Sabien Tech. Regulatory News (SNT)

30 Mar 2007 07:04

Sabien Technology Group PLC30 March 2007 SABIEN TECHNOLOGY GROUP PLC Unaudited interim results for the 6 month period to 31 December 2006 Sabien Technology Group PLC, the owner of M2G, an energy saving controller thathelps reduce fuel consumption on commercial boiler systems, is pleased toannounce its results for the 6 month period to 31 December 2006. Sabien wasadmitted to AIM on 20 December 2006, prior to this period end. Highlights: •Successful flotation on AIM raising £3.2m equity before expenses •Strong performance by Sabien Technology Ltd in the 6 months to 31 December 2006 •Further contract wins since 31 December •Strengthening of sales and marketing capability post-float •Opening of London area office and recruitment of highly qualified staff Commenting on the results, Dr Clive Morton O.B.E., Non-executive Chairman, said: "I am delighted to report on the progress made by the group since the successfulflotation in December. Funds raised are being invested primarily in thedevelopment of the group's sales and operations and we are already seeing thebenefits of this investment in winning new business and generating interest inthe M2G product. We expect this momentum to continue and are benefiting from thecommitment of many organisations, both public and private, to reduce theirenergy consumption and, therefore, their carbon footprint." Alan O'Brien, Chief Executive Officer, said: "The period to 31 December has seen the delivery of over 450 M2G units to avariety of customers, including one of the UK's largest retail banks on thebasis of repeat business, which brings the total number of M2G units sold todate to 900. There are tremendous opportunities for the group to deliver substantial savingsto any customer that uses gas or oil heating and over the coming months we willbe implementing our strategy to achieve substantial market penetration. Inaddition, and in line with our strategy, we are also making M2G compatible foruse in the USA and Europe. Our business plan for 2006/7 was based on achieving admission to AIM in Sept2006. Given that admission and the accompanying fund raising actually took placein December 2006, the board deferred plans to recruit sales staff and implementother corporate initiatives. The effect of this delay is that the timing ofcertain potential revenues may be deferred into the financial year ending 30June 2008. However the company has received strong expressions of interest fromvarious parties concerning the licensing of M2G technology. The potentialrevenues from these licensing arrangements were not anticipated at the time ofadmission. The company will update the market in respect of these issues whenappropriate. Given the level of interest being generated by the newly recruited sales staffand by the continuing generation of repeat business, the Board is excited aboutthe group's future prospects." For further information, please call: Company Sabien Technology Group Plc 0207 993 3700 Alan O'Brien, CEOGus Orchard, Finance Director Investor Relations Gavin Anderson 0207 554 1400 Ken Cronin/Marie Cairney/Janine Brewis Nominated Adviser Brewin Dolphin Securities 0113 241 0126 Neil Baldwin Notes to editors: Sabien's product is M2G, which is proven to cut the energy consumption ofboilers that use gas and/or oil to heat water and space by up to 35%, withouthaving any negative impact on performance or reliability. The payback period forM2G tends to be between 6 and 24 months. With energy prices rising and environmental concerns growing over recent years,the need to achieve both financial savings as well as an improved environmentalprofile are increasingly becoming important board level issues. Sabien's target customers are high-usage commercial and industrial organisationsusing gas- and oil-fired boilers. Sabien owns the intellectual property, manufacturing and commercial rights tothe M2G technology, has UK Trade Mark approval and has a European patentapplication currently pending. Sabien Technology Group Plc Unaudited Group Income Statement for the 6 months ended 31December 2006 Notes 6 months to 31 6 months to 31 Year to 30 December 2006 December 2005 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Revenue 579 - 3Cost of Sales (194) (3) (9) --------- --------- --------Gross Profit/ 385 (3) (6)(Loss) Other income 4 - 3Distribution (25) - -costsAdministrative (399) (29) (63)expensesFinance Costs (103) - (7) --------- --------- ---------Loss before (138) (32) (73)tax --------- --------- --------- Corporation - - 10tax expense --------- --------- ---------Loss for the (138) (32) (63)period --------- --------- --------- (Loss) per 3shareBasic (1.89p) - - Sabien Technology Group Plc Unaudited Group Balance Sheet Notes 31 December 31 December 30 June 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000ASSETS Non-current assetsProperty, plant and 15 1 1equipmentOther intangible 2,577 - 2,652assets -------- --------- --------- 2,592 1 2,653 -------- --------- --------- Current assetsInventories 13 16 72Trade receivables 212 - -Other current assets 63 21 21Cash and cash 3,042 179 76equivalents -------- --------- --------- 3,330 216 169 -------- --------- --------- Current liabilitiesTrade and other 420 - -payablesCurrent tax - 55 -payableShort term provisions 277 5 464 -------- --------- --------- 697 60 464 -------- --------- --------- Non-current liabilities Long-term borrowings 408 - 336Long-term 1,926 - 1,926provisions -------- --------- --------- 2,334 - 2,262 -------- --------- --------- Net assets 2,891 157 96 -------- --------- --------- EQUITY AND LIABILITIES Equity attributable to equityholders of the parentShare capital 4 1,329 - -Other reserves 1,604 - -Retained earnings/ (42) 157 96(losses) -------- --------- ---------Total equity 2,891 157 96 -------- --------- --------- Sabien Technology Group Plc Unaudited Cash Flow Statement 6 months to 6 months to Year to 31 December 31 December 30 June Notes 2006 2005 2006 £'000 £'000 £'000Cash flows from operatingactivities Profit before taxation (138) (32) (73)Adjustments for:Depreciation and 75 - 2amortisationInvestment income (4) - (3)Interest expense 103 - 7 -------- -------- ------- 36 (32) (67)Increase in trade (254) (21) (10)and other receivablesDecrease in inventories 59 - (56)Increase in trade 273 (1) 450payables -------- -------- -------Cash generated from 114 (54) 317operations -------- -------- ------- Interest paid - - (7)Corporation taxes paid - - (44) -------- -------- -------Net cash from 114 (54) 266operating activities -------- -------- ------- Cash flows frominvesting activities Acquisition of subsidiary - - (278)Purchase of property, plant (14) (1) (501)and equipment andintangible assetsInterest received 4 - 3 -------- -------- -------Net cash used in (10) (1) (776)investing activities -------- -------- ------- Cash flow fromfinancing activities Proceeds from issue 2,841 - -of share capitalProceeds from long 21 - 438term borrowingsEquity dividends paid - - (31) -------- -------- -------Net cash from 2,862 - 407financing activities -------- -------- ------- Net increase in cash and 2,966 (55) (103)cash equivalentsCash and cash equivalents 76 234 179at beginning of period -------- -------- -------Cash and cash equivalents 3,042 179 76at end of period -------- -------- ------- Sabien Technology Group Plc Notes to the Financial Statements 1. Basis of Preparation of Financial Information The interim financial information has not been audited or reviewed by theauditors and does not constitute statutory accounts for the purpose of Section240 of the Companies Act 1985. While the financial information included in this interim announcement has beencomputed in accordance with International Financial Reporting Standards (IFRS),this announcement does not itself contain sufficient information to comply withIFRS. The full financial statements of the company will be prepared inaccordance with IFRS, International Accounting Standards and theirinterpretations issued or adopted by the International Accounting StandardsBoard as adopted for use in the European Union. 2. Basis of Consolidation Business combinations involving entities under common control are consolidatedusing merger accounting under which the group incorporates the assets andliabilities of the entities at the amounts recorded in the books of theentities. No goodwill arises on consolidation and any difference arising fromthe use of merger accounting is included in equity as a merger reserve. The consolidated financial information incorporates the combined companies'results as if the companies had always been combined. Consequently the financialinformation includes the full period results of Sabien Technology Limited eventhough the combination did not occur until December 2006. Corresponding amountsin the financial information also incorporate the full period results of SabienTechnology Limited. In respect of other business combinations fair values are attributed to the netassets acquired. Goodwill, which represents the difference between the purchaseconsideration and the fair value of the net assets acquired, is capitalised andsubject to an impairment review at least annually or more frequently if eventsor changes in circumstances indicate that the goodwill may be impaired. 3. Earnings per share (EPS) The calculation of the basic earnings per share is based on the earningsattributable to the ordinary shareholders, divided by the weighted averagenumber of shares in issue in the period. Comparative figures for EPS for the periods ending 31 December 2005 and 30 June2006 have not been shown. The Directors do not consider it appropriate tocalculate these numbers for periods preceding the formation of the group. Due to the loss incurred in the period under review, unexercised options are notdilutive as at 31 December 2006. Sabien Technology Group Plc 6 months ended 31 December 2006 £'000 Earnings for the period (138) ------- Weighted average number of shares in issue 7,318,392 ------- Earnings per share - basic (1.89p) ------- 4. Share capital On incorporation, the authorised share capital of the Company was £1,000 dividedinto 1,000 ordinary shares of £1 each, one of which was issued credited as fullypaid to the subscriber to the Company's memorandum of association. On 6 November 2006 by or pursuant to resolutions of the Company passed on thatdate: • the authorised share capital of the Company was increased from £1,000 to £2,500,000 by the creation of an additional 2,499,000 new ordinary shares of £1 each; • each of the issued and unissued ordinary shares of £1 each in the capital of the Company was subdivided into 20 Ordinary Shares of 5p. On 12 December 2006, Sabien Technology Group Plc acquired the entire issuedshare capital of Sabien Technology Limited in consideration of the allotment andissue to Sabien Technology Limited's shareholders of 20,416,664 ordinary sharescredited as fully paid. On 20 December 2006, the Company placed 6,153,847 ordinary shares of 5p each ata price of 52p per share raising £3,200,000 before costs. The Company's authorised and issued ordinary share capital, at the date of thisBalance Sheet is: Amount Number of Ordinary SharesAuthorised £2,500,000 50,000,000 ------------ ------------Issued and fully paid £1,328,526 26,570,511 ------------ ------------ 5. Copies of this statement are available from the Company Secretary, Sabien Technology Group Plc, 34 Clarendon Road, Watford, Herts WD17 1JJ. This information is provided by RNS The company news service from the London Stock Exchange