Sabien Technology’s H1 FY26: 51% Revenue Growth, Smaller Loss, and Real Momentum in Green Oil
Sabien Technology Group (AIM: SNT) has posted a strong first half for the six months to 31 December 2025. Revenue growth accelerated, losses narrowed, and the company sharpened its focus on two pillars: M2G Cloud Connect for commercial boilers and the Regenerated Green Oil (RGO) plastic-to-oil partnership with City Oil Field (COF).
The big picture: operations are moving the right way, but the balance sheet remains tight and execution in H2 will matter. Here’s what stood out – and why it matters.
Key Numbers at a Glance
| Metric | H1 FY26 | H1 FY25 | FY25 |
|---|---|---|---|
| Revenue | £504,000 | £334,000 | £847,000 |
| Sales orders received | £493,000 | £280,000 | £854,000 |
| Gross margin | 62% | 67% | 65% |
| Operating loss | £196,000 | £270,000 | £456,000 |
| Net loss after tax | £209,000 | £377,000 | £647,000 |
| Cash at period end | £37,000 | £15,000 | £67,000 |
| Current borrowings | £406,000 | £239,000 | £239,000 |
| Total equity (net liabilities) | £(324,000) | £(37,000) | £(112,000) |
Invoices raised in H1 were £491,000. Customer concentration remains high, with the largest customer at £275,000 – 55% of revenue.
Revenue Up 51%: Encouraging, But Mind the Margins and Cash
Revenue rose to £504,000, a 51% jump year on year. That reflects a healthier pipeline and better conversion, especially via the partner-led channel model in M2G.
Gross margin eased to 62% (from 67%), which management pins on mix rather than pricing pressure. The operating loss tightened to £196,000 and the net loss after tax improved to £209,000. That shows cost discipline is sticking.
The obvious weak spot is cash: £37,000 at period end and negative equity of £324,000. The company highlights continued working capital support from Parris Group, including loan facilities and an invoice factoring line introduced in November 2025. Helpful, yes – but it underscores reliance on external support.
M2G Cloud Connect: Channel-Led Strategy Is Delivering
M2G Cloud Connect is Sabien’s smart boiler optimisation platform and hardware. It gives facilities managers real-time CO₂ savings data and advanced analytics, and it integrates with estate management systems. In short, it’s a tool to cut energy use and document emissions reductions.
The pivot to a partner-led channel model appears to be working. Revenue growth of 51% in the period reflects stronger productivity, and one key facilities management partner remains the main route to market. Sabien is also investing in the next-generation M2G device that will bundle remote commercial boiler management into a single cloud-enabled unit. That could shorten sales and installation cycles and lift recurring revenue – both positives for valuation multiples over time.
Regenerated Green Oil: From Concept to Commercial Reality
The standout strategic progress is in the COF partnership. COF’s first full-scale RGO plant in Jeongeup, South Korea, has achieved full international certification (ISCC PLUS, PSM, KTL) and is now in full operations. That moves the technology from promising to proven at scale – a material de-risking event for Sabien’s UK and Arizona rights, which are exclusive and extended to 2029.
Each modular RGO plant converts 24 tonnes of waste plastic per day into oil and naphtha via a non-combustion catalytic process. The Korean facility’s funding at a valuation of approximately $72 million signals external investor confidence in the tech’s economics. For Sabien, this is the “company-defining” opportunity, but it’s still pre-revenue at Group level.
On the ground, Sabien’s b.grn vehicle has signed memoranda of understanding with a UK waste management business and a UK water utility to support feedstock and sites. Discussions continue for potential UK locations and the Phoenix, Arizona project. Early days, but the path is clearer.
Funding, Risks, and Going Concern
Let’s be plain. Sabien is small, capital-light, and reliant on support from Parris Group Limited for working capital. Current borrowings are £406,000 and equity is negative. The company’s going concern statement flags “significant doubt” due to the uncertainty of converting the sales pipeline within expected timelines, though forecasts support a going concern basis.
This isn’t unusual for early-stage commercialisation stories, but it is a real risk. If M2G conversion slows or RGO timelines slip, Sabien may need additional funding or extended facilities. Management acknowledges this and is keeping a tight grip on costs.
Outlook: Cautious Optimism With Clear Catalysts
H1 revenue already represents about 60% of the FY25 full-year outturn – impressive. However, the Board rightly cautions against extrapolating H1’s growth into H2, noting that sales cycles can stretch and timing is uncertain. The priorities now are converting the M2G pipeline, progressing RGO sites, and maintaining cost discipline.
In my view, Sabien’s risk-reward skews around a few near-term milestones. Execution on any one of them would be meaningful for sentiment and funding confidence.
What To Watch Next
- M2G sales conversion – new orders, installation pace, and any increase in recurring revenue signals.
- First RGO site announcements – site selection, permits, feedstock agreements, and financing structures in the UK or Arizona.
- Funding updates – extensions to facilities from Parris Group or alternative funding that strengthens the balance sheet.
- Next-gen M2G launch – evidence that the integrated device shortens sales and installation cycles.
- Customer concentration – signs of diversification beyond the largest client (currently 55% of H1 revenue).
My Take: Progress Where It Counts, But No Free Pass
Positives: revenue up 51%, operating loss narrower, proof-at-scale for RGO, and a partner model that seems to be humming. For a micro-cap, that’s good going. If Sabien can land an initial RGO site and keep M2G growing, the equity story improves quickly.
Negatives: cash is thin, equity is negative, and RGO is still pre-revenue. Execution risk remains front and centre, and the business is reliant on creditor support. The margin dip to 62% isn’t alarming, but it’s something to monitor as mix evolves.
Overall, this is an encouraging set of interims that validate the strategy and sharpen the line of sight to larger opportunities. The second half will be about disciplined delivery. If Sabien hits a couple of those catalysts, the market will likely take notice.
