Sabien Technology : Annual Report 2021

Company No.: 05568060

Sabien Technology Group Plc

Annual Report and Consolidated Financial Statements For the year ended 30 June 2021

Company Information
DIRECTORS		Richard Parris (Executive Chairman)
		Charles Goodfellow (Independent Non-Executive Director)
		Ranald McGregor-Smith(Non-Executive Director)
		Edward Sutcliffe (Chief Financial Officer and Executive
		Director)
SECRETARY		Edward Sutcliffe
COMPANY NUMBER	05568060
REGISTERED OFFICE		71-75 Shelton Street
		London
		WC2H 9JQ
WEBSITE		www.sabien-tech.co.uk
AUDITORS		Moore Kingston Smith LLP
		Devonshire House
		60 Goswell Road
		London
		EC1M 7AD
BANKERS	National Westminster Bank Plc
		72-74 High Street
		Watford
		Herts WD17 2GZ
NOMINATED ADVISER	Allenby Capital Limited
5 St Helen's Place
	London
	EC3A 6AB
BROKER	Peterhouse Capital Limited
		3rd Floor
		80 Cheapside
		London
		EC2V 6EE
REGISTRARS		Share Registrars Limited
		The Courtyard
		17 West Street
		Farnham
		Surrey
		GU9 7DR
SOLICITORS		Moore Barlow LLP
		11 The Avenue
		Southampton
		Hants
		SO17 1XF

Contents

Chairman & Chief Executive Officer's Report	3
Strategic Report	6
Directors' Report	12
Corporate Governance	14
Remuneration Report	21
Section 172(1) Statement	23
Directors' Responsibilities Statement	24
Independent Auditors' Report to the Members of Sabien Technology	25
Group Plc
Consolidated Statement of Comprehensive Income	31
Consolidated and Company Statements of Financial Position	32
Consolidated and Company Cash Flow Statements	33
Consolidated Statement of Changes in Equity	34
Company Statement of Changes in Equity	35
Notes to the Consolidated Financial Statements	36

Chairman & Chief Executive Officer's Report

We report on the results for Sabien Technology Group Plc ("Sabien", "the Company" or "the Group") for the year ended 30 June 2021.

Sabien Technology Group highlights 2021

• Sales for the year £0.97m (2020: £0.45m)
• Loss before tax £0.5m (2020: £1.41m loss)
• Sales from Alliance Partners £0.04m (2020: £0.01m)
• Overseas sales £0.04m (2020: £0.02m)
• Exceptional costs of £0.18m in relation to legal and professional fees incurred in relation to the aborted acquisition and potential reverse takeover of Ptarmigan Health Destinations
  SA ("PHD")
• Fund raises of £1.7m (gross)
• Net cash balance at 30 June 2021 was £1.22m (30 June 2020: £0.60m)

Highlights since the year end

• Sales of £49k to 26 August 2021
• Orders received but not yet invoiced to 26 August 2021 £24k
• Net cash balance at 26 August 2021 of £1.17m

Financial results

Revenue for the year was £0.97m (2020: £0.45m). The loss before taxation was £0.5m (2020: £1.41m loss).

At 30 June 2021, cash and cash equivalents amounted to £1.40m (2020: £0.78m).

Dividend policy

The directors propose no dividends (2020: nil) in the year.

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Chairman's Statement

The growth of the "Green Economy" has been notable during the last 12 months. Innovation has accelerated, driven by the changed circumstances in which we find ourselves. Investment has followed, as investors have recognised that this trend is secular rather than temporary. Specific areas of macro-economic focus have informed and supported the Sabien strategy. Demographic, technological and resource change are all likely to accelerate. In combination, the Board believes that these trends will contribute to a "Green Economic" boom over the coming decades.

Our mission as a Board is to prepare for this scenario and, having done so, deliver. Our vision is to establish a portfolio of businesses, all linked by reference to the "Green Economy" with clear economic relationships with markets whose dynamics are changing. We have identified key areas for development including wider industrial heating markets, non-refrigerant based cooling, battery recycling and reproduction, and waste to energy sectors together with a number of other "green energy" environmental opportunities in a variety of markets.

Sabien's transition to this more broadly based "Green Economy" focus has been backed by an impressive financial performance. In the year to 30 June 2021, the Group has generated revenue of £0.97m (2020: £0.45m), with £0.56m recorded in the second half, an increase of 87% on the £0.30m for the same period in the previous year.

Looking to the current year, I would highlight two key metrics. Sabien carries £43k of orders into 2021 and, as at 30 June 2021, the Group had cash in hand of £1.40m (2020: £0.78m) following the raising of £1.7m (gross) during the year.

The security which our forward orders and cash position provides is supporting our planned expansion: operationally and strategically.

Operationally, Sabien has extended the application of its M2G technology with its Cloud-based subscription service now available across more than five sites within public sector, sports, and pharmaceutical manufacturing locations. Allied to this important development, Sabien has signed an agreement with Lockular to provide robust data security. Lockular's platform is agnostic as to which operations are contained on it and, as a result, this agreement provides scalability, Big Data collection and AI insights for further acquisitions which the Company may make, potentially decreasing the time required to generate value. In combination, these actions have given the Company confidence to commit to the next generation of M2G, integrating remote commercial boiler management within a single Cloud-enabled device.

Strategically, the Company made an investment into Aeristech, a leading manufacturer of components for hydrogen fuel cells, secured a £400k contract with a UK Government department for the use of M2G technology, and formed a US subsidiary from which it will source US acquisition opportunities in addition to expanding the US market for Sabien's European products and services.

Management strength in depth is critical to bringing strategic initiatives into operational success. During the year under review, Sabien has strengthened its management team with the appointments of Ed Sutcliffe as Chief Financial Officer, Danny Mills as President of the U.S. subsidiary, Sabien Inc., Dr. Athan Fox as Chief Scientific Officer, Tom Sprunt as Managing Director (non-Board) and Ranald McGregor-Smith as non-executive director.

Mr. Sutcliffe is a Chartered Accountant and brings a wealth of private and listed company experience to the board. Mr. Mills is a US-based investor and technology operator who has worked with Sabien's leadership for a number of years. In combination with Richard Parris' work in US markets, Mr. Mills provides the necessary experience to benefit from President Biden's Plan for a Clean Energy Revolution and Environmental Justice. Dr. Fox's experience encompasses organic chemistry, intellectual property prosecution, technology transfer and fund raising for research, technology and innovation. Through Dr. Fox's work, Sabien is confident of a value-creating entry to the waste-to- energy market. Mr. Sprunt has many years' commercial experience in the boiler management industry.

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