REG - Sabien Technology - Half-year Report for the 6 months to 31 Dec 2024
17/03/2025 07:00
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RNS Number : 8306A Sabien Technology Group PLC 17 March 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310
17 March 2025
Sabien Technology Group Plc
("Sabien", the "Company" or the "Group")
Unaudited Interim Results for the six months ended 31 December 2024
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 2024 (the "Period"). Comparative figures
are shown for the comparable period in the previous financial year unless
otherwise stated:
Financial highlights
6 months to 31 December 2024 6 months to 31 December 2023 Year to
30 June
2024
Unaudited Unaudited Audited
Sales revenue £'000 334 369 711
Sales orders received £'000 280 386 679
Sales invoices raised £'000 319 320 625
Gross profit margin % 67 62 82
Net loss after tax £'000 (377) (371) (545)
Cash at end of period £'000 15 176 100
· Operating costs reduced by 18% to £0.49m in the Period (2024:
£0.60m);
· Strategic investor for the City Oil Field / b.grn project signs MOU
committing up to $10m to UK and US projects in return for an offtake agreement
on sustainable fuel oil products, subject to the balance of funding being
secured for the whole projects from other investors.
Current Trading
· Sales orders to 11 March 2025 of £0.71m (including £0.43m post
Period) exceed sales for whole of FY2024 and are a 56% increase on the 9
months ended 31 March 2024;
· Cash balances at 11 March 2025 £58,878 with £90,049 in the debtor
book
Executive Chairman's Statement
Sabien has emerged from the first half of the financial year in a stronger
strategic position than a year ago.
During this period, we have successfully diversified and expanded our M2G
order book while transitioning into a channel-oriented sales company with
annual subscriptions. Although H1 sales revenues remained broadly in line with
last year, our sales pipeline has been significantly strengthened through
partner-driven activity and recurring sales. This momentum led to a surge in
order receipts immediately following the period end, which bodes well for our
full-year results in June 2025.
Our affiliate and sales partner, b.grn, has also demonstrated outstanding
progress. Advanced discussions are underway regarding land leases for sites in
Phoenix, Arizona, and the UK. Additionally, a strategic investor and offtake
partner have been secured under an MOU. Sabien's technology partner, City Oil
Field (COF), is set to commission its first full-scale RGO production plant in
South Korea this May. Investors are reminded that Sabien is entitled to a 10%
sales commission on all RGO plants purchased by b.grn for the US and UK
markets, along with dividends once b.grn becomes operational and profitable in
producing sustainable fuel oils.
To support Sabien's transition towards larger-scale profitable operations and
growth, the Executive Chairman, Richard Parris, through his family office,
Parris Group, has provided the following additional financial facilities
during the period:
1. An increase in the existing loan facility by £100,000 to £200,000.
2. Full funding for M2G product development, exclusively leveraging the
software and security expertise of Parris Group subsidiary, Aretiico Group
plc, in exchange for a 5% royalty on future M2G sales.
3. A commercial trade finance arrangement under which Parris Group
purchases M2G in bulk and resells it to Sabien as needed to support individual
customer installations thereby eliminating the need for Sabien to tie up
capital in stock.
These related-party transactions, approved by Sabien's independent Board,
represent a significant shift in commercial risk from Sabien to Parris Group.
Furthermore, Richard Parris has increased his shareholding to 25.55% during
the period-an endorsement of his confidence in Sabien's future prospects.
Operations Review
M2G Business
M2G has continued to outperform its KPIs through the first eight months of the
current financial year with continued order growth.
M2G Cloud Connect has assisted customers in saving 1.4 million KgCO(2) in the
last 12 months. As Cloud Connect is rolled out to US markets, it is expected
that these savings will increase further.
The next generation M2G Evo has been proven in ongoing commercial field
tests. Further testing of the supporting software is being made, following
which M2G Evo will be CE tested and launched.
It was pleasing for Sabien to be awarded the "Driving Innovation" accolade at
CBRE's Above and Beyond Supplier Annual Awards during the Period. The event,
held at CBRE's flagship UK office in London, celebrates exceptional service
and innovation delivered by CBRE's key supplier partners.
For the six months ended 31 December 2024, Sabien recognised M2G revenue of
£0.33m, a decrease of £0.04m versus the comparative period (£0.37m).
Whilst there was a reduction in revenue recognised in the first half of the
year compared to the comparative period, overall order flow has increased: to
11 March 2025, Sabien has received orders in excess of £0.71m, ahead of total
sales for FY24 and an increase of over 56% compared to the 9 months ended 31
March 2024 (£0.46m); and has invoiced £0.50m to 28 February 2025, an
increase of over 22% on the same period in the prior year (£0.41m). Orders
continue to be supported by Sabien's partner network.
