TIDMCYAN
RNS Number : 6447O
CyanConnode Holdings PLC
21 May 2018
CyanConnode Holdings plc
("CyanConnode" or the "Company" or the "Group")
Final Results
CyanConnode (AIM: CYAN), the world leader in narrowband radio
mesh networks, announces its audited results for the 12 months
ended 31 December 2017.
Operational Highlights
-- Order book increases during the period, with orders being won
from a range of customers opening up new territories
-- Board and management team streamlined and strengthened with
the Group now firmly focused on converting the order book into
revenue
-- New team recruited into India with extensive industry experience
-- Identifiable global new business pipeline grows at a rapid rate
-- Expanded eco-system of partners across a number of territories
-- Development and completion of new standards-based Omni IoT
platform resulting in opportunity for new revenue streams including
licensing. First order received for this technology and deployment
of this order commenced in December 2017
Financial Highlights
-- Revenue of GBP1.17m (2016: GBP1.82m) with the decrease
directly as a result of the delay in deployment of a large customer
contract notified to the Company just before the period end
-- Operating loss of GBP11.15m (2016: GBP7.94m)
o Significant investment in strengthening the team to prepare
for deployment of orders and research and development to complete
development of new standards-based Omni IoT platform
-- Research and development tax credit receivable increased to GBP1.4m (2016: GBP0.7m)
-- Cash and cash equivalents of GBP5.39m (2016: GBP3.89m)
following new equity funding during the period of GBP11.3m before
expenses
Post Year End Highlights
-- New order won from Larsen & Toubro for $3.2m
-- The CESC Mysore contract in India has now officially passed
the User Acceptance Testing milestone which has resulted in a cash
payment of GBP0.3m having been received.
-- The Company has taken positive steps to manage and reduce the
cost base, with significant reductions being made in the last six
months. The cost base from July 2018 onwards is expected to be
around GBP670k per month, which is significantly lower than the
average operating cost per month in 2017 of GBP808k
-- R&D tax credit cash refund claim of GBP1.4m (2016: GBP0.7m) has been submitted to HMRC
John Cronin, Executive Chairman of CyanConnode, commented:
"This was an important period for the Company with the
successful integration of the IPv6 technology from the Connode
acquisition, announced in June 2016, the expanded geographic
footprint and scale of orders won during the period. In total we
announced $50m of orders during the period, highlighting the
strength of our value proposition within the smart metering markets
around the world. Integration work is currently being undertaken
with partners in three new territories with initial payments now
received from these territories. In addition we have had successful
demonstrations of our technology in a number of new locations.
"The nature of our business model has led to a significant
committed pipeline of future revenues as we commence delivery on a
number of high value contracts and, as such, the key objective
remains focused on converting orders into revenue and profits as
our business model evolves towards a cash generative one that can
support and accelerate our ongoing corporate development.
"Our team continues to enhance our product suite, providing
higher margin opportunities, while widening our potential customer
base and the management team continues to invest in the Company and
work tirelessly to provide significant returns for all of our
shareholders."
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
finnCap Limited (Nomad and Broker) Tel: +44 (0) 20 7220
Adrian Hargrave/Giles Rolls (Corporate 0500
Finance)
Alice Lane (Corporate Broking)
Walbrook PR (Investor Relations) Tel: +44 (0) 20 7933
8780
Paul Cornelius / Nick Rome cyanconnode@walbrookpr.com
Chairman's Statement
Dear Shareholder,
2017 has been a year during which we have both made significant
progress within the Company in terms of winning orders, growing our
global ecosystem of partners, expanding our geographical reach, and
putting in place a world class team to develop product and deliver
on the order book which has grown significantly during the period.
We have however also faced challenges within the Company as a
result of delays to contracts.
