Sabien Technology Group PLC Trading Update (1033F)
July 06 2023 - 2:00AM
UK Regulatory
TIDMSNT
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 GBP1.14m (GBP0.89m 2022) and has
invoiced GBP1.12m (GBP0.83m 2022) for the year. Subject to final
audit review, Sabien expects to recognise revenue of GBP1.1m for
the year ended 30 June 2023 (GBP0.68m 2022). At year end, Sabien
had open orders of GBP0.10m and deferred revenue of GBP0.20m, 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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