Overall, the net loss for the Period at £0.38m was similar to the comparative
period (£0.37m), but the Period included an exceptional impairment of £0.1m
(comparative: £nil) in relation to Aeristech (see below). Overheads
decreased by £0.1m in the Period to £0.49m (comparative period £0.60m) as
the cost cutting measures implemented begin to show results.
COF / b.grn Business
Prior to Christmas 2024, Sabien was pleased to announce an update on the
ongoing City Oil Field ("COF")/b.grn Group Limited ("b.grn") business
opportunity in the US focused on generating sustainable oil products from
mixed, contaminated waste plastics with zero emissions (the "Project"). The
update was that Phoenix, AZ, is the city where it is planned that the first US
deployment of COF technology will take place.
Since that announcement was made, a further significant step in the Project
has been achieved: the signing of an MOU with a major oil trading partner in
relation to the offtake of recycled green oil ("RGO") from the Project and
potential projects in the UK. In addition, the MOU covers the oil trading
partner making a cornerstone investment in the Project and future UK projects
as part of a future consortium of funders.
Sabien now considers that the final step in the process to deliver the Project
prior to securing a funding package is for funding partners to visit the first
commercial scale project in Korea which is close to launch.
Aeristech investment
During the Period it was very disappointing to learn of Aeristech Limited
entering administration. The company had a highly innovative product with
significant carbon reduction potential.
Following the news of the administration, the Board of Sabien no longer
expects to recover any of its investment in Aeristech. Accordingly, a full
impairment provision of £0.1m has been made in the interim accounts for the
Period (comparative period: £nil).
Proton Technologies Canada Inc.
Sabien is not focusing on this partner currently and there is no further
update since the 2024 annual report.
Summary
Overall, I am encouraged by the progress made in both key businesses. M2G's
order growth continues, and with a reduced cost base the business is close to
achieving a cash breakeven position.
b.grn has put in place the key building blocks for its first COF project and
looks forward to the commercial plant launch due in Korea before entering
discussions with funders in relation to the Phoenix Project in the USA.
The Board of Sabien looks forward to the next stages of growth across the
whole business in the coming year.
Richard Parris
Executive Chairman
17 March 2025
For further information:
+44 20 7993 3700
Sabien Technology Group plc investors@sabien.com (mailto:investors@sabien.com)
Richard Parris, Executive Chairman
Allenby Capital Limited (Nominated Adviser)
John Depasquale / Nick Harriss / Vivek Bhardwaj +44 203 328 5656
Peterhouse Capital Limited (Broker) +44 207 469 0930
Duncan Vasey / Lucy Williams
Sabien Technology Group Plc
Unaudited Condensed Group Statement of Comprehensive Income for the period
ended 31 December 2024
Notes 6 months to 31 December 2024 6 months to 31 December 2023 Year to
30
June
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 334 369 711
Cost of Sales (110) (141) (129)
Gross Profit 224 228 582
Administrative expenses (494) (597) (1,139)
Operating loss (270) (369) (557)
Other income - - 2
Finance cost (12) (4) (11)
Finance income - 2 3
Impairment loss (100) - -
Loss before tax (382) (371) (563)
Tax credit 5 - 18
Loss for the period attributable to equity holders of the parent company (377) (371) (545)
Other comprehensive income for the period - - -
(377) (371) (545)
Total comprehensive income for the period
Loss per share in pence - basic 3 (1.60)p (1.71)p (2.45)p
Loss per share in pence - diluted 3 (1.60)p (1.71)p (2.45)p
Sabien Technology Group Plc
Unaudited Condensed Group Statement of Financial Position as at 31 December
2024
Notes 31 December 2024 31 December 2023 30 June
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment - 1 -
Other intangible assets 106 155 129
Investments 282 382 384
Total non-current assets 388 538 513
Current assets
Inventories 26 114 70
Trade and other receivables 196 37 175
Cash and cash equivalents 15 176 100
Total current assets 237 327 345
TOTAL ASSETS 625 865 858
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 405 542 513
Borrowings 239 39 139
Total current liabilities 644 581 652
Non-current liabilities
Borrowings 18 54 36
Total non-current liabilities 18 54 36
EQUITY
Equity attributable to equity holders of the parent
Share capital 4 3,663 3,563 3,608
Other reserves 4,202 4,018 4,087
Retained earnings (7,902) (7,351) (7,525)
Total equity (37) 230 170
TOTAL EQUITY AND LIABILITIES 625 865 858
Sabien Technology Group Plc
Unaudited Condensed Group Cash Flow Statement for the period ended 31 December
2024
6 months 6 months Year
to to to
31 December 2024 31 December 2023 30 June
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Loss after taxation (377) (371) (545)
