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Sabien Technology edges closer to profitability

Published: 07:31 02 Jun 2016 BST

Boiler front with digital thermostat
Its US distributor Fireye has completed three pilots at large school districts

Sabien Technology Group Plc  (LON:SNT) told investors to expect a loss of £1.7mln, but edged closer to profitability with an improved sales pipeline.

The group said to expect revenues of £0.9mln, due to the withdrawal of a number of large prospects from the opening pipeline and a reduction in contract value of a number of sales.

Only a month ago did the boiler optimisation specialist expressed its confidence in a return to profitability, highlighting good progress in its pilot programme.

As part of an improved sales strategy, the group said in May that it would run 35 pilots by the next heating season. Sabien now expects to have completed 32 by the end of next month.

The sales pipeline is currently estimated to be around £11.4mln, which is an increase of £4mln from the previous forecast of £7.4mln.

This compares with £6.4mln reported in the interim results in February and £6.2mln reported in June last year.

The company has received an initial order for £110,000 arising from the current P35 pilot programme.

Sabien’s US distributor Fireye has completed three pilots at large school districts and expects to run at least 15 in the next heating season.

The revenue results for the current financial year stem from the withdrawal of a number of large prospects from the opening pipeline at 1 July 2015 and a reduction in contract value of a number of sales.

Sabien expects to receive orders for at least £500,000 in the course of June and July, which are the result of paid pilots carried out in the previous financial year.

The group’s current cash position is £0.4mln, representing around three months' cash to cover working capital, in line with the board's strategy, said Sabien.

“The group's plan to return to profitability in the 2017/18 financial year is achievable,” read the statement.

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