Sabien Technology Share Discussion Threads

[pj 1] 16/9/2016 08:59

Good luck Timbo. I have to admit I thought any placing would be taken at a much lower price so, in a way, some good news there.

Still begs the question if they could afford to pay the Leccy and fill the biscuit tin without this placing

[timbo003] 16/9/2016 07:19

I was given the opportunity to participate in the placing announced today, so decided to have a nibble, I was tempted by the EIS tax relief and the chairman's commitment to put in a decent wedge (which has been confirmed this morning)

[philjeans] 13/7/2016 12:37

very good news today - orders up and being converted. huge increase in pipeline. Looking very undervalued now.

BUY for me. DYOR

[fft] 03/6/2016 02:26

Did anyone listen to the Webinar? Was registered but couldn't make it. Any more info as to why large parts of the pipeline dropped out last year, and how robust is the pipeline number for this year ? How is it calculated ?And any news of fund raising ?Ta.

[pj 1] 02/6/2016 08:43

I do not have the same access to the 2 schools near us in Lincs, but I still can find no evidence (i.e. teachers/governor) that any retrofit's having been done.

Was the LCC contract a disappointment?

[pj 1] 02/6/2016 08:28

I suspect SNT had 'prospected' them, rather than the other way around.

[yump] 02/6/2016 08:22

The crucial question seems to be why did the number of large prospects remove themselves from the pipeline ?

Because, depending on the painful or not so painful answer, that determines whether ANY pipeline is going to generate a profitable business, or whether the whole thing is actually simply not viable.

[pj 1] 02/6/2016 07:46

Morning fft. Hard to predict how the Market will interpret that TU. Funding has to be on the cards?

[fft] 02/6/2016 07:41

Pipeline is good, but cash is low (regardless of what they thought it would be).Revenue in June and July expected to be good. The paid for pilots does seem to have been a good idea as long as they can continue to fund it until sales/cash comes in. Wonder if we will have a placing or fund raising ?

[yump] 03/5/2016 12:52

Well if there is going to be a bottom and not a disaster, then this must be pretty close to it for a punt. Hardly any share price movement for quite a while.

Half thinking of averaging down modestly, but its only half-thinking. Perhaps I should put in half what I did originally that would be quite a lot more shares ;-(

[thomasthetank1] 03/5/2016 12:04

Read Stockdale Securities's note on SABIEN TECHNOLOGY GROUP PLC (SNT), out this morning, by visiting hxxps://www.research-tree.com/company/GB00B1FPCD38
"We are most encouraged by today’s update on the pilot programme in which the company has said it is on track to complete at least 34 pilots in the 2015-16 heating season. This compares to eight in 2014-15 and its target of up to 35 this financial year. Importantly, there is already the positive anticipated traction on the sales pipeline with 10 of those completed, adding an expected £3.5m. With a trading update scheduled for early June, we make no changes to any of our forecasts and ..."

[pj 1] 03/5/2016 09:54

Agree yump. Their 'pipeline' has been nothing short of a smoke screen for years. Whilst not enough for me to even consider buying back in, things are maybe starting to look a little more positive.

[yump] 03/5/2016 09:49

A few years late, but welcome I guess:

"The Group has reviewed its historic pipeline and the updated pipeline now includes only those prospects where it is in active discussion with the client on implementation. The sales pipeline at end April 2016 stood at GBP7.4m."

Now all they need to do is rename the 'Business Managers' to Salesmen and make it clear to them that they are not managers of anything.

Having been involved in recruitment in the past its always been a debate with the client: if they don't advertise the vacancy as Sales and want to use words like 'Consultant', don't be surprised if they don't get people that can sell.

[masurenguy] 03/5/2016 08:12

Some encouraging news after nearly 3 months of silence !

RNS Number : 9008W
Sabien Technology Group PLC
3rd May 2016

Update on pilot programme

The Board of Sabien Technology Group plc (AIM: SNT), the manufacturer and supplier of M1G and M2G, energy efficiency technologies, is pleased to provide an update on the progress of its new piloting strategy. In the last Annual Report, we stated that the Group had set a new five year strategy to improve sales substantially. To achieve this the key objective for management was to significantly scale up large multi-site M2G pilots in each year over the next five years both in the UK and overseas by offering "free" pilots to potential clients. The target for the 2015-16 heating season was to run up to 35 pilots compared to 8 in 2014-15. We are pleased to report that we expect at least 34 pilots will be completed (32 in the UK and two overseas) and that the initial signs are that the anticipated positive impact on the sales pipeline is being achieved.

UK pilot programme

At the time of the interim results announcement in February 2016, we stated that the Group had agreements for pilots with 30 clients of which 18 were awaiting survey and 12 were in measurement. As of today, 35 clients have signed up for pilots in the 2015-6 heating season. Of these 10 have been completed with reports submitted to clients, 21 are in measurement, 2 are awaiting installation and 2 are being surveyed. The 10 reports all demonstrate the expected savings for the clients. The Board believes that 32 UK pilots will be completed this financial year with a further 3 completed after the Group's year end.

