternoon.
The Cambridge, England-based developer of narrowband radio frequency mesh networks noted "the substantial increase in its contracted outstanding order book" which came to around GBP180 million at March 31, from GBP50 million one year prior.
However, CyanConnode also said that "this year, large shipments expected in March 2025 did not materialise" from "its major Indian customers".
"This was due in large part to the impact of local and national elections in India, which temporarily delayed decision-making processes," the company explained, "and also some consumer resistance to the transition to prepaid smart metering models, which...caused operational delays on the ground."
However, it also noted that the Indian government has increased its smart meter deployment target to 330 million, "further reinforcing the scale of the opportunities for CyanConnode", and that opposition from consumers "is being actively overcome, supported by regulatory frameworks which require customers to accept the installation of smart meters".
Nonetheless, due to the delay in shipments, CyanConnode said it now expects to report a loss before interest, tax, depreciation and amortisation for the year ended March 31. It had reported a GBP3.8 million Ebitda loss for the previous year, and expects the financial 2025 loss "to be in a similar region".
Also, CyanConnode expects revenue for the year to total approximately GBP14 million. This would represent a decrease of around 25% from GBP18.7 million for financial 2024, the company's "highest annual revenue to date" at the time.
"Based on historical trends, where a significant percentage of our revenues were recognised during the month of March, we anticipated a similar surge this year," Executive Chair John Cronin said. "However, that surge did not materialise as expected, and it is clear that we must learn from this experience and take appropriate action going forward.
"We will reassess our business forecasts on a more conservative basis to ensure they align more closely with the implementation rate of the smart metering roll-out in India."
He noted, however, that "It is important to emphasise that the affected revenues have not been lost."
Looking ahead, CyanConnode said it sees "positive momentum" going into the current year with around 350,000 Omnimesh modules shipped in April, up from 39,000 modules for the same month in 2024.
Cronin commented: "Ultimately, we remain confident in the group's strategic position, the resilience of its technology and service offering, and its medium-to-long-term growth prospects."
By Emma Curzon, Alliance News reporter
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