Sabien Technology Share Discussion Threads

[masurenguy] 10/2/2015 08:33

I think that you have a tendency to get overemotional PJ1. The results here are clearly very disappointing - primarily due to lack of sales traction through distributors - but the product is a proven concept with both cost savings and green benefits on offer. Having doubled sales 4 years ago they have failed to develop an effective distribution channel and that urgently needs to be addressed.

I don't know why you would cast doubt on the existence and implementation of the Lincolnshire contract. Individual schools may not be particularly aware of future scheduled implementation because it only takes a few hours and can be installed without interfering with the school heating system during the day. Are you implying that this contract is a figment of their imagination ? Developing their overseas business also makes perfect sense since there must be plenty of low-hanging fruit to pick in those markets by new distributors in their first flush of enthusiasm.

You have sold out here and are clearly disillusioned with management and prospects so going forward you have no skin in the game. That's your view and you're perfectly entitled to it. I'm very disappointed with the lack of sales traction in the UK and this is the issue they have to address. Whether they can do that successfully in the future remains to be seen.

[pj 1] 10/2/2015 08:20

Yes but I would have expected the Schools to have some notice, or do they just let contractors in to do what they want now? Surely these things have to be scheduled. Its like getting into Fort Knox gaining access to Long Bennington Acadamy as its now called.

Must admit I am negative about the Management here pro exagerated by losses

[yump] 10/2/2015 08:11

Been looking at these for a while and it looks like disillusionment is affecting how the actual report is viewed. Unless you were invested and sold out and are still commenting.

(I also don't know why some schools would know about the contract, but that a different debate).

I don't like KPI's either though.

But there are 2mln of orders - that one is actually a fact. So they've got 4 months to top last year's revenue and return to profit, that's assuming they've got the same pro-rata costs or reduced them a bit.

I should add that sales for last year were 2.14mln.
When they did 2.45mln they posted a profit.

[pj 1] 10/2/2015 07:48

Ridiculous statement.
KPI =Key Performance Indicator

SNT KPI of Sales pipeline has never had any direct correlation to Results. How can it be a KPI? They still attempt to hide behind it.

No mention of the new Business Manager performance. Jam tomorrow?

They clearly state how big the UK market is, how little they have penetrated it, whilst going abroad? That does not seem to make sense to me

I live near Grantham Lincs, no schools have any indication of the contract that I have spoken to

Good luck, great product.

[masurenguy] 09/2/2015 16:42

Interim results due out tomorrow. Sabiens US distributor recently obtained US approval for the M2G so hopefully we should soon see some orders flowing from across the Atlantic.

Some recent news:
Sabien's US distributor gains M2G validation from the US Department of Energy. Projected energy savings of 14%
21 January 2015

U.S. Department of Energy is confirming Greffen Systems’ M2G intelligent boiler control produces significant savings for heating buildings using hydronic boilers. The DOE’s “Building America Case Study,” which installed and monitored Advanced Load Monitoring (ALM) aftermarket controllers in Chicago. “The Department of Energy’s validation means government affirmation of a key tool for saving money,” said Frank Salensky, Greffen Systems’ CEO. “For those Chief Sustainability Officers and Energy Managers of industrial and commercial buildings who are seeking the next tier of proven solutions, the M2G is an exciting new tool.”

The new M1G was also recently launched so we should get some feedback on early market reactions from trial installations.

[masurenguy] 05/2/2015 09:44

Header updated to reflect a more recent major shareholder listing. Since then, Amati have increased their shareholding by 12%, and now have a stake of 14.1%, while L & G reduced their shareholding from 3.27% to below the reporting threshold of 3.0%. Since the two shareholding announcements were made virtually simultaneously on 7th January, we might therefore reasonably assume that Amati acquired their additional shares directly from L & G.

The interims have historically been announced during the second week of February so we should expect to see an RNS on the H1 results during the course of next week.

[here and there] 07/1/2015 15:21

overhang cleared at last it seems.

[pj 1] 29/12/2014 11:11

Hands up! Apology, 435 was an awful and rushed post

For clarity

'recent disasters' refers to my own Portfolio where a distinct correlation between my underperforming shares matched those who had not communicated with me.(THAL,SPL,DRV,GAH,VLK) I have unreturned phone calls and emails, as reported some while ago, and repeated last month.