I was delighted to welcome Anil Daulani as Managing Director of
CyanConnode in India in September 2017, responsible for the overall
operations of the company in India. Anil joined from Tech Mahindra
where he held the position of Global Head & Vice President
Utilities for the five years prior to joining CyanConnode, and is a
highly experienced executive with knowledge of both the energy
sector and IT solutions. He has well established strategic
relationships with CEO/CXO officers at both public and private
utilities, resulting in over $300 million contract wins during his
career prior to joining the Company. Anil brought with him Gautam
Kumar, also from Tech Mahindra who has been appointed as Head of
Delivery, a role key to successful management of the delivery of
projects won in India, and Manish Widhani who has been appointed as
Business Development Director. As a result of bringing in this
highly experienced team, we are already seeing significant inroads
being made into the market in India with a solid pipeline of large
opportunities having been developed. I am excited about working
with them to close and deliver further orders as the business grows
further.
In addition to the large orders won during the period, and
changes made within the organisation in India, the Company has
transformed its product, engineering and operational teams. Dr
Graeme Milligan was announced as its Global Head of Integration
during 2017. Graeme provides technical and planning support for the
seamless integration of customers' devices and software with
CyanConnode's Omni IoT platform. In addition, Sylvain Vittecoq has
been named Chief Technology Officer for the Company. Sylvain joined
Connode in 2011 as Development Manager and Architect and was
appointed Lead Design Authority and Delivery Manager for the
narrowband mesh solution part of the UK Smart Metering
Implementation Program ("UK SMIP"). In his role as Chief Technology
Officer at CyanConnode, Sylvain is responsible for the overall
technical vision and solution definition. The engineering team
across the UK and Sweden was streamlined with Allan Baig, who
joined us in June 2017 from Landis+Gyr, now heading up the global
engineering function.
As a result of the development of our new standards-based Omni
IoT platform, we are in the process of delivering product to the
Indian state-owned utility Uttar Gujarat Vij Company Ltd ("UGVCL"),
through Genus Power Infrastructures Ltd ("Genus"), one of the
largest meter manufacturers in India, a contract announced in July
2017. This new platform will be made available globally with an
official launch at Asia Utility Week in June 2018. The new product
is a multi-application, multi-communication technology platform,
which will support any application on any device over any
communication technology. It flexibly integrates both new and
legacy applications, breaking down historical IT silos. This
technology further provides the flexibility to integrate narrowband
RF networks with other communication technologies and legacy /
abandoned systems. It provides a reliable, pervasive, always-on
network with government approved, critical infrastructure grade
security which protects data and restricts access to command and
control functions. The rapidity of the deployment at UGVCL
(compared to previous projects in India) is testament to the
quality of the solution which is highly appreciated by both the end
utility customers as well as the local partners such as Genus.
Being standards-based, this technology now provides licensing
opportunities, a number of which are currently being explored by
the Company which, if won, would add significant revenue streams to
its business model. We have no doubt it will be seen as a
world-class offering.
We are also working with key meter manufacturers to embed our
new product into their meters making our solution a first choice
for their communication needs. We have seen a recent surge of
activity in India directly as a result of this strategy.
As highlighted above, we have also been faced with challenges
during the year. In our trading update provided on 4 January 2018,
the Company reported that it had been notified by a significant
customer that deployment for one of the larger contracts won in
2017 had been delayed for reasons outside the Company's control. A
regular dialogue has continued with this customer since year end,
including a senior management visit to their head office to meet
the CEO. The customer has reconfirmed that they will take delivery
of the hardware that CyanConnode manufactured for them in Q4 2017,
but currently the Company has little visibility on timing of the
first delivery. A further update on progress in relation to this
will be provided as soon as practicable.
As a result of the completion of the development of the new
product, our streamlined organisation and improved processes and
procedures within the Company, we have made significant reductions
to our operating costs since the period end.
During the period we were delighted to be named the fastest
growing tech company in the Cambridge and East region of the
Deloitte UK Technology Fast 50 2017 while being ranked in 22nd
place in the UK and believe this industry recognition highlights
the Company's strong footing as we focus on deploying the orders
won during 2017.
CyanConnode's narrowband RF mesh technology is now at the
forefront of communication technologies for the Internet of Things
("IoT") and we are working hard on further extending our market
leading position while our realigned teams and Board focus on
converting our significant order book into revenue and receiving
customer payments.
