CyanConnode operating losses widen

CyanConnode's operating losses rose to £4,785,258 in the six months to the end of June - up from £2,858,715 last time and driven by increased R&D investment.

New order wins totalled £7.6m and the group's order book stood at £20m at he period end.

Executive chairman John Cronin said: 'We are delighted with the progress made during the period.

'The size and frequency of contract wins with new and existing clients reflects the strength of our operations and the value our partners see in our end to end solutions.

' Following the successful integration of the acquired Connode Sweden business, we have established and built a world class development and delivery organisation.

'We believe that deployments, which are set to commence during the second half, will result in significant revenue growth as we focus on delivering revenues and ultimately profitability.

'We have a strong and growing order book and the nature of our model, focusing on hardware installations followed by the commencement of long-term software license payments, provides high levels of recurring revenues while also enabling further margin improvements.

'These key fundamentals underpin our significant confidence in our ability to deliver substantial continued growth while there is significant scope for scalability within all the markets we are operating in - with over 100 million potential customers across Iran, Bangladesh and the UK, where customer contracts are already in place, in addition to the huge growth opportunity in India.'

CyanConnode also announced a proposed fundraising of up to approximately £8.6m through a conditional placing and subscription of up to 30,852,488 ordinary shares at 28p apiece and a share consolidation.

The company said the issue price represented a discount of 15.2% to last night's closing price.

It said the net proceeds would be used to fund future growth by investing in staff, research and development and working capital to execute on the company's order book, pipeline and growth plan.

The company also announced a proposed share consolidation whereby shareholders would exchange every 200 existing ordinary shares for 1 consolidated share.

The fundraising and consolidation are subject to shareholder approval.