CyanConnode Holdings PLC, a global leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, has released its audited results for the year ended 31 March 2024. The company experienced a 60% increase in revenue to £18.7m, the highest annual revenue to date, driven by an increased order book and accelerated deployments in India. The gross profit increased to £5.6m, with a reduction in gross margin to 30% due to sales of third-party hardware and large premiums paid during the year on purchases of end-of-life components for the Group's previous version of gateway. The operating loss increased to £4.2m, largely due to increased costs incurred throughout the Group offsetting the increased revenues. The EBITDA loss increased to £3.8m, and the adjusted EBITDA loss increased to £2.8m. The cash position decreased to £0.8m, with an increase in cash collected from customers to £16.9m, broadly in line with the increase in revenues.
Operational highlights include orders for 2.7m modules won in India during the period, taking the cumulative order book to 6.3m during the financial year. CyanConnode also raised £2.7m through an oversubscribed placing and subscription, and issued warrants at an exercise price of 15.0 pence per ordinary share, which would provide a potential further £4.1m if fully exercised. The company shipped 1,370,000 Omnimesh Radio Frequency (RF) Modules against current contracts during the period, along with 55,200 NB-IoT gateways and 5,340 Cellular gateways. CyanConnode India was recognized as Dun and Bradstreet 'Start-Up 50 Trailblazer' and participated in DistribuElec 2024, where they were awarded the best booth.
Post year-end highlights include 265,000 Omnimesh RF Modules and associated products ordered from a subsidiary of IntelliSmart Infrastructure Private Limited, taking the cumulative order book in India alone to 6.6m modules. CyanConnode India's subsidiary, DigiSmart Networks Private Ltd, was successfully empanelled as an Advanced Metering Infrastructure Service Provider (AMISP) for both RF and cellular. The company reported a revenue of £3.5m in the first quarter of FY25, being 25% higher than the same period in FY24, and £5.0m cash received from customers in the first quarter of FY25, being 40% higher than the same period in FY24. The cash at the end of June 2024 was £1.1m. CyanConnode also commenced the setup of a subsidiary in the United Arab Emirates (UAE) to promote business in the MENA region and made changes to the organization to strengthen leadership in India and streamline global operations.
John Cronin, Executive Chairman of CyanConnode, commented on the results, stating, "FY24 marked another exceptional period for CyanConnode in terms of our strategic footprint and revenue, with revenue growth of 60% over FY23, significantly exceeding market expectations."