Seriously depressed first half numbers for Sabien Technology

Sabien Technology was looking at some seriously depressed numbers in its first half trading on Tuesday, blaming reduced margins and increased costs for the result.

The AIM-traded manufacturer of the patented M2G energy saving devices saw sales revenue slip in the six months to 31 December, to £321,000 from £542,000 a year earlier.

Its total received sales orders also dropped, to £268,000 from £610,000. The firm's loss before tax almost doubled to £984,000, from a £521,000 loss in the previous corresponding period.

Sabien had net cash of £868,000 at the end of the period, down from £1.17m.

"Gross margins in the period at 61% were lower than in previous years due to an increase in costs related to the pilot programme", said chairman Bruce Gordon.

"The increase in operating loss is caused by a number of factors, including an increase of 50% in headcount, with the recruitment of more technical and administrative personnel, and the routine development and upgrading of the group's M2G product, both of which had been taken into account in the preparation of the group's budget and forecasts for the year", he explained.

Sabien said it had a sales pipeline of £6.4m, with 30 pilots agreed with 30 UK customers. It also received a £314,000 order post period end, in February, giving total orders received since 1 January of £412,000.

"The board anticipates that the trading performance will be in line with its expectations for 2016, dependent on the group receiving a number of orders by 30 June 2016 for which customers have given an indication of the likely order date," Gordon concluded.

At 1458 GMT, shares in Sabien Technology were flat at 4.87p.