Sabien Technology Group PLC Trading Update (0478S)
06 Luglio 2020 - 8:00AM
UK Regulatory
TIDMSNT
RNS Number : 0478S
Sabien Technology Group PLC
06 July 2020
6 July 2020
Sabien Technology Group plc
("Sabien" or the "Company")
Trading Update
The Covid-19 pandemic has affected the entire global economy and
Sabien has not escaped its impact. However, in spite of this
unprecedented disruption, Sabien's revenues doubled in the second
half of the financial year compared to the first half. This brings
total sales (unaudited) for the year to approximately GBP460,000
(FY19: GBP1,379,000). The decrease in full year sales, while
disappointing, is explained by last year's revenues including an
exceptional order of GBP846,375 and by three months of lost sales
due to the Covid lockdown in this period.
However, the Board believes that first half sales represent a
"low watermark" after several years of diminishing performance by
the previous Board and management team. Since the new management
team has taken charge earlier this year, sales prospects are
demonstrably strengthening, and consistent year-on-year growth is
expected as the Company transitions into a more realisable go-to
market strategy based on an enhanced product and service
proposition.
In addition, the Board has sought to protect shareholder value
in challenging market conditions by placing a focus on cash
management. During the year cash in the bank has increased to
GBP777,848 at 30 June 2020 (30 June 2019: GBP738,000; 30 June 2018:
GBP9,000). This includes a Covid business interruption loan of
GBP181,000 from NatWest Bank received on 25 June.
While Covid uncertainty has made it impossible to achieve a
profitable performance this year, costs have been tightly
controlled within the operating business as follows:
-- Following, the announcement of major new strategic
shareholder on 3 September 2019, the management team has been
restructured with the departure of the Alan O'Brien, CEO,
(announced 5/11/19) and David Bakst, Managing Director (announced
(29/5/20). Until further notice these functions will filled by
Executive Chairman, Richard Parris. These changes will contribute
an annual saving on the operating company payroll of more than
GBP200,000 from 1 June 2020.
-- The Board placed 85% of the workforce on Covid-19 furlough
from 31 March 2020. This has mitigated payroll expenses for 25% of
the financial year and has helped to preserve jobs and expertise.
During this period the Company was unable gain access to customer
sites to undertake any installations but background sales and
planning tasks to have been undertaken to the extent possible using
non-furloughed staff.
The Company has recently started a development project to "cloud
enable" its existing M2G user base (up to circa 10,500 units). This
will enable upselling opportunities to existing customers and
provide a source of new subscription revenue within the next
period. For the first time in the Company's history this will
enable recurring revenues to be generated from its large installed
base. It is anticipated this will also reduce the time to secure
new orders and support an international channel partner programme.
Early revenues from this new Cloud service are expected before the
end of 2020.
Operationally, Sabien is planning a strong start to the new
financial period with a backlog of more than 300 M2G units to
install and a confirmed order book of approximately GBP140,000.
Commencing 16 June 2020, staff are being phased back from furlough
leave to enable the Company to start to install backlogged units.
The limiting factor is regaining access to customer sites which
have been in lockdown since March. It is likely that full
operations will restored within 3 months, with a new look business
focused increasingly on indirect selling through channel partners
in the UK and the US.
Richard Parris, Chairman, said: "The Sabien operating business
is entering the new financial year in good shape to deliver
year-on-year growth, relative to FY2020. This is a direct result of
the Board's restructuring of the management and sales teams. During
FY2021 and beyond we are expecting a sales bounce from (1) a
post-Covid investment focus on green technology and (2)
recessionary sentiments across the economy that will place a
immediate customer emphasis on cost reduction programmes with short
payback windows. I believe Sabien is now well placed to benefit
from both of these macro trends and, in conjunction with our cost
control measures, the Company is in a strong position for a return
to profitability. The Board thanks Sabien staff for their support
and forbearance during the difficult time of furlough and we look
forward to welcoming you back over the coming weeks."
For further information:
Sabien Technology Group plc
Richard Parris, Chairman
SPARK Advisory Partners Limited (Nominated +44 20 7993 3700
Adviser)
Neil Baldwin / Matt Davis +44 203 368 3550
Peterhouse Capital Limited (Broker)
Duncan Vasey/ Lucy Williams +44 207 469 0930
A copy of this announcement will be available
from the Company's website at www.sabien-tech.co.uk
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END
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