RNS Number : 8541U

Sabien Technology Group PLC

31 March 2023


31 March 2023

Sabien Technology Group Plc

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

Unaudited Interim Results for the six months ended 31 December 2022

Sabien Technology Group plc (AIM: SNT), the company focused on a green aggregation strategy, today announces its unaudited interim results for the six-month period ended 31 December 2022 (the "Period"). Comparative figures are shown for the comparable period in the previous financial year unless otherwise stated:

Financial highlights

                                                    6 months          6 months    Year to 
                                              to 31 December    to 31 December    30 June 
                                                        2022              2021       2022 
                                                   Unaudited         Unaudited    Audited 
 Sales revenue                     GBP'000               238               121        679 
 Sales orders received             GBP'000               212               246        889 
 Sales invoices raised             GBP'000               189               129        831 
 M2G Cloud connect systems 
  sold                                 No.                50                31        262 
 M2G systems sold (non-Cloud)          No.                10                15        108 
 Sales from Alliance Partners      GBP'000                47                 6         60 
 Gross profit margin                     %               51%               62%        66% 
 Net loss after tax                GBP'000             (437)             (570)      (743) 
 Cash at end of period             GBP'000               354               624        573 
   Company Highlights 


   --    GBP500k gross placing and GBP100k oversubscribed broker option in August 2022. 

-- Sales orders received for the period 1 January 2023 - 30 March 2023 of GBP767k (same period in prior year GBP301k).

-- Total sales orders received for the year-to-date period to 30 March 2023 GBP979k (same period in prior year GBP547k).

-- Sales invoices of GBP1.01m in the year-to-date period to 4 April 2023 (same period in prior year GBP506k)

   --    Cash GBP485k at 30 March 2023 (GBP325k at 31 March 2023). 

Executive Chairman's Statement

Sabien entered the financial year 2022/3 poised to deliver further on its "Green" strategy. Since 30(th) June 2022, the Group has developed successfully its M2G offer to the important commercial heating market while, at the same time, making significant progress in the evolution of b.grn, the Special Purpose Vehicle ("SPV"), in which Sabien holds an interest in, designed to provide fuel products and naphtha from recycling waste plastic.

M2G Business

The Board of Sabien considers the M2G Cloud solution to be a step change in Sabien's history, evidenced by universally positive feedback being received by customers and potential customers alike. The solution enjoys a short sales cycle, leveraging industry leading analytics into the existing significant cost and CO2 savings already provided by M2G to customers. M2G's ability to demonstrate almost instantaneous CO2 savings upon implementing the M2G Cloud solution, as well as a range of unique next generation boiler analytics, is at the heart of the accelerated sales cycle. Previously, and often, Sabien had to demonstrate savings over lengthy pilot tests. The advent of the Cloud solution renders customer cost savings instantly visible, and directly addresses Environmental Social and Governance ("ESG") requirements and goals.

The improved feedback and accelerated sales cycle are being reflected in sales, orders and billings. For the six months ended 31 December 2022, Sabien recognised revenue of over GBP0.20m, an increase of 1.5x on the comparative period (GBP0.08m). Once the billing of the government order announced on 28 March 2023 has been completed as planned by 4 April 2023, Sabien will have billed in excess of GBP1.01m in revenue so far for the 2023 financial year, an increase of GBP0.18m or growth of over 20% on the full previous financial year. Additionally in the first 9 months of the financial year, Sabien has received orders of GBP0.98m, 10% greater than the GBP0.89m orders received for the entire previous financial year. Revenue recognition of orders received, and invoices raised will be dependent on the ability to procure M2G Cloud Connect units. Lead times remain significantly extended due to the availability of microchips in the market, are however beginning to improve. Gross margin at 51% was lower than the historical level of in excess of 70% during the period. Sabien is incurring fixed cloud support costs that are not currently being fulling recovered. As the M2G Cloud Connect rollout continues, and with the launch of the next generation M2G Evo, gross margin will improve.

This strong billing and order performance has been driven by an equally strong sales effort. In the period under review, Sabien has developed relationships with new partners; notably Amber Energy and Empiric Student Property Plc (GBP0.09m billed YTD March 2023). Existing customers have also accelerated their involvement with M2G. CBRE has generated GBP0.16m from 13 separate projects including recurring cloud revenue while the Company has achieved further orders from its existing HM Government department customer, with a total GBP668k YTD March 2023 compared to GBP264k in the comparative period.