Operational Review
India
India continues to be a core market for CyanConnode and we are
focused on establishing relationships with blue chip entities that
provide significant roll out opportunities as we become a critical
part of their customer offering.
As already mentioned, Anil Daulani was hired as Managing
Director India in order to grow the sales opportunities and manage
the sales and operations functions of the Company in India. Joining
from Tech Mahindra, Anil has strong relationships with both public
and private utilities.
The combination of new and follow on orders in India reflects
our growing reputation in the region.
As such, we were delighted with the $1.1m purchase order from
Genus for a smart metering deployment of over 23,000 units for
UGVCL. Genus is a tier 1 meter provider with the largest installed
base in India and supplier to multiple utilities. This was the
first order from India for CyanConnode's IPv6-6LoWPAN
standards-based Advanced Metering Infrastructure ("AMI") solution
for volume commercial deployment, highlighting the benefits of the
Company's range of solutions while further expanding its product
footprint within the region.
We were especially pleased with the latest follow on order from
Larsen & Toubro ("L&T"), further expanding the deployment
of our smart metering solution at Tata Power Mumbai ("Tata Power"),
bringing the total orders for this deployment to date to 25,100
units. Importantly, Tata Power now has over 2.6 million consumer
customers, including over 670,000 in Mumbai(1) and we are working
hard to further build on our strong relationship and take advantage
of the significant scope to further grow our footprint in the
region.
We expect to see growing demand for these kinds of solutions,
highlighting the importance of the Connode acquisition in 2016 and
our growing product suite, which is enabling us to target more
potential customers.
A number of projects being implemented in India continued during
and post year end. Chamundeshwari Electricity Supply Corporation
Limited ("CESC") in Mysore was the first of 14 smart grid pilots to
be rolled out in 2017 under the Smart Grid Task Force in India. The
contract to install AMI technology was awarded to CyanConnode,
through its partner Enzen, for the supply of 21,000 smart meters
and associated hardware and software. During implementation this
project has become a valuable reference for the wider Indian Smart
Grid community and in July, Energy Minister DK Shivakumar inspected
the first phase and confirmed that CESC will expand its smart grid
project to the entire city. Furthermore, in January 2018 CESC
officially confirmed that the formal milestone for User Acceptance
Test was officially complete. Payment of GBP0.3m for this milestone
has since been received.
Rest of World
Whilst India has, and continues to be, a core growth market for
the Company, we made significant strides in further expanding our
international reach with large orders received from a number of new
territories.
The Company has generated revenues and been paid for system
integration work during the first quarter of 2018 by working with
local tier 1 partners in three separate territories, including two
new territories. These three commercial opportunities could result
in significant orders which the Company will continue to pursue. An
additional benefit of this work is that the Company has increased
the number of successful integrations with tier 1 meter
manufacturers, including some manufacturers with which the Company
has not previously been engaged.
As previously mentioned, our strong product range, which was
enhanced by the acquisition of Connode in 2016, means that the
Company has been able to further grow its presence throughout
Europe. We acquired a strong orderbook in the UK worth an estimated
GBP24m as part of the Connode acquisition which also provided the
Company with our standards-based software suite, IPv6-6LoWPAN. This
is increasing in demand globally.
Our European reach grew further during the period as we received
a purchase order for 100,000 software licenses from HM Power
Metering AB ("HM Power") in Sweden for smart grid and IoT
implementations. During the period 23,509 licenses of this order
were supplied to HM Power.
Board Changes
Harry Berry moved from a non-executive to executive director
capacity as Chief Operating Officer (COO) during 2017. Harry's
priority is to convert the order book (representing purchase orders
received from customers but not yet delivered) into successful
customer deployment projects, which will result in significant
revenue growth for the Company.
