REG - Sabien Technology - Trading Statement

Sabien TechnologyAnnouncement

08/07/2024 08:15

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RNS Number : 4832V  Sabien Technology Group PLC  08 July 2024

8 July 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

Sabien Technology Group plc

("Sabien" or the "Company" or the "Group")

Trading Update

Sabien (AIM: SNT), a leader in Green Aggregation Strategy, today provides a
trading update ahead of the release of its final results for the year ended 30
June 2024.

During the financial year, Sabien has focused on expanding the M2G business, a
CO2 mitigation technology for commercial and residential boilers, developing
its Sales Agency opportunity with City Oil Field ("COF") and advancing b.grn
group Limited ("b.grn"), a Special Purpose Vehicle in which the Company holds
a 33.33% stake. This vehicle aims to commercialize COF plastic-to-oil
technology.

M2G Business

The M2G Cloud Connect platform enables operators of commercial gas boilers to
achieve gas bill savings and CO2 emission reductions of 10%-30%. This
technology, when deployed at scale, significantly contributes to the UK's
transition to a net-zero economy. M2G installations are quick, offering
immediate savings and comprehensive plant analytics, with a typical payback
period of less than 12 months.

A recent testimonial from a major Facilities Management partner highlighted
the seamless installation and significant energy savings of approximately 30%,
enhancing boiler efficiency and proving to be a sustainable, cost-effective
solution.

For the year ended 30 June 2024, Sabien has secured orders totalling
approximately £0.7m (£1.1m in 2023) and invoiced around £0.6m (£1.1m in
2023). It is notable that the 2023 results included a significant single order
of £0.7m from a UK Government customer, whose repeat order for the 2024
financial year has been delayed due to wider political events but is
anticipated to be confirmed later in 2024. Excluding this customer, M2G orders
have grown by 54% compared to the previous financial year, demonstrating the
effectiveness of our expansion strategy. Sabien also boosted its quoting
activity with CBRE by 65% this year and in May 2024, signed a Preferred
Supplier Agreement with CBRE GWS and CBRE Managed Services Ltd. Multiple blue
chip end users were added to the M2G base via Sabien's partner network, all of
whom are expected to contribute to future business growth.

Subject to final audit, Sabien expects to recognize revenue of approximately
£0.7m for the year ended 30 June 2024 (£1.1m in 2023). As of the year-end,
the Company had open orders of approximately £0.06m, deferred revenue of
£0.11m, and recurring Cloud revenue of £0.08m, all expected to be recognized
in the current financial year, total secured revenue at the start of the year
of £0.25m.

During the year, the Board has implemented measures to streamline financial
performance, including a 24% reduction in M2G headcount expenses, a 71%
reduction in IOT and analytics infrastructure costs, and up to a 60% reduction
in the cost of goods through reengineering efforts once the next generation
M2G Cloud Connect launches this year. These savings will become evident in the
next period.

COF / b.grn

In June 2024, Sabien extended its exclusive Sales Agency Agreement with COF
for an additional five years, covering the UK and a region of the United
States. This revised agreement includes an increased sales agency fee of up to
$1.2m per Regenerative Green Oil ("RGO") module sold and allows for
non-exclusive sales agency rights in other countries.

Additionally, Sabien's associate company, b.grn, extended its supply contract
with COF for the first Regenerative Green Oil recycling plant outside of Korea
by another three years. This extension will facilitate b.grn's progress in
waste plastic recycling, with advanced due diligence on selecting a specific
site location in the US. Identified UK sites are pending the completion of
COF's first production plant in Korea, expected in late 2024, which is
essential for securing project finance.

Executive Chairman's Comments

Richard Parris, Executive Chairman, commented:

"The M2G business has achieved significant progress in the year to June 2024,
despite the last-minute delay of an expected large recurring order into the
next period. Our go-to-market model has been transformed by supply contracts
with major property management companies and new prestigious customers
validating the M2G proposition. We have streamlined the cost structure of the
M2G Team and the technology platform for future success.

The extension of our agreement with COF until June 2029 strengthens Sabien's
transition to a Green Aggregation business. We look forward to b.grn building
and operating the first COF RGO plant outside of Korea following COF's
completion of their domestic plant later this year.

In a show of confidence and commitment to the business, I have pledged
£300,000 of non-equity funding from my family office to ensure Sabien has
sufficient working capital for the next 12 months without the need for a
placement. Details will be finalized in consultation with independent
directors and the Company's NOMAD."

The Group anticipates announcing its results for the year ended June 30, 2024,
in November 2024.

 For Further Information:

 Sabien Technology Group plc                           +44 20 7993 3700

 Richard Parris, Executive Chairman                    investors@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

 

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