Sabien Technology Share Discussion Threads

[masurenguy] 03/6/2011 00:41

RNS Number : 7590H
Sabien Technology Group PLC
02 June 2011

Sabien Technology Group Plc (AIM: SNT) the manufacturer and supplier of M2G, a boiler energy efficiency technology, looks forward to announcing its post close trading update for the year ended 30 June 2011 during the week commencing 11 July 2011.

[cnx] 22/5/2011 17:21

joesoap3

this is a small company and prompt reporting is probably not high on their current thinking

you can point your concern out to them and we hope they improve as they mazture

[cnx] 22/5/2011 17:17

masurenguy

thanks your efforts and detailed information

i am not yet a holder but like the business concept and the previously announced progress

[joesoap3] 17/5/2011 16:47

I do hope we get some sort of update around the 1st June again. Having said that I do feel last years announcement was made more because of the delay in orders rather than being given as an update.

I think an update is needed though as there is a huge time span from year end to the results being announced in October.

I never could understand why it took from year end 30th June to 29th October to announce the results

[masurenguy] 16/5/2011 11:11

cnx - I've now obtained the following clarification of what constitutes the 'sales pipeline' from the company.

The sales pipeline is based upon the prospective value of a firm proposal requested by either an existing or new customer. The prospective customer has been identified, the product has been approved by them, a viable and verifiable installation network has been determined and the customer has requested a firm proposal and price quotation. The timeframe for a scheduled rollout to each individual customer in the pipeline category is obviously unpredictable until confirmed by a firm order and an agreed installation schedule. However it is a good barometer of the qualified forward order potential at any point in time.

[masurenguy] 14/5/2011 11:20

As far as I understand, their terminology in relation to sales can be defined as follows. .

Sales revenue = actual billings
Orders Received = firm orders placed year to date. All of these will not necessarily be completed and billed in the current financial year.
Sales Pipeline = prospective orders, yet to be confirmed, which they anticipate receiving from the roll out of pilot installations with existing larger customers.

I'll also check out the above with the company

[cnx] 14/5/2011 10:54

masurenguy
please remind me.........what does "sales pipeline" mean?

is it future business they know of, may bid on/have bid on, and/or firm orders not recieved yet?

[masurenguy] 10/5/2011 09:06

Very quiet with less than 20,000 shares traded over the past 3 weeks. At the current market cap of circa £11.6m they are still valued at 15% below their IPO some four and a half years ago.

A lot of progress has been made since then and the company are on track to make sales of around £3m and a maiden profit of circa £800,000 this year generating eps of circa 2.5p. This would put them on a current year PER of around 15 or an EV ratio of 13.5 after deducting cash. Not particularly cheap for an AIM minnow but profits could ramp up very quickly next year and bring the PER down to single digits as, with gross margins of circa 75%, a significant increase in sales will quickly ramp up the bottom line. At H1 they had a forward order book of £1.7m and a sales pipeline of £5.7m.

Last year there was a prior year end trading update on June 1st so perhaps we will get a further update on H2 progress in a few weeks time.

[joesoap3] 08/4/2011 14:27

I hope so Mas, but it looks as thought the persistent seller doesn@ agree with you - another sell at 35 gone throughjust a few mins ago.

I am thinking that Sabien's PR should do a bit more to promote the company as until buyers start to buy again the price will go nowhere. we need another daily mail positive write-up

[masurenguy] 08/4/2011 11:39

Interesting development, which could become the precursor to more substantial future orders !

RNS Number : 5810E
Sabien Technology Group PLC
08 April 2011

M2G sale to US Distributor

Sabien Technology Group plc, the manufacturer and supplier of M2G, an energy efficiency technology, is pleased to announce that it has received an order for £125,000 from its US distributor Greffen Systems, Inc. ("Greffen") for the supply of M2G units.

Greffen is a subsidiary of SE Global S.A. which has a holding of 12.4% of Sabien's issued share capital and as such, under the AIM Rules, the sale is deemed to be a related party transaction. The sale to Greffen is an ordinary course transaction of a revenue nature and has been carried out on normal, arms-length, commercial terms. The Directors consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the shareholders of Sabien are concerned.

