StockMarketWire.com - Sabien Technology Group (AIM: SNT), the manufacturer and supplier of M2G, an energy efficiency technology, has announced that, in light of recently delayed orders, the company now expects to report a loss of up to around £0.3m in the financial year to June 30 2014.

It says the shortfall in revenue relative to management expectations is due to a delay in the receipt of some substantial customer orders that were expected to be received in the second half of the financial year but which now are expected in the first half of the next financial year.

In line with management expectations administrative expenses for the current financial year are around £0.5m higher than last year.

Despite the delays in orders received, the company expects to start the new financial year in July with an order book of at least £0.5m and this, alongside the potential for new revenue sources from the new product and from its overseas distribution network as well as the growth in the existing sales pipeline, gives the Board confidence in the Company's growth prospects.

Alan O'Brien, chief executive of Sabien said: "Although the reduction in revenue this year has been a source of frustration for the management team and me, there have not been any contract cancellations, only delays in the placing of orders.

"This year has seen material progress in a number of areas. We have broadened our business development capabilities, signed commercial M2G distribution agreements in Europe, Middle East, Asia and Australasia, and developed and piloted a new product for hot water calorifiers which we intend to launch later in 2014. This is expected to lead to a wider application of our products in our target markets.

"I am confident that Sabien's prospects for the medium and long-term remain positive and there is still a substantial market opportunity to create a profitable and valuable business moving forward."



At 12:56pm: [LON:SNT] Sabien Technology Group PLC share price was -6.5p at 22p



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