Overseas pilot programme

In addition to the UK pilot programme, as a result of demand from our US distributor, we assisted it with 5 pilots for large school districts. 2 of these have been completed and reports have been submitted and the other 3 pilots are scheduled to start before the financial year end. As with the UK pilots the reports to date demonstrate the expected savings for the end users.

Sales pipeline

The estimated pipeline value of the 10 completed pilots is GBP3.5m (on average above the minimum GBP250k necessary to qualify for a pilot) and one of these clients has already placed an initial order for GBP110k. The Group has reviewed its historic pipeline and the updated pipeline now includes only those prospects where it is in active discussion with the client on implementation. The sales pipeline at end April 2016 stood at GBP7.4m.

Trading update scheduled for early June

The Group expects to update the market on trading for FY2016 at the beginning of June. With the results of the 2015-16 pilot programme and the interest already shown in the Group's pilot programme for the 2016-2017 heating season, the Directors are confident that the strategy to return the company to profitability in the 2017-18 financial year is achievable.

[pj 1] 09/2/2016 08:37

Looks like they need the 8 or 9 from the 12 they currently have running, before the weather prevents customers having a reflective trial? Or a placing to survive.

"Of these, 12 are installed and are being monitored while the remaining 18 are currently awaiting survey. It is expected that these will be installed and the pilots completed before the end of the current heating season at the end of April."

Still hiding behind the ridiculous order book/pipeline figures.

Sales from overseas £69k so that is failing

What happened the the 3 new Business Managers?

I would suggest they exit overseas and make the BM's redundant to save costs, if they have not already.

[masurenguy] 09/2/2016 07:58

New business model has gone live. They have the cash to support it over the next 6 - 9 months. That period is likely to be the make or break timeframe for the company. The £314K order just received from a post pilot scheme in H1 is a very encouraging indicator but they need to be able to achieve at least 8 or 9 of these a year to validate the new model as a catalyst for real sustainable growth going forward. Obviously the jury is out on this over the next 6 months.

RNS Number : 4438O
Sabien Technology Group PLC
09 February 2016

Unaudited Interim Results for the period to 31 December 2015

Sabien Technology Group plc (AIM: SNT), the manufacturer of the patented M2G energy saving devices, announces its unaudited interim results for the six month period ended 31 December 2015 (comparatives are shown for the same period in the previous year unless otherwise stated):

Highlights in the period

· Sales revenue £321k (2014/15 - £542k)

· Sales orders received £268k (2014/15: £610k)

· Loss before tax £984k (2014/15 - £521k loss)

· Net cash at the end of the period £868k (£1,171k at 30 June 2015)

· Sales pipeline of £6.4m

· 30 UK Pilots agreed with customers

· Sales from indirect partners 49% of total sales revenue (2014/15: 24%)

· Overseas sales £69k (2014/15: £121k)

· Order for £314k received in February 2016 giving total orders received since 1 January 2016 of £412k. Total orders received so far for delivery this financial year £680k (2014/15 - £2,000k)

Sales order update:
We are pleased to announce that the Group has received an order in February 2016 for £314k from a Council that had completed a pilot at 3 of its sites of the Group's M2G product in November 2014. The pilot results showed an average saving of 11% with a payback of under 3 years.

Strategy update:
In the last Annual Report, we stated that the Group had set a new 5 year growth strategy to remove uncertainty around sales order lumpiness and to help mitigate the delays in mobilising M2G pilots and public sector contract awards brought about by long tender processes. The key objective for management was to significantly scale up large multi-site M2G pilots in each year over the next 5 years both in the UK and overseas by running up to 35 pilots in the 2015-16 heating season, compared to 8 in 2014-15, and to improve on this level in the 5 years to 2020.

At the Annual General Meeting held on 18 November 2015, we reported that 21 clients had signed an agreement to proceed with a pilot and that 6 were live. We are pleased to report that as of today's date 30 clients have signed an agreement to proceed with a pilot. Of these, 12 are installed and are being monitored while the remaining 18 are currently awaiting survey. It is expected that these will be installed and the pilots completed before the end of the current heating season at the end of April.

Finance
The Group's turnover in the period was £321k (2014/5 - £542k) and there was a loss before tax of £984k compared to a loss of £521k in the same period last year. It is anticipated that sales revenue will be back-end loaded this year as was the case in the year ended 30 June 2015.

Gross margins in the period at 61% were lower than in previous periods due to an increase in costs relating to the pilot programme. 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.

As at 31 December 2015, the Group's net cash reserves amounted to £868k compared to £1,171k at 30 June 2015 and £1,106k at 31 December 2014. The Group's target is to hold at least 3 months' worth of operating costs on current account and short term deposit. During the period, the Group purchased and has capitalised the cost of data monitoring equipment costing £90k. This equipment is used in the monitoring and recording of data during pilots.

