Sabien Technology dives after profit warning

29th May 2014 12:37

Shares in Sabien Technology lost more than a quarter of their value on Thursday morning after a profit warning. Sabien, a manufacturer and supplier of M2G, an energy efficiency technology, said a delay in orders would result in a loss of up to £0.3m in the year ending June 30th. The AIM-listed company said it had experienced a delay in some "substantial" customer orders that were expected to be received in the second half of the financial year, but which now are expected in the first half of the next financial year.It posted a loss of £0.25m in the first half. As expected, administrative costs are set to be around £0.5m higher than last year, which is mainly due to the increase in Business Development Manager headcount, but also the investment in the indirect channel for overseas development, the move to larger offices and the expenditure on new product development, it explained.It said its sales pipeline currently stands at £5.8m, compared to £4.6m at June 30th 2013.Chief Executive Alan O'Brien said: "Although the reduction in revenue this year has been a source of frustration for the management team and me, there have not been any contract cancellations, only delays in the placing of orders."This year has seen material progress in a number of areas. We have broadened our business development capabilities, signed commercial M2G distribution agreements in Europe, Middle East, Asia and Australasia, and developed and piloted a new product for hot water calorifiers which we intend to launch later in 2014. This is expected to lead to a wider application of our products in our target markets."The share price had dropped 26.32% to 21p by 12:51 on Thursday.NR