Pete Hutton was appointed to the Board of CyanConnode as a
non-executive director. Pete joined from his most recent role as a
member of the executive committee at Cambridge based ARM Limited,
the UK trading company of ARM Holdings plc. He brings with him a
wealth of practical experience in the IoT market, as well as strong
relationships from C-Suite down with Asian, European, and US
technology companies.
Dr John Read, who has served on the Board of the Company since
2005 and served as Chairman of CyanConnode from 2007 to 2012,
retired from the Company in June.
In addition to the above changes, Simon Smith, Chief Financial
Officer, returned to a non-executive director role. The Company
also appointed David Bland as full time non-board Finance Director,
taking over the day to day finance activities from Simon.
Employees
Shortly before the start of 2017, the Company moved its UK
office to new premises in Cambridge which are located close to the
Science Park to be connected to the hub of R&D in the region.
2017 was a year that saw streamlining of the CyanConnode team as it
evolves. We are proud of the world class talent brought into many
areas of the business so establishing a center of excellence in
Cambridge.
I would like to thank all our employees for their efforts during
the period. I very much look forward to working closely with them
during the remainder of 2018 as we further expand our reach into
existing and new territories and watch further development of the
Company at this exciting time.
The Board and management continue to invest in the Company with
a total of GBP0.3m invested by the Board during 2017. Full details
of directors' investments can be found in the Directors'
Remuneration Report on page30 of the Annual Report.
Awards
During 2017 CyanConnode was lauded for its rapid growth and its
technology awarded for innovation. In November, CyanConnode was
recognised as the fastest growing tech company in Cambridge and the
East region in the Deloitte UK Technology Fast 50 2017 and ranked
in 22nd place overall. With more than 1,221% growth in 2016,
CyanConnode was also formally acknowledged as the fastest growing
technology company in the UK Telecommunications sector. This growth
reflected the delivery of customer orders in India as well as the
expansion of global reach and portfolio through the acquisition of
Connode, in July 2016.
In the same month, the Company was awarded 'Innovation in Techno
Commercials - Smart Metering' at the Independent Power Producers
Association of India ("IPPAI") Power Awards. CyanConnode has
successfully deployed smart metering solutions in India, a highly
competitive business environment. The Company has built strong
partner ecosystems in India, helping to retain its position at the
top of the industry, as well as to attract new customers.
CyanConnode's innovation was recognised for its low
implementation costs, successful customer deployments, including
Tata Power Mumbai, and scope for future development. The award was
presented at the 18th Regulators & Policymakers Retreat in
Karnataka India, organised by IPPAI.
In September, at the Cambridge Independent Entrepreneurial
Science & Technology Awards, CyanConnode was highly commended
in the cleantech, scale-up companies category.
Post Period End
Shortly before publication of this report, the Company announced
it had received a further order from its partner L&T in India
for a smart metering deployment for the Indian state-owned utility
Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd ("MPWZ")
worth $3.2m, to commence deployment in the current financial year.
The Company has already delivered 25,100 units in other regions of
India since 2014. Importantly, this is for the IPv6-6LoWPAN
standards-based AMI solution, highlighting the strong value
proposition of the Company's advanced IPv6 standards-based
technology, which is now becoming the minimum requirement in
certain territories around the World.
Since the period end GBP0.5m has been invoiced, and revenue
recognised relating to the UK SMIP. During the remainder of 2018,
the Company expects to further benefit from the roll-out of the UK
SMIP.
We were delighted to have confirmation of an important milestone
in our CESC project post the period end. The milestone which was
completed in January 2018 was for the User Acceptance Test and
payment of GBP0.3m has since been received for this milestone.
In addition, the Company has made an application for GBP1.4m in
tax credits, which it expects to receive in the coming months
following HMRC's approval. The Company has also been focused on
optimising its cost base for delivery of future contracts and
required development for its products and has now reduced its
ongoing cost base, such that in the second half of the year this
will now be approximately GBP670,000 per month, reduced from over
GBP800,000 during 2017.
Outlook
This was an important period for the Company with the size and
scale of orders won and growing geographic reach highlighting the
strength of our proposition as well as highlighting a number of
challenges to be considered and overcome as we grow.
