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Sabien Technology shares plunge as it eyes fresh fundraising

The boiler technology group said it may need further cash unless it can convert more opportunities into sales to achieve its monthly break-even target by the end of 2018
A boiler being serviced
Sabien expects to report a full-year loss of around £0.7mln

Sabien Technology Group (LON:SNT.) shares fell more than 40% after the efficiency technology manufacturer said it may have to raise further capital following a poor sales performance resulting in an annual loss.

The company said it expected to report a pre-tax loss for the year to the end of June of around £0.7mln, on revenues of around £0.6mln. Sabien said its current sales pipeline stood at £10.4mln – largely stable compared to the £10.1mln at the end of January.

READ: Sabien Technology Group wins contract with Interserve, announces retirement of finance director

However, the boiler technology specialist said unless it can accelerate the conversion of current opportunities into sales, it is unlikely to achieve its monthly break-even target by the end of 2018. As such, the company warned investors it may need to raise additional equity in the near future.

“Unless the Group can accelerate the current rate of pipeline conversion which has been slower than expected, the previously announced target of monthly break-even will not be achieved by December 2018 and the Group expects to need to raise additional equity during Quarter 1 or early Quarter 2 of the current financial period ending 30 June 2019,” Sabien said in a trading update.

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