TIDMSNT
RNS Number : 1155S
Sabien Technology Group PLC
02 November 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS
2019/310.
The directors take responsibility for this announcement.
2 November 2022
Sabien Technology Group plc
("Sabien" or the "Company" or the "Group")
Final Results and Audited Annual Report and Accounts for the
Year to 30 June 2023
(AIM: SNT)
Final Results
The Board of Directors of Sabien is pleased to announce the
publication of the audited annual report and accounts for the year
to 30 June 2023 (the "Annual Report").
Sabien Technology Group highlights 2023
-- Revenue for the year GBP1.10m (2022: GBP0.68m);
-- Management fee from associated party GBPnil (2022:GBP0.15m);
-- Loss after tax GBP0.70m (2022 GBP0.74m loss);
-- Overseas revenue GBP0.07m (2022: GBP0.06m);
-- Deferred revenue carried into 2024 GBP0.20m (2022: GBP0.18m);
-- Forward orders carried into 2024 GBP0.20m (2023: GBP0.09m);
-- Cash less current borrowings at 30 June 2023 was GBP0.40m (30 June 2022: GBP0.44m);
-- Placing and oversubscribed broker option raised GBP0.6m
(gross), in addition GBP0.1m shareholder loan capitalised.
Highlights since the year end
-- Sales of GBP0.18m to 30 September 2023 (GBP0.13m to 30 September 2022).
-- Cash less current borrowings at 30 September 2023 of GBP0.31m
(GBP0.63m at 30 September 2022).
The Annual Report will be published on the Company's website (
https://sabien.com/sabien-technology-investors-2/ ) in compliance
with its articles of association and the electronic communications
provisions of the Companies Act 2006. A copy of the Annual Report
can also be accessed through the Financial Reports tab at the link
below.
http://www.rns-pdf.londonstockexchange.com/rns/1155S_1-2023-11-1.pdf
Key extracts from the Annual Report can also be viewed
below.
Richard Parris, Executive Chairman, commented,
"Sabien's financial results serve as a compelling testament to
progress. Revenue rose by an impressive 62% in the year, and has
grown by 38% since the end of the period compared to the same
period in the prior year.
This growth is propelled by the enduring success of our flagship
product, M2G, and the increasing growth of our Cloud Solutions
division. With a promising pipeline of deferred and forward orders,
we eagerly anticipate further expansion in the current fiscal year.
Our strategic initiatives, exemplified by the expansion of our
Cloud-enabled gas boiler energy-saving solution into the United
States, underscore the compelling long-term prospects of M2G.
In tandem, our collaboration with City Oil Field ("COF")
continues towards the deployment of this world-leading technology.
Our collaborative approach ensures the construction of robust
foundations for the autonomous development of a pivotal business
line, all while nurturing a productive working relationship with
COF ."
Notice of AGM
The Company will hold its Annual General Meeting at 11.00 am on
29 November at the offices of Peterhouse Capital Limited, 80
Cheapside, London, EC2V 6DZ (the "AGM"). The notice of the AGM will
be published on the Sabien website and notified shortly to
shareholders.
- Ends -
For further information please contact:
For Further Information:
Sabien Technology Group plc
Richard Parris, Executive Chairman +44 20 7993 3700
Scott Fulton, Investor Relations +44 7767 364 283
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
Executive Chairman's Statement
In my perspective, effective management entails drawing wisdom
from historical experiences and ensuring that past successes drive
the agenda for the future. As of July 2022, Sabien confronted a
business landscape marked by uncertainties, with the looming
challenge of rising inflation casting a long shadow.
As the year progressed, it became increasingly evident that a
significant shift was underway, characterized by higher interest
rates and subdued economic growth.
To heed the lessons of history is to embrace the age--old wisdom
that 'it is better to light a candle than to curse the darkness.'
