REG - Sabien Technology - Final Results & Annual Report & Accounts for 2024
18/11/2024 07:00
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RNS Number : 5454M Sabien Technology Group PLC 18 November 2024
18 November 2024
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.
Sabien Technology Group plc
("Sabien", the "Company" or the "Group")
Audited Full Year Results for the Year Ended 30 June 2024
Sabien Technology Group plc (AIM: SNT), a leading provider of energy reduction
technologies, is pleased to announce the publication of its audited annual
report and accounts for the year ended 30 June 2024 (the "Annual Report").
Sabien highlights 2024
• Revenue for the year £0.71m (2023: £1.10m);
• Loss after tax £0.54m (2023 £0.70m loss);
• Overseas revenue £0.03m (2023: £0.07m);
• Deferred revenue carried into 2024 £0.11m (2023: £0.20m);
• Forward orders carried into 2024 £0.048m (2023: £0.20m);
• Cash less current borrowings at 30 June 2024 was £0.04m (30
June 2023: £0.40m);
• Subscription and broker option in year raised £0.12m; and
• Related party funding raised £0.2m.
Highlights since the year end
• Orders received to 13 November 2024 £0.26m (£0.24m to 30
November 2023).
• Further related party funding package comprising stock
purchase, research and development and IT support, and capitalisation of
£0.06m Directors' remuneration, £0.04m of broker fees and £0.03m of other
costs.
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/5454M_1-2024-11-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5454M_1-2024-11-17.pdf)
Key extracts from the Annual Report can also be viewed below.
Notice of AGM
The Company will hold its Annual General Meeting at 10.00 a.m. on 19 December
2024 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:
Sabien Technology Group plc
Richard Parris, Executive Chairman +44 20 7993 3700
investors@sabien.com
www.sabien.com (http://www.sabien.com/)
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
About Sabien Technology Group plc
Sabien Technology Group plc provides energy reduction solutions designed to
help businesses achieve their sustainability goals, with a particular focus on
reducing energy consumption and carbon emissions.
The Sabien Technology Group plc holds the Green Economy Mark from the London
Stock Exchange, recognising companies generating over 50% of their revenues
from sustainable products and services.
About M2G Cloud Connect Solution
Sabien's M2G Cloud Connect solution, which underpinned this order, provides
real-time, visible energy and CO2 savings, and analytics. By continuously
monitoring plant operations, M2G Cloud Connect captures and processes data,
offering actionable insights via an intuitive smart dashboard. This technology
not only delivers immediate energy savings but also offers clear guidance on
optimising plant performance and efficiency.
Extracts from the Annual Report
Executive Chairman's Statement
I am delighted to report on our audited results for the financial year ended
30 June 2024 as well as the significant progress Sabien has made as we advance
our Green Aggregation Strategy. This financial year has been transformative,
with our focus sharpened on two key initiatives: the M2G technology, our
flagship CO2 mitigation device for commercial boilers, and the groundbreaking
plastic-to-oil technology from City Oil Field Inc. ("COF").
Despite a reduction in top-line revenue, the underlying strength of our
business is encouraging. When we look beyond the significant revenue
contribution from a UK government customer over the past five years, we see a
strong story of growth. Excluding this government revenue, our core business
has expanded rapidly, with revenue rising from £0.27 million in 2022 to
£0.47 million in 2023 to £0.62 million in 2024-a compound annual growth rate
of 52%. This is a testament to the resilience and potential of our strategy.
Our partnership with COF continues to evolve, marking a year of exciting
developments. We have successfully extended our exclusive Sales Agency
Agreement for another five years, covering the UK and a strategic US state.
This collaboration lays a strong foundation for the future, ensuring that
Sabien remains at the cutting edge of green technology while building a
sustainable and autonomous business line.
I am also pleased to confirm that my family office, Parris Group Ltd, remains
fully committed to supporting Sabien's working capital needs. This backing
allows us to focus on growth without the need for dilutive equity raises over
the next 12 months. This stability underscores our commitment to delivering
long-term value to our shareholders.
Sabien's mission to tackle global environmental challenges through innovative
solutions has never been more relevant. Our strategic positioning within the
high-growth green technology sector, combined with our ability to adapt and
evolve, strengthens the foundations upon which our future success will be
built.
