Sabien Technology Group plc (AIM: SNT), an AIM-listed provider of energy efficiency technologies through its M2G platform, has agreed an additional short-term working capital facility of up to £100,000 with Parris Group Ltd (PGL), a company controlled by Executive Chairman Richard Parris. The facility amends Sabien's existing loan agreement with PGL dated 19 December 2025 and carries an interest rate of approximately 30% per annum. Because PGL is a related party under AIM Rules, independent directors consulted Nominated Adviser Allenby Capital Limited before concluding the terms are fair and reasonable to shareholders.

Key Points

  • Sabien Technology Group plc (AIM: SNT) develops intelligent energy optimisation technologies helping organisations reduce energy consumption and carbon emissions
  • The company has agreed an additional uncommitted working capital facility of up to £100,000 with related party Parris Group Ltd, controlled by Executive Chairman Richard Parris
  • The facility carries interest at 0.0822% per day (approximately 30% per annum), mirroring the existing receivables purchase facility rate; each drawing is repayable within 60 days or on receipt of the related customer payment
  • Investors should watch how Sabien manages cash conversion between customer order fulfilment and invoice receipt, given the short-term nature of this bridge financing

How the £100,000 Facility Fits Alongside Sabien's Existing £200,000 PGL Loan

The new facility is structured as an amendment to Sabien's existing loan agreement with PGL, under which a separate £200,000 loan remains in place and continues to bear interest at 12% per annum. The additional £100,000 is an uncommitted revolving facility, meaning each drawing requires PGL's prior written approval at its absolute discretion. Drawings may be repaid and redrawn, carry no arrangement or commitment fees, and are secured against Sabien's existing security already in favour of PGL, with no new security granted. This layered financing structure reflects the company's reliance on PGL as a primary short-term funding source.

Bridging Costs Before Invoicing: The Operational Purpose Behind the New Facility

Sabien's announcement states the facility is designed to bridge the period between incurring costs on customer orders and receiving payment. The company's existing receivables purchase facility with PGL can only be deployed once an invoice has been issued, leaving a potential funding gap during order fulfilment. The new facility addresses that pre-invoicing gap specifically. Funds drawn may be on-lent to Sabien Technology Limited, the group's operating subsidiary. Each drawing is restricted to identified short-term needs linked to expected customer receipts and must be repaid within 60 days, on customer payment receipt, or on demand.

Related Party Disclosure: Richard Parris's 26.45% Shareholding and Independent Board Sign-Off

Richard Parris, Sabien's Executive Chairman, controls PGL and holds 8,390,175 ordinary shares, representing approximately 26.45% of the company's issued share capital. This makes the facility a related party transaction under AIM Rule 13. Independent directors Ed Sutcliffe, Charles Goodfellow, and Ranald McGregor-Smith reviewed the arrangement and, having consulted Nominated Adviser Allenby Capital Limited, concluded the terms are fair and reasonable insofar as shareholders are concerned. Investors may be watching whether Sabien's dependence on a chairman-controlled entity for working capital evolves as the business scales its M2G energy efficiency platform.