Emphasis currently appears, imo, to be on new technology in Boilers and reductions in gas usage/electricity generation/remote monitoring. Maybe SNT tech is also compatible with these? I have not checked

It appears with this general decline in AIM this year any stocks that are falling keep falling, hence a clear out of my Portfolio including SNT.

Yes at quite some loss (I also have previous losses here)and I'm not saying for a minute I will not be back and the Good Luck is genuine.

[masurenguy] 29/12/2014 10:34

What are the "recent disasters" that you have referred to above ? I'm also not aware of any "new technology" that will make their retrofit software "obsolete" - could you please provide a relevant link since I'd be very interested to check it out. I've not encountered any problems in communicating with the company either and spoke to one of the directors earlier this month.

The results last year were disappointing but there really has been nothing further to add since they were released some 12 weeks ago. As previously mentioned in post #434 above, a starting position where "outstanding orders of £1.3m and the outstanding Lincolnshire contract order of £1.1m, which will all be completed and billed this year means that they already have more than last years total sales revenue already in the bag." should underpin this years performance and I am not aware of any other subsequent developments that might cause a change to that scenario.

One of the reasons that they are looking to expand overseas via distributors is to exploit the "low hanging fruit" first in these markets with very little operational costs for themselves. Obviously we will have to wait and see what progress they make in that context during the current fiscal year and with the interims due in around 7 weeks time we should get some feedback on this at that time.

However, we all have to make our own individual judgement calls on buying or selling any stock. I assume todays 50,000 @14p must have been your exit which unfortunately must have crystallised a loss for you since it was at a 5 year low. I'm still reasonably comfortable to hold what is a very illiquid stock with a current EV of only £3.4m after deducting net cash. If they can deliver on their year end statement that they are "confident that operational and financial performance will improve significantly during 2015, enabling us to achieve our targets for the year." then we could see a sudden and very sharp spike in the shareprice as has occurred before. Good luck !

[pj 1] 29/12/2014 09:28

Im out



Good luck if you are braver than me

EDITED.

[masurenguy] 07/10/2014 07:39

Disappointing results but largely inline with the year end trading statement. Sales shortfall due to halving of the contribution from UK alliance partners which they claim is due to volume varying "from year to year and is dependent on what stage the partner is at in the sales cycle with their own clients and pipeline. We are confident that there are a number of good prospects from this source which we anticipate converting to sales revenue over the next year."

Post year developments were very positive however with outstanding orders of £1.3m and the outstanding Lincolnshire contract order of £1.1m, which will all be completed and billed this year
means that they already have more than last years total sales revenue already in the bag.

Overseas sales developed more slowly than expected particularly in the US market "We stated in last year's report that we anticipated a major contribution to revenue from the Fireye relationship during 2014 but for a number of legitimate reasons, mainly due to a management and ownership restructure, this contribution did not materialise during the year. We remain confident this relationship will bring substantial value to the Group in the future."

New product development should also boost sales and profits this year "the Group has launched the M1G, a product for use on hot water heaters. In-field testing was successful and has shown that material savings in gas consumption and paybacks in-line with client investment criteria can be made by deploying M1G." This product was launched in September 2014 during the Energy Event at the NEC Birmingham. "The Group is also testing other 'inorganic' technologies, i.e. technologies being developed by third parties, that could potentially complement its product suite offering."

Clearly 2014 - 2015 will be a pivotal year for the company where they need to start significantly building sales in the UK on the back of existing year end orders, increased volume from alliance partners and initial sales of M1G. There needs to be much further growth in their overseas business especially in Europe and North America.

RNS Number : 5829T
07 October 2014
Sabien Technology Group Plc

Preliminary results for the year to 30 June 2014

Sabien Technology Group Plc, the manufacturer and supplier of M2G, a boiler energy efficiency technology, is pleased to report its preliminary results for the year to 30 June 2014.

