REG - Sabien Technology - Final Results & Annual Report & Accounts for 2023
02/11/2023 07:16
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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 (AMENDMENT) (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 £1.10m (2022: £0.68m);
• Management fee from associated party £nil
(2022:£0.15m);
• Loss after tax £0.70m (2022 £0.74m loss);
• Overseas revenue £0.07m (2022: £0.06m);
• Deferred revenue carried into 2024 £0.20m (2022:
£0.18m);
• Forward orders carried into 2024 £0.20m (2023:
£0.09m);
• Cash less current borrowings at 30 June 2023 was £0.40m
(30 June 2022: £0.44m);
• Placing and oversubscribed broker option raised £0.6m
(gross), in addition £0.1m shareholder loan capitalised.
Highlights since the year end
• Sales of £0.18m to 30 September 2023 (£0.13m
to 30 September 2022).
• Cash less current borrowings at 30 September
2023 of £0.31m (£0.63m at 30 September 2022).
The Annual Report will be published on the Company's website
(https://sabien.com/sabien-technology-investors-2/
(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
(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 £0.6m through a placing and broker option in
August 2022 and at the same time £0.1m 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 £0.96m was
achieved (2022: £0.56m). In addition, the Company has deferred revenue of
£0.20m, and open orders of £0.10m, that will carry over into FY24. In
total, at the year end M2G has 2024 revenue identified and charged, but not
yet booked, of £0.3m (2023 £0.3m). 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 £0.13m (2022:
£0.02m).
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 £0.15m, 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 £0.35m expected to
be in the forthcoming financial year.
Proton Technologies Canada Inc.
On 14 October 2021, Sabien invested £100k 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 £99k 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 £100k in Aeristech in February 2021 at a price of £2.40 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 £2.75
per share in February 2023.
Financial results
In the year to 30 June 2023, the Group has generated revenue of £1.10m (2022:
£0.68m), with £0.86m 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 £0.18m to 30 September 2023 and
received orders of £0.16m.
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 YEAR ENDED 30 JUNE 2023
2023 2022
Notes £000 £000
Revenue 6 1,098 679
Cost of (394) (231)
sales
Gross 704 448
profit
Administrative (1,331) (1,327)
expenses
Exceptional 8 - (9)
item
Operating 7 (627) (888)
loss
Other 10 1 158
income
Finance 12 (7) (13)
cost
Finance 12 3 -
income
Impairment 18 (99) -
loss
Share of associate 18 - -
loss
Loss before (729) (743)
tax
Tax 27 -
credit
Loss for the year attributable to equity holders of the parent company (702) (743)
Other comprehensive - -
income
Total comprehensive income for the (702) (743)
year
Loss per share in pence ‑ 14 (3.59) (5.06)
basic
Loss per share in pence ‑ 14 (3.59) (5.06)
diluted
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 £000 £000 £000 £000
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 YEAR ENDED 30 JUNE 2023
Group Group Company Company
2023 2022 2023 2022
£000 £000 £000 £000
Cash flows from operating
activities
Loss after (702) (743) (723) (572)
taxation
Adjustments
for:
Depreciation and 64 63 3 3
amortisation
Impairment loss on 99 - 99 -
investments
Loss / (gain) on foreign currency 6 (9) - -
reserve
Corporation (27) - - -
tax
Finance 7 13 2 3
cost
Less movement in interest (1) (2) (1) (2)
accrual
Fixed assets transferred to - 6 - -
inventory
Equity settled current - 33 - 33
liability
Increase / (decrease) in trade and other receivables 29 (334) 24 (65)
Increase in (39) (16) - -
inventories
Increase / (decrease) in trade and other 12 326 (38) 14
payables
Net cash outflow from operating (552) (663) (634) (586)
activities
Cash flows from investing
activities
Investments (89) (100) (89) (100)
acquired
Purchase of intangible (24) (131) - (100)
assets
Loan advance to associated (37) - (37) -
undertaking
Research and development corporation tax refund 27 - - -
Net cash used in investing (123) (231) (126) (200)
activities
Cash flows from financing
activities
Proceeds from - 100 - 100
borrowings
Repayment of (36) (36) - -
borrowings
Interest (6) (11) (1) -
paid
Proceeds from share 600 15 600 15
issues
Share issue (20) - (20) -
costs
Net cash generated by financing 538 68 579 115
activities
Net decrease in cash and cash (137) (826) (181) (671)
equivalents
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 436 573 125 306
equivalents
436 573 125 306
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