COF / b.grn Business

Sabien Board members and elements of the management team are visiting South Korea at the end of March 2023 and early April 2023. The purpose of this visit is to further strengthen the relationship between Sabien and City Oil Field Inc, ("COF"). COF is the inventor and vendor of a unique catalyst-driven, plastic-to-oil technology for which Sabien is the exclusive UK and non-exclusive worldwide sales agent.

During the visit Sabien will introduce senior representatives of a leading UK university's material science department. It is expected these Professors will be engaged on a research project initiated by Sabien to verify and further investigate the COF technology. In addition, the team will be joined by a major US commodities trading and energy investment company which is carrying out due diligence on the technology with a view to funding an initial technology rollout for Sabien's associated joint-venture operating company; b.grn Group Ltd. Finally, a potential African customer for b.grn is joining the visit to carry out specific due diligence relevant to that region's resources and needs.

With the forthcoming research project, strategic partners in place, and advanced discussions ongoing with key funding partners, the Board considers that b.grn has assembled the fundamental building blocks of a successful business model.

Proton UK Business

Sabien owns a licence to develop an up to 20 tonne per day UK onshore hydrogen facility. The Group has not focussed on the opportunity during the Period as the target oil field owners have focussed on maximising short term oil production given current world oil prices. The Board considers the Proton project continues to hold strong prospects for the Group but is not a current area of focus.

Sabien is also actively working with Proton to develop its option to install a COF plant at Proton's Saskatchewan site. Sabien and Proton have discussed various options for the sale of the offtake oil from the COF process and both teams are motivated to develop the first North American COF installation.

Aeristech investment

Sabien invested GBP100k in Aeristech in February 2021 at a price of GBP2.40 per share. The investment was made to support Aeristech's development of e--boost technologies for hydrogen fuel cell, hybrid electric, and internal combustion engine powertrains. Since Sabien's investment, Aeristech has made excellent progress in developing its customer base and has continued to raise funds at up to GBP3.00 per share.


The Board of Sabien considers the first half of the financial year 2022/3 to be of significant strategic importance to the prospects for the Group. Its M2G business has surpassed expectations in terms of both billings and orders, underpinned by the successful deployment of the Cloud solution. b.grn has developed further its relationship with COF while establishing a base of operations via the securing of key partnerships in multiple geographies. Both Proton and Aeristech have demonstrated consistently the potential which determined Sabien's initial investment and underpin its continued support.

Looking to the final quarter of the current financial year, the Board believes that the momentum evident in the 9-months to date is built on solid foundations; orders secured, billings made, and prospects enhanced.

 Richard Parris 
  Executive Chairman 
 31 March 2023 
 For further information:               +44 20 7993 3700 
  Sabien Technology Group plc 
  Richard Parris, Executive Chairman 
  Scott Fulton, Investor Relations 
 Allenby Capital Limited (Nominated 
  John Depasquale / Nick Harriss / 
  Vivek Bhardwaj                          +44 203 328 5656 
 Peterhouse Capital Limited (Broker) 
  Duncan Vasey / Lucy Williams          +44 207 469 0930 

Sabien Technology Group Plc

Unaudited Condensed Group Statement of Comprehensive Income for the period ended 31 December 2022

                                     Notes                                       Year to 
                                                    6 months          6 months        30 
                                              to 31 December    to 31 December      June 
                                                        2022              2021      2022 
                                                   Unaudited         Unaudited   Audited 
                                                     GBP'000           GBP'000   GBP'000 
 Revenue                                                 238               121       679 
 Cost of Sales                                         (117)              (46)     (231) 
 Gross Profit                                            121                75       448 
 Administrative expenses                               (676)             (639)   (1,327) 
 Exceptional item                                          -               (9)       (9) 
 Operating loss                                        (555)             (573)     (888) 
 Other income                                            100                 8       158 
 Finance expense                                         (3)               (4)      (13) 
 Loss before tax                                       (458)             (569)     (743) 
 Tax credit                                               21                 -         - 
                                            ----------------  ----------------  -------- 
 Loss for the period attributable 
  to equity holders of the 
  parent company                                       (437)             (569)     (743) 
                                            ----------------  ----------------  -------- 
 Other comprehensive income 
  for the period                                           -               (1)         - 
   Total comprehensive income 
   for the period                                      (437)             (570)     (743) 
                                            ================  ================  ======== 
 Loss per share in pence 
  - basic                                3           (2.12)p           (3.90)p   (5.06)p 
 Loss per share in pence 
  - diluted                              3           (2.12)p           (3.90)p   (5.06)p 

