REG - Sabien Technology - Final Results for the Year to 30 June 2022
14/10/2022 07:00
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RNS Number : 8688C Sabien Technology Group PLC 14 October 2022
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.
14 October 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
2022
(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 2022 (the "Annual
Report").
Sabien Technology Group highlights 2022
· Sales for the year £0.68m (2021: £0.97m)
· Management fee from associated party £0.15m (2021: £nil).
· Loss before tax £0.74m (2021 £0.51m loss)
· Sales from Alliance Partners £0.06m (2021: £0.04m)
· Deferred revenue carried into 2023 £0.18m (2021: £0.02m)
· Forward orders carried into 2023 £0.09m (2021: £0.04m)
· Overseas sales £0.06m (2021: £0.04m)
· Net cash balance at 30 June 2022 was £0.33m (30 June 2021: £1.22m)
Highlights since the year end
· Sales of £0.13m to 30 September 2022.
· Net cash balance at 30 September 2022 of £0.63m.
· £500k gross placing and £100k oversubscribed broker option.
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/8688C_1-2022-10-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8688C_1-2022-10-13.pdf)
Key extracts from the Annual Report can also be viewed below.
Richard Parris, Executive Chairman, commented,
"Sabien is a microcosm of the challenges and opportunities facing the world
today. The Group has developed, and is developing, a series of operations
whose purpose and growth are both strong now and likely to strengthen further
in the medium term. The Board of Sabien has prepared for this growth through
acquiring selectively, partnering constructively and managing prudently. We
look forward to the future with greater confidence than we have for some
time."
Notice of AGM
The Company will hold its Annual General Meeting at 11.00 am on 22 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: +44 20 7993 3700
Sabien Technology Group plc
Richard Parris, Executive Chairman
Allenby Capital Limited (Nominated Adviser)
John Depasquale / Nick Harriss +44 203 328 5656
Peterhouse Capital Limited (Broker) +44 207 469 0930
Duncan Vasey / Lucy Williams
Executive Chairman's Statement
On 1 July 2021 the world in which Sabien operates was a different place from
that which faces the company into 2023. Specifically, Covid was still a clear
and present danger and the economic impact of our addressing this danger less
understood or assessed. Today, Covid appears more under control but the impact
of our fight against it is only now becoming apparent. Inflation figures, last
seen in the 1970s, combine with fiscal and monetary structures ill‑suited to
combat them. The flight from cities appears more structural than temporary
with consequential impacts on where we live and work. Energy pricing, and the
inter‑dependence of the market at a time of war, poses a fundamental risk
for the economic system which prevailed pre‑Covid.
In short: I believe that there is no return to "normal" and that the
establishment of a new "normal" is months, if not years, away.
Sabien, under the management's leadership, recognised these changes early.
During the year ended 30 June 2022, Sabien's Green Aggregation Strategy has
focussed on three principal technology led initiatives. M2G, the existing
Sabien CO2 mitigation device for commercial boilers, the UK rollout of
Proton's oil to hydrogen technology, and the City Oil Field Inc. ("COF")
plastic to oil technology.
We have shared the development of these initiatives with shareholders and the
wider market throughout. In support of them, and our continuing development,
the Company has raised £0.6m through a placing and broker option. This
provides the Company with the wherewithal to secure the opportunities
presented to it, for the benefits of shareholders and stakeholders alike.
M2G Business
Despite the world semi‑conductor supply shortage and its impact on the
completion of sales during the second half of the 2022 financial year, the
Board is very pleased with the growth of the new M2G Cloud business.
During the 2022 financial year, 293 M2G Cloud Solutions were sold (2021: nil)
of which 262 (89.4% of the annual total) occurred in the second half of the
year. In addition, the Company has deferred revenue of £175k, and open
orders of £91k, that will carry over into FY23 as well as £23k of recurring
revenue from the M2G Cloud Solutions sold to date to be recognised in FY23. In
total, M2G has 2023 revenue identified and charged, but not yet booked, of
£289k (July 2021 forward revenue: £43k).