Alan O'Brien, CEO of Sabien, commented: "I am pleased Greffen Systems is beginning to see their sales pipeline deliver for them. The USA, in time, will become a key territory for Sabien and I look forward to updating the market on the positive progress Greffen is making with M2G in the USA in due course."

[masurenguy] 30/3/2011 14:56

Last year there was a trading statement issued on June 1st just prior to the year end. Whether they will repeat this in the current year remains to be seen. Hopefully we should see some more contract news announced over the next few months.

Meanwhile Sabien was 1 of the 3 'Pick of Aim' companies in a recent GCI article. Here is the SNT extract.

Pick of AIM
Miles Nolan

Recent results from Sabien Technology confirm the energy savings specialist is starting to gain traction. Sabien manufactures and sells a smart boiler control branded as M2G that is retrofitted to commercial boilers in less than two hours. The software and install costs just £1,850 per boiler and has a payback of typically less than two years. In the six months to 31 December, sales almost trebled to £1.1 million but more importantly the group achieved a pre-tax profit of £185,000 – its first move into the black.

Thanks to the energy, carbon and cost savings M2G achieves, typically between 10 and 25 per cent, Sabien has won a host of public and private sector work and boasts a sales pipeline of £5.7 million. Under the forthcoming Carbon Reduction Commitment, legislation states that companies using a set amount of energy each year must commit to reduce their consumption. Gross margins are a tantalising 75%; however, there is no recurring revenue, but with up to circa six million commercial boilers alone in the UK, the market is vast. Sabien also has Europe and the US in its sights.

[cnx] 25/3/2011 06:02

does anyone have dates for next update/report?

[masurenguy] 18/3/2011 14:27

Amen to that G2AM. I would concur with joesoap3 that it looks very much as though L&G bought their shares from TV1 2 who have reduced their holding from 3m (9.5%) to 1.6m (4.6%).

[g2am] 18/3/2011 14:04

Measurenguy - I share your pain with GNG. I've also been a long term holder and the long drift downwards is painfull!! Let's hope it doesn't happen again

[masurenguy] 01/3/2011 17:16

Hmm......L&G could be a bit of a mixed blessing. The share price in one of my other stocks (GNG) was surpressed for over a year by an overhang from L&G who took some 15 months to dispose of their 10% shareholding. This is the potential downside when an institution takes a significant stake in a small and illiquid AIM company. With a current market cap of circa £10m, SNT is a smaller company than GNG and with around 15% fewer shares in issue too. Consequently they are vulnerable too so lets just hope that we don't get a repeat performance from L&G here.

[joesoap3] 25/2/2011 16:50

yes just reaised that myself and looking at your figures ( above ) Noble owned 1.61 million so maybe they have sold to someone else. As you say there should be an RNS soon

[masurenguy] 25/2/2011 15:45

Difficult to know at this time. It represents 5% of the total number of shares in issue so there should be an RNS detailing the transaction over the next few days.

[joesoap3] 25/2/2011 15:17

Anyone got any comment on what has happened today?

Clearly the big transactions took place when the market was 'closed' around 10am. But it looks to me as though the 100,000 and 1,500,000 were sold by someone but 1,600,000 bought by someone else at the same price -36p.

Just tried a test buy sell and I can sell up to 1000 for 37p or buy bigger amounts for 37.58p, so the big transactions have had no real bearing on the share price

[puku] 21/2/2011 16:43

hi Mas - I bought in at 31 p on potential. The Chairman notes the "scale of improvement" so I am hoping for more than £2.5 m with £1.7 m sales orders in the bag. Not sure how long it takes to fulfill them but looking at sales trend, not that long (and note reference to clients and partners).. . Yes PE high but with all the councils out there I see a massive growth over 2-3 years. Want to buy more hoping for quiet share price retreat first !

[masurenguy] 12/2/2011 17:28

The thread author has not posted here in 6 months and as I have recently invested I thought that it was an appropriate time to start a new thread. This can be found here:

[masurenguy] 12/2/2011 17:10

Excellent interims.

