LOI for $3m smart meter order
Cyan Holdings plc
("Cyan" or the "Company")
Cyan receives Letter of Intent for US$3 million smart meter order in Western Africa
Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces that it has received a letter of intent ("LOI") from El Sewedy Electrometer Group EMG ("El Sewedy") to supply Cyan's CyLec® Advanced Metering Infrastructure ("AMI") solution for a smart meter contract which El Sewedy has been awarded in Western Africa.
The LOI states that, subject to contract, El Sewedy intends to appoint Cyan to provide a full AMI solution for up to 200,000 consumers in batches over three years. If deployed in full the contract could be worth up to US$3 million to Cyan. Cyan will immediately start working towards signing a contractual order with El Sewedy for the 200,000 meters indicated, but the LOI is no guarantee of the terms or timing of any such order or if a contract will be signed.
The potential order is intended to include 865MHz RF AMI modules, 865 MHz RF In-Home Display ("IHD") modules, Data Concentrator Units ("DCUs"), Head-End Server software licenses and a software maintenance contract. The Cyan AMI modules would be integrated into the El Sewedy electricity smart meters and the Cyan IHD modules would be integrated into El Sewedy's IHD device. The resulting solution will provide a full bi-directional communication system from the IHD to the electricity smart meter and then through the Cyan communication network to the utility's billing systems.
In a joint analysis that Cyan and El Sewedy prepared (and in addition to Aggregate Technical and Commercial losses) the West African utility could save over US$150M over a ten year period from the 200,000 meters by using the Cyan radio mesh communication network solution compared to a GPRS sim card based smart metering communication solution which was also evaluated. In their year-end 2012 financial report, the West African utility stated that they had over 2.5 million customers.
In July 2014, Cyan announced that it had signed a Memorandum of Understanding ("MOU") with El Sewedy Electrometer India Pvt Ltd ("El Sewedy India") who are a wholly owned subsidiary of El Sewedy. The MOU was an agreement for El Sewedy India and Cyan to tender as part of a consortium for a number of smart metering projects in India and other target markets. Cyan and El Sewedy are also working on a number of other opportunities in India as well as other emerging markets around the globe where El Sewedy has existing facilities and utility customers.
John Cronin, Executive Chairman of Cyan, commented: "I am delighted to update shareholders on this significant LOI which has been signed by the El Sewedy Chairman following my meeting with him at the El Sewedy worldwide headquarters in Cairo last week. This is a substantial commercial opportunity for Cyan which also could accelerate entry into other key countries using El Sewedy as a channel to market to their existing and new customers."
* www.sewedy.in/CompanyProfile.html, www.elsewedyemg.com/index.php/en/elsewedy-emg
Enquiries:
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Cyan Holdings plc |
Tel: +44 (0) 1954 234 400 |
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John Cronin, Executive Chairman |
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Allenby Capital Ltd - Nominated Adviser and Joint Broker |
Tel: +44 (0) 203328 5656 |
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Jeremy Porter / Alex Brearley |
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Beaufort Securities Limited - Joint Broker |
Tel: +44 (0) 20 73828300 |
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Elliot Hance |
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Walbrook PR - Financial PR |
Tel: +44(0) 20 7933 8780 |
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Paul Cornelius/Nick Rome
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About Cyan
Cyan is an integrated system design company based in Cambridge, UK. It provides a communication platform that enables the measurement and control of energy consumption for the metering and lighting markets, helping to reduce energy losses. Cyan's wireless mesh networking platform offers 'last mile' connectivity between millions of devices and enterprise software, supporting bilateral communications with the end customer.
For more information, please visit www.cyantechnology.com.
About CyLec®
CyLec® is a complete control and communication network for electricity metering. CyLec® uses wireless technology to enable the collection and delivery of data from and to a meter, such as energy profiles, instant readings and the sending of tariff updates. Priority data can also be sent back to the utilities such as information regarding tampering enabling the utility to take action immediately.
About El Sewedy
According to El Sewedy*, the ABS Research-UK Report of 2009 ranked El Sewedy number five in the worldwide metering market, with more than 25 million meters and metering solutions running in more than 58 countries around the world. El Sewedy is a market leader in providing state of the art metering solutions and energy management services that are tailored to manage utilities better. El Sewedy has 1,600 employees and 10 factories in the Czech Republic, Egypt, Mexico, Brazil, India, Ghana, Zambia and Ethiopia. El Sewedy was founded in 1998, has annual revenues of US$175 million and a production capacity of 6 million meters per annum.
This information is provided by RNS
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