AMATI doubles stake holding in AIM listed Sabien Technology Ltd

Investor news

Published: 02 December

Author: Alan O’Brien

Type: Investor news

Year: 2011

In a move reflecting increasing investor confidence in Sabien Technology and its patented M2G boiler control, specialist investment manager Amati Global Investorshas doubled its shareholding in the company to 17.4%.

The share purchase coincides with a recent Sabien ‘case study’ for the Department of Energy and Climate Change (DECC – see Note 2)

The case study for  DECC, demonstrates the appeal of Sabien’s technology offering to a wide cross section of both private and public companies  and the growth Sabien is experiencing as a result

It is no coincidence that some of the highest ranking companies in the CRC Energy Efficiency’s (CRC) first performance league tables have installed Sabien’s M2G technology, including BT, Keele University, O2, Environment Agency, Dover Port, and University of Central Lancaster.

For example, a project for Lincolnshire County Council, involved the installation of Sabien’s M2G across 23 properties, resulting in a 15% reduction in gas consumption and a saving of 1,980 tonnes in CO2 emissions.

Properties fitted included residential homes, libraries, registry offices and council offices. The Council forecasts that it will save £4,752 of CRC costs per year.

Sabien’s appeal to professional investors is also becoming increasingly apparent: Amati’s Dr. Paul Jourdan said “Amati has followed Sabien Technology since the company floated at the end of 2006.

“Market conditions led to the timing of our first significant investment in 2009 for Amati VCT, and in the wake of the company’s impressive progress we decided to make this further significant investment”.

“Sabien’s patented M2G boiler control, undeniably has a very large addressable market both in the UK and internationally,” he added.

“We see this as an excellent VCT investment in particular, as there is a huge return, both financially and socially, if this can be successfully commercialised at scale, not to mention the environmental benefits.

“While the commercialisation process for a new product such as Sabien’s M2G is long term, requiring significant management skill and tenacity, we believe that Sabien has reached that crucial tipping point.

“Broader awareness of the energy saving potential and high return on investment that the M2G boiler control brings to customers means that demand for the product is accelerating rapidly,” said Jourdan.

Looking to 2012 and beyond, Jourdan predicted that the scalability of Sabien’s business model points to the next phase of the company's life “probably being very profitable.

"Having realised that a large block of shares was overhanging the market, we decided that this represented a rare opportunity for our funds to gain further exposure to this high-growth business.  We are excited about what the future brings for Sabien," he said.

Alan O’Brien, Sabien Chief Executive Officer said the significant increase in Amati’s shareholding, was a tremendous vote of confidence in the company and management team.

“We are now seeing large scale investment and deployment of retrofit projects and, as the league tables are published and the financial and reputational impacts are realised, we expect demand for proven energy efficiency technology will increase further.”

Notes:

Amati Global Investors is a specialist investment management company established by Paul Jourdan and Douglas Lawson.   The CF Amati UK Smaller Companies Fund was awarded Small-Cap Fund of the Year for 2011 by Growth Company Investor.

Amati is also well known for managing AIM based VCTs in the form of Amati VCT and Amati VCT 2.  More recently the company has taken on an investment team which originated in BP to operate a rigorous and systematic trend following investment process in a managed futures fund.

Please follow link to see full case study on DECC website:

The DECC case study demonstrates the demand being generated by the CRC for energy efficient goods and services is helping many businesses in the UK. The case study is an illustrative example of this growth and is not an endorsement of any particular company’s products.