Sabien looks to fire up investors
The 2006 UK Climate Change and Sustainable Energy Bill may not be everyone's idea of bedtime reading. But the government's commitment to reduce carbon dioxide emissions by 3% a year until 2050 has created an opportunity for boiler technology specialist Sabien Technology (SNT: AIM)
Sabien raised £3.2 million at 52p and £800,000 in loan notes when it floated on AIM in the week before Christmas. This gave the Manchester firm a market cap of £13.8 million and a free float of just under 24%. Management and directors own the rest of the stock.
Established in 2004, Sabien owns the rights to a system called M2G, which reduces the energy consumed by boilers used by corporations to provide heat and hot water in their buildings. CEO Alan O'Brien arranged the purchase of the rights from the inventor, who has stayed on in a consultancy role.
M2G is a control unit, which monitors flow and return water temperature to a boiler and the boiler s firing pattern, which is then modified to ensure maximum efficiency but reduce fuel consumption. The unit works with oil or gas boilers and Sabien s installed base of 880 units has reduced client?s energy consumption by between 7% and 35%.
Customers include leading banks and NHS Trusts and Sabien is to use the cash raised to develop its technology, fund working capital and make a push into Europe.
Manufacturing and installation are outsourced, so even though the first quarter's level of £416,000 is dwarfed by the market, Sabien is already profitable.