The key focus remains on delivery of a number of high value
orders to ensure we convert these orders into revenue as our model
evolves towards a cash generative business that can support ongoing
operations, development and profitability. We are extremely excited
by the global opportunities and scalability of our combined
hardware and software solutions and look forward to building on our
relationships with existing and new clients. Furthermore, our team
continues to further enhance our product suite, providing higher
margin opportunities while widening our potential customer
base.
As a Board, we continue to closely monitor the cash resources
available to the business in order to ensure adequate funding is in
place to meet the requirements of the business. During 2017, we
received GBP11.3m (before expenses) of equity funding. We continue
to work on securing additional funding that will be required during
2018, especially as we start to deliver on orders which are
expected to require upfront working capital investment. This
funding could include one or a mix of working capital facilities,
strategic corporate investments, additional equity funding and
licensing deals for our new Omni IoT platform. We remain grateful
to our supportive shareholder base which has funded the Company to
date, including the two fundraises from last year.
In addition to the licensing opportunities referenced above,
some of which are in discussion at the time of this report, we
expect the new Omni IoT platform to present a large growth in
opportunities as can be seen by the two recent orders won in India
(UGVCL and Indore), and many of the tenders coming out in
India.
The combination of new product development, continued roll outs
and expansion into new territories will provide foundations for the
Company to remain at the forefront of the markets in which it
operates and we remain passionate about our ability to turn
opportunities into revenue. As a Board and management team we
continue to heavily invest in the Company with both our time and
CyanConnode share purchases and are working hard to provide returns
for all of our shareholders.
John Cronin
Executive Chairman
21 May 2018
STRATEGIC REPORT
Operational Review
Key Financials
Substantial commercial orders were won during the period,
however the revenue and cash generated therefrom during the period
remained well below the level required to sustain the business. In
2017, the Company raised GBP11.3 million before expenses, by way of
share placings. This funding provided the Company incremental
financial resources for growth, general working capital, customer
and partner development activities in India and other markets. A
substantial amount of this funding was used to develop the
Company's full standards-based technology platform following the
acquisition of Connode in 2016.
A summary of the key financial results is set out in the table
below and discussed in this section.
2017 2016 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,171 1,823 272 194
Research and development
expenditure 4,148 2,913 2,038 1,359
Operating loss 11,153 7,939 4,907 3,260
Cash and cash equivalents 5,394 3,893 2,461 2,344
Average monthly operating
cash outflow 808 588 438 253
2017 2016 2015 2014
Number Number Number Number
Average employee
headcount 54 44 31 27
Key Performance Indicators (KPIs)
The key performance indicators for the Group are as set out in
the key financial results table above. During 2017 revenues
decreased from 2016 and the operating losses continued to be
significant and have again increased substantially from 2016 to
2017. As can be seen from the table, CyanConnode has significantly
increased investment in R&D in order to develop the full
standards-based Omni IoT technology platform using the Connode IPv6
technology. In addition the Company's system integration and
delivery teams grew in order to deliver on the Company's growing
order book. The Group's average headcount has increased from 44 in
2016 to 54 in 2017. The main increases in headcount related to the
research and development and delivery teams.
The Group's long-term strategy is to deliver shareholder returns
by generating revenue and moving into profitability. We seek to do
this by focusing our investment on emerging but fast growing
markets where we believe we can reach a market leading position
with our technology. Management use KPIs to track business
performance, to understand general trends and to consider whether
we are meeting our strategic objectives. As we grow we intend to
review these KPIs and adapt them as appropriate, in response to how
our business and strategy evolves.
The Group's key focus for 2018 will be streamlining its process
from order to delivery and converting its large order book into
revenues. A further focus will be converting the large pipeline of
opportunities into successful orders and eventually cash, also
following a streamlined process.
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 30 June 2019 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 gross margin on those sales, together with the
ability to secure additional finance in order to fund working
capital within the next 12 months.
