Final Results for the year to 30 June 2021

RNS Number : 1941K

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.

(Replacement for RNS 1047k - now includes link to Annal Report)

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    http://www.rns-pdf.londonstockexchange.com/rns/1941K_1-2021-8-31.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	[phone]
Allenby Capital Limited (Nominated Adviser) John Depasquale / Nick Harris	[phone]
Peterhouse Capital Limited (Broker) Duncan Vasey / Lucy Williams	[phone]

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	596
Invoice financing (included in other payables)	-	-	-	-
	1,399	778	977	596

 

END

 

 

FR EAKPFDEKFEEA