The Board is encouraged that despite the supply chain problems affecting many
companies, it has secured revenue which, had it fallen in the year to 30 June
2022 would have resulted in a stable performance year‑on‑year including
other income of £0.15m (2021:£nil) to the associated party b.grn Group Ltd
("b.grn"). It is encouraged, further, that the momentum of revenue is growing
through the first half of the Company's financial year to 30 June 2023.
The Board was also pleased to recently announce that Sabien is working with
City Energy Network Ltd and EDF Plc to obtain The Standard Assessment
Procedure (SAP) approval for M2G. This has the potential to expand Sabien's
reach for the M2G product line into the residential/domestic market via
district heating schemes and increases its current addressable market by three
times.
COF / b.grn Business
During the financial year to 30 June 2022, Sabien signed a sales agency
agreement with COF. COF is a South Korean business that has developed an
innovative proprietary technology ‑ Resource Gathering Operation (RGO),
which focuses on the production of light and ultra‑pure fuel products from
low temperature processing of end‑of‑life plastics. In August 2022 we
announced that the sales agency agreement had been renewed for a further
year. We also announced that construction has started on the first
commercial COF installation in South Korea.
During the year the business has been developed in combination with Sabien's
development partner b.grn Group Ltd ("b.grn"). Key milestones have been
reached including the establishment of a range of partner relationships with
funding partners and professional advisors. The latter includes development
managers, ESG advisors, and real estate advisors. In consultation with
advisers, b.grn has assessed a range of potential sites in England and Wales
for the first European COF installation. As previously announced,
exclusivity was agreed on a site near Northampton; discussions were held in
relation to a site on the Humber Estuary; and most recently an indicative bid
was submitted to acquire the ex‑Anglesey Aluminium site in Anglesey,
supported by b.grn funding partners, from the site's administrators. These
three main sites considered to date are not being actively pursued, primarily
due to the level of cost involved in acquiring the sites or the time required
to develop them.
Through this work to date, the Board has developed a strong understanding of
the emerging real estate market in key locations in the UK. Within this, the
Company and b.grn have developed an advanced assessment of the most efficient
sites for the deployment of COF. From this emerging knowledge, the Company and
b.grn are now actively considering a number of sites in the UK, and beyond,
where b.grn could deploy COF without, necessarily, acquiring the underlying
real estate. Investigations into potential sites continue with b.grn's
partners. It is likely that the first active deployment will be an initial 24
tonne ("24t") per day plastic to oil proof of concept plant.
During the year, Sabien charged management fees of £0.15m to b.grn (2021:
£nil) comprising Sabien board time managing the project and the recharge of
professional fees incurred during the year to 30 June 2022.
Proton UK Business
During the year Sabien has been working with multiple UK oil field owners to
identify suitable sites on which to deploy the Proton Technologies Canada Inc.
("Proton") proprietary hydrogen capture technology. In the long term, owners
are motivated to develop such hydrogen production facility on their near to
end of life fields. The Board believes that this motivation is secular and is
likely to grow as the global fuel portfolio adapts to the clear trends in
hydrocarbon demand. In the short term, reflecting the current high level of
oil prices in the market, field owners have focussed on maximising short term
oil production. The Proton project continues to hold strong prospects for the
Group, however is not a current area of primary focus for the field owners due
to the high oil price.
Sabien is 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 off‑take oil from the COF process and both teams are
motivated to develop the first North American COF installation.
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 made
excellent progress in developing its customer base and has raised funds at up
to £3.00 per share.
Financial results
In the year to 30 June 2022, the Group has generated revenue of £0.68m (2021:
£0.97m), with £0.56m recorded in the second half as well as £0.15m other
income in relation to b.grn. Whilst overall revenue has decreased in
comparison to 2021, the Group carries £0.29m (2021: £0.04m) into 2023. The
forward revenue comprises deferred revenue unable to be completed in 2022 due
to delayed supply chain caused by the worldwide semiconductor shortage,
forward orders, and a growing level of recurring revenue from the M2G Cloud
rollout.
