LONDON (Alliance News) - Shares in Sabien Technology Group PLC plummeted Thursday as the energy savings products manufacturer warned it needs a "sustained improvement" in its second half sales to make a profit in financial 2019.
Sabien shares were down 32% in mid-morning trading at 0.095 pence each.
In the six months to December 31, Sabien narrowed its pretax loss to GBP207,000 from GBP233,000 the year before. The company's revenue decreased 26% to GBP342,000 from GBP462,000 in the same period last year.
Sabien's administrative expenses decreased 17% to GBP498,000 from GBP597,000. The company said it instituted a cost reduction policy during 2018, which was "effective" in reducing costs.
The company said the period was "challenging" due to the "continuing unpredictability on the timing of conversion of the sales pipeline into sales orders". The company's sales pipeline currently stands at GBP10.6 million.
Sabien sales orders received in the period was down to GBP132,000 from GBP225,000 in the same period a year before.
Sabien said order arrival dates are estimates given by clients, making it difficult to predict future revenue.
The company said it is focused on improving its sales pipeline conversion rate in the second half.
Sabien said: "With a significantly reduced cost base and with several M2G phased orders expected, the board remains optimistic about the group's product and service offering, the potential market for M2G and the potential prospects to year end June 2019. However, there will still need to be a sustained improvement in the conversion rate of the order book to sales in the year ahead to reach the board's target of breakeven for the company."
Sabien Tech. (SNT)