Throughout the preceding financial year, Sabien not only fortified
the robust foundations established in previous years but also
embarked on the creation of new ones, underpinning our future
growth. We understand that lower interest rates and a swift return
to robust economic growth may remain elusive. Consequently, we have
diligently crafted a resilient business platform capable of
self--sustained growth.
During the year ended 30 June 2023, Sabien's Green Aggregation
Strategy has focussed primarily on two principal technology led
initiatives. M2G, the existing Sabien CO2 mitigation device for
commercial boilers, and the City Oil Field Inc. ("COF") plastic to
oil technology.
Sabien's financial results for the year ended June 30, 2023,
serve as a compelling testament to our progress in these
endeavours. Our revenue rose by an impressive 62%, propelled by the
enduring success of our flagship product, M2G, and the increasing
growth of our Cloud Solutions division. With a promising pipeline
of deferred and forward orders, we eagerly anticipate sustained
expansion in the current fiscal year. Our strategic initiatives,
exemplified by the expansion of our Cloud--enabled gas boiler
energy--saving solution into the United States, underscore the
compelling long--term prospects of M2G.
In tandem with these developments, our collaboration with COF
has continued to evolve, with a significant focus on optimizing the
deployment of this world--leading technology. This collaborative
approach ensures the construction of robust foundations for the
autonomous development of this pivotal business line, all while
nurturing a productive working relationship with COF.
We have shared the development of these initiatives with
shareholders and the wider market throughout the period. In support
of them, and our continuing development, the Company raised GBP0.6m
through a placing and broker option in August 2022 and at the same
time GBP0.1m of a loan advanced by my family interests was also
capitalised. This fundraise provided the Company with the
wherewithal to secure the opportunities presented to it, for the
benefit of shareholders and stakeholders alike.
Successful growth--oriented enterprises are built on sturdy
foundations. Sabien's unwavering commitment to introducing
innovative solutions to enduring challenges and our readiness to
adapt as circumstances evolve have further fortified the bedrock
upon which our growth firmly stands.
M2G Business
Despite the continuing world semiconductor supply shortage and
the overall weakness of the UK economy driven by inflationary
pressures, the Board is very pleased with the growth of the new M2G
Cloud business.
During the 2023 financial year, M2G Cloud Solutions revenue of
GBP0.96m was achieved (2022: GBP0.56m). In addition, the Company
has deferred revenue of GBP0.20m, and open orders of GBP0.10m, that
will carry over into FY24. In total, at the year end M2G has 2024
revenue identified and charged, but not yet booked, of GBP0.3m
(2023 GBP0.3m). The majority of the deferred revenue is also
recurring cloud services revenue. At year end annual recurring
cloud services revenue to be billed in 2024 had increased to
GBP0.13m (2022: GBP0.02m).
As M2G continues to develop the available customer base for its
applications, it is focused also on the cost of providing them.
Specifically, we are pleased to report strong progress in the
development of the M2G Evo. This next generation development
combines three devices that Sabien had to previously procure
separately; the M2G, the M2G Cloud dongle, and the M2G Interface
box.
In combination, with updated technology interfaces, we expect a
cost reduction of up to 50% on the current separate cost of all
three devices. Additionally, it should be noted that the M2G
Interface box is not required on all boiler installations, further
enhancing the cost of deployment. M2G Evo will also be easier for
the Company to procure because it is designed around a more readily
available base processor (Raspberry Pi Module). M2G has procured
its first batch of production devices for market testing and
expects the M2G Evo to become the Company's sole M2G product by
2024.
M2G Cloud connect delivers the savings visibly across all client
estate buildings locally and globally and has the enhanced
capability to provide industry unique plant analytics. Engineers
can now review their plant and controls performance holistically
with objective data. Solving visible and invisible issues to
maximise their plant efficiency and performance.
With the delivery of M2G EVO, a reduced product footprint will
be achieved. In place, this should allow the Group to review the
opportunity for SAP approval. Installations within residential
settings continue, with one installation, a 48--apartment building
completed during June 2023, delivering 16% savings over the summer
period.