The directors have recognised that the Group is trading
principally in emerging country markets. These markets have an
inherent level of uncertainty associated with them and this may
result in the predicted level of sales not being achieved and/or
the timing of orders being delayed, as has been the case for the
Group in the past. The directors have taken reasonable steps to
satisfy themselves about the robustness of sales forecasts but
acknowledge that the timing of customer orders in the Group's
target markets is fundamentally uncertain. This may impact both the
Group's ability to generate positive cash flow and to raise new
finance. Consequently, there is a significant risk that the level
of sales achieved is materially lower than the forecast, may be
significantly delayed or at materially lower margins. This
constitutes a material uncertainty.
The directors' cash flow forecast includes an assumption that
further finance will need to be raised within the next 12 months.
Having consulted with stakeholders, the directors consider that the
Group has a realistic opportunity to secure the additional funding
that will be required. There remains, however, a significant risk
that the required level of new funding will not be received in the
necessary timescales or at all. This constitutes a material
uncertainty.
There is a material uncertainty related to the assumptions
described above which may cast significant doubt on the Group and
Company's ability to continue as a going concern and, therefore, it
may be unable to realise its assets and discharge its liabilities
in the normal course of business. The financial statements do not
include the adjustments that would result if the Group or Company
was unable to continue as a going concern. In the event the Group
and Company ceased to be a going concern, the adjustments would
include writing down the carrying value of assets, including
stocks, to their recoverable amount and providing for any further
liabilities that might arise.
Notwithstanding the material uncertainties described above, on
the basis of sensitivities applied to the cash flow forecast and
that further finance can be raised in the relevant timescale, the
directors have a reasonable expectation that the Company and Group
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.
Consolidated income statement
For the year ended 31 December 2017
Note 2017 2016
GBP GBP
----- ------------- ------------
Continuing operations
----- ------------- ------------
Revenue 1,171,215 1,823,129
----- ------------- ------------
Cost of sales (674,297) (1,128,498)
----- ------------- ------------
Gross profit 496,918 694,631
----- ------------- ------------
Other operating costs (11,160,819) (6,813,782)
----- ------------- ------------
Acquisition related costs - (1,564,102)
----- ------------- ------------
Amortisation / depreciation (489,193) (255,963)
----- ------------- ------------
Total operating costs (11,650,012) (8,633,847)
-----
Operating loss (11,153,094) (7,939,216)
-----
Investment income 15,619 7,290
-----
Finance costs (6,467) (4,525)
----- ------------- ------------
Loss before tax (11,143,942) (7,936,451)
----- ------------- ------------
Tax 1,402,222 819,212
----- ------------- ------------
Loss for the year (9,741,720) (7,117,239)
----- ============= ============
Loss per share (pence)
-----
Basic 2 (10.18) (13.02)
----- ============= ============
Diluted 2 (10.18) (13.02)
----- ============= ============
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2017
Derived from continuing operations and attributable to the
equity owners of the Company.
