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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 India, the United Arab Emirates, and internationally. On 31 March 2024, the UK£25m market-cap company posted a loss of UK£3.8m for its most recent financial year. 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?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for CyanConnode Holdings
According to the 3 industry analysts covering CyanConnode Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of UK£2.9m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 78% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for CyanConnode Holdings given that this is a high-level summary, though, take into account that generally 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. CyanConnode Holdings currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
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There are key fundamentals of CyanConnode Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at CyanConnode Holdings, take a look at CyanConnode Holdings' company page on Simply Wall St. We've also put together a list of relevant factors you should further examine: