Last checked at 9 Jan 2024 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
The directors take responsibility for this announcement.
9 January 2024
Sabien Technology Group plc
("Sabien" or the "Company")
Trading Update
Sabien Technology Group plc (AIM:SNT), the company focused on a green aggregation strategy, announces its pre-close trading update for the six-month period ended 31 December 2023 ("H1 24").
M2G
During H1 24, M2G, Sabien's Cloud-enabled gas boiler energy saving solution, has generated further improvements in its key performance indicators. Demonstrable savings for customers have outperformed initial estimates. In this respect, clients who have installed M2G Cloud Connect have saved over 1.41 million KgCo2e collectively. The most recent installation of M2G Cloud Connect by clients operating in the oil and gas sector has alone contributed to a reduction of 3,667 KgCo2e since its implementation in December 2023.
In line with the above performance, in H1 24 the Company has won orders, in aggregate, of £0.39m (31 December 2022 ("H1 23"): £0.21m) and Sabien expects to recognise revenues of £0.37m for H1 24 (H1 23: £0.24m). While M2G is substantially UK-based, the M2G roll-out in selected US markets during October 2023 has produced positive results and further uptake is expected throughout calendar 2024.
Overall, M2G's revenue generation has accelerated materially when compared to the first half of the 2022/23 financial year. Its sales pipeline is equally advanced, giving the Company confidence in further material growth in the 2023/24 year.
The Company has continued to invest in its core operations and products. M2G's Cloud Connect solution was launched in early 2023, winning orders and generating recurring revenue in the period under review. The success of this launch has enabled the Company to financially support growth and maintain a positive cash balance.
b.grn Group Limited ("b.grn")
b.grn, the Special Purpose Vehicle ("SPV") formed by the Company and Parris Group Limited, has continued to develop its relationship with City Oil Field ("COF") of South Korea and to understand more fully the scope of the market for plastic-to-fuel products in key geographies. This work is nearing completion, and COF expects to launch its first commercial site in calendar 2024.
Commenting on the trading update, Richard Parris, Executive Chairman of Sabien, commented:
"The reality of the transition to a green economy is that it is not on/off. Economies will use mitigation solutions until such time as technology and infrastructure are capable of supporting an entirely non-fossil fuel world. Sabien sits at the nexus of this reality, providing continuity while accelerating the adoption of new strategies.
M2G provides customers with the ability to moderate CO2 generation while effecting cost savings. It is important to recognise that reducing emissions, in the millions of kilograms equivalent, is cost as well as energy efficient. b.grn will allow the conversion of waste plastics into useable fuel oil, generating economics for all parties in addition to reducing the need for new oil exploration and production.
Sabien's trading in the first half of its current financial year will demonstrate the success of this strategy. Our product and service offering is increasingly diverse, allowing the Company to generate revenue from lower cost operations. This has improved the market's response and reinforced the path to profitability.
The board of directors looks forward to reporting, in March 2024, the financial outcome of its first half trading."
For Further Information:
Sabien Technology Group plc
Richard Parris, Executive Chairman +44 20 7993 3700
Scott Fulton, Investor Relations scott.fulton@sabien.com
Allenby Capital Limited (Nominated Adviser)
John Depasquale / Nick Harriss / Vivek Bhardwaj +44 203 328 5656
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams +44 207 469 0930