CyanConnode shares fall despite trading uplift
Cambridge technology business CyanConnode significantly improved revenues and slashed operating losses in the year to December 31 but still had more than 15 per cent shaved off its UK share price in early trading today.
A global player in Narrowband Radio Frequency Smart Mesh Networks, the company must be wondering what it has to do to stop the stock slipping close to a 52-week low after such a good performance.
Revenue of £4.5 million was achieved for 2018 – more than three and half times higher year-on-year (2017: £1.17m)
The Omnimesh smart metering platform, launched in June 2018, generated over £15m worth of orders to the end of 2018.
The company saw a significant improvement of the financial position with a 43 per cent decrease in operating loss to £6.3m (2017: £11.2m), and adjusted LBITDA improving from £9.9m in 2017 to £4.8m in 2018.
CyanConnode engineered a 22 per cent reduction in operating costs and ended the year with £4.6m cash and equivalents (2017: £5.4m).
The company says it has secured a number of significant new orders since the end of the trading period.
Executive chairman John Cronin said: “With the launch of the innovative Omnimesh smart metering platform, 2018 was a significant year for CyanConnode.
“The company also consolidated its European operations to its centre of excellence in Cambridge, which helped to significantly reduce operating costs.
“During the year, £15m of orders were received and in addition CyanConnode executed its first licensing agreement with Chinese partner, Beijing Instruments, a well-established Chinese meter manufacturer.
“The company’s focus for 2019 is to restore shareholder value by converting existing and new orders into revenue and by carefully controlling operating costs.
“I look forward to updating the market with further developments as CyanConnode capitalises upon the increasing global demand for smart city solutions.”