1st Jun 2007 11:31
Sabien Technology Group PLC01 June 2007 SABIEN TECHNOLOGY GROUP PLC ("SABIEN") TRADING UPDATE Sabien Technology Group Plc is updating the market ahead of the financial yearending 30 June 2007. On announcing its unaudited interim results for the six month period to 31December 2006 on 31 March 2007, the Board made reference to the fact that thethree month delay in admission of its shares to trading on AIM led to thedeferment of the recruitment of sales staff and the implementation of othercorporate initiatives which, in turn, meant that certain predicted revenueswould be deferred into the financial year ending 30 June 2008. In addition, the Company is also finding that whilst it is in negotiation with asignificant number of potential users of the M2G product, the time taken inconverting leads into purchase orders is proving to take significantly longerthan anticipated at the time of flotation due to these users often being unableto measure energy consumption accurately and thus quantify savings derived fromusing M2G. Following a detailed review of the current order book and sales pipeline, theBoard now confirms that the results for the financial year ending 30 June 2007are likely to be considerably below market expectations and the Company islikely 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 halfyear, a number of major organisations have committed to the use of Sabien's M2Gtechnology and the company will continue to implement its strategy to achievesubstantial market penetration. Future Developments As announced on 24 May 2007, the company's main client, RBS, continues to enjoysubstantial environmental and financial benefits as a result of the adoption ofSabien's M2G technology across 200 of their commercial sites and a furtherroll-out of units is scheduled to continue throughout the next 12 months. In addition, Sabien is currently in advanced negotiations with a prospectiveItalian licensee. Whilst there can be no guarantee of positive outcomes, thesenegotiations may result in unbudgeted licence and other revenue streams and theBoard will update the market accordingly. Further, the Board confirms that the company is launching a strategic initiativetargeting a number of large multi-site commercial organisations. Theseorganisations are being approached to participate in a three month contractedpilot scheme under which the proven energy and emission reduction advantages ofSabien M2G technology will be made available to them. The company is also looking at ways of incorporating meter and monitoring intoits product offering in order to counter the long sales lead times due tocustomers' inability to measure their energy consumption. Following the results of these initiatives, the Board will have a clearer viewof the likely target for the year ending 30 June 2008 and will update the marketaccordingly. 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 ExchangeRelated Shares:
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