REG - Sabien Technology - Year End Trading Update

Sabien TechnologyAnnouncement

08/07/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250708:nRSH1455Qa&default-theme=true

RNS Number : 1455Q  Sabien Technology Group PLC  08 July 2025

 

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation.

 

8 July 2025

 

Sabien Technology Group Plc

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

 

Year End Trading Update

Sabien (AIM: SNT), a leading provider of energy reduction technologies,
provides a trading update ahead of the release of its audited results for the
year ended 30 June 2025 ("FY 2025").

 

During FY 2025, Sabien continued to focus on expanding its M2G Cloud Connect
Solution ("M2G"), a CO(2) mitigation technology for gas boilers.

 

In addition, Sabien remains committed to developing its sales
agency opportunities with City Oil Field's ("COF") and advancing b.grn group
Ltd ("b.grn"), a Special Purpose Vehicle in which Sabien holds a 33.33% stake.
Both of these activities are focused on the CO(2) emission-free recycling of
waste plastic using renewable energy.

 

Sabien enters the new financial year ending 30 June 2026 ("FY 2026") with a
stronger strategic, sales and cash flow position than 12 months ago ("FY
2024").

 

M2G Business

 

The M2G platform enables operators of commercial gas boilers to achieve gas
bill savings and CO(2) emission reductions of 10% to 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 from the date of installation.

 

For FY 2025, Sabien secured orders totalling £1m (FY 2024: £0.7m) and
invoiced £0.8m (FY 2024: £0.6m). M2G orders have grown by 26% in FY 2025
and indirect sales through our partner network have grown by 66% in FY 2025 to
£0.6m (FY 2024: £0.4m), demonstrating the effectiveness of our expansion
strategy.

 

Subject to final audit, Sabien expects to recognise revenue of £0.9m for FY
2025 (FY 2024: £0.7m). As of the 30 June 2025, the Company had open orders
of £0.1m awaiting installation and invoicing (FY 2024: £0.06m ).

 

During FY 2025, the board of directors of Sabien (the "Board" or the
"Directors") continue to streamline financial performance and manage cash
flow. This includes securing full funding for current and future M2G product
development, exclusively leveraging the software and security expertise of
Parris Group Ltd ("Parris Group") subsidiary, Aretiico Group plc, in exchange
for a 5% royalty on future M2G sales. This is in addition to implementing 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 its capital
in stock. In addition, it was announced in FY 2025 that the Board has
collectively agreed to take more than £0.2m of accrued fees in new ordinary
shares of 3 pence each in the Company.

 

COF / b.grn

 

Sabien continues to operate its exclusive sales agency agreement with COF
which remains valid until 2029, covering the UK and a region of the United
States. This agreement includes a sales agency fee of US$1.2m per 24T/day
Regenerative Green Oil ("RGO") module sold and allows for non-exclusive sales
agency rights in other countries.

 

COF have now completed their first production RGO module in Korea which is
currently undergoing Korean Government regulatory inspection. Subject to this
approval, production operations are expected to commence in September 2025.
This will be a critical step in enabling Sabien and b.grn to unlock the
commercial potential of this advanced and much needed technology in the UK and
U.S.

 

Sabien's associate company, b.grn, is poised to capitalise on this imminent
demonstration of COF's RGO platform with an exclusive supply contract valid
until 2027. Initial U.S. and UK sites are in advanced discussions.

 

Richard Parris, Executive Chairman of Sabien, commented:

 

"Our strategy of diversifying our customer base, from a small number of very
large government customers managed directly, to a larger number of more
"regular" corporate customers serviced through channel partners such as CBRE
and JLL, is delivering as planned. Over the last two years we have eliminated
our dependency on one particular government department which accounted for
more than 60% of the Group's revenues across the 2022 and 2023 financial
years, reducing to 13% last year and 2% this year. This revenue has been
replaced by the growth in partner sales which have grown 35% annually over the
same period to represent 76% of our £0.9m sales in 2025. Notwithstanding
this, we can also report a 26% increase in the value of year-on-year new
orders. I consider this a remarkable and continuing achievement by our sales
team. Likewise, our progression to a recurring subscription model focused on
our cloud service performance dashboard is starting to bear fruit.

 

While it is too early to predict the future for our COF/b.grn ambitions, it is
hugely encouraging that our Korean partners have now completed construction
and commissioned their first production RGO plant in Korea in June 2025. This
plant is scheduled to start production operations later this year, subject to
obtaining Korea government approvals and permits. We expect this progress to
drive our previously announced plans in the UK and U.S. recycling markets.

 

As we continue our business transformation, I remain confident that there is
great potential to build Sabien into a significant UK-based business that
places the generation of profits from CO(2) reduction at the core of its
business. To this end Parris Group and the Board continues to provide
necessary financial and technology support to facilitate Sabien's growth and
environmental agenda."

 

 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

 

About Sabien Technology Group plc

Sabien Technology Group plc provides energy reduction solutions designed to
help businesses achieve their sustainability goals, with a particular focus on
reducing energy consumption and carbon emissions.

 

The Sabien Technology Group plc holds the Green Economy Mark from the London
Stock Exchange, recognising companies generating over 50% of their revenues
from sustainable products and services.

 

Website: www.sabien.com (http://www.sabien.com/)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTRPMATMTAMMFA