Investor interests should be centered on energy efficiency...

Industry comment

Published: 03 March

Author: Alan O’Brien

Type: Industry comment

Year: 2011

Investor interests should be centered on energy efficiency, where real savings and profits can be generated for customers without the need for subsidy or political interference, argues Sabien Technology

HIT AND MISS performance in the ‘eco’ stock sector has to date dampened enthusiasm for investment in AIM listed firms but Sabien Technology Group plc, manufacturer and supplier of M2G - an energy efficiency technology,  argues that many companies have yet to prove that they can deliver on promises to the markets.

“There is an interest in green technology and its potential to deliver for investor portfolios, but it is also true to say that many fund managers and professional investors have been put off by below par performances and too many businesses that have been unable to commercialise their activities” said Alan O’Brien, Sabien Chief Executive Officer.

“It is unfortunate that many smaller companies have faced political interference in their renewable energy and cleantech activities, however it is our view that the industry must reach an unsubsidised operating environment to fully justify wider investor interest.

“Investors want to see healthy order books, steady cash flows, diversified business models and excellent growth prospects yet, to date, far too many companies appear to have attracted significant investor interest but then do not have the structures in place to actually achieve their promised targets,” he warned. 

“In our view it is about deliverables. In order not to disappoint investors, growth projections, sales targets and expansion plans have to be realistic in the face of varying market conditions.

“Investors want to see key structures in place in order to capitalise on the potential for the technology. It is one thing to develop market-leading, cutting edge technology, but then the company has to be able to make sure it can keep pace with demand and continue to open up new sales avenues,” added O’Brien.

Sabien Technology recently revealed a substantial rise in sales, healthy pre-tax profits and a dynamic order book which signals continuing growth for the second half of this financial year.

The company also revealed continuing demand for its M2G technology from both public sector organisations and high profile, blue chip companies.

“One significant factor which has helped us reach profitability is our sales pipeline reflecting demand from major public and private organisations,” said O’Brien. “In our view this is a significant attraction for investors.”

Recent signings include Corrigenda/Hampshire County Council, the London Borough of Greenwich, Norland/Lloyds Banking Group Plc, Lincolnshire County Council and British Telecommunications Plc.

The high profile contract wins reflect the fact that Sabien has created an excellent, profitable base for the business to continue to thrive – all factors which should prove extremely attractive to professional and institutional investors.

O’Brien concluded: ‘‘In the current economic climate, businesses that can deliver real costs savings for customers while adhering to socially responsible investing are a natural destination for investment.

”Feedback from our clients confirms that Sabien’s energy saving technology and nationwide project mobilisation “know how” has met or exceed all expectations and we look forward to making continuing progress in the months and years ahead.“

If you would like to contact Sabien for further information please click here or find out more information about M2G please click here