THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

19 February 2024

Sabien Technology Group Plc

("Sabien", the "Company" or the "Group")

Unaudited Interim Results for the six months ended 31 December 2023

Sabien Technology Group plc (AIM: SNT), the company focused on a green aggregation strategy, today announces its unaudited interim results for the six-month period ended 31 December 2023 (the "Period"). Comparative figures are shown for the comparable period in the previous financial year unless otherwise stated:

Financial highlights

Executive Chairman's Statement

It is very pleasing to report interim results which so clearly demonstrate progress. Revenue growth of 55% highlights the success of M2G in both raising awareness and innovating within its core product suite. That this translated into an 88.4% improvement in gross profit validates this strategy. The 82% increase in orders received underpins my confidence in further growth.

This confidence extends to the development of b.grn. Our recent progress in the US has brought the generation of a positive return much closer. Like M2G before it, b.grn's concept requires wider awareness of the benefits in order to secure its growth. I am in no doubt that such awareness is more likely to be achieved within US markets and that US awareness will drive adoption in Europe.

M2G Business

M2G has continued to outperform its KPIs through the first half of the current financial year. Specifically, it has achieved significant progress in raising awareness of its products' benefits within a disparate range of customers. The consequent growth in sales, billings, and orders is a testament to both M2G's concept and its ability to innovate within this space.

M2G Cloud Connect has assisted customers in saving 1.41 million KgCO₂ in just one year. As Cloud Connect is rolled out to US markets, it is expected that these savings will increase further. M2G Evo is in the final stages of development and is on the verge of CE and UL testing, the successful conclusion of which will allow a wide launch. In addition, M2G Evo will allow Sabien to access additional supply chains due to the use of common components. This should reduce the cost of the product, thereby increasing gross margin.

For the six months ended 31 December 2023, Sabien recognised M2G revenue of £0.37m, an increase of over 1.5x on the comparative period (£0.24m). To 16 February 2024, Sabien has received orders in excess of £0.50m, an increase of over 2x on the comparative period (£0.25m); and has invoiced £0.35m, an increase of over 1.3x on the prior year (£0.27m). Recent orders include an order from a new channel partner of £0.07m.

COF / b.grn Business

Sabien confirms that its affiliate company, b.grn Group Limited ("b.grn"), is participating in a consortium of green energy and sustainability companies to establish a resource cluster within a large, fast growing, environmentally conscious, US city (the "City") which has approved this announcement. A Mayor-led initiative established a global competition process more than two years ago, and the successful responding group was selected in late December 2023. Under this initiative, through an agreement with the project developer, b.grn will have the potential to construct and operate the first US-based installation of COF technology on a site leased from the City. The installation will process plastic waste both provided by the City and sourced from private enterprises. b.grn envisions that the offtake products from the proposed plant will be consumed within the City.

It is anticipated that this project, which is expected to be announced by the City no later than Q3 of 2024, will attract significant funding and will be a blueprint for wider technology adoption in the US and internationally. Under existing contracts, Sabien will benefit for both sales commissions on the supply of equipment to the project and a share of operational profits generated by b.grn.

To drive the successful launch of this project the services of a circular economy industry leader and former public company CEO have been secured to lead negotiations with the City. An LOI/MOU detailing high level business terms between the City, b.grn and other consortium members is likely to be signed and announced in the next Quarter with an established contract or contracts to be signed and announced no later than Q4 2024. It is likely Sabien will need to invest in the initial administrative enablement of this project to ensure the necessary external development funding is secured.

Proton Technologies Canada Inc. and Aeristech investment

Sabien is not focusing on these partners currently and there is no further update since the 2023 annual report.

Parris Group Loan

Sabien currently has a funding requirement to bridge the timing of the significant M2G order conversion into revenue, as well as requirements to complete the M2G Evo development and continue with the COF/b.grn project.

To fund this requirement, my family company, Parris Group Limited ("PGL"), has made a £0.2m debt facility available to Sabien.

The loan facility (the "New Loan") follows a previous PGL 12-month arrangement, announced in March 2022, for £209,302.33, of which £5,135 including accrued interest remained outstanding as at 31 December 2023.

The key terms of the New Loan are as follows:

· Up to £200,000;

· Interest rate of 12% per annum;

· Interest payable quarterly;

· Repayable by agreement with the Sabien board of directors for an initial period of 12 months unless replaced by another debt facility, afterwards on demand; and

· Unsecured.

Summary

Against a turbulent background, Sabien has made considerable positive progress in the first half of the current financial year. It has delivered and developed such that further progress is more likely.

M2G has exceeded expectations; generating revenue at lower cost, winning orders across geographies, and innovating within its product suite. b.grn has achieved another milestone in its development trajectory. The expected signing of terms with a US city will bring revenue generation closer and provide a high-profile platform from which to raise awareness and adoption elsewhere.

I have argued that Sabien's development will not be linear. I remain of this view, but I am now more confident that our businesses' growth prospects are not dependent on the economic environment. Our challenge is to raise awareness and having done so, to deploy successfully.

The scale and scope of our development is in our hands. I believe that we have demonstrated this ability in our first half results. I am confident that it will remain the case and that further growth is in prospect.

Sabien Technology Group Plc

Unaudited Condensed Group Statement of Comprehensive Income for the period ended 31 December 2023

Sabien Technology Group Plc

Unaudited Condensed Group Statement of Financial Position as at 31 December 2023

Sabien Technology Group Plc

Unaudited Condensed Group Cash Flow Statement for the period ended 31 December 2023

Sabien Technology Group Plc

Unaudited Condensed Group Statement of Changes in Equity as at 31 December 2022

Sabien Technology Group Plc

Notes to the Financial Statements for the period ended 31 December 2023

1. Accounting policies

The interim financial information has not been audited or reviewed by the auditors and does not constitute statutory accounts for the purpose of Sections 434 and 435 of the Companies Act 2006.

The financial information in this document has been prepared using accounting principles generally accepted under International Financial Reporting Standards and is consistent with those used in the preparation of the most recent annual financial statements.

These interim financial statements for the six-month period ended 31 December 2023 have been prepared using the historical cost convention, on a going concern basis and in accordance with applicable UK adopted International Financial Reporting Standards.

The financial statements for the year ended 30 June 2023 have been delivered to the Registrar of Companies and filed at Companies House and the auditors' report on those financial statements was unqualified. The auditors' report did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

2. Segmental reporting

Based on risks and returns, the directors consider that the primary reporting business format is by business segment which is currently just the supply of energy efficiency products, as this forms the basis of internal reports that are regularly reviewed by the Company's chief operating decision maker in order to allocate resources to the segment and assess its performance. Therefore, the disclosures for the primary segment have already been given in interim financial information. The secondary reporting format is by geographical analysis by destination. Non-UK revenues amounted to £2k which were less than 1% of total revenues for the period.

During the period, sales to the Group's largest customers were as follows:

3. Loss per share

The calculation of the basic loss per share is based on the loss attributable to the ordinary shareholders, divided by the weighted average number of shares in issue in the period.

4. Share capital

The Company's issued Ordinary share capital is:

5. Share options and warrants

At the period end date, the following options had been granted:

At the period end date, there were no warrants outstanding (31 December 2022: 1,675,349, 30 June 2023: nil).

In February 2023, 1,675,349 outstanding warrants expired.

6. Seasonality

The business of the Group is not seasonal.