TIDMSNT
RNS Number : 6041R
Sabien Technology Group PLC
07 July 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
7 July 2022
Sabien Technology Group plc
("Sabien", 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
2022.
During the year ended 30 June 2022, Sabien's Green Aggregation
Strategy has focussed on three principal technology-led
initiatives. M2G, the existing Sabien CO2 mitigation device for
commercial boilers, the UK rollout of Proton's oil to hydrogen
technology, and the COF plastic to oil technology.
M2G Business
Despite the world semiconductor supply shortage and its impact
on the completion of sales during the second half of the 2022
financial year, the Board is very pleased with the growth of the
new M2G Cloud business.
During the 2022 financial year, 293 M2G Cloud Solutions were
sold (2021: nil) of which 262 (89.4% of the annual total) occurred
in the second half of the year. In addition, the Company has
deferred revenue of GBP175k, and open orders of GBP91k, that will
carry over into FY23 as well as GBP23k of recurring revenue from
the M2G Cloud Solutions sold to date to be recognised in FY23. In
total, M2G has 2023 revenue identified and charged, but not yet
booked, of GBP289k (July 2021 forward revenue: GBP43k)
The Board is encouraged that despite the supply chain problems
affecting many companies, it has secured revenue which, had it
fallen in the year to June 2022 would have resulted in a stable
performance year-on-year. It is encouraged, further, that the
momentum of revenue is growing through the first half of the
Company's financial year to June 2023.
Proton UK Business
Discussions are ongoing with multiple UK oil field owners to
identify suitable sites on which to deploy the Proton Technologies
Canada Inc. (" Proton") proprietary hydrogen capture technology. In
the long term, owners are motivated to develop such hydrogen
production facility on their near to end of life fields. The Board
believes that this motivation is secular and is likely to grow as
the global fuel portfolio adapts to the clear trends in hydrocarbon
demand. In the short term, reflecting the current high level of oil
prices in the market, field owners have focussed on maximising
short term oil production. This has not impacted the momentum
behind discussions adversely. The Proton project continues to hold
strong prospects for the Group.
COF / b.grn Business
During the financial year to 30 June 2022, the City Oil Field
Inc. ("COF") business has been developed in combination with
Sabien's development partner b.grn Group Ltd ("b.grn"). Key
milestones have been reached including the establishment of a range
of partner relationships with funding partners and professional
advisors. The latter includes development managers, ESG advisors,
and real estate advisors. In consultation with advisers, b.grn has
assessed a range of potential sites in England and Wales for the
first European COF installation. As previously announced,
exclusivity was agreed on a site near Northampton; discussions were
held in relation to a site on the Humber Estuary; and most recently
an indicative bid was submitted to acquire the ex-Anglesey
Aluminium in Anglesey, supported by b.grn funding partners, from
the site's administrators.
Through this work, the Board has developed a strong
understanding of the emerging real estate market in key locations
in the UK. Within this, the Company and b.grn have developed an
advanced assessment of the most efficient sites for the deployment
of COF. From this emerging knowledge, the Company and b.grn are now
considering actively a number of sites in the UK, and beyond, where
b.grn could deploy COF without, necessarily, acquiring the
underlying real estate. Investigations into potential sites
continue with b.grn's partners. It is likely that the first active
deployment will be an initial 24t per day plastic to oil proof of
concept plant.
As a result, the Northampton site's exclusivity has been allowed
to lapse. b.grn is not pursuing actively the Humber Estuary site
which would have required considerable capital and time investment
to make it ready for deployment. Finally, it is b.grn's
understanding that it is not one of the leading bidders for the
Anglesey Aluminium site on the basis of prices indicated. b.grn
awaits any further developments in relation to this site.
Discussions continue in relation to the Group's option to
install a COF site in Saskatchewan on Proton's site. This site has
the potential to produce additional benefits in relation to options
for the use of offtake oil.
During the year, Sabien charged management fees of GBP0.15m to
b.grn (2021: nil).
Consolidated trading update
The Group's full year consolidated 2022 revenue of GBP0.83m
compares to GBP0.97m for 2021, a reduction of less than 15%. Sabien
has generated consolidated revenue of GBP0.71m in the second six
months of the year under review. This is an increase of 25% on the
GBP0.56m recorded in the same period of 2021. Sabien is also
carrying combined revenue of GBP0.29m into 2023, circa 30% of the
total reported in the year to June 2021. A significant component of
this carry forward is retained income, giving the Board confidence
in the forward visibility of revenue.
As at the balance sheet date, 30 June 2022, Sabien had cash in
hand of GBP0.55m (2021: GBP1.40m).
Commenting on the 2022 financial year, Richard Parris, Chairman
of Sabien, stated:
"During the year under review, despite a challenging supply
chain environment, the Company has achieved a solid result for the
M2G business once supply chain timing issues are resolved, in
addition much development of the COF/b.grn business has been
achieved and a fundable business model developed. The Board looks
forward to the coming year with considerable confidence.
It is important to remember that the year on which the Board is
reporting encompasses two very different trading periods. It is
clear to the Board that momentum has accelerated and is building
still, notably within M2G and Proton. While COF's development
remains more nascent, the Board's knowledge of the available market
and the requirements to address it successfully are now well
advanced. Sabien enters the year to June 2023 with a confidence
backed by results and experience ."
For Further Information:
Sabien Technology Group plc
Richard Parris, Executive Chairman +44 20 7993 3700
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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