REG - Sabien Technology - Interim Results for the 6 months to 31 Dec 2022
31/03/2023 07:00
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RNS Number : 8541U Sabien Technology Group PLC 31 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310
31 March 2023
Sabien Technology Group Plc
("Sabien", the "Company" or the "Group")
Unaudited Interim Results for the six months ended 31 December 2022
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 2022 (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 2022 6 months to 31 December 2021 Year to
30 June
2022
Unaudited Unaudited Audited
Sales revenue £'000 238 121 679
Sales orders received £'000 212 246 889
Sales invoices raised £'000 189 129 831
M2G Cloud connect systems sold No. 50 31 262
M2G systems sold (non-Cloud) No. 10 15 108
Sales from Alliance Partners £'000 47 6 60
Gross profit margin % 51% 62% 66%
Net loss after tax £'000 (437) (570) (743)
Cash at end of period £'000 354 624 573
Company Highlights
.
· £500k gross placing and £100k oversubscribed broker option in
August 2022.
· Sales orders received for the period 1 January 2023 - 30 March 2023
of £767k (same period in prior year £301k).
· Total sales orders received for the year-to-date period to 30 March
2023 £979k (same period in prior year £547k).
· Sales invoices of £1.01m in the year-to-date period to 4 April 2023
(same period in prior year £506k)
· Cash £485k at 30 March 2023 (£325k at 31 March 2023).
Executive Chairman's Statement
Sabien entered the financial year 2022/3 poised to deliver further on its
"Green" strategy. Since 30(th) June 2022, the Group has developed successfully
its M2G offer to the important commercial heating market while, at the same
time, making significant progress in the evolution of b.grn, the Special
Purpose Vehicle ("SPV"), in which Sabien holds an interest in, designed to
provide fuel products and naphtha from recycling waste plastic.
M2G Business
The Board of Sabien considers the M2G Cloud solution to be a step change in
Sabien's history, evidenced by universally positive feedback being received by
customers and potential customers alike. The solution enjoys a short sales
cycle, leveraging industry leading analytics into the existing significant
cost and CO2 savings already provided by M2G to customers. M2G's ability to
demonstrate almost instantaneous CO2 savings upon implementing the M2G Cloud
solution, as well as a range of unique next generation boiler analytics, is at
the heart of the accelerated sales cycle. Previously, and often, Sabien had
to demonstrate savings over lengthy pilot tests. The advent of the Cloud
solution renders customer cost savings instantly visible, and directly
addresses Environmental Social and Governance ("ESG") requirements and goals.
The improved feedback and accelerated sales cycle are being reflected in
sales, orders and billings. For the six months ended 31 December 2022, Sabien
recognised revenue of over £0.20m, an increase of 1.5x on the comparative
period (£0.08m). Once the billing of the government order announced on 28
March 2023 has been completed as planned by 4 April 2023, Sabien will have
billed in excess of £1.01m in revenue so far for the 2023 financial year, an
increase of £0.18m or growth of over 20% on the full previous financial
year. Additionally in the first 9 months of the financial year, Sabien has
received orders of £0.98m, 10% greater than the £0.89m orders received for
the entire previous financial year. Revenue recognition of orders received,
and invoices raised will be dependent on the ability to procure M2G Cloud
Connect units. Lead times remain significantly extended due to the
availability of microchips in the market, are however beginning to improve.
Gross margin at 51% was lower than the historical level of in excess of 70%
during the period. Sabien is incurring fixed cloud support costs that are
not currently being fulling recovered. As the M2G Cloud Connect rollout
continues, and with the launch of the next generation M2G Evo, gross margin
will improve.
This strong billing and order performance has been driven by an equally strong
sales effort. In the period under review, Sabien has developed relationships
with new partners; notably Amber Energy and Empiric Student Property Plc
(£0.09m billed YTD March 2023). Existing customers have also accelerated
their involvement with M2G. CBRE has generated £0.16m from 13 separate
projects including recurring cloud revenue while the Company has achieved
further orders from its existing HM Government department customer, with a
total £668k YTD March 2023 compared to £264k in the comparative period.
