Sabien Technology Group (AIM: SNT) – profit warning for financial year end
Sabien Technology Group, the manufacturer and supplier of M2G, the boiler efficiency technology, and a company we commented on last on 16th February 2015, has today released a profit warning. The Company expects to report revenues of c.£1.9m and a loss of c.£0.6m in the financial year to 30th June 2015 – a reduction on the previous forecasts for the financial year. This comes in light of some substantial orders being delayed beyond June 2015.
Despite the shortfall in revenue and profit compared to management expectations, the Group has a satisfactory net cash position of £1.1m and a strong sales pipeline which stands at about £6.2m. In response to the delay in some orders which has impacted revenue for the year, the Group prepared a five year growth strategy with focus on improving the size and speed of conversion of sales prospects. The first step in the strategy is to provide free pilot schemes, which is expected to reduce the sales cycle by up to 24 weeks. The cost of pilot schemes represents a major…