Shares in CyanConnode Holdings PLC (AIM:CYAN) fell 20% in early trading on Monday after the smart metering company warned of a revenue shortfall caused by delayed shipments to India.
The AIM-listed group said it expects to report around £14 million in revenue for the year to the end of March, significantly below earlier forecasts, and will post an EBITDA loss for the period. The shortfall follows a last-minute disruption to deliveries that had been scheduled for March, as local and national elections in India slowed decision-making, and consumers resisted switching to prepaid smart meters.
Despite the setback, CyanConnode said underlying orders remain intact, and pointed to the Indian government’s decision to increase its national smart meter target from 250 million to 330 million units.
The stock was off 2.02p at 8.08p.