CyanConnode Reports Record Revenues of Over £20 Million in FY2026 Trading Update

CyanConnode has put out a notably stronger FY2026 trading update, with expected revenue of more than £20 million, up from £14.2 million in FY2025. That is the headline investors will latch onto, and rightly so. This is a meaningful step up in scale for a business that has spent years talking about the size of the smart metering opportunity.

The market will also take encouragement from where that growth is coming from. A significant proportion of revenue is tied to the Goa project, where installation has now started, and that matters because it shows CyanConnode is not just winning contracts – it is moving into live delivery.

CyanConnode FY2026 trading update: the key numbers investors need

Metric	FY2026 update	FY2025 comparison
Expected revenue	In excess of £20 million	£14.2 million
Cash collected from customers	£10.8 million	£14.2 million
Cash collected at constant currencies	£11.6 million	Not disclosed
FY2025 receivables collected in FY2026	Approximately £2.3 million	Not disclosed
FY2026 receivables collected in FY2026	£8.6 million	Not disclosed

Two things jump out from that table. First, revenue is moving sharply higher. Second, cash collection has not kept pace with revenue growth, which means investors should stay alert to working capital and debtor collection.

Why CyanConnode revenue above £20 million matters for the investment case

Revenue of more than £20 million is a big improvement on £14.2 million last year, even before the final audited number is signed off. Management says a significant proportion came from the Goa project, where the first meters, integrated software platform and related services were successfully implemented in the second half of FY2026.

That is important because it suggests the business is progressing from being a technology supplier into something broader and potentially stickier. In simple terms, the more of the solution CyanConnode provides, the deeper it can get into customer projects.

There is also a strategic angle here. The Goa contract is described as CyanConnode’s first contract as an Advanced Metering Infrastructure Service Provider, or AMISP. That means it is not just supplying communications kit, but taking on a wider service role in smart meter deployments.

Goa project and first AMISP contract: a bigger role could mean better quality revenue

This is probably the most interesting part of the update. Being an AMISP could be more valuable than acting purely as a subcontractor supplying communications technology, because it moves the company closer to the end customer and broadens the revenue opportunity across hardware, software and services.

The RNS does not disclose margin, so we cannot say whether the Goa work is more profitable. But strategically, it looks positive. A broader role can strengthen customer relationships, improve visibility and make the company harder to replace.

Just as importantly, installation has now commenced. Investors in smaller growth companies have seen plenty of contract announcements over the years that take a long time to convert into real revenue. Here, CyanConnode is showing delivery on the ground, not just pipeline talk.

New lower-cost product suite could help margins, but deferred shipments are a short-term drag

The second major point in the update is the move towards completion of a new product suite. This includes the FG28 module, cellular modules and In-Meter Gateways, all of which management says have significantly lower costs to the company.

That sounds encouraging for future profitability, even though no margin guidance is given. Lower-cost products can support better gross margins, improved competitiveness in tenders, or both.

There is, however, a trade-off. In anticipation of the new product launch, CyanConnode deferred certain hardware shipments. As a result, a lower proportion of FY2026 revenue came from the part of the business where it acts as a subcontractor supplying only its communication technology.

That tells you two things. First, management appears willing to push shipments back in order to launch updated products rather than force older kit into the market. Second, FY2026 revenue mix was affected by timing, not just underlying demand.

Hardware shipments are expected to increase after the new product launch, which is targeted for the first half of FY2027. That gives investors a possible near-term catalyst, but it is still a target, not a certainty.

Cash collection in the CyanConnode FY2026 update is the main area to watch

For all the positive noise around revenue, the cash collection number deserves proper attention. CyanConnode collected £10.8 million from customers during the period, or £11.6 million at constant currencies, compared with £14.2 million in FY2025.

Trade receivables are money owed by customers. Of the £10.8 million collected, around £2.3 million related to FY2025 receivables and £8.6 million related to FY2026 receivables.

That does not automatically mean there is a problem, because project-led businesses often see a timing gap between booking revenue and receiving cash. Still, if revenue is above £20 million and cash collected is £10.8 million, investors are right to keep an eye on debtor days and working capital when the full results arrive.

The company also used the update to clarify a point from its interim results. At that time, cash collection since 30 September 2025 was stated as £1.6 million, of which £0.3 million related to FY2025 receivables and £1.3 million to FY2026 receivables. That extra detail is useful, even if it also hints that the market has been scrutinising collections closely.

APAC, Middle East and India tenders keep the growth story alive for FY2027

Beyond the reported year, CyanConnode says it is making steady progress with several long-term prospective projects in the APAC region and the Middle East. These opportunities are said to be moving closer to order stage and could represent good growth potential if secured.

That wording is positive, but investors should treat it with the usual caution. “Moving closer” is not the same as signed business. For small-cap companies, order timing can slip, and tenders do not always convert.

Still, it is helpful that the company is active in multiple lanes. It is participating in a number of tenders in India, both as an AMISP and as a subcontractor. That suggests CyanConnode is keeping strategic flexibility rather than relying on a single commercial model.

My take on the CyanConnode trading update: encouraging progress, but cash conversion still matters

Overall, this is a good update. Revenue is materially higher, the Goa project is now live at installation stage, and the first AMISP contract could mark an important shift in the quality and breadth of revenue.

The new product suite is another genuine positive. If lower-cost modules and gateways launch smoothly in H1 FY2027, that could support both demand and profitability.

The main note of caution is cash. Revenue growth is great, but smaller companies ultimately need cash collection to follow through. Until investors see the audited FY2026 results and a clearer picture on receivables, that remains the part of the story worth watching most carefully.

So the short version is this: the operational story is improving, the strategic positioning looks stronger, and the pipeline remains active. But the market will want proof that this growth turns into cash, not just revenue on paper.