Sabien Technology Group Plc

Unaudited Condensed Group Statement of Financial Position as at 31 December 2022

                                  Notes   31 December   31 December    30 June 
                                                 2022          2021       2022 
                                            Unaudited     Unaudited    Audited 
                                              GBP'000       GBP'000    GBP'000 
 Non-current assets 
 Property, plant and equipment                      2             2          2 
 Other intangible assets                          126            83        152 
 Investments                                      300           200        200 
 Total non-current assets                         428           285        354 
                                         ------------  ------------  --------- 
 Current assets 
 Inventories                                       45            27         40 
 Trade and other receivables                      454           166        387 
 Cash and cash equivalents                        354           624        573 
                                         ------------  ------------  --------- 
 Total current assets                             853           817      1,000 
                                         ------------  ------------  --------- 
 TOTAL ASSETS                                   1,281         1,102      1,354 
                                         ============  ============  ========= 
 Current liabilities 
 Trade and other payables                         289           137        487 
 Borrowings                                        39            36        138 
                                         ------------  ------------  --------- 
 Total current liabilities                        328           173        625 
                                         ------------  ------------  --------- 
 Non-current liabilities 
 Borrowings                                        91           127        109 
                                         ------------  ------------  --------- 
 Total non-current liabilities                     91           127        109 
                                         ------------  ------------  --------- 
 Equity attributable to 
  equity holders of the parent 
 Share capital                    4             3,563         3,354      3,354 
 Other reserves                                 4,014         3,552      3,544 
 Retained earnings                            (6,715)       (6,104)    (6,278) 
                                         ------------  ------------  --------- 
 Total equity                                     862           802        620 
                                         ------------  ------------  --------- 
 TOTAL EQUITY AND LIABILITIES                   1,281         1,102      1,354 
                                         ============  ============  ========= 

Sabien Technology Group Plc

Unaudited Condensed Group Cash Flow Statement for the period ended 31 December 2022

                                            6 months       6 months       Year 
                                                  to             to         to 
                                         31 December    31 December    30 June 
                                                2021           2021       2022 
                                           Unaudited      Unaudited    Audited 
                                             GBP'000        GBP'000    GBP'000 
 Cash flows from operating 
 Loss before taxation                          (437)          (569)      (743) 
 Adjustments for: 
 Depreciation and amortisation                    31             24         63 
 Finance expense                                   3              4         13 
 Less movement in interest 
  accrual                                        (2)              -        (2) 
 Foreign currency reserve movement                 5            (1)        (9) 
 Fixed assets transferred to 
  inventory                                        -              -          6 
 Equity settled current liability                  -              -         33 
 Taxation                                       (21)              -          - 
 Decrease in trade and other 
  receivables                                   (62)          (114)      (334) 
 Decrease/(increase) in inventories              (4)              4       (16) 
 Decrease in trade and other 
  payables                                     (207)           (15)        326 
 Net cash outflow from operating 
  activities                                   (694)          (667)      (663) 
 Cash flows from investing 
 Investments acquired                          (100)          (100)      (100) 
 Purchase of intangibles                         (6)           (24)      (131) 
 Net cash outflow from investing 
  activities                                   (106)          (124)      (231) 
 Cash flows from financing 
 Proceeds from share issues                      580             48         15 
 Proceeds from borrowings                          -              -        100 
 Repayment of borrowings                        (18)           (32)       (36) 
 Interest paid                                   (2)              -       (11) 
 Tax refunded                                     21              -          - 
 Net cash generated by financing 
  activities                                     581             16         68 
 Net (decrease)/increase in cash 
  and cash equivalents                         (219)          (775)      (826) 
 Cash and cash equivalents at 
  beginning of period                            573          1,399      1,399 
 Cash and cash equivalents at 
  end of period                                  354            624        573 

Sabien Technology Group Plc

Unaudited Condensed Group Statement of Changes in Equity as at 31 December 2021

                           Share      Share   Share based   Translation    Retained     Total 
                         capital    premium       payment       reserve    earnings    equity 
                        GBP'000    GBP'000      GBP'000       GBP'000      GBP'000    GBP'000 
 Balance at 
  1 July 2021              3,350      3,508             1             -     (5,535)     1,324 
   Loss for the 
   1 July 2021 
   31 December 
   2021                        -          -             -             -       (569)     (569) 
 Warrant issue                 -       (28)            28             -           -         - 
 Share issue                   4         44             -             -           -        48 
 Exchange difference 
  on consolidation             -          -             -           (1)           -       (1) 
   Balance at 
   31 December 
   2021                    3,354      3,524            29           (1)     (6,104)       802 
   Loss for the 
   1 January 2022 
   to 30 June 2022             -          -             -             -       (174)     (174) 
 Warrant issue                 -         19          (19)             -           -       (9) 
 Foreign exchange 
  variance                     -          -             -           (8)           -         - 
   Balance at 
   30 June 2022            3,354      3,543            10           (9)     (6,278)       620 
   Loss for the 
   1 July 2022 
   31 December 
   2022                        -          -             -             -       (437)     (437) 
 Share issue                 209        468             -             -           -       677 
   Foreign exchange 
   variance                    -          -             -             2           -         2 
   Balance at                                                         - 
   31 December 
   2022                    3,563      4,011            10           (7)     (6,715)       862 

