Trading Update

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 £1.14m (£0.89m 2022) and has invoiced £1.12m (£0.83m 2022) for the year.  Subject to final audit review, Sabien expects to recognise revenue of £1.1m for the year ended 30 June 2023 (£0.68m 2022).  At year end, Sabien had open orders of £0.10m and deferred revenue of £0.20m, 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 Richard Parris, Executive Chairman Scott Fulton, Investor Relations	[phone] [e-mail]
Allenby Capital Limited (Nominated Adviser) John Depasquale / Nick Harriss / Vivek Bhardwaj	[phone]
Peterhouse Capital Limited (Broker) Duncan Vasey / Lucy Williams	[phone]

 

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