CyanConnode Holdings PLC on Friday said its loss narrowed in the first half of its current financial year despite a decline in revenue, as its expenses reduced nearly 20%.

The Cambridge, England-based developer of narrowband radio frequency mesh networks said its pretax loss for the six months that ended September 30 narrowed to £2.1 million from £2.2 million a year prior.

Revenue fell 3.5% to £5.6 million from £5.8 million last year, while cost of sales reduced 19% to £3.3 million from £4.0 million.

Chair John Cronin said: ‘CyanConnode’s order book has demonstrated strong growth, more than doubling during this period from 6.3 million units at the start of the year to 13.1 million units. Our current backlog stands at 9.7 million units yet to be deployed, having increased substantially from 3.5 million units at the end of March 2024, with a significant portion of this expected for delivery in the second half of financial 2025.

‘Historically, our revenue recognition is heavily weighted toward the final quarter of our financial year, as order completions and deployments often peak near year-end. We expect this seasonal trend to continue, with a substantial proportion of this year’s revenue materialising in the fourth quarter.

‘Given this pattern, we remain confident in meeting market expectations for financial 2025.’

CyanConnode did not on Friday specify what it believed market expectations to be.

Shares in CyanConnode were down 9.0% at 10.58 pence each in London on Friday morning.

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