When Will CyanConnode Holdings plc (LON:CYAN) Become Profitable?

We feel now is a pretty good time to analyse CyanConnode Holdings plc's (LON:CYAN) business as it appears the company may be on the cusp of a considerable accomplishment. CyanConnode Holdings plc engages in the design, development, and sale of narrowband radio frequency (RF) mesh and cellular networks that enable Omni Internet of Things (IoT) communications in the United Kingdom, India, Thailand, rest of Europe, the United Arab Emirates, and internationally. With the latest financial year loss of UK£2.4m and a trailing-twelve-month loss of UK£2.2m, the UK£25m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which CyanConnode Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for CyanConnode Holdings

CyanConnode Holdings is bordering on breakeven, according to the 2 British Semiconductor analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£2.9m in 2025. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 80%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for CyanConnode Holdings given that this is a high-level summary, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 11% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of CyanConnode Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – CyanConnode Holdings' company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

1. Historical Track Record: What has CyanConnode Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CyanConnode Holdings' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.