Sabien Technology Group PLC
01 June 2007
SABIEN TECHNOLOGY GROUP PLC ('SABIEN')
TRADING UPDATE
Sabien Technology Group Plc is updating the market ahead of the financial year
ending 30 June 2007.
On announcing its unaudited interim results for the six month period to 31
December 2006 on 31 March 2007, the Board made reference to the fact that the
three month delay in admission of its shares to trading on AIM led to the
deferment of the recruitment of sales staff and the implementation of other
corporate initiatives which, in turn, meant that certain predicted revenues
would be deferred into the financial year ending 30 June 2008.
In addition, the Company is also finding that whilst it is in negotiation with a
significant number of potential users of the M2G product, the time taken in
converting leads into purchase orders is proving to take significantly longer
than anticipated at the time of flotation due to these users often being unable
to measure energy consumption accurately and thus quantify savings derived from
using M2G.
Following a detailed review of the current order book and sales pipeline, the
Board now confirms that the results for the financial year ending 30 June 2007
are likely to be considerably below market expectations and the Company is
likely to report a loss before tax for the full year of around £0.75 million.
The Board is pleased to report however that, during the company's second half
year, a number of major organisations have committed to the use of Sabien's M2G
technology and the company will continue to implement its strategy to achieve
substantial market penetration.
Future Developments
As announced on 24 May 2007, the company's main client, RBS, continues to enjoy
substantial environmental and financial benefits as a result of the adoption of
Sabien's M2G technology across 200 of their commercial sites and a further
roll-out of units is scheduled to continue throughout the next 12 months.
In addition, Sabien is currently in advanced negotiations with a prospective
Italian licensee. Whilst there can be no guarantee of positive outcomes, these
negotiations may result in unbudgeted licence and other revenue streams and the
Board will update the market accordingly.
Further, the Board confirms that the company is launching a strategic initiative
targeting a number of large multi-site commercial organisations. These
organisations are being approached to participate in a three month contracted
pilot scheme under which the proven energy and emission reduction advantages of
Sabien M2G technology will be made available to them.
The company is also looking at ways of incorporating meter and monitoring into
its product offering in order to counter the long sales lead times due to
customers' inability to measure their energy consumption.
Following the results of these initiatives, the Board will have a clearer view
of the likely target for the year ending 30 June 2008 and will update the market
accordingly.
Contact: Sabien Technology Group Plc Alan O'Brien CEO 020 7993 3700
Gus Orchard Finance Director
Gavin Anderson Ken Cronin 020 7554 1400
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.