Current Trading
Since the period ended 31 December 2015, £412k of orders have been received giving total orders received for the year to date of £680k.

The sales pipeline currently stands at £6.4m. This pipeline includes both sales opportunities with an order date in the future and those where we have been asked to quote but where no order date has been indicated by the client. In our annual report published in October, we announced a sales pipeline number of £5.8m. The size of the sales pipeline is one of our key performance indicators as it gives us an indication of the level of business that could be generated over the following 24 months. Sabien's experience is that it can take between 6 to 24 months for a customer enquiry to convert to a sales order. Management of this pipeline and its conversion to sales orders is a key performance indicator for the Group.

Outlook
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.

[yump] 15/1/2016 15:16

If it is, I'll eat my hat.

The AGM said that trading was affected by getting the pilot scheme up and running.

What ? In what way are those two things interdependent ?

Unless a load of agreed paid trials have now been moved to free.
Which would be erm, madness.

[yump] 18/11/2015 21:56

Some things just don't sell in enough volume to be viable I guess.

Selling into industrial sites has got to be one of the most difficult processes, regardless of how great the product is. It is just such an expensive sales process in time and money and if the final sale is not sufficiently large, the business model just doesn't work.

Having done the same thing and seen my company trundle along pointlessly making tiny profits, our BOD came to the conclusion that there are only two types of sale that work: very large project / service management sales and volume standard product sales that require little effort because they are part of something else. To get them to be specified as part of something else requires years of investment and time.

Legislation or H&S are the two game-changers if your product happens to be in those areas. Still very difficult and long game though.

The sales that involve trials on individual sites are a non-starter. Perhaps I've become negative because of that, but we struggled to find any independent profitable companies that were selling their own 'widget' into industrial sites.

[pj 1] 18/11/2015 20:41

I cannot see any catalyst currently or on the horizon to make me consider any stake. In fact IMO the Co should be put up for sale, none of their enterprise seems to be working. Business Managers (sales?), overseas now free trials.

Looks like desperation time to me, although always some chance they can pull the proverbial rabbit!

Good luck if you hold (Has Mas sold? he seems very quiet on this thread now)

[pugugly] 18/11/2015 16:48

Going down fast. Since AGM announcment some £7500 woth of stock dumped and bid knocked by 13%

Something very odd happens without PROFITABLE sales The Company goes BUST.

Sorry to be cynical BUT I have been burnt too often.

[pugugly] 18/11/2015 16:23

Just come back for another look in view of AGM statement and share price now below placing price.

For reference previous post copied below BUT like other who follow I cannot compute why with proven technology and what are supposed to be proven case histories the sales have not materialized.

Masurenguy>- From your discussions with the coy have you formed any impressions as to the real reason behind the uptake failure ? I agree from a lifetime spent in Sales that free trials at this stage of the game sends a wrong message to potential customers - Far better to put in on a purchase paid for cost savings - Say with a 50% uplift against immediate purchase or on a down payment and then lease payments.

But enough of free marketing advice which management will probably ignore.

If I could work out how to crack this problem I would be tempted to take out a loan and buy the Coy at the current valuation. Ha Ha.!!



PUGUGLY - 27 Feb'08 - 15:33 - 62 of 62 edit Edited 18/11/15 High low on 27th Feb 08 were open 36.5.. Close 29.25

Just come to have a look as top list faller and low for year.

initial reaction "You have to be joking"

Market cap £7.8 Million approx

Sales for 5 months £500,000 - So say £1 million for a year. PSR X 7.8 (say)Should (imo) be under 1.

Loss before tax £347K

Intangible assets £2,444K

Cash £1,909K but exceeded by long term borrowings and provisions of £2,472K, but somehow they made a loss on investment income and finance costs [I have to try and see why]

Anyone like to try and suggest a value for this company??????????????

[pj 1] 07/10/2015 08:34

yes yump, on review i'm confused and now assume said pipeline will include any free trials which you would expect to significantly increase but conversion rate yet unknown.

[yump] 07/10/2015 08:08

Hopefully they'll report on the growth of free trials vs. the number of paid trials previously. Or will they ? Also likely that the conversion from free trials to orders will be less than that for paid trials, and slower. Basically because the paid trials will have involved convincing more people, so the order process will now include all that convincing that hasn't already been done.

Its make or break time I think. Throwing a load of extra cost in resources at something that has no recurring revenue stream from the sale, but is not selling at sufficient volume, doesn't sound very promising.

If it brings in repeat significant big orders, then that might rescue it.

I haven't done the figures to see what extra revenue they will need every year to cover the extra costs, I just hope they have.

Perhaps energy efficiency on boilers doesn't have much environmental push behind it. Unfortunately its not the sort of thing people talk about in the pub or socially if they want to keep their friends, so more sales are always going to need more sales calls.