Highlights 2014

· Sales for the year £2.14m (2013: £2.47m)

· Loss after tax £0.27m (2013: £0.31m profit)

· Sales from Alliance Partners £1.01m (2013: £2.02m)

· Overseas sales £188k (2013: £85k)

· Non-exclusive distribution agreements signed with Tech Centres in China, Greece, Middle East, India, Italy, France, Germany, Belgium, Netherlands and South Africa

· Net cash balance at 30 June 2014 was £1.42m (2013: £1.36m)

· Sales pipeline of £5.8m at 30 June 2014 (2013: £4.6m)

Highlights since the year end

· Orders brought forward and received since 1 July 2014 total £1.3m

· Sales pipeline currently standing at c.£6.9m

· c£1.1m of revenue of the Lincolnshire 3 year contract awarded in Oct 2013 now expected to be delivered in the current financial year

· Further non-exclusive distribution agreements signed with Tech Centres in Spain and UAE

· Launched the M1G, a retrofit control technology designed to reduce the operating costs of direct-fired water heaters

· Net cash balance at 30 September 2014 of £1.3m

· Proposed final dividend of 0.275p per share

Outlook
We made considerable progress in 2014 on our strategic tests and while there is still much to be done to deliver Sabien's full potential, the UK pipeline growth for 2014/15 is encouraging as it demonstrates the appeal of our M2G technology.

Alan O'Brien, chief executive, commented: ""With the stronger pipeline likely to be bolstered by the new overseas Sabien 'Tech Centres' and the introduction of M1G to the product range, we are confident that operational and financial performance will improve significantly during 2015, enabling us to achieve our targets for the year."

[masurenguy] 06/10/2014 15:32

Results will now be issued tomorrow morning.

[pj 1] 05/10/2014 19:21

Mas, nice reminder, thanks

As far as I'm concerned this 'sales pipeline' they keep hiding behind is no KPI as I cannot formulate any correlation between said pipeline and Sales figures, over the last 4 years. This pipeline is hardly worth the paper its written on, its just a guide not a KPI

I have also emailed (and tried to phone) the same concerns

Unfortunately the Co deemed my correspondence as not worth returning

The 2 (new) Business Managers (Sales ) have had more than enough time to make a difference. If they have not then something is wrong here, imo

GL

PJ

[masurenguy] 12/9/2014 08:20

A very simple and effective explanation of how the MG2 software system works and the financial benefit of adopting it for each individual boiler within an organisation. At some point in the future
they should also be able to interest a boiler manufacturer to incorporate MG2 into new production
as an additional competitive cost-effective benefit for potential customers.

[jojaken] 12/9/2014 07:54

Believe this video which explains Sabien's M2G system in layman terms has been updated.

[pj 1] 27/8/2014 08:52

This POS is actually Blue..??

[pj 1] 12/6/2014 07:25

Its about the future harry, constantly failing to maximise the product and technology, failure to respond to PI's emails and phone calls, Sales pipeline that appears to be meaningless

Its basically called communication

If they cannot do that with people who own the Company then how the hell do they do it with potential Customers?

Nil effect to date of x2 extra Business Managers (why not call them Sales execs like everyone else?)

Just IMO off course

I have also requested to visit them. Nil response received. Not even a an acknowledgement

[harrytuesday] 11/6/2014 22:51

Drop overdone. Results Did not seem that bad to me.

[yump] 03/6/2014 07:52

Always difficult with companies like these to know if its a sales or product issue, or just that it always takes longer than either the company or investors think or would like.

Having started up a couple of small industrial businesses myself which took ages to get any traction, despite great positive noises from potential buyers, I tend to go with the 'takes time' option, until such time as one of the others is proven to be the case.

I suppose the key thing is not to overpay for shares in a flurry of excitement, which is easier said than done !

At the other extreme is quite difficult to make a rational decision at a (current) apparently bottoming price, when there are lots of much earlier disillusioned investors.

[jojaken] 03/6/2014 07:16

The above comments would suggest the company would be ideal prey for a takeover, particularly for a company with that right marketing nouse!

[johnyo] 02/6/2014 19:28

Same gentlemen, as an ex power station boiler operator I thought this had huge potential I have small holding here too It's either sales & marketing or the product doesn't offer significant fuel savings. Everywhere is trying to go green & save ££ you would have thought it would fly off the shelves

[el1te] 02/6/2014 10:13

Agree - It was those initial contracts that sparked my interest, but sad to say that my interest soon faded. Agree regarding INSP too. There is every chance of another placing there, and the deal with the supposedly big utility firm is essentially a trial so hard to read too much into that (at the moment)

Will keep watching, just incase there are more promising orders.

El1te