Last checked at 10 Jul 2012 07:00
Sabien Technology Group plc (AIM - SNT)
("Sabien", "the Group" or "the Company")
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 2012.
The Board reports that, on a like-for-like basis, expected results for the year to 30 June 2012 are ahead of those for the previous year and that turnover for the year to 30 June 2012 was approximately £2.47m, 18% higher than the previous year (2011: £2.09m). Pre-tax profits for the year are expected to be around 32% higher at circa £0.25m (2011: £0.19m). Consolidated net cash balances as at 30 June 2012 were £1.40m (2011: £1.03m). The above figures are subject to audit.
The continuing momentum of business improvement in the financial period 2011/2012 is reflected in a noticeable increase in the Group's sales pipeline which was approximately £9.1m as at 30 June 2012 (2011: £7.7m). In this context, we are pleased with the sales traction from our direct sales and indirect partners which remains strong and we expect further growth for the year ending 30 June 2013.
During the period under review Sabien continued to develop its indirect sales channel, generating revenues of approximately £1.06m from this channel over the year versus £0.38m in 2011. Orders were received from a number of leading UK Utility and Facility Management Companies including Babcock, Conder M&E, EDF Energy, G4S, Interserve, John Laing, Schneider Electric, SSE Contracting and Vinci Facilities. As a result, gross margins are slightly lower than in 2011 reflecting the change in sales mix due to this significant increase in indirect sales in the year.
Notable contract wins in the 12 months included:
·; Monteray: British Telecom: £997,625
·; Romec: Royal Mail: £250,325
·; Edmundson Electrical: Glasgow City Council: £122,100
·; SSE Contracting: Glasgow City Council: £105,600
Alan O'Brien Chief Executive commented
"The trading and financial performance for the 2011/12 full year has seen a steady improvement on last year's performance even though throughout this year our Clients have faced on-going financial and budgetary constraints. The significant improvement in our Alliance partner sales is underpinned by our clients' broadening of their outsourcing contracts to include energy reduction and energy efficiency targets and this has created opportunities for all of our alliance partners.
This increase and overall improvement in business performance also reflects the strength of our reputation and position in the UK market.
The Group continues to participate in and track a number of significant public sector tender opportunities which are expected to produce revenues in excess of our recent annual turnover. However the exact timings of orders and the resultant cash flows are not certain at this time.
The Board and I believe the current economic climate will continue to create significant medium and long-term growth opportunities for Sabien, both in the UK and overseas".
The Group's full year results will be announced on Monday 1st October 2012.
For further information:
Sabien Technology Group plc
Alan O'Brien, CEO Tel: +44 (0) 207 993 3700
Gus Orchard, CFO www.sabien-tech.co.uk
Westhouse Securities
Antonio Bossi Tel: +44 (0) 207 601 6100
Petre Norton
About Sabien Technology
Founded in March 2004 by Alan O'Brien, UK-based Sabien Technology specialises in providing proven and commercially viable technology to reduce carbon emissions and energy usage for private and public organisations. Sabien Technology Group Plc floated on AIM in 2006.
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 retro-fitted 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.