Following the year end, the Group has closed a £500k placing from existing
and new investors and a £100k oversubscribed broker option. Combined with
our forward orders and revenue, the Group is well placed in 2023 to take its
three main business lines to the next stages in their development.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
2022 2021
Notes £000 £000
Revenue 679 971
Cost of (231) (153)
sales
Gross 448 818
profit
Administrative (1,327) (1,182)
expenses
Exceptional 8 (9) (180)
item
Operating 7 (888) (544)
loss
Other 10 158 35
income
Finance 12 (13) -
cost
Loss before (743) (509)
tax
Tax 13 - -
credit
Loss for the year attributable to equity holders of the parent (743) (509)
company
Other comprehensive - -
income
Total comprehensive income for the (743) (509)
year
Loss per share in pence ‑ 14 (5.06) (6.22)
basic
Loss per share in pence ‑ 14 (5.06) (6.22)
diluted
CONSOLIDATED AND COMPANY STATEMENTS OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Group Group Company Company
2022 2021 2022 2021
Notes £000 £000 £000 £000
ASSETS
Non‑current assets
Property, plant and equipment 15 2 35 - -
Intangible assets 16 152 57 97 -
Investments 18 200 100 200 100
Total non‑current assets 354 192 297 100
Current assets
Inventories 17 40 24 - -
Trade and other receivables 20 387 51 231 180
Cash and bank balances 21 573 1,399 306 977
Total current assets 1,000 1,474 537 1,157
TOTAL ASSETS 1,354 1,666 834 1,257
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 22 487 161 98 99
Borrowings 23 138 36 102 -
Total current liabilities 625 197 200 99
Non‑current liabilities
Borrowings 23 109 145 - -
Total non‑current liabilities 109 145 - -
Equity
Equity attributable to equity holders of the
parent
Share capital 24 3,354 3,350 3,354 3,350
Share premium 3,543 3,508 3,543 3,508
Other reserves 1 1 10 1
Retained earnings (6,278) (5,535) (6,273) (5,701)
Total equity 620 1,324 634 1,158
TOTAL EQUITY AND LIABILITIES 1,354 1,666 834 1,257
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Group Group Company Company
2022 2021 2022 2021
£000 £000 £000 £000
Cash flows from operating
activities
Loss before (743) (509) (572) (993)
taxation
Adjustments
for:
Depreciation and 63 51 3 -
amortisation
Loss on disposal of fixed - 11 - -
assets
Gain on foreign currency (9) - - -
reserve
Finance 13 - 3 -
cost
Less movement in interest (2) - (2) -
accrual
Fixed assets transferred to 6 - - -
inventory
Equity settled current 33 - 33 -
liability
(Decrease) / increase in trade and other receivables (334) 32 (65) 284
(Increase) / decrease in (16) 15 - -
inventories
Increase / (decrease) in trade and other 326 (466) 14 (430)
payables
Net cash outflow from operating (663) (866) (586) (1,139)
activities
Cash flows from investing
activities
Investments (100) (100) (100) (100)
acquired
Purchase of property, plant and - (33) - -
equipment
Purchase of intangible (131) - (100) -
assets
Net cash used in investing (231) (133) (200) (100)
activities
Cash flows from financing
activities
Proceeds from 100 - 100 -
borrowings
Repayment of (36) - - -
borrowings
Interest (11) - - -
paid
Proceeds from share 15 1,700 15 1,700
issues
Share issue - (80) - (80)
costs
Net cash generated by financing 68 1,620 115 1,620
activities
Net (decrease) / increase in cash and cash equivalents (826) 621 (671) 381
Cash and cash equivalents at the beginning of the year 1,399 778 977 596
Cash and cash equivalents at the end of the year 573 1,399 306 977
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