COF / b.grn Business
COF is a South Korean business that has developed an innovative
proprietary technology - Regenerated Green Oil (RGO), which focuses
on the production of light and ultra--pure fuel products from low
temperature processing of end of life plastics using a proprietary
catalyst. In December 2021 Sabien established a special purpose
vehicle with my family office, Parris Group Limited, to rollout the
technology in the Western hemisphere: b.grn Group Limited
(b.grn).
On 2 November 2022 Sabien announced that b.grn and COF had
signed a contract for the first RGO plant in the UK. The agreement
remains subject to agreeing terms on the first site and securing
funding, but if these terms are satisfied it should result in
commission to Sabien of approximately US$1m.
Following a first visit in the last financial year, Sabien
executives made a further visit to South Korea during the year
under review, in conjunction with a major US oil trading business
to carry out technical due diligence. During the visit a
significant Memorandum of Understanding ("MOU") between b.grn, COF,
Hanyang Corporation ("Hanyang"), and Woori Technology Inc. This MOU
established the intent of the parties to jointly deliver a
Recycling Cluster Project for a site in the Midlands region of the
UK. The collaboration with these key partners strengthens b.grn's
position in the waste plastic recycling sector.
The Group is pivoting away from its proposed Midlands (UK) site
and has negotiated Heads of Terms for another location. This is in
response to pressure on local authority finances and the consequent
uncertainty created around local waste management priorities.
In addition, COF executives made a return visit with the Korean
Environment Agency (KECO) in April 2023. The return visit resulted
in two additional key agreements being signed between Sabien,
b.grn, and COF:
1) MOU between Sabien, Parris Group and COF in relation to restructuring of b.grn; and
2) Sabien -- COF Intellectual Property Agreement.
These two agreements set out steps to prepare b.grn for
investment by sharing ownership with COF, by giving b.grn
manufacturing rights and rights to buy catalyst, an option to
invest in COF, and rights to undertake a research project with
leading UK universities.
During the year, there was no repeat of the management fees
charged to b.grn in 2022 of GBP0.15m, comprising Sabien board time
managing the project and the recharge of professional fees
incurred. However, the proposed restructuring of b.grn will involve
additional fees being charged of up to GBP0.35m expected to be in
the forthcoming financial year.
Proton Technologies Canada Inc.
On 14 October 2021, Sabien invested GBP100k in Proton, giving
the Company a 0.08% shareholding. Subsequently, Sabien entered into
a licensing agreement with Proton on 1 February 2022. This
agreement allowed Sabien to deploy Proton's technology within the
UK and the right to install a plant for the COF plastic to oil
technology on Proton's Saskatchewan site. Sabien retains the rights
conferred by this licensing agreement.
On 29 September 2023 Sabien received notification that a
proposal from a third party to inject new capital, restructure its
balance sheet, and reform its management team (the "Proposal") had
been successful. Pending further information from the new
management team, the Board of Sabien has concluded that an
impairment provision of GBP99k is required at 30 June 2023 to
reflect the dilution and notional value ascribed by the
Proposal.
The Board considers that the Proton UK project offers strong
long--term prospects for the Group but is not a current area of
focus. Sabien will continue discussions with the new management
team at Proton in relation to its option to install a COF plant at
Proton's Saskatchewan site.
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 continued to make progress
in developing its customer base and raised funds at up to GBP2.75
per share in February 2023.
Financial results
In the year to 30 June 2023, the Group has generated revenue of
GBP1.10m (2022: GBP0.68m), with GBP0.86m recorded in the second
half . An overall increase in sales in the year of 62% compared to
the prior year. Following the year end, to date the Company has
achieved sales of GBP0.18m to 30 September 2023 and received orders
of GBP0.16m.
