LONDON (ShareCast) - (ShareCast News) - Integrated systems and software design company Cyan Holdings' half year profits rose in line with expectation as due to the acquisition of CyanCannode and a growth of international contracts.
In the AIM listed company's trading update for the six months ended 30 June, it said revenue increased more than 500% to over £1m, compared to the same period last year.

Cyan Holdings said the last year was busy due delivering contracts which were won in 2015 and the acquisition of Connode Holdings on 1 July.

The group expended its global reach which contributed to the increase in revenue in the first half of the year. In India it completed two contracts worth about £1.5m to Enzen Global Soultions, which were implemented on behalf of Chamundeshwari Electricity Supply (CESC) and Paschimanchal Vidyut Vitran Nigam (PVVNL).

The company said it also had a follow-on order for a further 5,000 meters from Larsen & Toubro for India's Tata Power in January.

In April the company's recent acquisition, CyanConnode had a £10m order for smart metering from Micromodje in Iran, which was secured following the lifting of sanctions. The company said the order was "significantly larger than any order received to date".

The company also made an agreement with JST in May to distribute CyanConnode's smart metering technology in Thailand. JST invested £2m into CyanConnode as part of the £12.6m placing and subscription announced during the year which funded the acquisition of Connode and provided working capital.

As part of the acquisition, the group also acquired Connode India, which the company said will strengthen CyanConnode's presence in the Indian market.

CyanConnode executive chairman John Cronin said: "The performance during this period reflects the group's growing customer orders which have led to a substantial increase in revenues. We have strong relationships in place and have rapidly increased our target markets.

"Buoyed by the acquisition of Connode, which adds geographic reach and relevant standards to CyanConnode's portfolio, we remain excited by the group's growth prospects. We continue to explore global opportunities and look forward to integrating the Connode team and products, securing more repeat orders and benefitting from increased levels of recurring revenues. We expect trading during the second half to reflect our increasing levels of commercialisation."

Shares in Cyan Holdings rose 2.17% to 0.179p at 1530 BST.

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