COF / b.grn Business
Sabien Board members and elements of the management team are visiting South
Korea at the end of March 2023 and early April 2023. The purpose of this
visit is to further strengthen the relationship between Sabien and City Oil
Field Inc, ("COF"). COF is the inventor and vendor of a unique
catalyst-driven, plastic-to-oil technology for which Sabien is the exclusive
UK and non-exclusive worldwide sales agent.
During the visit Sabien will introduce senior representatives of a leading UK
university's material science department. It is expected these Professors will
be engaged on a research project initiated by Sabien to verify and further
investigate the COF technology. In addition, the team will be joined by a
major US commodities trading and energy investment company which is carrying
out due diligence on the technology with a view to funding an initial
technology rollout for Sabien's associated joint-venture operating company;
b.grn Group Ltd. Finally, a potential African customer for b.grn is joining
the visit to carry out specific due diligence relevant to that region's
resources and needs.
With the forthcoming research project, strategic partners in place, and
advanced discussions ongoing with key funding partners, the Board considers
that b.grn has assembled the fundamental building blocks of a successful
business model.
Proton UK Business
Sabien owns a licence to develop an up to 20 tonne per day UK onshore hydrogen
facility. The Group has not focussed on the opportunity during the Period as
the target oil field owners have focussed on maximising short term oil
production given current world oil prices. The Board considers the Proton
project continues to hold strong prospects for the Group but is not a current
area of focus.
Sabien is also actively 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 offtake 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 continued to raise
funds at up to £3.00 per share.
Summary
The Board of Sabien considers the first half of the financial year 2022/3 to
be of significant strategic importance to the prospects for the Group. Its M2G
business has surpassed expectations in terms of both billings and orders,
underpinned by the successful deployment of the Cloud solution. b.grn has
developed further its relationship with COF while establishing a base of
operations via the securing of key partnerships in multiple geographies.
Both Proton and Aeristech have demonstrated consistently the potential which
determined Sabien's initial investment and underpin its continued support.
Looking to the final quarter of the current financial year, the Board believes
that the momentum evident in the 9-months to date is built on solid
foundations; orders secured, billings made, and prospects enhanced.
Richard Parris
Executive Chairman
31 March 2023
For further information: +44 20 7993 3700
Scott.fulton@sabien.com (mailto:Scott.fulton@sabien.com)
Sabien Technology Group plc
Richard Parris, Executive Chairman
Scott Fulton, Investor Relations
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 2022
Notes 6 months to 31 December 2022 6 months to 31 December 2021 Year to
30
June
2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 238 121 679
Cost of Sales (117) (46) (231)
Gross Profit 121 75 448
Administrative expenses (676) (639) (1,327)
Exceptional item - (9) (9)
Operating loss (555) (573) (888)
Other income 100 8 158
Finance expense (3) (4) (13)
Loss before tax (458) (569) (743)
Tax credit 21 - -
Loss for the period attributable to equity holders of the parent company (437) (569) (743)
Other comprehensive income for the period - (1) -
(437) (570) (743)
Total comprehensive income for the period
Loss per share in pence - basic 3 (2.12)p (3.90)p (5.06)p
Loss per share in pence - diluted 3 (2.12)p (3.90)p (5.06)p
Sabien Technology Group Plc
Unaudited Condensed Group Statement of Financial Position as at 31 December
2022
Notes 31 December 2022 31 December 2021 30 June
2022
Unaudited Unaudited Audited
£'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 2 2 2
Other intangible assets 126 83 152
Investments 300 200 200
Total non-current assets 428 285 354
Current assets
Inventories 45 27 40
Trade and other receivables 454 166 387
Cash and cash equivalents 354 624 573
Total current assets 853 817 1,000
TOTAL ASSETS 1,281 1,102 1,354
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 289 137 487
Borrowings 39 36 138
Total current liabilities 328 173 625
Non-current liabilities
Borrowings 91 127 109
Total non-current liabilities 91 127 109
EQUITY
Equity attributable to equity holders of the parent
Share capital 4 3,563 3,354 3,354
Other reserves 4,014 3,552 3,544
Retained earnings (6,715) (6,104) (6,278)
Total equity 862 802 620
TOTAL EQUITY AND LIABILITIES 1,281 1,102 1,354