The Board considers that the prospects for the Group from its
main two business lines are strong for 2024.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 JUNE 2023
2023 2022
------------------------------------------------- ----- ------------------ ------------------
Notes GBP000 GBP000
------------------------------------------------- ----- ------------------ ------------------
Revenue 6 1,098 679
================================================= ===== ================== ==================
Cost of sales (394) (231)
================================================= ===== ================== ==================
Gross profit 704 448
================================================= ===== ================== ==================
Administrative expenses (1,331) (1,327)
================================================= ===== ================== ==================
Exceptional item 8 - (9)
================================================= ===== ================== ==================
Operating loss 7 (627) (888)
================================================= ===== ================== ==================
Other income 10 1 158
================================================= ===== ================== ==================
Finance cost 12 (7) (13)
================================================= ===== ================== ==================
Finance income 12 3 -
================================================= ===== ================== ==================
Impairment loss 18 (99) -
================================================= ===== ================== ==================
Share of associate loss 18 - -
================================================= ===== ================== ==================
Loss before tax (729) (743)
================================================= ===== ================== ==================
Tax credit 27 -
================================================= ===== ================== ==================
Loss for the year attributable to equity holders
of the parent company (702) (743)
================================================= ===== ================== ==================
Other comprehensive income - -
================================================= ===== ================== ==================
Total comprehensive income for the year (702) (743)
================================================= ===== ================== ==================
Loss per share in pence -- basic 14 (3.59) (5.06)
================================================= ===== ================== ==================
Loss per share in pence -- diluted 14 (3.59) (5.06)
================================================= ===== ================== ==================
CONSOLIDATED AND COMPANY STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Company Reg No: 05568060
Group Group Company Company
------------------------------- ----- ----------------- ----------------- ----------------- ----------------
2023 2022 2023 2022
------------------------------- ----- ----------------- ----------------- ----------------- ----------------
Notes GBP000 GBP000 GBP000 GBP000
=============================== ===== ================= ================= ================= ================
ASSETS
=============================== ===== ================= ================= ================= ================
Non--current assets
=============================== ===== ================= ================= ================= ================
Property, plant and equipment 15 1 2 - -
=============================== ===== ================= ================= ================= ================
Intangible assets 16 112 152 94 97
=============================== ===== ================= ================= ================= ================
Investments 18 382 200 382 200
=============================== ===== ================= ================= ================= ================
Total non--current assets 495 354 476 297
=============================== ===== ================= ================= ================= ================
Current assets
=============================== ===== ================= ================= ================= ================
Inventories 17 79 40 - -
=============================== ===== ================= ================= ================= ================
Trade and other receivables 20 202 387 53 231
=============================== ===== ================= ================= ================= ================
Cash and cash equivalents 21 436 573 125 306
=============================== ===== ================= ================= ================= ================
Total current assets 717 1,000 178 537
=============================== ===== ================= ================= ================= ================
TOTAL ASSETS 1,212 1,354 654 834
=============================== ===== ================= ================= ================= ================
EQUITY AND LIABILITIES
=============================== ===== ================= ================= ================= ================
Current liabilities
=============================== ===== ================= ================= ================= ================
Trade and other payables 22 500 487 63 98
=============================== ===== ================= ================= ================= ================
Borrowings 23 39 138 3 102
=============================== ===== ================= ================= ================= ================
Total current liabilities 539 625 66 200
=============================== ===== ================= ================= ================= ================
Non--current liabilities
=============================== ===== ================= ================= ================= ================
Borrowings 23 72 109 - -
=============================== ===== ================= ================= ================= ================
Total non--current liabilities 72 109 - -
=============================== ===== ================= ================= ================= ================
Equity
=============================== ===== ================= ================= ================= ================
Equity attributable to equity
holders of the parent
=============================== ===== ================= ================= ================= ================
Share capital 24 3,563 3,354 3,563 3,354
=============================== ===== ================= ================= ================= ================
