REG - Sabien Technology - Trading Update

Sabien TechnologyAnnouncement

06/07/2023 07:00

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RNS Number : 1033F  Sabien Technology Group PLC  06 July 2023

6 July 2023

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 Technology Group plc (AIM: SNT), the company focused on a Green
Aggregation Strategy, announces today a trading update ahead of the
publication of its final results for the year ended 30 June 2023.

During this twelve-month period, Sabien's Green Aggregation strategy has
concentrated on the on-going expansion of the M2G business, the existing
Sabien CO2 mitigation device for commercial and residential boilers, and the
accelerated development of b.grn, the Special Purpose Vehicle in which the
Company holds a 33.33% stake, targeting the commercialisation of City Oil
Field's ("COF") plastic-to-oil technology, and in which COF anticipates taking
a similar stake.

M2G

The company published an ad hoc update for M2G on 8 June 2023. This
highlighted a robust sales performance with existing and new customers,
substantially underpinned by the successful roll-out of M2G's Cloud Connect
service. This provides real-time analysis of the efficiency improvements and
cost savings which may be achieved by M2G for customers under full
implementation. Revenue generating in its own right, Cloud Connect is proving
to be a substantial sales conversion tool which is manifestly reducing the
time taken to win new business.

Accordingly, in the last month, M2G has accelerated its sales growth within
the UK's private facilities management ("FM") sector, winning high profile
UK-based customers operating in the banking, fund management, insurance, and
pharmaceutical sectors. This performance has reinforced the previously
announced growth generated in the UK public sector.

Against this background, Sabien has won orders during the financial year to
June 2023 of £1.14m (£0.89m 2022) and has invoiced £1.12m (£0.83m 2022)
for the year.  Subject to final audit review, Sabien expects to recognise
revenue of £1.1m for the year ended 30 June 2023 (£0.68m 2022).  At year
end, Sabien had open orders of £0.10m and deferred revenue of £0.20m, both
amounts expected to be recognised as revenue in the newly commenced financial
year.

b.grn

b.grn has made substantial progress in the pursuit of its waste plastic
recycling strategy. Specifically, b.grn's partnership with COF has developed
materially through the financial year. From the initial signing of a binding
delivery contract with COF for a 24 tonne Regenerated Green Oil ("RGO")
recycling plant in November 2022, b.grn materially developed its relationship
with COF.

In April 2023, b.grn entered into a partnership with Hanyang Corporation and
Woori Technology, together with COF, to support the development of Recycling
Cluster Projects. Subsequently, in May 2023, COF agreed to take a 33.3% stake
in b.grn while b.grn was granted an option to acquire up to a 10% stake in
COF.

Consistent with this closer co-operation, subject to contract, b.grn was
granted manufacturing and catalyst supply licences in certain jurisdictions by
COF in addition to the right to undertake research with leading UK
universities.

Due diligence is advanced on the selection of RGO locations and supply chain
partners.  In the UK initial Heads of Terms have been received for the
co-tenancy of an RGO plant within a site owned and operated by a major waste
management company. A letter of support has been received from a major utility
company for the supply of sufficient waste plastic feedstock for the operation
of an initial RGO system. Oil off-take partners have been engaged and due
diligence visits to the demonstration site in S. Korea have been undertaken.
While b.grn focused its initial research on sites in the UK, it is now
apparent that significant shareholder value may be generated in the US and
continental Europe and site investigations are progressing on that basis.
Discussions with potential financial and off-take partners, which are
similarly advanced, have reinforced the potential of this alternative
geography.

Commenting on this update, Richard Parris, Executive Chairman, said:

"The financial year to June 2023 has been one of significant progress for the
Group. M2G's innovative system has established a strong position in a
fast-growing market. Its success in winning new customers in both the public
and private sectors is due, in no small part, to the roll-out of Cloud
Connect. Validating the system's efficacy for potential customers while
generating revenue is a testament to the innovation of the M2G team. I am
pleased that M2G revenue has increased by almost 62% within the financial
year. This bodes well for the Group's future prospects and cashflow. In
parallel, we are pursuing a transformational strategy through our b.grn
affiliate, reinforcing our relationships with global production, financial,
and off-take partners, while maintaining our site flexibility. In the Board's
opinion, this strategy is likely to maximise supply, production, and financial
returns in the short to medium term."

The Group looks forward to presenting the detail of Sabien's results for
2022/3 in October 2023.

 For Further Information:

 Sabien Technology Group plc                           +44 20 7993 3700

 Richard Parris, Executive Chairman                    Scott.fulton@sabien.com

 Scott Fulton, Investor Relations

 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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