Cyan jumps on further contract win in Brazil

17th Jun 2014 09:55

AIM-listed Cyan Holdings saw its shares leap by a third on Tuesday morning after the software designer won a contract from partner Nobre to run a second pilot of its retrofit smart metering unit in Brazil, following the success of the first. The second pilot will test whether the consumer's power supply can be remotely connected and disconnected without having to send utility staff on site, currently a significant cost for Brazilian utilities. Nobre has contracted a Brazilian firm to build volume orders of the new retrofit product on its behalf, with first orders expected in the fourth quarter of this year, and shipments in 2015. The group also said a further pilot scheme with a second tier one Brazilian utility was at the planning stage. Cyan's Chairman John Cronin said: "Nobre are doing a great job of developing the smart metering market for Cyan in Brazil. They have made strong progress in a short period of time and are confident of securing orders before the end of 2014. "From the information Nobre has gathered, we understand the retrofit solution is going to be very competitive in Brazil, where consumer smart metering deployments have not gone ahead due to the high cost and complexity of US developed smart metering solutions. We continue to support Nobre on a day to day basis and are confident that they will achieve the performance criteria related to sales in our agreement in order that their exclusivity continues."A report released by GlobalData in January predicted that smart meter market revenues in Brazil would grow tenfold to $432m by 2020. Shares in Cyan had leapt 37.88% to 0.228p by 10:11.NR