CyanConnode (LON:CYAN), a UK-based smart metering technology provider focused on India and international markets, has entered the new financial year with improved clarity, strengthened balance sheet, and operational momentum. According to the latest research note from Harvey Robinson, Research Analyst at Panmure Liberum, the company’s full-year results for FY25 came in line with expectations and mark a transitional phase towards a more disciplined and scalable operation.
FY25 Financial and Operational Highlights
The full-year results came in line with expectations set in the April trading update. While revenue fell to £14.2m from £18.7m in FY24, this was mainly due to deployment delays beyond the company’s control. Encouragingly, CyanConnode improved its gross margin to 35% from 30%, thanks to the launch of new, lower-cost products, and continues to target margins of 30–37% in early project phases, rising to an impressive 90% over time.
Operating costs held steady at £9.1m, while the operating loss narrowed slightly to £3.8m (from £4.2m), helped by stronger margins and the absence of an asset impairment charge seen in the previous year. EBITDA loss improved to £3.5m and loss before tax fell to £3.7m. Adjusted EBITDA loss remained stable at £2.8m.
In terms of liquidity, CyanConnode made notable strides. A £5.4m equity raise in September 2024 and a £5m shareholder loan in March 2025 significantly bolstered its cash position. At the end of March 2025, the company held £5.8m in cash and other financial assets, a substantial rise from £0.8m in FY24. As Robinson notes, “based on detailed cash flows provided to the Board within the FY26/27 budget, there is sufficient cash to see the Group through to profitability based on its standard operating model.”
Smart Metering Momentum in India
India’s smart meter roll-out remains central to CyanConnode’s story. As of March 2025, only 23.9m smart meters had been installed—less than 10% of the government’s original 250m unit target. Given that the deadline under the RDSS scheme may be extended to FY27–28 and the total target may rise to 330m, the addressable market remains vast.
CyanConnode shipped 568,000 Omnimesh modules in Q1 FY26—representing 45% of its FY25 shipment total. This reflects an acceleration in activity and a strong start to the current year. With the company’s win rate in India currently at around 20%, there’s significant room for further market penetration beyond the 14 million modules ordered to date.
A Bold Move with DigiSmart
An exciting development has been the signing of a £70m contract by CyanConnode’s subsidiary, DigiSmart Networks Pvt. Ltd., with the Goa Electricity Department for the deployment of 750,000 smart meters. Notably, this project is fully funded and adds to the company’s growing backlog, which now stands at £180m.
This marks CyanConnode’s foray into a different business model—operating as an Advanced Metering Infrastructure Service Provider (AMISP). As Harvey Robinson explains, “The company is working through the impact on forecasts of DigiSmart and will update the market in due course.”
Strengthened Governance and Leadership
One of the most important changes in the past year has been the separation of the Chairman and CEO roles. On 9 May, Björn Lindblom, formerly an independent Non-Executive Director, became Non-Executive Chairman, while John Cronin transitioned to the role of Group CEO.
Lindblom brings a wealth of experience in communications and IoT, having previously served as CEO of Connode AB before it was acquired by Cyan in 2016. He is also the Co-Founder and Chairman of Luvly AB, a company focused on sustainable electric vehicles.
Robinson highlights the significance of this leadership evolution, commenting that “the Chairman and CEO roles have also been split, improving governance.”
Opportunities Beyond India
While India remains a key focus, CyanConnode is not standing still internationally. In the MENA region, it continues to deploy smart metering contracts and recently established a subsidiary in Dubai. A follow-on order announced in October 2024 is expected to be fulfilled within the current financial year.
Meanwhile in Thailand, CyanConnode, in partnership with JST and Forth, has made significant strides with the Smart Metro Grid project for the Metropolitan Electricity Authority (MEA), which has now gone live. Engagements are also underway with utilities in Malaysia and Indonesia.
Market Outlook and Valuation
Despite a dip in FY25 revenue, CyanConnode’s valuation remains grounded with a market cap of £29.2m and net cash of £5.8m as of March 2025. Its capital structure was further reinforced by the issuance of two unsecured convertible loans totalling US$15m at a 7% interest rate. Although there is no set conversion price, Panmure sees the enhanced liquidity as a near-term positive.
Harvey Robinson adds perspective, saying, “While there is concern around not having a formal strike price, and the potential technical situation this could create, we believe the improved cash position outweighs that in the near term.”
In Summary
CyanConnode continues to chart a disciplined path through a complex operating environment. While revenue has dipped due to timing issues, the improved cash position, the major contract win in Goa, and strong early trading in FY26 suggest that the fundamentals remain intact.
With enhanced governance, a robust project pipeline, and expanding geographic reach, CyanConnode is positioning itself smartly for the long term. Investors will be watching closely as the company leverages both its core narrowband mesh expertise and new revenue streams via DigiSmart.
As Panmure’s Harvey Robinson puts it succinctly, “The core CyanConnode business has had a strong start to current year with Q1 seeing 568k module shipments (45% of FY25 total)… there is significant pent-up demand.”
Key Highlights from FY25 Results:
- Revenue: £14.2m (FY24: £18.7m)
- Gross margin: 35% (FY24: 30%)
- Operating loss: £3.8m (FY24: £4.2m)
- Cash and financial assets at FY-end: £5.8m (FY24: £0.8m)
- DigiSmart wins £70m AMISP contract in Goa
- Module shipments Q1 FY26: 568,000 units
- Order backlog: £180m
- Convertible loans raised: $15m
