TIDMSNT
RNS Number : 8541U
Sabien Technology Group PLC
31 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS
2019/310
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.
Summary
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
Scott.fulton@sabien.com
Sabien Technology Group plc
Richard Parris, Executive Chairman
Scott Fulton, Investor Relations
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
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
ASSETS
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
============ ============ =========
EQUITY AND LIABILITIES
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
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
activities
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
activities
Investments acquired (100) (100) (100)
Purchase of intangibles (6) (24) (131)
Net cash outflow from investing
activities (106) (124) (231)
Cash flows from financing
activities
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
reserve
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
period
1 July 2021
to
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
period
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
period
1 July 2022
to
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
revenue
GBP'000
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.
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
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
paid:
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
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March 31, 2023 02:00 ET (06:00 GMT)
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