Cyan Holdings

Smart metering represents a giant, unfulfilled, scalable and truly global growth opportunity with the potential to attract large, long-term and exceptionally sticky customers. Beaufort’s assessment of the enlarged, post-raise, post-acquisition Cyan Holdings suggests valuation of £123.9m. It was derived from a peer group valuation, while recognising it is ideally positioned to provide packaged solutions to utility operators that urgently need to regain control of their distribution network. Their payback comes in the form of accrued efficiencies which optimises grid infrastructure and emulates customer behaviour. Indeed, as the operating advantages become increasingly evident, the extent to which demand for benchmarked CyanConnode products and technology begins to overwhelm the Group’s operational structure could become a key risk. Right now, however, that might be considered a nice problem to have. Speculative Buy – 21/09/16

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