Last checked at 2 Jun 2016 07:00
Sabien Technology Group plc
("Sabien" or "the Company")
Trading Update
The Board of Sabien Technology Group plc (AIM: SNT), the manufacturer and supplier of M2G, an energy efficiency technology, announces that the Company now expects to report revenues of c. £0.9m and a loss of up to c. £1.7 m in the financial period to 30 June 2016. It is also providing further updates to the market on the progress of its new piloting strategy.
UK pilot programme (P35)
In the update on the pilot programme which the Company made on 3 May 2016, the Board reported on the success of its new strategy to improve sales by running up to 35 pilots in the current heating season. As of today's date, Sabien 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. It expects to have completed 32 UK pilots by 30 June 2016.
Sales pipeline
As a result of the completion of the pilot reports noted above, the sales pipeline is currently estimated to be c£11.4m, which is an increase of £4.0m from the 3 May announcement figure of £7.4m. This compares with £6.4m at the time of the interim results in February and £6.2m as at 30 June 2015. As mentioned in the last trading update, the Company has received an initial order for £110k arising from the current P35 pilot programme.
Overseas pilot programme
The Company's US distributor, Fireye Inc., has now completed three pilots at large school districts with a further two in the process of installation. Fireye has indicated that it is now in commercial negotiations with the end users and has asked for the Company's assistance in running at least 15 pilots in the next heating season.
UK trading
The revenue results for the current financial year stem from the withdrawal of a number of large prospects from the opening pipeline at 1 July 2015 and a reduction in contract value of a number of sales. The Company is however expecting to receive orders for at least £500k in the course of June and July, which are the result of paid pilots carried out in the previous financial year to 30 June 2015. The Company's current net cash position is £0.4m, which represents around 3 months' cash to cover working capital and is in line with the Board's strategy.
As previously indicated, 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 USA give the Directors confidence that the Group's plan to return to profitability in the 2017/18 financial year is achievable.
A further update will be provided to the market with the final results anticipated to be in October 2016.
For further information:
Sabien Technology Group plc
Alan O'Brien, CEO Tel: +44 (0)20 7993 3700
Gus Orchard, CFO www.sabien-tech.co.uk
Stockdale Securities
Antonio Bossi Tel: +44 (0)20 7601 6100
Background:
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.