Sabien Technology Group PLC (AIM:SNT) shares rose on Friday as the AIM-listed company revealed that it has been awarded a significant order for its CO2 mitigation device for commercial boilers valued at approximately £246,000 from a UK government department, to be invoiced in March 2023.
The company, which is focused on a green aggregation strategy, said it is expected that at least two-thirds of the order will be recognised as revenue during the 2023 financial year but with the balance of install and Cloud service revenue spread over the period to 31 March 2024.
The M2G UK government order is a repeat order from the same customer that was previously announced by the company on 25 March 2022.
In light of the M2G UK government order, Sabien noted that since its last trading update in late October 2022, the company has won orders with a value totalling over £430,000, which translates to a total of £507,000 in order value for the year to date and compares to £256,000 in the comparative period to March 2022, representing an increase of almost 100%.
The majority of the order value is expected to be recognised as revenue during the 2023 financial year subject to the timing of unit install and revenue recognition of Cloud service revenue, the company said.
While there can be no guarantee in securing additional orders, the company said it continues to advance negotiations for further repeat orders. Sabien said it will provide further business updates in its forthcoming interim results which are expected to be announced in the last week of March 2023.
In a statement commenting on the order update, Richard Parris, executive chairman of Sabien, said: "These continuing and growing commercial relationships demonstrate considerable validation of Sabien's M2G Cloud Connect technology and its ability to deliver significant gas energy savings across their estates.
"Equally significantly, the company's first major order from a new channel partner, in similar settings, demonstrates a growing profile for Sabien's approach. We look forward to providing further updates as information becomes available."
In early morning trade on Friday, Sabien shares were 4.1% firmer at 10.25p.