Sabien Technology Group plc (AIM: SNT), a Company focussed on building a portfolio of solutions, in the heating, cooling and transportation sectors, that deliver immediate reductions in CO2 emissions announces its unaudited interim results for the six-month period ended 31 December 2020 (the "Period") (comparative figures are shown for the comparable period in the previous financial year unless otherwise stated):
Highlights in the Period
· Sales revenue £412k (2019: £159k)
· Sales orders received £362k (2019: £90k)
· M2G units sold 175 (2019: 56)
· Gross profit £325k (2019: £124k)
· Gross profit margin 79% (2019: 78%)
· Loss before tax £310k (2019: £561k loss)
· Net cash at the end of the period £229k (£546k as at 31 December 2019)
· Overseas sales £18k (2019: £22k)
· Exceptional costs of £132k (2019: £nil) comprising legal and professional fees incurred in relation to the proposed acquisition and reverse takeover of Ptarmigan Health Destinations SA ("PHD")
Highlights since the period end
· Raised funds of £1.7m (gross) via placing of new shares and issue of convertible loan notes
· Sales of £108k to 28 February 2021 (£71k for two months ended 29 February 2020)
· Net cash balance of £1.76m to 24 March 2021. (£654k to 24 March 2020)
· £400k further repeat order from UK government department
· Establishment of US subsidiary
· Completion of significant £100k investment in emerging green technology
· Withdrawal from acquisition and potential reverse takeover of PHD resulted in the restoration of Sabien's shares to trading on AIM.
· Re-organisation of Sabien Board with the appointment of a CFO and a non-executive director, replacing the two PHD related Directors.
Whilst it was disappointing to not complete the acquisition and associated reverse takeover of PHD during the period under review, I am convinced that Sabien remains well positioned. Indeed, I look forward to an exciting growth phase over the medium term, both organically and through acquisitions.
As previously announced, the Board was unable to secure the required Swiss and UK regulatory approvals in sufficient time to avoid the cancellation of trading in the Company's ordinary shares on the AIM Market. Therefore, the Board took the decision to withdraw from the PHD transaction. Following this withdrawal, Cédriane de Boucaud Truell and Marco Nijhof stepped down from the Sabien Board to continue PHD's growth plans. The Board thanks Cédriane and Marco for their efforts.
The Board has now been restructured with the appointments of Ed Sutcliffe as Chief Financial Officer and Ranald McGregor-Smith as a non-executive director. Both are experienced professionals who will help to develop Sabien's strategy and lead the Company's progress as this evolves.
Trading for the existing Sabien business was encouraging in the six-month period, with sales close to that reported for the full 2020 financial year with continuing limited impact on the group from COVID-19. Post year end, it was pleasing to win a further significant order, worth approximately £400,000, from one of Sabien's major public sector customers. In addition, the M2G cloud enablement project is currently being field tested and is expected to support the continued development of the Sabien operating business.
Since the year end, Sabien has raised £1.7m (gross) through the issue of circa 2.9bn new shares. During the first two months of the new year, the Group has recorded £108,000 in revenue, an increase of 52% on the previous period in 2020. As at 24 March 2021, Sabien has net cash balances of £1.76m compared to £654k one year previous.
Recognising the momentum within its core business and in related areas of potential expansion, the Board is assessing further opportunities with which to deliver its wider CO2 reduction strategy at the point of consumption and looks forward to updating shareholders in due course.
The Board remains confident in the future success of the Sabien business. We have weathered the storm of 2020, emerging more focused strategically and better able to enact our strategy. The Board expects that the ongoing development and successful implementation of this strategy will provide the basis for a broad-based evolution of revenue and profitability, securing the future of the Group and rewarding shareholders.