TIDMLST
RNS Number : 3617E
Light Science Tech. Holdings PLC
29 June 2023
Light Science Technologies Holdings plc
("LSTH", the "Company" or the "Group")
Trading Update
Light Science Technologies Holdings plc (AIM: LST), the
controlled environment agriculture ("CEA") technology and contract
electronics manufacturing ("CEM") group , is pleased to provide a
trading update for the six months to 31 May 2023 (the
"Period").
Financial Highlights
Trading during the Period was in line with the Board's
expectations, with revenue for the Period expected to be c.GBP4.4m
(H1 2022: GBP3.6m), up approximately 22%. The Group's performance
reflected the benefits of operational improvements undertaken to
improve gross margins, which grew to c.20.9%, compared to 17.7% in
FY 2022. Improving market conditions and reduced supply chain
constraints within the CEM division underpinned this increase while
the Group also successfully reduced overheads by approximately 20%,
as part of the previously announced cost base realignment.
Operational Highlights
The CEM division performed in line with expectations. During the
Period its position as the Group's predominant revenue generator
continued, building on the record sales achieved during FY 2022.
Furthermore, as anticipated, gross margin is returning to
normalised levels. This division is now the manufacturing arm of
sister company Light Science Technologies - with the first
production batch of sensorGROW successfully running through the UK
Circuits' facility during the Period.
Within the CEA division, the Group continued to develop its
portfolio and potential market reach. Particular focus was on
positioning this division for growth via product development and
intellectual property protection - with the aim of targeting global
opportunities and addressing year round growing needs at the same
time as reducing the requirement for food imports.
Patent Applications
During the Period, the Group submitted International Patent
Applications for its sensorGROW sensor arrangement and advanceGROW
modular light arrangements in the US and EU - in addition to its UK
applications.
The sensorGROW patent is for the Group's all-in-one wireless
sensor which provides complete growing environment data remotely
and can be tailored to clients' environments (image below left). By
utilising big data to highlight trends and provide insights, it
enables users to increase profitability and yields at the same time
as reducing costs.
The advanceGROW modular light arrangement system (image below
right) has been developed as part of the Group's long term contract
with Zenith Nurseries Ltd, to develop a cloche lighting and sensor
technology system. Initial field trials increased crop growth by
40% in December 2022 - particularly useful given the cold ground
and the poor light in glasshouses at that time of year, further
highlighting commercial opportunities and the Group's ability to
help extend the growing season.
Outlook
As previously flagged, there is still material uncertainty over
the level and timing of revenue in the CEA division. Therefore, the
Group's broader strategy remains on creating partnerships globally
within this division, enabling it to develop a portfolio of clients
to include markets that have been less impacted by the energy
crisis. The CEM division continues to benefit from its relationship
with long standing blue-chip customers, providing good levels of
visibility . With a view to building on opportunities within both
divisions, management is also evaluating acquisition opportunities
that are cash flow generative.
The Board currently anticipates meeting full year expectations
as the Group benefits from further cost savings during H2 FY2023 at
the same time as continuing to develop and convert opportunities.
As of today's date, the sales pipeline of quoted work is over
GBP45m, of which there are forward orders and contracts worth
GBP18.8m*.
* Subject, inter alia, to certain milestones and conditions as
more fully described in the Company's announcement on 15 October
2021 and mentioned in the Company's AIM Admission Document, as
updated in the Company's announcement on 16 September 2022.
For additional information please contact:
Light Science Technologies Holdings www.lightsciencetechnologiesholdings.com
plc
Simon Deacon, Chief Executive Officer via Walbrook PR
Jim Snooks, Chief Financial Officer
Andrew Hempsall, Chief Operating
Officer
Strand Hanson Limited (Nominated Tel: +44 (0) 20 7409 3494
& Financial Adviser)
Ritchie Balmer / James Harris /
Rob Patrick
Oberon Capital (Broker)
Mike Seabrook / Nick Lovering Tel: +44 (0) 203 179 5300
Walbrook PR Ltd (Media & Investor Tel: +44 (0)20 7933 8780 or
Relations) lst@walbrookpr.com
Nick Rome / Paul McManus
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended).
About Light Science Technologies Holdings plc (
www.lightsciencetechnologiesholdings.com )
Light Science Technologies Holdings plc is the holding company
of the Group's controlled environment agriculture ("CEA") division,
Light Science Technologies Ltd ("Light Science Technologies"), and
its contract electronics manufacturing ("CEM") division, UK
Circuits and Electronics Solutions Limited ("UK Circuits").
Controlled Environment Agriculture
Light Science Technologies was founded in 2019 and is the
Company's grow lights and sensor technology business, providing
bespoke recipes and technologies tailored to customers' needs -
with key targets including indoor, vertical, glasshouses,
polytunnels and medicinal farming markets. The all-in-one CEA
solution will include analysing customers' crop growing
requirements to provide bespoke, low-energy and sustainable
equipment.
Market drivers include food and water shortages in many parts of
the world; growing global population; UK and other government
policy encouraging sustainable and efficient growth methods;
increased scrutiny of the effect of food production on climate
change and the continuing transition away from processed foods.
sensorGROW
sensorGROW was launched in June 2022 and its technology will
enable farmers to monitor the following key air zone growing
factors in real-time: carbon dioxide levels, humidity, light,
oxygen - and in the future: air speed, plant disease, soil,
temperature and water pH levels. By monitoring these key growing
factors, farmers can save money through better management of
resources: water, nutrients, fertilisers and energy - while
increasing yields and producing healthier crops.
nurturGROW
nurturGROW is a sustainable grow lighting product range,
offering an innovative, high-performance and cost-effective
solution for indoor farming, covering greenhouses, vertical
farming, polytunnels and medicinal plants.
Created with four core component parts, the nurturGROW range is
made of high quality, durable materials to give growers the ideal
balance between strength and optimal performance, minimising the
amount of materials needed to drastically cut down on waste and
reduce carbon footprint.
Contract Electronics Manufacturing
UK Circuits is the Company's CEM focussed division, profit
making with strong revenues. The Group designs, procures, and
manufactures high-quality CEM products, specialising in Printed
Circuit Boards, which are used in a range of sectors including
audio, automotive, electronics, gas detection, lighting, pest
control, telecommunications and, more recently, the CEA market.
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