Sabien awarded 'significant' UK government order

10th Mar 2023 14:17

(Sharecast News) - Sabien Technology Group updated the market on its M2G business Sabien Technology on Friday, which focuses on carbon dioxide mitigation devices for commercial boilers.

The AIM-traded firm announced that it has been awarded a significant order for its carbon dioxide mitigation device, valued at around £0.25m, from a UK government department.

It said the government order was a repeat order from the same customer that it previously announced on 25 March last year.

The order was expected to be invoiced in March, with at least two-thirds of the order value set to be recognised as revenue during the 2023 financial year, with the balance of install and cloud service revenue spread over the period to 31 March next year.

In light of the government order, Sabien said it had now won orders totalling more than £0.43m in value since its last trading update in late October.

That translated to a total of £0.51m in order value for the year to date, making for an increase of almost 100% year-on-year, which saw £0.26m in order value.

The board said the aggregate £0.43m in order value comprised, amongst other orders, the £0.25m from the UK government order, £0.09m from a new channel partner order received in the period concerned, as well as a combined £0.1m in seven additional orders from its existing partner CBRE for installations in the UK and EMEA regions.

It warned that while there could be no guarantee in securing additional orders, it was continuing to advance negotiations for further repeat orders.

"The board of Sabien is very pleased to see further repeat orders from two of the company's key customers - the UK government and CBRE," said executive chairman Richard Parris.

"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."

Sabien said it would provide further business updates in its upcoming interim results, expected in the last week of March.

At 1001 GMT, shares in Sabien Technology Group were up 2.79% at 10.12p.

Reporting by Josh White for Sharecast.com.