RNS Number : 1047K
Sabien Technology Group PLC
31 August 2021
 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.  The directors take responsibility for this announcement.

 

 

31 August 2021

Sabien Technology Group plc

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

 

Final Results and Audited Annual Report and Accounts for the Year to 30 June 2021

 

(AIM: SNT)

Final Results

The Board of Directors of Sabien is pleased to announce the publication of the audited annual report and accounts for the year to 30 June 2021 (the "Annual Report").

Sabien Technology Group highlights 2021

 

·      Sales for the year £0.97m (2020: £0.45m)

 

·      Loss before tax £0.5m (2020: £1.41m loss)

 

·      Sales from Alliance Partners £0.04m (2020: £0.01m)

 

·      Overseas sales £0.04m (2020: £0.02m)

 

·      Exceptional costs of £0.18m in relation to legal and professional fees incurred in relation to the aborted acquisition and potential reverse takeover of Ptarmigan Health Destinations SA ("PHD")

 

·      Fund raises of £1.7m (gross)

 

·      Net cash balance at 30 June 2021 was £1.22m (30 June 2020: £0.60m)

 

Highlights since the year end

 

·      Sales of £49k to 26 August 2021

 

·      Orders received but not yet invoiced to 26 August 2021 £24k

 

·      Net cash balance at 26 August 2021 of £1.17m

 

The Annual Report will be published on the Company's website in compliance with its articles of association and the electronic communications provisions of the Companies Act 2006.  A copy of the Annual Report can also be accessed through the link below.

Annual Report [Insert link to PDF]

Key extracts from the Annual Report can also be viewed below.

Richard Parris, Executive Chairman, commented,

"Sabien's strategy has been developed and will evolve further through the evolution of the "Green Economy". For example, the UK has committed to achieving a net-zero economy by 2050. The US, across its different markets, is setting similar targets within equivalent timeframes.

These ambitious goals demand equally ambitious innovation in products, services, and technology. Sabien is committed to building a portfolio of businesses which are involved directly in the application of emerging and developed technology to the emerging Green Economy. It will do so through organic, partnership and acquisition-led development."

The Company will make the notice of the forthcoming Annual General Meeting available on the Sabien website in early September and will notify shareholders once it is available.

 

- Ends -

 

For further information please contact:

 

For Further Information:

Sabien Technology Group plc

Richard Parris, Executive Chairman 

 

 +44 20 7993 3700 

Allenby Capital Limited (Nominated Adviser)

John Depasquale / Nick Harris 

 

 

+44 203 328 5656

 

Peterhouse Capital Limited (Broker)

Duncan Vasey / Lucy Williams 

 

+44 207 469 0930

 

 

Chairman's Statement

 

The growth of the "Green Economy" has been notable during the last 12 months. Innovation has accelerated, driven by the changed circumstances in which we find ourselves. Investment has followed, as investors have recognised that this trend is secular rather than temporary. Specific areas of macro-economic focus have informed and supported the Sabien strategy. Demographic, technological and resource change are all likely to accelerate. In combination, the Board believes that these trends will contribute to a "Green Economic" boom over the coming decades.

 

Our mission as a Board is to prepare for this scenario and, having done so, deliver. Our vision is to establish a portfolio of businesses, all linked by reference to the "Green Economy" with clear economic relationships with markets whose dynamics are changing. We have identified key areas for development including wider industrial heating markets, non-refrigerant based cooling, battery recycling and reproduction, and waste to energy sectors together with a number of other "green energy" environmental opportunities in a variety of markets.

 

Sabien's transition to this more broadly based "Green Economy" focus has been backed by an impressive financial performance. In the year to 30 June 2021, the Group has generated revenue of £0.97m (2020: £0.45m), with £0.56m recorded in the second half, an increase of 87% on the £0.30m for the same period in the previous year.

 

Looking to the current year, I would highlight two key metrics. Sabien carries £43k of orders into 2021 and, as at 30 June 2021, the Group had cash in hand of £1.40m (2020: £0.78m) following the raising of £1.7m (gross) during the year.

 

The security which our forward orders and cash position provides is supporting our planned expansion: operationally and strategically.

 

Operationally, Sabien has extended the application of its M2G technology with its Cloud-based subscription service now available across more than five sites within public sector, sports, and pharmaceutical manufacturing locations. Allied to this important development, Sabien has signed an agreement with Lockular to provide robust data security. Lockular's platform is agnostic as to which operations are contained on it and, as a result, this agreement provides scalability, Big Data collection and AI insights for further acquisitions which the Company may make, potentially decreasing the time required to generate value. In combination, these actions have given the Company confidence to commit to the next generation of M2G, integrating remote commercial boiler management within a single Cloud-enabled device.

 

Strategically, the Company made an investment into Aeristech, a leading manufacturer of components for hydrogen fuel cells, secured a £400k contract with a UK Government department for the use of M2G technology, and formed a US subsidiary from which it will source US acquisition opportunities in addition to expanding the US market for Sabien's European products and services.

 

Management strength in depth is critical to bringing strategic initiatives into operational success. During the year under review, Sabien has strengthened its management team with the appointments of Ed Sutcliffe as Chief Financial Officer, Danny Mills as President of the U.S. subsidiary, Sabien Inc., Dr. Athan Fox as Chief Scientific Officer, Tom Sprunt as Managing Director (non-Board) and Ranald McGregor-Smith as non-executive director.

