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LONDON (Alliance News) - Sabien Technology Group PLC on Thursday said the withdrawal of a number of large prospects from its sales pipeline since last June, as well as a reduction in contract values, is expected to hit revenue for its current financial year, widening its loss further.
The energy-efficiency technology company said it now expects to report revenue of GBP900,000 for the year to end-June, down from the GBP1.7 million reported a year earlier. At its last full-year results announcement in October, Sabien had said that even those year-earlier results had been "disappointing" to it.
Sabien's reduced revenue expectation comes after a "number of large prospects" were withdrawn from its sales pipeline, which had stood at GBP6.2 million last June. A reduction in contract values for a number of its sales didn't help.
This further decline in revenue means Sabien now expects to post a pretax loss of up to GBP1.7 million for the year that ends this month, more than double the pretax loss posted a year earlier of GBP570,000.
Sabien said it expects to receive orders for at least GBP500,000 in the course of June and July, which are results of paid pilots carried out in the previous financial year. Its net cash position is GBP400,000, which represents around three months cash cover, it said.
Sabien added, however, that its sales pipeline currently is estimated to be around GBP11.4 million, up GBP4.0 million from the May 3 announcement figure of GBP7.4 million. The company said that, as of Thursday, it has completed 28 pilots and has submitted reports to 14 clients, with a further 14 reports due to be submitted before the financial year-end.
Sabien said it expects to have completed 32 UK pilots by June 30.
In the US, Sabien said it has completed three pilots at "large school districts" with a further two in the process of installation.
"The growth in the sales pipeline, the interest already shown in the group's pilot programme for the next heating season and the results of the pilot programmes in the US give the directors confidence that the group's plan to return to profitability in the 2017/18 financial year is achievable," Sabien said in a statement.
The company's final results are expected to be issued in October.
Shares in Sabien were down 13% at 5.22 pence on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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