TIDMSNT

RNS Number : 3698E

Sabien Technology Group PLC

07 July 2021

7 July 2021

Sabien Technology Group plc

("Sabien" or "the Company" or "the Group")

Trading Update

Sabien Technology Group plc (AIM:SNT), a company focused on building a portfolio of solutions in the heating, cooling, and transportation sectors, announces today a trading update ahead of the publication of its final results for the year ended 30 June 2021.

This trading update is published against a socio-economic background whose trends continue to support Sabien's strategic direction. As Governments in the US and Europe look to the post-COVID landscape, it is clear that changes in working locations, living conditions and transportation are all being actively accommodated. Extending its operations in and knowledge of the wider industrial heating markets, Sabien is actively pursuing targets within the non-refrigerant based cooling, battery recycling and reproduction, and waste to energy sectors together with a number of other "green energy" environmental opportunities in a variety of markets.

Sabien has raised GBP1.7m (gross) during the year to 30 June 2021. Through this financing, the Executive Chairman, Richard Parris, has further increased his position as a significant (10.3%) shareholder in the Company. Consistent with the strengthening of the Company's financial position, Sabien's issued shares were consolidated to provide a more representative basis for the Company's improved prospects. During this period, the Company exited the Reverse Take-Over (RTO) discussions with Ptarmigan Health Destinations and trading in its shares resumed on AIM.

In the first half of the 2021 financial year in comparison to the same period in the prior year, Sabien reported a near threefold increase in revenue and gross profit, substantially reducing the interim loss before tax and improving operational cash generation.

Strategically, the Company made an investment into Aeristech, a leading manufacturer of components for hydrogen fuel cells, secured a GBP400k contract with a UK Government department for the use of M2G technology, and formed a US subsidiary from which it will source US acquisition opportunities in addition to expanding the US market for Sabien's European products and services.

Since the publication of its interim results on 25 March 2021, the Company has made further considerable progress within its strategic development.

Operationally, Sabien has extended the application of its M2G technology with its Cloud-based subscription service now available across more than five sites within public sector, sports, and pharmaceutical manufacturing locations. Allied to this important development, Sabien has signed an agreement with Lockular to provide robust data security. Lockular's platform is agnostic as to which operations are contained on it and, as a result, this agreement provides scalability, Big Data collection and AI insights for further acquisitions which the Company may make, potentially decreasing the time required to generate value. In combination, these actions have given the Company confidence to commit to the next generation of M2G, integrating remote commercial boiler management within a single Cloud-enabled device.

Consistent with these developments throughout the year, and the Company's wider strategy, Sabien has strengthened its management team with the appointments of Danny Mills as President of the U.S. subsidiary,Sabien Inc., Dr. Athan Fox as Chief Scientific Officer and Tom Sprunt as Managing Director (non-Board). Mr. Mills is a US-based investor and technology operator who has worked with Sabien's leadership for a number of years. In combination with Richard Parris' work in US markets, Mr. Mills provides the necessary experience to benefit from President Biden's Plan for a Clean Energy Revolution and Environmental Justice. Dr. Fox's experience encompasses organic chemistry, intellectual property prosecution, technology transfer and fund raising for research, technology and innovation. Through Dr. Fox's work, Sabien is confident of a value-creating entry to the waste-to-energy market. Mr. Sprunt has many years' commercial experience in the boiler management industry.

In all cases, the new appointments bring a wealth of relevant experience and understanding of key markets for the Company.

Sabien's final results are expected to be published by the end of August 2021. The Board expects that these results will demonstrate the financial strength of the Company following the placing in February 2021. In addition, the Group has generated revenue of GBP0.97m in the year (2020: GBP0.45m), with GBP0.56m recorded in the second half, an increase of 89% on the GBP0.30m for the same period in the previous year. Sabien also carries circa GBP43k of open orders into FY22.

As at 30 June 2021, Sabien had cash in hand of GBP1.40m (2020: GBP0.78m).

Commenting on the 2021 financial year, Richard Parris, Chairman of Sabien, stated:

"The Board of Sabien faces an array of opportunities within its chosen market areas. In market capitalisation terms, Sabien is a small company listed on AIM. Executing an expansion strategy via acquisition can be challenging and expensive due to necessary market regulation. The Board will not be deterred by these challenges, and we are actively considering innovative structures within which to maximise the returns to shareholders as soon as possible while minimising execution expenses.

During the year under review, the Company has achieved already a number of key goals. From developing our core service, through strengthening the management team, to improving the Company's financial strength, the year to June 2021 has been one of progress. The Board looks forward to the coming year with considerable confidence. In addition to the number of exciting opportunities, several of which could come to fruition in the short to medium term, we are building a corporate structure which will ensure that this expansion delivers value to shareholders and maintains Sabien's ability to develop further. I look forward to reporting to shareholders in more detail in August."

 
 For Further Information: 
  Sabien Technology Group plc 
  Richard Parris, Executive Chairman     +44 20 7993 3700 
 Allenby Capital Limited (Nominated 
  Adviser) 
  John Depasquale / Nick Harris           +44 203 328 5656 
 Peterhouse Capital Limited (Broker) 
  Duncan Vasey / Lucy Williams          +44 207 469 0930 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTUNUBRAOUBRAR

(END) Dow Jones Newswires

July 07, 2021 02:00 ET (06:00 GMT)

Sabien Technology (LSE:SNT)
Historical Stock Chart
From Oct 2021 to Nov 2021 Click Here for more Sabien Technology Charts.
Sabien Technology (LSE:SNT)
Historical Stock Chart
From Nov 2020 to Nov 2021 Click Here for more Sabien Technology Charts.