Cyanconnode Share Discussion Threads

[realist1950] 26/6/2018 09:04

The BOD should also confirm, or otherwise, if there are any other funds still to be paid for services rendered in previous financial years that have not yet been received.

Holders should not be prepared to put up with that kind of 'BS' going forwards.

[realist1950] 26/6/2018 09:00

Laughable update today.

JC still to receive near quarter of a million quid (should the revenues hit £7M)....and a whopping £170,000 if they don't.

This is AIM John, if you hadn't noticed! You're running a small company that has, to date, eroded the value of shareholders holdings as well as turning in a record loss figure of over eleven million pounds.

I would remind the BOD that turnover is vanity, profit it sanity.

I could register a business today and achieve revenues of £10M in my first year without breaking a sweat. I'd just sell £50 notes for £45. So long as I can tap people to buy my £45 quids, my turnover would be stratospheric.

In my opinion, revenues of £7million does not necessarily mean the company is a going concern. Nor does it prove a business model. Nor does it necessarily mean the company is fully funded and no longer needing bailing by retail investors. Nor does it ensure that current holders are not diluted any further.

Everything expressed is in my opinion only and is written without prejudice.

ADYOR as ever.

I suspect a big fat fundraising is on the way.

We'll see.

[davep4] 26/6/2018 08:45

I guess if they don’t achieve £7m they will be shown the door!

[multibagger] 26/6/2018 08:19

Fully agree with you emptyend - looks like £7m is revenue this year is in the bag and allows for the remaining £3m as "margin of safety".

Reduction is salary is very significant in cash terms - given that both have agreed to the same and not walked is a sign that they see the commercial potential in the near future for CYAN. They are playing the long game.May be this is the short term Stamp effect.This will also allow them to negotiate a bigger remuneration package when things come to fruition. Good on JC and HB - shows committment.

If share holder value is created, most will not grudge the package for their efforts - though some on the BB will never be satisfied.

I can't recall another company where this level of pay reduction has gone through - though I am sure that there are.

Could we see a minor share price uplift today ? I won't be surprised as I see this as a major development.

Good luck all :)

[owenski] 26/6/2018 08:03

"I think shown the door pretty sharpish would be a given."

But on the way out he steals an ashtray and some company pens as freebees.

[lwaxf13] 26/6/2018 07:51

Remuneration still far too high IMO. Imagine agreeing to get paid a basic salary that high at a job interview and openly telling the interview panel you were not the person to grow the business but you tell them you have history of destroying the share price as you flip flop from one failed idea to the next. You think you would get hired?!! Err I think shown the door pretty sharpish would be a given.

[emptyend] 26/6/2018 07:45

Looks a sensible balance. Well done Mr Radcliff.Note particularly the £7mn revenue condition, which will clearly have been set at a level that they firmly expect to beat.

[multibagger] 26/6/2018 07:35

26 June 2018

CyanConnode Holdings plc

Changes To Executive Directors Pay

CyanConnode Holdings plc (AIM:CYAN), the world leader in narrowband radio mesh networks, announces changes to Executive Directors' remuneration, with effect from 1 July 2018.

At the Company's AGM on Monday 18 June 2018, the Executive Directors announced that there were ongoing discussions relating to a reduction to their total remuneration package, including their bonuses. The changes which have been agreed with the company's Remuneration Committee are as follows:


John Cronin
Remuneration to be paid in cash GBP170,000
-----------
*Remuneration to be paid in ordinary GBP70,000
shares
-----------
Total Annual Remuneration GBP240,000
-----------

Harry Berry
-----------
Remuneration to be paid in cash GBP100,000
-----------
*Remuneration to be paid in ordinary GBP50,000
shares
-----------
Total Annual Remuneration GBP150,000
-----------


* The terms relating to the remuneration paid in ordinary shares are as follows:-

i) The remuneration to be paid in ordinary shares will only proceed if the Company's revenues for the year ended 31 December 2018 exceeds GBP7M.

ii) The shares will be allotted 10 days after the January 2019 trading update, (should the Company be in a close period at that time, the allotment will be as soon as the close period comes to an end).

iii) The price of the allotted shares will be calculated as the average mid-market closing price for the five days prior to the day that the allotment of the shares becomes due.

