Sabien Technology awarded another UK government contract

Heating, cooling and transport technology company Sabien has been awarded a further contract by a UK government department, it announced on Monday, worth £0.26m.

The AIM-traded firm said the contract was for the extended deployment of its ‘M2G’ boiler optimisation technology across multiple sites throughout the UK, in support of a “major project”.

It said it was the second half of the order announced on 25 March, which would be implemented with a different facilities manager partner.

A minimum of £0.2m of the order would be recognised in the 2022 financial year.

The company said the latest order increased its forward orders for M2G to 229 cloud devices to-be-installed.

Of those devices, the majority of the revenue had either been invoiced, or would be invoiced during 2022.

The board said the timing of the associated installation and cloud services revenue of around £0.12m was not yet finalised, but would be recognised in the 2022 and 2023 financial years.

Sabien said its net cash balance was currently £0.63m, not including any funds from the latest order.

Since the interim accounts were announced on 31 March, there had been “no further movement” on the related party loan from Parris Group, which remains at £0.1m.

“This further contract award re-confirms the confidence placed in the M2G Cloud device by a major UK government department,” said executive chairman Richard Parris.

“At times of rapidly increasing gas prices, Sabien Cloud delivers significant, easy to install savings, visible in real time through the intuitive M2G Cloud dashboard.”

At 1331 BST, shares in Sabien Technology Group were up 0.3% at 16.8p.