2017 2016
GBP GBP
------------------------------------- -------------- --------------
Loss for the year
Items that may be reclassified
subsequently to profit and loss (9,741,720) (7,117,239)
-------------- --------------
Exchange differences on translation
of foreign operations 46,384 (30,963)
-------------- --------------
Total comprehensive income for
the year (9,695,336) (7,148,202)
============== ==============
Consolidated balance sheet
At 31 December 2017
Note 2017 2016
GBP GBP
Non-current assets
Intangible assets 5,468,967 5,889,656
----------------------------------------
Goodwill 1,930,229 1,930,229
----------------------------------------
Investments 47,827 41,515
-----
Property, plant and equipment 82,510 78,171
----- -------------- --------------
7,529,533 7,939,571
----- -------------- --------------
Current assets
----- -------------- --------------
Inventories 1,128,443 340,178
----- -------------- --------------
Trade and other receivables 3,019,113 2,677,071
----- -------------- --------------
Cash and cash equivalents 5,393,922 3,892,505
----- -------------- --------------
9,541,478 6,909,754
----- -------------- --------------
Total assets 17,071,011 14,849,325
----- ============== ==============
Current liabilities
----- -------------- --------------
Trade and other payables (2,248,068) (2,205,302)
----- -------------- --------------
Total current liabilities (2,248,068) (2,205,302)
----- --------------
Net current assets 7,293,410 4,704,452
-----
Non-current liabilities
-----
Deferred tax liability (858,976) (942,938)
----- -------------- --------------
Total non-current liabilities (858,976) (942,938)
-----
Total liabilities (3,107,044) (3,148,240)
-----
Net assets 13,963,967 11,701,085
----- ============== ==============
Equity
----- -------------- --------------
Share capital 3 2,558,663 1,579,123
----- -------------- --------------
Share premium account 65,564,717 52,831,234
----- -------------- --------------
Own shares held (3,252,943) (808,856)
----- -------------- --------------
Share option reserve 1,316,020 626,738
----- -------------- --------------
Translation reserve (130,240) (176,624)
----- -------------- --------------
Retained losses (52,092,250) (42,350,530)
----- -------------- --------------
Total equity being equity attributable
to owners of the Company 13,963,967 11,701,085
----- ============== ==============
Consolidated Statement of Changes in Equity
At 31 December 2017
Share
Share Own shares Option Translation Retained Total
Capital Share Premium held Reserve Reserve Losses Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 31
December
2015 680,320 38,085,627 (808,856) 624,411 (145,661) (35,233,291) 3,202,550
---------- -------------- ---------------- ---------- ------------ ------------- ------------
Loss for the
year - - - - - (7,117,239) (7,117,239)
Other
comprehensive
income
for the year - - - - (30,963) - (30,963)
Total
comprehensive
income
for the year - - - - (30,963) (7,117,239) (7,148,202)
Issue of share
capital 898,803 14,745,607 - - - - 15,644,410
Credit to
equity for
share options - - - 269,692 - - 269,692
Debit to equity
for share
payments - - - (267,365) - - (267,365)
---------- -------------- ---------------- ---------- ------------ ------------- ------------
Balance at 31
December
2016 1,579,123 52,831,234 (808,856) 626,738 (176,624) (42,350,530) 11,701,085
---------- -------------- ---------------- ---------- ------------ ------------- ------------
Loss for the
year - - - - - (9,741,720) (9,741,720)
Other
comprehensive
income
for the year - - - - 46,384 - 46,384
Total
comprehensive
income
for the year - - - - 46,384 (9,741,720) (9,695,336)
Issue of share
capital 979,540 12,733,483 - - - - 13,713,023
Employee
Benefit Trust - - (2,444,087) - - - (2,444,087)
Credit to
equity for
share options - - - 421,917 - - 421,917
Credit to
equity for
share payments - - - 267,365 - - 267,365
Balance at 31
December
2017 2,558,663 65,564,717 (3,252,943) 1,316,020 (130,240) (52,092,250) 13,963,967
---------- -------------- ---------------- ---------- ------------ ------------- ------------
Consolidated cash flow statement
For the year ended 31 December 2017
Notes 2017 2016
GBP GBP
-------- ------------ ------------
Net cash outflow from operating
activities 4 (9,697,343) (7,061,808)
-------- ------------ ------------
Investing activities
-------- ------------ ------------
Acquisition of subsidiary - (4,367,670)
-------- ------------ ------------
Interest received 15,619 7,289
-------- ------------ ------------
Purchases of property, plant and
equipment (73,018) (80,289)
-------- ------------ ------------
Net cash used in investing activities (57,399) (4,440,670)
-------- ------------ ------------
Financing activities
-------- ------------ ------------
Interest paid (6,467) (4,525)
-------- ------------ ------------
Proceeds on issue of shares 11,804,432 13,487,320
-------- ------------ ------------
Share issue costs (535,493) (533,662)
-------- ------------ ------------
Purchase of bank securities (6,313) (15,207)
-------- ------------ ------------
Net cash from financing activities 11,256,159 12,933,926
-------- ------------ ------------
Net increase in cash and cash equivalents 1,501,417 1,431,448
--------
Cash and cash equivalents at beginning
of year 3,892,505 2,461,057
--------
Cash and cash equivalents at end
of year 5,393,922 3,892,505
-------- ============ ============
Notes to the Financial Statements
For the year ended 31 December 2017
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
International Financial Reporting Standards (IFRS) as adopted by
the EU.
The financial information set out above does not constitute the
company's statutory accounts for the years ended 31 December 2017
or 2016 but is derived from those accounts. Statutory accounts for
2016 have been delivered to the Registrar of Companies and those
for 2017 will be delivered following the company's annual general
meeting. The auditors have reported on those accounts: their
reports were unqualified and did not contain statements under s498
(2) or (3) Companies Act 2006 or equivalent preceding legislation
but did contain an emphasis of matter concerning the uncertainties
around the Group's ability to continue as a going concern. While
the financial information included in this preliminary announcement
has been prepared in accordance with the measurement and
recognition criteria of IFRS, this announcement itself does not
contain sufficient information to comply with IFRS. The company
expects to publish full financial statements that comply with IFRS,
as adopted by the EU, a copy of which will be posted to the
shareholders.
The financial statements were approved by the Board of Directors
on 18 May 2018 and authorised for issue. The Group's specific IFRS
accounting policies can be found in the 2017 annual report.
2. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
2017 2016
GBP GBP
Loss for the purposes of basic loss
per share being net loss attributable
to equity holders of the parent
9,741,720 7,117,239
============== ==========
Number of shares
2017 2016
No. No.
Re-presented
Weighted average number of ordinary
shares for the purposes of basic and
diluted loss per share 95,740,200 54,670,001
=========== ==============
The 2016 number of shares has been re-presented following the
200:1 share consolidation which took place on 3 October 2017.
The denominations used are the same as those detailed above for
both basic and diluted earnings per share from continuing
operations. However, in accordance with IAS 33 "Earnings Per
Share", potential ordinary shares are only considered dilutive when
their conversion would decrease the profit per share or increase
the loss per share from continuing operations attributable to the
equity shareholders.
3. Share Capital
2017 2016
GBP GBP
Issued and fully paid:
127,933,196 ordinary shares of 2.0 pence
each (2016: 15,790,791,254 ordinary
shares of 0.01 pence each, or re-presented
as 78,953,956 ordinary shares of 2.0
pence each) 2,558,663 1,579,123
========== ==========
4. Notes to the consolidated cash flow statement
2017 2016
GBP GBP
--- ------------- ------------
Operating loss for the year (11,153,094) (7,939,216)
------------- ------------
Adjustments for:
--- ------------- ------------
Depreciation of property, plant and equipment 68,504 45,619
------------- ------------
Amortisation of intangible assets and
goodwill 420,689 210,344
------------- ------------
Impairment of stock 55,615 -
--- ------------- ------------
Foreign exchange 46,220 47,870
------------- ------------
Share-based payment expense 689,282 2,327
------------- ------------
Operating cash flows before movements
in working capital (9,872,784) (7,633,056)
----------------- ------------
(Increase) / decrease in inventories (843,543) 247,307
------------- ------------
Decrease / (increase) in receivables 347,917 (1,713,013)
Increase in payables 42,766 1,457,369
------------- ------------
Cash reduced by operations (10,325,644) (7,641,393)
--- ------------- ------------
Income taxes received 628,301 579,585
Net cash outflow from operating activities (9,697,343) (7,061,808)
--- ------------- ------------
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 Company's Annual Report and Accounts in word format will be
available on the Company's website shortly after release of these
results. The Notice of AGM and Proxy Form and the full colour
Annual Report and Accounts will be posted to shareholders on 25 May
2018. The AGM will be held on 18 June 2018 at 2.30 p.m. at the
Company's registered office, Merlin Place, Milton Rd, Cambridge CB4
0DP.
(1)
http://www.tata.com/company/releasesinside/tata-power-increase-in-power-generation-fy17
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SFLFAAFASEDI
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