Sabien Technology Group Plc

Notes to the Financial Statements for the period ended 31 December 2021

   1.            Accounting policies 

The interim financial information has not been audited or reviewed by the auditors and does not constitute statutory accounts for the purpose of Sections 434 and 435 of the Companies Act 2006.

The financial information in this document has been prepared using accounting principles generally accepted under International Financial Reporting Standards and is consistent with those used in the preparation of the most recent annual financial statements.

These interim financial statements for the six month period ended 31 December 2022 have been prepared using the historical cost convention, on a going concern basis and in accordance with applicable UK adopted International Financial Reporting Standards.

The financial statements for the year ended 30 June 2022 have been delivered to the Registrar of Companies and filed at Companies House and the auditors' report on those financial statements was unqualified. The auditors' report did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

   2.            Segmental reporting 

Based on risks and returns, the directors consider that the primary reporting business format is by business segment which is currently just the supply of energy efficiency products, as this forms the basis of internal reports that are regularly reviewed by the Company's chief operating decision maker in order to allocate resources to the segment and assess its performance. Therefore, the disclosures for the primary segment have already been given in interim financial information. The secondary reporting format is by geographical analysis by destination. Non-UK revenues amounted to GBP84k which were 35% of total revenues for the period.

During the period, sales to the Group's largest customers were as follows:

               Sales revenue   % of total 
 Customer 1               86           36 
 Customer 2               50           21 
 Customer 3               38           16 
 Customer 4               12            5 

During the period a management fee to Sabien's associated party, b.grn Group Limited of GBP0.1m was accrued (2021: GBPnil, Full year 2022: GBP0.15m) and included within Other Income.

   3.            Loss per share 

The calculation of the basic loss per share is based on the loss attributable to the ordinary shareholders, divided by the weighted average number of shares in issue in the period.

                                               6 months          6 months           30 
                                         to 31 December    to 31 December         June 
                                                   2022              2021         2022 
                                              Unaudited         Unaudited      Audited 
                                                GBP'000           GBP'000      GBP'000 
   Loss for the period                            (535)             (310)        (743) 
 Basic and Diluted: 
 Weighted average number of shares 
  in issue                                   20,532,668        14,630,643   14,675,358 
 Loss per share - basic and diluted             (2.12)P           (3.90)p      (5.06)p 
   4.            Share capital 

The Company's issued Ordinary share capital is:

                        Amount          No. of       No. of          No. of 
                       GBP'000    New Ordinary     Deferred    New Deferred 
                                        Shares       Shares          Shares 
                                    of 3p each      of 4.5p        of 0.49p 
                                                       each            each 
 Allotted, called 
  up and fully 
 At 31 December 
  2022                   3,563      21,695,168   44,004,867     190,254,867 
 At 30 June 2022         3,354      14,720,168   44,004,867     190,254,867 
 At 31 December 
  2021                   3,354      14,720,168   44,004,867     190,254,867 
   5.            Share based payments 

The Company has issued warrants that entitles the holders to purchase shares in the Company with the warrants exercisable at the price determined at the date of granting the warrant. The terms and conditions of the grants issued are summarised below.

                  Number of     Exercise  Contractual 
Grant date         instruments   price     life of instruments 
                                          19 February 
2 February 2021      1,395,349       15p   2023 
1 February 2022        280,000       60p  1 February 2023 

On 2 February 2021, 1,395,349 share options (figure post March 2021 300:1 share consolidation) were issued to the Executive Chairman as part of a placing. The warrants are exercisable once the Company's mid-market share price has exceeded 60p for five working days in a row.

On 1 February 2022, 280,000 share options were issued to Proton as part of the consideration for the hydrogen processing licence and option to install a COF facility at Proton's site in Saskatchewan, Canada.

The Group has recognised a charge of GBPnil arising from the share based payments noted above in profit and loss for the period ended 31 December 2022.

   6.            Seasonality 

The business of the Group is not seasonal.

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(END) Dow Jones Newswires

March 31, 2023 02:00 ET (06:00 GMT)

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