Sabien Post Year End Trading Update
Sabien Technology Group plc, the manufacturer and supplier of M2G, a boiler energy efficiency technology, is pleased to provide an update on trading following the end of the year to 30 June 2011.
The Board reports that, on a like-for-like basis, expected results for the year to 30 June 2011 are very significantly ahead of those for the previous year and that turnover for the year to 30 June 2011 was approximately £2.08m, 114% higher than the previous year (2010: £0.97m). Estimated pre-tax profits for the year are expected to be around £0.19m compared to a loss of £0.34m in the previous year. Consolidated net cash balances as at 30 June 2011 were £1.05m (2010: £0.96m). The above figures are subject to audit.
The continuing momentum of business improvement in the financial period 2010/2011 is reflected in a substantial increase in the Group's sales pipeline which was approximately £7.9m as at 30 June 2011, up from £5.7m at the end of December 2010. In this context, we are pleased that our order visibility from direct sales, indirect partners and our US distributor, remains strong and we expect further growth for the year ended 30 June 2012. As expected, gross margins were slightly lower than in 2010 reflecting a change in sales mix, however, overhead costs have been restricted to only a 4% year on year increase.
Notable contract wins in the 12 months included:
- London Borough of Greenwich: £264,000
- Monteray: British Telecom: £64,800
- Norland/Integral: Lloyds Banking Group: £230,500
- Interserve: DEFRA: £59,300
- Corrigenda: Hampshire County Council: £457,000
- Cofely: Royal Botanical Gardens Kew: £81,400
- Lincolnshire County Council: £153,700
- Greffen Systems: Sabien’s US Distributor: £300,000
During the period under review Sabien continued to develop its "Alliance Program" with £0.38m of total sales for the period under review coming from indirect channels, a 146% increase compared to the previous year. Orders were received from a number of leading UK Utility and Facility Management Companies including Cofely, E.ON, EDF Energy, Carillion, RWE, Norland Group, MITIE Group, Interserve, Scottish and Southern Electric Contracting, Babcock and EC Harris.
In May 2011, Sabien was awarded the Jones Lang LaSalle’s inaugural Supplier of Distinction Award for Energy & Sustainability. The award recognises Sabien’s dedication to delivering the highest calibre of services, value and innovation to Jones Lang LaSalle’s clients. Sabien received the award following the installation of its patented M2G boiler load optimisation technology at a number of Jones Lang LaSalle’s client sites, delivering significant gas savings and reduced carbon emissions.
Greffen Systems Inc., Sabien's non-exclusive distributor in the United States, has seen strong growth over the past financial year.
Significant developments include:
- Validation of M2G by Texas A&M University Energy Systems Laboratory (a leading university) and Southern California Gas and Electric (one of the largest utilities in the US).
- The placing of orders totalling £300,000 with Sabien during the course of this financial year 2010/2011.
- Selection by The Cooperative Purchasing Network ("TCPN") as the winner of a national bid process for boiler sequencing controllers. TCPN is a national governmental purchasing cooperative able to leverage the purchasing potential of governmental entities in all 50 states. TCPN competitively bids and awards contracts to national vendors in accordance with purchasing procedures mandated by state procurement laws and regulations. TCPN contracts are available for use, and benefit, public and private schools, colleges and universities, cities, counties, non-profits and all governmental entities.
The Board is pleased with the progress the Company is now making. The tangible benefits of the past few years’ efforts are now evident and will prove to be the catalyst for a trend of increasing sales growth and profitability going forward. The Group’s full year results will be announced on Monday 3rd October 2011.
Alan O’Brien, Chief Executive commented:
"Our performance in the second half of this year builds on our strong performance in the first half. Our pipeline continues to grow significantly and we believe the continued uplift in both public and private sector contract awards will sustain our progress towards ever-increasing profitability. I believe this is, in large part, due to the successful conversion of our P10 M2G pilots into orders and subsequent repeat orders. Our progress has also been supported by the broadening of our UK Alliance partner program which again has proved very successful with orders being placed throughout the year. Above everything, our reputation for nationwide, end to end project management and the recognition from our clients and partners that Sabien delivers a world class client experience has put the company on a solid platform from which to prosper. We have entered into a new phase of growth after the challenging "start-up" years and I look forward to reporting further progress and news in due course."