M2G Business
The M2G Cloud business has been a standout performer this year, showcasing
compound year-on-year growth of 52% (excluding the UK Government contract
delayed in 2024) across a broadened customer base since launch in 2022. This
success is driven by our expanding distribution network, with CBRE emerging as
a key partner. After streamlining our operations and optimizing costs, we have
begun to expand our sales team to fully capitalize on the opportunities ahead.
The positive results we are seeing validate our strategy of modernizing our
technology, establishing strong channels, and maintaining rigorous cost
control.
In the 2024 financial year, M2G Cloud Solutions generated £0.50 million in
revenue (2023: £0.96 million). As we move forward, we carry forward deferred
revenue of £0.10 million, open orders of £0.06 million, and recurring Cloud
support revenue of £0.08 million into FY25. Additionally, we have already
identified and secured £0.25 million in revenue for 2025, providing a solid
platform for continued growth.
COF / b.grn Group Limited Business
COF's Regenerated Green Oil ("RGO") technology is at the forefront of the
green energy revolution, turning end-of-life plastics into ultra-pure fuel.
Sabien's partnership with COF, through our special purpose vehicle, b.grn
Group Limited, is a critical element of our growth strategy in the Western
Hemisphere. The first RGO plant in the UK, announced in November 2022,
represents a significant milestone, with the potential to generate
approximately US$1 million in commission for Sabien once a suitable site and
finance has been agreed. The Board expects that the commission will be
achieved either on the first UK site or the first USA site for which
discussions are currently in progress and will be payable within 2025 or 2026.
In June 2024, we extended our exclusive Sales Agency Agreement with COF for
another five years, reinforcing our leadership position in the UK and a key
region in the US. This agreement also introduces an increased sales agency fee
of up to $1.2 million per RGO module sold and opens up opportunities for
non-exclusive rights in other territories. Our associate company, b.grn, has
also extended its supply contract with COF, ensuring that we remain at the
cutting edge of waste plastic recycling. With advanced due diligence on a
first US site underway and the anticipated completion of COF's first
production plant in Korea, we are well-positioned for a breakthrough year in
2025.
Proton Technologies Canada Inc.
Our investment in Proton Technologies in 2021 continues to offer development
possibilities. While management changes at Proton have presented challenges,
we retain our rights to deploy Proton's innovative hydrogen extraction
technology in the UK and to install a COF plant at their Saskatchewan site.
Subject to periodic review, the Board has deprioritised this project in favour
of other opportunities.
Aeristech investment
Our investment in Aeristech has proven to be a valuable addition to our
portfolio. Since our initial investment in 2021, Aeristech has made impressive
progress, particularly in developing e-boost technologies for hydrogen fuel
cells and hybrid powertrains. With its latest funding round in February 2023
showing a rise in share value to £2.75, Aeristech continues to contribute
positively to our overall strategy.
Financial results
For the year ended 30 June 2024, Sabien generated revenue of £0.71 million
(2023: £1.10 million), with £0.47 million recorded in the second half. We
achieved a robust gross margin of 82% (2023: 62%), reflecting our successful
efforts to reduce M2G's monthly operating direct costs. As of 31 October 2024,
we have already secured £0.15 million in sales and received orders totalling
£0.11 million.
The Board is confident in the strong prospects for Sabien's primary business
lines as we enter 2025. We are excited about the opportunities that lie ahead
and are well-equipped to build on our achievements, driving forward our
mission to provide innovative, sustainable solutions in the green technology
sector.
Conclusion
In conclusion, Sabien Technology Group PLC is poised for a bright future. Our
strategic focus on innovation, strong partnerships, and disciplined financial
management has set the stage for continued growth and success. I am energized
by the progress we have made and look forward to leading Sabien into an
exciting new chapter in 2025. The best is yet to come.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
2024 2023
Notes £000 £000
Revenue 6 711 1,098
Cost of (129) (394)
sales
Gross 582 704
profit
Administrative (1,139) (1,331)
expenses
Operating 7 (557) (627)
loss
Other 9 2 1
income
Finance 11 (11) (7)
cost
Finance 11 3 3
income
Impairment 17 - (99)
loss
Loss before (563) (729)
tax
Tax 18 27
credit
Loss for the year attributable to equity holders of the parent (545) (702)
company
Other comprehensive - -
income
Total comprehensive income for the (545) (702)
year
Loss per share in pence ‑ 13 (2.46) (3.40)
basic
Loss per share in pence ‑ 13 (2.46) (3.40)
diluted
The earnings per share calculation relates to both continuing and total
operations.
CONSOLIDATED AND COMPANY STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Group Group Company Company
2024 2023 2024 2023
Notes £000 £000 £000 £000
ASSETS
Non‑current assets
Property, plant and equipment 14 - 1 - -
Intangible assets 15 129 112 91 94
Investments 17 384 382 384 382
Total non‑current assets 513 495 475 476
Current assets
Inventories 16 70 79 - -
Trade and other receivables 19 175 202 26 53
Cash and cash equivalents 20 100 436 36 125
Total current assets 345 717 62 178
TOTAL ASSETS 858 1,212 537 654
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 21 513 500 223 63
Borrowings 22 139 39 103 3
Total current liabilities 652 539 326 66
Non‑current liabilities
Borrowings 22 36 72 - -
Total non‑current liabilities 36 72 - -
Equity
Equity attributable to equity holders of the
parent
Share capital 23 3,608 3,563 3,608 3,563
Share premium 4,091 4,021 4,091 4,021
Other reserves (4) (3) - -
Retained earnings (7,525) (6,980) (7,488) (6,996)
Total equity 170 601 211 588
TOTAL EQUITY AND LIABILITIES 858 1,212 537 654
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Group Group Company Company
2024 2023 2024 2023
£000 £000 £000 £000
Cash flows from operating
activities
Loss after (545) (702) (492) (723)
taxation
Adjustments
for:
Depreciation and 63 64 3 3
amortisation
Impairment loss on - 99 - 99
investments
Loss on foreign currency 1 6 - -
reserve
Corporation (18) (27) - -
tax
Finance 11 7 5 2
cost
Less movement in interest - (1) - (1)
accrual
Decrease in trade and other 90 29 68 24
receivables
Decrease/ (increase) in 9 (39) - -
inventories
(Decrease) / increase in trade and other (38) 12 115 (38)
payables
Net cash outflow from operating (427) (552) (301) (634)
activities
Cash flows from investing
activities
Investments - (89) - (89)
acquired
Purchase of intangible (79) (24) - -
assets
Loan advance to associated (2) (37) (2) (37)
undertaking
Research and development corporation tax refund - 27 - -
Net cash used in investing (81) (123) (2) (126)
activities
Cash flows from financing
activities
Proceeds from 100 - 100 -
borrowings
Repayment of (36) (36) - -
borrowings
Interest (7) (6) (1) (1)
paid
Proceeds from share 120 600 120 600
issues
Share issue (5) (20) (5) (20)
costs
Net cash generated by financing 172 538 214 579
activities
Net decrease in cash and cash (336) (137) (89) (181)
equivalents
Cash and cash equivalents at the beginning of the year 436 573 125 306
Cash and cash equivalents at the end of the year 100 436 36 125
Cash and cash equivalents
comprise
Cash and cash 100 436 36 125
equivalents
100 436 36 125
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Share capital Share premium Other reserves Retained earnings Total equity
£000 £000 £000 £000 £000
Balance at 1 July 2022 3,354 3,543 1 (6,278) 620
Changes in equity for year
Loss for the year - - - (702) (702)
Share issues 180 420 - - 600
Share issue costs - (20) - - (20)
Share issue on conversion of loan 29 68 - - 97
Foreign exchange variance - - 6 - 6
Warrants lapsed - 10 (10) - -
Balance at 1 July 2023 3,563 4,021 (3) (6,980) 601
Changes in equity for year
Loss for the year - - - (545) (545)
Share issues 45 75 - - 120
Share issue costs - (5) - - (5)
Foreign exchange variance - - (1) - (1)
At 30 June 2024 3,608 4,091 (4) (7,525) 170
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