Sabien Tech's revenue falls but sales pipeline recovers

AIM-listed Sabien Technology Group, a manufacturer of endotherm boiler energy efficiency technologies, reported that full-year revenue fell by nearly 50% but its sales pipeline has increased due to a change in its policy.

For preliminary results for the year ended 30 June, revenue fell 49% to £880,000, compared to the previous year, but the company’s sales pipeline has soared 95% to £12.2m.

Sales for the year were lower than last year due to a lack of pilots in prior years converting to sales revenue. The company said it addressed the issue in May 2015 when the company offered a free pilot programme to potential customers.

Loss before tax widened to £1.62m from £570,000, and as a result no dividend will be paid.

Net cash balance at the end of June was £240,000, down 79%.

The company fund raised £770,000 to fund the P35 pilot programme, develop its M2G product, a patented energy efficient technology designed to reduce fuel consumption in commercial boilers, and recruitment more technical personnel.

Chief executive Alan O'Brien said: "2016 was a year of transition resulting from the review of the group's sales strategy and sales processes. The main targets for the group were to achieve 35 pilot installations in the year and to grow the sales pipeline and I am pleased that both these were achieved.

“We will now be looking to build on these achievements in the new financial year and are looking to run a total of 40 pilots in the UK, Europe and the US."

Since the end of June, the company has signed a distribution agreement for the endotherm heating additive and raised £750,000 to fund the P40 pilot, overseas pilot programmes for the 2016/17 heating season and the development of its M2G product.