Share premium 4,021 3,543 4,021 3,543
=============================== ===== ================= ================= ================= ================
Other reserves (3) 1 - 10
=============================== ===== ================= ================= ================= ================
Retained earnings (6,980) (6,278) (6,996) (6,273)
=============================== ===== ================= ================= ================= ================
Total equity 601 620 588 634
=============================== ===== ================= ================= ================= ================
TOTAL EQUITY AND LIABILITIES 1,212 1,354 654 834
=============================== ===== ================= ================= ================= ================
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE YEARED 30 JUNE 2023
Group Group Company Company
------------------------------------------- ------------ ---------- --------------- ---------------
2023 2022 2023 2022
------------------------------------------- ------------ ---------- --------------- ---------------
GBP000 GBP000 GBP000 GBP000
=========================================== ============ ========== =============== ===============
Cash flows from operating activities
=========================================== ============ ========== =============== ===============
Loss after taxation (702) (743) (723) (572)
=========================================== ============ ========== =============== ===============
Adjustments for:
=========================================== ============ ========== =============== ===============
Depreciation and amortisation 64 63 3 3
=========================================== ============ ========== =============== ===============
Impairment loss on investments 99 - 99 -
=========================================== ============ ========== =============== ===============
Loss / (gain) on foreign currency reserve 6 (9) - -
=========================================== ============ ========== =============== ===============
Corporation tax (27) - - -
=========================================== ============ ========== =============== ===============
Finance cost 7 13 2 3
=========================================== ============ ========== =============== ===============
Less movement in interest accrual (1) (2) (1) (2)
=========================================== ============ ========== =============== ===============
Fixed assets transferred to inventory - 6 - -
=========================================== ============ ========== =============== ===============
Equity settled current liability - 33 - 33
=========================================== ============ ========== =============== ===============
Increase / (decrease) in trade and other
receivables 29 (334) 24 (65)
=========================================== ============ ========== =============== ===============
Increase in inventories (39) (16) - -
=========================================== ============ ========== =============== ===============
Increase / (decrease) in trade and other
payables 12 326 (38) 14
------------------------------------------- ------------ ---------- --------------- ---------------
Net cash outflow from operating activities (552) (663) (634) (586)
=========================================== ============ ========== =============== ===============
Cash flows from investing activities
=========================================== ============ ========== =============== ===============
Investments acquired (89) (100) (89) (100)
=========================================== ============ ========== =============== ===============
Purchase of intangible assets (24) (131) - (100)
=========================================== ============ ========== =============== ===============
Loan advance to associated undertaking (37) - (37) -
=========================================== ============ ========== =============== ===============
Research and development corporation tax
refund 27 - - -
=========================================== ============ ========== =============== ===============
Net cash used in investing activities (123) (231) (126) (200)
=========================================== ============ ========== =============== ===============
Cash flows from financing activities
=========================================== ============ ========== =============== ===============
Proceeds from borrowings - 100 - 100
=========================================== ============ ========== =============== ===============
Repayment of borrowings (36) (36) - -
=========================================== ============ ========== =============== ===============
Interest paid (6) (11) (1) -
=========================================== ============ ========== =============== ===============
Proceeds from share issues 600 15 600 15
=========================================== ============ ========== =============== ===============
Share issue costs (20) - (20) -
------------------------------------------- ------------ ---------- --------------- ---------------
Net cash generated by financing activities 538 68 579 115
=========================================== ============ ========== =============== ===============
Net decrease in cash and cash equivalents (137) (826) (181) (671)
=========================================== ============ ========== =============== ===============
Cash and cash equivalents at the beginning
of the year 573 1,399 306 977
=========================================== ============ ========== =============== ===============
Cash and cash equivalents at the end of
the year 436 573 125 306
=========================================== ============ ========== =============== ===============
Cash and cash equivalents comprise
=========================================== ============ ========== =============== ===============
Cash and cash equivalents 436 573 125 306
=========================================== ============ ========== =============== ===============
436 573 125 306
=========================================== ============ ========== =============== ===============
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END
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November 02, 2023 03:00 ET (07:00 GMT)
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