Sabien Technology Group Plc
Unaudited Condensed Group Cash Flow Statement for the period ended 31 December
2022
6 months 6 months Year
to to to
31 December 2021 31 December 2021 30 June
2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Loss before taxation (437) (569) (743)
Adjustments for:
Depreciation and amortisation 31 24 63
Finance expense 3 4 13
Less movement in interest accrual (2) - (2)
Foreign currency reserve movement 5 (1) (9)
Fixed assets transferred to inventory - - 6
Equity settled current liability - - 33
Taxation (21) - -
Decrease in trade and other receivables (62) (114) (334)
Decrease/(increase) in inventories (4) 4 (16)
Decrease in trade and other payables (207) (15) 326
Net cash outflow from operating activities (694) (667) (663)
Cash flows from investing activities
Investments acquired (100) (100) (100)
Purchase of intangibles (6) (24) (131)
Net cash outflow from investing activities (106) (124) (231)
Cash flows from financing activities
Proceeds from share issues 580 48 15
Proceeds from borrowings - - 100
Repayment of borrowings (18) (32) (36)
Interest paid (2) - (11)
Tax refunded 21 - -
Net cash generated by financing activities 581 16 68
Net (decrease)/increase in cash and cash equivalents (219) (775) (826)
Cash and cash equivalents at beginning of period 573 1,399 1,399
Cash and cash equivalents at end of period 354 624 573
Sabien Technology Group Plc
Unaudited Condensed Group Statement of Changes in Equity as at 31 December
2021
Share capital Share premium Share based payment reserve Translation reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2021 3,350 3,508 1 (5,535) 1,324
-
- - - (569) (569)
Loss for the period
1 July 2021 to
31 December 2021 -
Warrant issue - (28) 28 - -
-
Share issue 4 44 - - - 48
Exchange difference on consolidation - - - - (1)
(1)
3,354 3,524 29 (6,104) 802
Balance at 31 December 2021
(1)
- - - (174) (174)
Loss for the period
1 January 2022 to 30 June 2022
-
Warrant issue - 19 (19) - (9)
-
Foreign exchange variance - - - - -
(8)
3,354 3,543 10 (6,278) 620
Balance at 30 June 2022
(9)
- - - (437) (437)
Loss for the period
1 July 2022 to
31 December 2022 -
Share issue 209 468 - - 677
-
- - - 2 - 2
Foreign exchange variance
3,563 4,011 10 - (6,715) 862
Balance at 31 December 2022
(7)
Sabien Technology Group Plc
Notes to the Financial Statements for the period ended 31 December 2021
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
2022 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 2022 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. 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 £84k which
were 35% of total revenues for the period.
During the period, sales to the Group's largest customers were as follows:
Sales revenue % of total revenue
£'000
Customer 1 86 36
Customer 2 50 21
Customer 3 38 16
Customer 4 12 5
During the period a management fee to Sabien's associated party, b.grn Group
Limited of £0.1m was accrued (2021: £nil, Full year 2022: £0.15m) and
included within Other Income.
3. 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 2022 6 months to 31 December 2021 Year to
30
June
2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period (535) (310) (743)
Basic and Diluted:
Weighted average number of shares in issue 20,532,668 14,630,643 14,675,358
Loss per share - basic and diluted (2.12)P (3.90)p (5.06)p
4. 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 2022 3,563 21,695,168 44,004,867 190,254,867
At 30 June 2022 3,354 14,720,168 44,004,867 190,254,867
At 31 December 2021 3,354 14,720,168 44,004,867 190,254,867
5. Share based payments
The Company has issued warrants that entitles the holders to purchase shares
in the Company with the warrants exercisable at the price determined at the
date of granting the warrant. The terms and conditions of the grants issued
are summarised below.
Grant date Number of instruments Exercise price Contractual life of instruments
2 February 2021 1,395,349 15p 19 February 2023
1 February 2022 280,000 60p 1 February 2023
On 2 February 2021, 1,395,349 share options (figure post March 2021 300:1
share consolidation) were issued to the Executive Chairman as part of a
placing. The warrants are exercisable once the Company's mid-market share
price has exceeded 60p for five working days in a row.
On 1 February 2022, 280,000 share options were issued to Proton as part of the
consideration for the hydrogen processing licence and option to install a COF
facility at Proton's site in Saskatchewan, Canada.
The Group has recognised a charge of £nil arising from the share based
payments noted above in profit and loss for the period ended 31 December 2022.
6. Seasonality
The business of the Group is not seasonal.
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