Unaudited Interim Results for the period to 31 December 2010
7 February 2011

·Sales up 258% to £1,128k (£438k in 1st half 2009/10)

·Profit before tax of £185k (Loss £213k in 1st half 2009/10)

·£1,450k of sales orders already achieved in the first 6 months of this financial year; this equates to 149% of 2009/10 full year revenue

·£278k of orders received since 1 January 2011 giving total orders received for year to date of £1,728k which compares with 2009/10 full year revenue of £973k

·New orders for M2G received from public and private sector organisations including Hampshire County Council, London Borough of Greenwich, Norland/Lloyds Banking Group Plc, Lincolnshire County Council and British Telecommunications Plc

·Cash at the end of the period was £912k (£965k at 30 June 2010)

·Sales pipeline of £5.7m up from £3.2m announced in November's update

Commenting on the results Dr Clive Morton, Chairman, and Alan O'Brien, Chief Executive Officer of Sabien said: "This has been another period of solid progress for the Group, with a move to profit from our operations. The scale of improvement particularly for this period coupled with the consistency of project management has been duly noted by our clients and partners. The Sabien team has created an excellent, profitable base for our business to continue to grow and flourish. Our continued progress and move to profitability is proof of our business model when delivering at volume. We now look forward to the second half of the financial year which has started well with sales orders to date currently standing at £1,728k and, whilst general economic conditions remain challenging, the focus continues to be on M2G technical sales through our established channels along with careful management of costs and working capital. All directors and staff are focused on ensuring that Sabien is a profitable business with strong growth based on delivering a world class service to our clients. Sabien is now in a strong position and well placed for continued growth in the second half of the financial year.The sales pipeline now stands at c£5.7 million, an increase of £2.5 million since our last announcement in November 2010."



If we project y/e sales of circa £2.5m and profits of around £500K then the current year PER is around 24 & EV/ER is circa 22. A little rich for a small company but profit growth could accelerate quickly on the back of sales growth and if this could double in 2012 then the prospective PER would be circa 12.

[masurenguy] 12/2/2011 17:05

I have had this company on my watchlist for some time since I liked the technology but previously considered it to be too early stage as an investment. Those on the inside of course had a much better perspective and one of the NXD's bought in right at the bottom in March 2009. I commented upon it at the time on the other thread.

Masurenguy - 28 Mar'09 - 76: Good illustration of the problems associated with a significant holding of illiquid shares in a very small cap. The NXD was able to buyout the complete Nortrust shareholding of 1m shares at 2.5p. The previous two small buys of 4.3k and 5k earlier in the week were bought at 4.36p & 4.95p respectively. Very few buyers when you want or have to sell a significant stake ! Four Director buys this month: 100,000 @2.1p, 100,000@3.5p, 250,000@2.1p (Monaghans first share purchase) and then 1,008,850 last Thursday. Share price at the Dec 2006 IPO was 52p. High point was 77p in Jan 2007 and over the past 12 months the shares have fallen a further 85% from circa 30p.

RNS Number : 5984P
Sabien Technology Group PLC
27 March 2009
Sabien (AIM: SNT), the manufacturer of the patented M2G energy saving devices, announces that it has been notified that Karl Monaghan, a non-executive director of the Company, yesterday purchased 1,008,850 ordinary shares of 5 pence each in the Company ("Ordinary Shares") at 2.5 pence per share representing approximately 3.8% of the Company's issued share capital. As a result of this transaction Karl Monaghan holds 1,258,850 Ordinary Shares representing approximately 4.7% of the Company's issued share capital.

RNS Number : 6291P
Sabien Technology Group PLC
27 March 2009
Full name of shareholder(s)
Nortrust Nominees
Threshold(s) that is/are crossed 3%
Shares Sold: 1,008,850
Residual Holding: 0

He has certainly done very well from both his insight and confidence as his £31.5K investment is now worth £475K less than 2 years later !

[g2am] 10/2/2011 17:26

I don't think there is and they hold the Patent rights in the UK at least. It's a no brainer for many large corporations, councils etc that are forced to reduce their emissions by law now