Adjustments for:
Depreciation and amortisation 31 31 63
Impairment loss on investments 100 - -
Foreign currency reserve movement (1) 1 1
Taxation (5) - (18)
Finance cost 12 4 11
Equity settled current liabilities
Decrease / (increase) in trade and other receivables (39) 166 90
Increase in inventories 44 (35) 9
Increase / (decrease) in trade and other payables 72 40 (38)
Net cash outflow from operating activities (163) (164) (427)
Cash flows from investing activities
Purchase of intangible assets (8) (74) (79)
Loan advance to associated undertaking 2 - (2)
Research and development corporation tax refund 23 - -
Net cash from/ (used) in investing activities 17 (74) (81)
Cash flows from financing activities
Repayment of borrowings (18) (18) (36)
Interest paid (21) (4) (7)
Proceeds from borrowings 100 - 100
Proceeds from share issues - - 120
Share issue costs - - (5)
Net cash (used in) / generated by financing activities 61 (22) 172
Net decrease in cash and cash equivalents (85) (260) (336)
Cash and cash equivalents at beginning of period 100 436 436
Cash and cash equivalents at end of period 15 176 100
Sabien Technology Group Plc
Unaudited Condensed Group Statement of Changes in Equity as at 31 December
2024
Share capital Share premium Other reserves Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 3,563 4,021 (3) (6,980) 601
- - - (371) (371)
Loss for the period
1 July 2023 to
31 December 2023
3,563 4,021 (3) (7,351) 230
Balance at 31 December 2023
- - - (174) (174)
Loss for the period
1 January 2024 to 30 June 2024
Share issue 45 75 - - 120
Share issue costs (5) (5)
Foreign exchange variance - - (1) - (1)
3,608 4,091 (4) (7,525) 170
Balance at 30 June 2024
- - - (377) (377)
Loss for the period
1 July 2024 to
31 December 2024
Share issue 55 116 171
Forex (1) (1)
3,663 4,207 (5) (7,902) (37)
Balance at 31 December 2024
Sabien Technology Group Plc
Notes to the Financial Statements for the period ended 31 December 2024
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
2024 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 2024 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. Going concern
The key financial performance indicators for the Group in relation to going
concern are revenue from its M2G energy saving devices; net loss after
taxation and net cashflow. During the Period, whilst turnover decreased to
£0.33m from £0.37m in the comparative period the net loss after taxation was
£0.38m (comparative period: £0.37m), and net cash and cash equivalents
decreased by £0.09m (comparative period: £0.26m). The Statement of
Financial Position shows a net liabilities position of £0.04m (comparative
period: £0.23m net assets) but the company has the ongoing support of key
creditors.
The directors have prepared cash flow forecasts to 30 June 2026 based on the
conversion of sales pipeline to contracted sales revenue and the expectation
of repeat orders from existing customers.
Historically the Group's conversion of sales pipeline has been uncertain with
long lead times. The directors are confident that the sales pipeline will be
converted into sales revenue in accordance with the cash flow forecasts and
that the cash flow forecasts confirm that the Group will have sufficient
working capital to settle its liabilities as they fall due for a period of not
less than twelve months from the date of the approval of these consolidated
financial statements. Consequently, the consolidated financial statements have
been prepared on a going concern basis. However, the uncertainty of the timing
and conversion of the sales pipeline casts significant doubt on the ability of
the Company and Group to continue as a going concern.
3. 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 £nil.
During the period, sales to the Group's largest customers were as follows:
Sales revenue % of total revenue
£'000
Customer 1 203 61
Customer 2 43 13
Customer 3 33 10
Customer 4 12 4
4. 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.
6 months to 31 December 2024 6 months to 31 December 2023 Year to
30
June
2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period (377) (371) (545)
Basic and Diluted:
Weighted average number of shares in issue 23,523,027 21,695,168 22,204,757
Loss per share - basic and diluted (1.60)p (1.71)p (2.45)p
5. Share capital
The Company's issued Ordinary share capital is:
Amount No. of New Ordinary Shares of 3p each No. of Deferred Shares of 4.5p each No. of New Deferred Shares of 0.49p each
£'000
Allotted, called up and fully paid:
At 31 December 2024 3,663 25,027,383 44,004,867 190,254,867
At 30 June 2024 3,608 23,195,168 44,004,867 190,254,867
At 31 December 2023 3,563 21,695,168 44,004,867 190,254,867
6. Share options
At the period end date, there were no options outstanding (31 December 2023:
117; 30 June 2024: 117).
In October 2024 117 options expired.
7. Seasonality
The business of the Group is not seasonal.
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