 

Mr. Sutcliffe is a Chartered Accountant and brings a wealth of private and listed company experience to the board. Mr. Mills is a US-based investor and technology operator who has worked with Sabien's leadership for a number of years. In combination with Richard Parris' work in US markets, Mr. Mills provides the necessary experience to benefit from President Biden's Plan for a Clean Energy Revolution and Environmental Justice. Dr. Fox's experience encompasses organic chemistry, intellectual property prosecution, technology transfer and fund raising for research, technology and innovation. Through Dr. Fox's work, Sabien is confident of a value-creating entry to the waste-to-energy market. Mr. Sprunt has many years' commercial experience in the boiler management industry. Mr McGregor-Smith is a corporate financier whose experience at senior level within a number of key financial institutions will be invaluable to the Company as it develops.

 

In all cases, the new appointments bring a wealth of relevant experience and understanding of key markets for the Company.

 

The strengthened Board of Sabien faces an array of opportunities within its chosen market areas.  In market capitalisation terms, Sabien is a small company listed on AIM. Executing an expansion strategy via acquisition can be challenging and expensive due to necessary market regulation. The Board will not be deterred by these challenges, and we are actively considering innovative structures within which to maximise the returns to shareholders as soon as possible while minimising execution expenses.

As previously announced, during the year the Board was disappointed to be unable to complete the acquisition and associated reverse takeover of PHD. Sabien 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 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.

Following the re-admission to trading of Sabien's shares we have accomplished a lot. All initiatives were undertaken to sustain and improve the long-term capability of Sabien Technology to deliver. The Board is committed to ensuring that these accomplishments, and those to come, are delivered to the advantage of shareholders, now and in the future.

 

Group Statement of Comprehensive Income for the year to 30 June 2021

 



2021

2020


Notes

£'000

£'000

Revenue


971

454

Cost of sales


(153)

(89)

Gross profit


818

365

Administrative expenses


(1,182)

(1,250)

Exceptional item

6

(180)

(579)

Operating loss

5

(544)

(1,464)

Other income

9

35

55

Finance expenses


                  -

-

Loss before tax


(509)

(1,409)

Tax credit

10

-

-

Loss for the year attributable to equity holders of the parent company


 

 

(509)

 

 

(1,409)

Other comprehensive income


-

-

Total comprehensive income for the year


 

(509)

 

(1,409)

Loss per share in pence - basic

11

(6.22)

(0.11)

Loss per share in pence - diluted

11

(6.22)

(0.11)

 

Group Statement of Financial Position as at 30 June 2021

 


Group

Company



2021

2020

2021

2020


Notes

£'000

£'000

£'000

£'000

ASSETS






Non-current assets






Property, plant and equipment

12

35

17

-

-

Intangible assets

13

57

104

-

-

Investments

14

100

-

100

-

Total non-current assets


192

121

100

-

Current assets






Inventories

15

24

39

-

-

Trade and other receivables

16

51

83

180

450

Cash and bank balances

17

1,399

778

977

596

Total current assets


1,474

900

1,157

1,046

TOTAL ASSETS


1,666

1,021

1,257

1,046

EQUITY AND LIABILITIES






Current liabilities






Trade and other payables

18

161

627

99

515

Borrowings

19

36

-

-

-

Total current liabilities


197

627

99

515

Non-current liabilities






Borrowings

19

145

181

-

-

Total non-current liabilities


145

181

-

-

EQUITY






Equity attributable to equity holders of the parent






Share capital

20

3,350

3,058

3,350

3,058

Other reserves


3,509

2,181

3,509

2,181

Retained earnings


(5,535)

(5,026)

  (5,701)

   (4,708)

Total equity


1,324

213

1,158

531

TOTAL EQUITY AND LIABILITIES


1,666

1,021

1,257

1,046

 

Group Statement of Cashflows for the year to 30 June 2021

 

Group

Company


2021

2020

2021

2020


£'000

£'000

£'000

£'000

Cash flows from operating activities





Loss before taxation

(509)

(1,409)

(993)

(890)

Adjustments for:





Depreciation and amortisation

51

53

-

-

Loss on disposal of fixed assets

11

1

-

-

Impairment of investment in subsidiary

-

-

-

160

Decrease / (increase) in trade and other receivables

32

34

284

(396)

Decrease in inventories

15

15

-

-

(Decrease)/increase in trade and other payables

(466)

491

(430)

488

Net cash outflow from operating activities

(866)

(815)

(1,139)

(638)

Cash flows from investing activities





Investments acquired

(100)

-

(100)

(160)

Purchase of property, plant and equipment

 

(33)

(3)

-

-

Net cash used in investing activities

(133)

(3)

(100)

(160)

 

Cash flows from financing activities





Proceeds from borrowings

-

181

-

-

Proceeds from share issues

1,700

726

1,700

726

Share issue costs

(80)

(49)

(80)

(49)

Net cash generated by financing activities

1,620

858

1,620

677

Net increase/(decrease) in cash and cash equivalents

621

40

381

(121)

Cash and cash equivalents at the beginning of the year

778

738

596

717

Cash and cash equivalents at the end of

the year

1,399

778

977

596






Cash and cash equivalents comprise:





Cash and cash equivalents

1,399

778

977

Invoice financing (included in other payables)

-

-

-


1,399

778

977

596

 

 

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