These changes are aligned with the Company's strategic focus which, in the last year, has resulted in order book increases, with orders won from a range of customers opening up new territories. The Board and management team were also streamlined and strengthened, with the Group firmly focused on converting its order book into revenue.

In respect of these reductions in Director remuneration, Paul Ratcliff, Chairman of the Remuneration Committee commented:

"The Committee has listened to shareholders' feedback and taken decisive cost-saving action. This payment reduction has seen the remuneration for these two Executive Directors significantly reduced when compared to their remuneration for 2017.

Furthermore, the share element of the Executive Directors remuneration will only be made on the achievement of the Company achieving revenues of GBP7M in 2018. This performance related target provides a clear metric of success for both the Company and its investors. This is a clear statement of intent that the Directors remain focused on the sustainable long-term delivery of the business plan."

The company has taken a number of positive steps to manage and reduce its cost base, with significant reductions being made in the last six months. The cost base from July 2018 onwards is expected to be around GBP650k per month, which is significantly lower than the average operating cost per month in 2017 of approximately GBP808k.

[mtw] 25/6/2018 23:24

He just asks for your credit card to put petrol in before taking the keys...

[owenski] 25/6/2018 17:49

And as he walked there to do the burglary, he asks you for a lift home as he's got too much stuff to carry.

[owenski] 25/6/2018 17:48

lol Iwax, that was funny

[lwaxf13] 25/6/2018 17:39

Or as he is leaving with his overflowing swag bag announces he has an option on your sofa and as soon as you get up he will be back for it and the carpet :-)

[realist1950] 22/6/2018 17:32

stedon.....that's if you've a carpet left.

[realist1950] 22/6/2018 17:31

LOL Iwaxf13.

If they are to take reduced renumeration for a years service, then it should cover the financial year in question imo, and not straddle years.

Makes it easier with the accounts, does it not, to see exactly what was paid in a particular financial year?

Also, I would like John Cronin and co. to make it clear, from this point going forwards, if the company owes him, or any other member of staff, anything for services rendered in previous financial years, for which he has not yet been paid.

AIMO ADYOR

[lwaxf13] 22/6/2018 16:36

Not only coming back the next night but coming back and brazenly taking your stuff whilst you are sat there watching Crimewatch. So you know exactly what is going on and whi is doing it. Without as much as a balaclava :-)

[mtw] 22/6/2018 14:18

Its a bit like a burglar not taking everything in one go but coming back the next night...

[realist1950] 22/6/2018 14:05

If reduced renumeration, I expect it to be bridged / straddling two financial years.

We'll see.

[lwaxf13] 21/6/2018 17:46

New deal sounds like a government employment scheme. Prob some deal where they cannot lose money with low bar options far below the share price on the day they arrived. Let's see how they carve this up. Can't wait to see the rewards for failure :-)

[realist1950] 21/6/2018 14:14

Agreed.

Question is, how much dilution?

Company has pretty much already declared in a previous RNS that funds will be needed.

Further, looking at where the business is, it's target markets and the inherent uncertainties I don't think the next fundraising will be the last, either.

Apparently "John and Harry" will be on a different renumeration package a little later in the year.

Is this going to be another of their yr end staggered affairs, the likes of which they did before? I'm all ears. Lets see what the new deal looks like.

(Head in hands).

[mtw] 21/6/2018 13:18

pitiful pump... hardly any protection here now before the expected fund raise.

[emptyend] 20/6/2018 16:51

No details provided (that I heard). Implied that there would be detail forthcoming shortly.

[lwaxf13] 20/6/2018 15:49

I would reckon based upon performance and delivery to date adjustment of -90% on the packages would be reasonable. Though my real view is still they should have been sacked years ago when it was very apparent they were not up to it and were trousering an awful lot of money for delivering share value destruction.

[bscuit] 20/6/2018 15:09

Was there detail provided? Even in percentage terms?

[emptyend] 20/6/2018 14:54

Yes. They will be effective from July and will feature reduced cash compensation.