- Sabien Technology Group now expects to report revenues of about GBP0.9m and a loss of up to about GBP1.7m in the financial period to June 30.

The manufacturer and supplier of M2G, an energy efficiency technology, was also providing further updates to the market on the progress of its new piloting strategy.


In the update on the pilot programme which the Company made on 3 May 2016, the Board reported on the success of its new strategy to improve sales by running up to 35 pilots in the current heating season. As of today's date, Sabien has completed 28 pilots and has submitted reports to 14 clients with a further 14 reports due to be submitted before the financial year-end. It expects to have completed 32 UK pilots by 30 June 2016.


As a result of the completion of the pilot reports noted above, the sales pipeline is currently estimated to be c£11.4m, which is an increase of £4.0m from the 3 May announcement figure of £7.4m. This compares with £6.4m at the time of the interim results in February and £6.2m as at 30 June 2015. As mentioned in the last trading update, the Company has received an initial order for £110k arising from the current P35 pilot programme.


The Company's US distributor, Fireye Inc., has now completed three pilots at large school districts with a further two in the process of installation. Fireye has indicated that it is now in commercial negotiations with the end users and has asked for the Company's assistance in running at least 15 pilots in the next heating season.


The revenue results for the current financial year stem from the withdrawal of a number of large prospects from the opening pipeline at 1 July 2015 and a reduction in contract value of a number of sales. The Company is however expecting to receive orders for at least £500k in the course of June and July, which are the result of paid pilots carried out in the previous financial year to 30 June 2015. The Company's current net cash position is £0.4m, which represents around 3 months' cash to cover working capital and is in line with the Board's strategy.

As previously indicated, the growth in the sales pipeline, the interest already shown in the Group's pilot programme for the next heating season and the results of the pilot programmes in the USA give the Directors confidence that the Group's plan to return to profitability in the 2017/18 financial year is achievable.

A further update will be provided to the market with the final results anticipated to be in October 2016.

Story provided by