Sabien Technology Group plc
("Sabien" or "the Company")
The Board of Sabien Technology Group plc (AIM: SNT), the manufacturer and supplier of M2G, an energy efficiency technology, announces that the Company expects to report revenues of c. £0.6m and a loss before taxation of up to c. £0.7 m in the year ended 30 June 2018. The Board is also providing further updates to the market regarding its expected trading outlook.
The sales pipeline is currently estimated to be approximately £10.4m, which remains relatively stable compared to the £10.1m as at 30 January 2018 advised in the interim results. Whilst Sabien has not converted large sales opportunities since then other than the order announced on 7 June 2018, the Board consider that the remaining opportunities from the completed P35, and P40 pilot programmes remain realistic prospects as well as the rental opportunities in the pipeline.
Overseas pilot programme
The Company's US distributors, generated sales of circa £0.075m for Sabien in the last financial year. As a result of successful pilot programs further sales orders are expected in Quarter 2 and Quarter 3 of the current financial period ending 30 June 2019.
The Board continues to focus on the conversion of sales pipeline opportunities, including rental opportunities; conversion of Forensic Boiler Audit opportunities; and further non-staff cost reduction to improve Sabien's profitability. Unless the Group can accelerate the current rate of pipeline conversion which has been slower than expected, the previously announced target of monthly break-even will not be achieved by December 2018 and the Group expects to need to raise additional equity during Quarter 1 or early Quarter 2 of the current financial period ending 30 June 2019. The Board has today published a General Meeting circular dated 6 August 2018 seeking to increase the authority to allot shares in the Company, and for authorisation to allot those shares as if the statutory pre-emption rights set out in the Companies Act 2006 do not apply.
The proceeds from any equity issue would provide working capital to support the rental rollout programme and support the remaining sales expected from the P35 and P40 programmes.
A further update will be provided to the market with final results for the year ended 30 June 2018, which the Board anticipates will be published in November 2018.
For further information:
Sabien Technology Group plc
Alan O'Brien, CEO
Bruce Gordon, Chairman
Tel: +44 (0) 20 7993 3700
Beaumont Cornish Limited
(Nominated Adviser and Joint Broker)
Roland Cornish, Michael Cornish
Tel: +44 (0) 207 628 3396
Peterhouse Capital Limited
Martin Lampshire and Fungai Ndoro
Tel: +44 (0) 20 7469 0930
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was Alan O'Brien.
Sabien Technology is a UK-based company, which specialises in providing proven and commercially viable technology to reduce carbon emissions and energy usage for private and public organisations.
The M2G is a patented energy efficient technology designed to reduce fuel consumption in commercial boilers. M2G dynamically responds to changing load demand by measuring, identifying and removing dry cycling thus maximising efficiency under all conditions.
M2G is retrofitted to commercial boilers regardless of age and size and fully integrates and complements existing controls, such as BMS, boiler sequencing, weather compensation and building optimisation controls.
Using intelligent software and hardware, the M2G unit improves a boiler's efficiency by reducing energy wastage. For further information, please visit our website www.sabien-tech.co.uk.