Sabien Technology Group PLC – Half-year Report

Sabien Technology Group PLC – Half-year Report

Sabien Technology Group plc (AIM: SNT), the manufacturer of the patented M2G energy saving devices, announces its unaudited interim results for the six-month period ended 31 December 2019 (the “Period”) (comparatives are shown for the comparable period in the previous year unless otherwise stated):

 

Highlights in the Period

 

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·              Net cash balance of £705k to 19 March 2020.

The Period has seen significant change for Sabien.  As previously announced, in September 2019 I was appointed Chairman of the Group and new Non-executive Directors – Cédriane de Boucaud Truell and Marco Nijhof joined the Board.  At the same time John Taylor stepped down from the Board and in November 2019, the founder and CEO Alan O’Brien resigned from the Company and I became Executive Chairman.  Both directors left with the Board’s thanks.

 

Since the new Board was put in place, a review of Sabien’s strategy has been carried out and is ongoing.  The Board previously announced that it was examining broadening Sabien’s scope into health and medical rehabilitation destination sectors which might complement and support the development of disruptive green energy-focussed technologies. 

 

Following the period end, the Company confirmed that it was in discussions regarding the possible acquisition of PDHSA by the Company. PDHSA is a health and leisure resort development company based in the valley of Evolene, in the Canton of Valais, Switzerland and is owned by the Truell family, a 25% shareholder of Sabien.

 

Should such a transaction proceed on the currently envisaged terms, it would be classified as a reverse takeover in accordance with the AIM Rules for Companies. Accordingly, the Company’s shares were suspended from trading on 20 January 2020 and will remain so until either the publication of an admission document setting out, inter alia, details of the proposed transaction or until confirmation is given that these discussions have ceased.

 

Shareholders should note that the proposed acquisition remains subject to a number of pre-conditions, due diligence and the market impact of Covid-19. While there can be no certainty at this time that the acquisition will be successful, it has been proceeding as envisaged to date.

 

Trading for the existing Sabien business has been challenging in the Period but accelerated sales were expected over the remainder of the financial year due to the Company’s change in sales strategy and the recruitment of additional sales staff. However, the Covid-19 epidemic will probably have an adverse impact on Sabien’s operating revenues as customers move to home working and reduce spending on new projects. Nevertheless, it was reassuring to receive a new order on 19 March 2020 from an existing customer for a further 95 M2G units. This single order is worth the total of all sales reported in first six months of the year and is a good start to the second half of the year.

 

The Board is confident in its ability to manage and safeguard shareholder interests as well as can be reasonably expected through this unprecedent period of uncertainty.

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