Cyan suffers Indian delay but eyes imminent close

Wireless controls specialist Cyan's revenues shrank by almost a third last year but the company trimmed losses and said a 'transformational' contract in India was nearing completion.

Wireless controls specialist Cyan's revenues shrank by almost a third last year but the company trimmed losses and said a 'transformational' contract in India was nearing completion.

The Aim outfit, whose wireless solutions are being used by a number of utility meter companies to create 'smart meters', said the public tender process with the Tamil Nadu Electricity Board (TNEB) was now at an advanced stage with all technical evaluations having been completed.

Executive Chairman John Cronin, who joined in March 2012, said he was disappointed not to have been able to announce the award of the TNEB tender to Cyan's meter manufacturer partners.

The company said the delay to the announcement of the tender contract was one of the reasons that the fulfilment of a $1m order announced in 2012 would be pushed back to 2013.

With the strategic decision to focus on smart metering in India, lighting revenues in China declined, leading to annual revenues falling 31% to £0.3m. Operating losses were cut to £3.1m from £3.6m the year before.

Cyan has not revealed all the names of its four manufacturer partners in the TNEB tender for 1.5m replacement meters, and it is thought that its technology is being used by most if not all of the companies involved in the process as the only means of guaranteeing the tender's stipulated inter-operability between different meters.

Cronin said: "our meter manufacturer partners are very well placed to be awarded this tender, which will then in turn give them a strong position for the second and larger tender, that we understand will follow on shortly afterwards."

The initial tender for 1.5m utility meters is the first part of an overall program to install or replace 18m meters.

Cronin added that the award of the TNEB tender to Cyan's partners "will be transformational in terms of our competitive position in the Indian metering market as well as putting Cyan on a solid financial foundation".

Cyan has a number of other smart metering opportunities in India with strategic partners in several meter manufacturers and system integrators.

Since December 2011 Cyan has raised £3.8m and had £1.6m cash in the bank at the year end before it raised a further £1m gross in April 2013 to further strengthen balance sheet and fund continued growth.

Shares in Cyan were down 6% to 0.53p at 12:45 on Friday.

OH

Recommended

Share tips of the week – 9 December
Share tips

Share tips of the week – 9 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
9 Dec 2022
The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
The pros and cons of smart meters – should you switch?
Personal finance

The pros and cons of smart meters – should you switch?

A smart meter can help you keep tabs on your energy usage, but is it better than a regular meter? We take a look at smart meters vs regular meters.
2 Dec 2022