Last checked at 3 May 2016 07:00
3rd May 2016
Sabien Technology Group Plc
("Sabien" or "the Group")
Update on pilot programme
The Board of Sabien Technology Group plc (AIM: SNT), the manufacturer and supplier of M1G and M2G, energy efficiency technologies, is pleased to provide an update on the progress of its new piloting strategy.
In the last Annual Report, we stated that the Group had set a new five year strategy to improve sales substantially. To achieve this the key objective for management was to significantly scale up large multi-site M2G pilots in each year over the next five years both in the UK and overseas by offering "free" pilots to potential clients. The target for the 2015-16 heating season was to run up to 35 pilots compared to 8 in 2014-15. We are pleased to report that we expect at least 34 pilots will be completed (32 in the UK and two overseas) and that the initial signs are that the anticipated positive impact on the sales pipeline is being achieved.
UK pilot programme
At the time of the interim results announcement in February 2016, we stated that the Group had agreements for pilots with 30 clients of which 18 were awaiting survey and 12 were in measurement. As of today, 35 clients have signed up for pilots in the 2015-6 heating season. Of these 10 have been completed with reports submitted to clients, 21 are in measurement, 2 are awaiting installation and 2 are being surveyed. The 10 reports all demonstrate the expected savings for the clients. The Board believes that 32 UK pilots will be completed this financial year with a further 3 completed after the Group's year end.
Overseas pilot programme
In addition to the UK pilot programme, as a result of demand from our US distributor, we assisted it with 5 pilots for large school districts. 2 of these have been completed and reports have been submitted and the other 3 pilots are scheduled to start before the financial year end. As with the UK pilots the reports to date demonstrate the expected savings for the end users.
Sales pipeline
The estimated pipeline value of the 10 completed pilots is £3.5m (on average above the minimum £250k necessary to qualify for a pilot) and one of these clients has already placed an initial order for £110k. The Group has reviewed its historic pipeline and the updated pipeline now includes only those prospects where it is in active discussion with the client on implementation. The sales pipeline at end April 2016 stood at £7.4m.
Trading update scheduled for early June
The Group expects to update the market on trading for FY2016 at the beginning of June. With the results of the 2015-16 pilot programme and the interest already shown in the Group's pilot programme for the 2016-2017 heating season, the Directors are confident that the strategy to return the company to profitability in the 2017-18 financial year is achievable.
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
Stockdale Securities Ltd
Antonio Bossi Tel +44 (0) 207 601 6100
Rose Ramsden www.stockdalesecurities.com