REG - Light Science Tech. - Capital Markets Day & Retail Investor Presentation

Light Science Technologies HoldingsAnnouncement

26/02/2025 07:15

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RNS Number : 4498Y  Light Science Tech. Holdings PLC  26 February 2025

Light Science Technologies Holdings plc

("LSTH", "Light Science", the "Company" or the "Group")

 

Capital Markets Day and Retail Investor Presentation

 

Growth opportunities and margin improvement across all divisions

 

Positioned to build upon H2 net profitability

 

Light Science Technologies Holdings plc (AIM: LST), the innovative technology
and manufacturing business providing real-world solutions targeting issues
including global food security and fire safety, is, as previously announced,
hosting its Capital Markets Day for analysts and institutional investors this
morning.

 

Building on record Group revenue and gross profit margin for the 12 month
period ending 30 November 2024 (unaudited), with increasing quoted pipelines
across all divisions worth c.£50m, the Group traded profitably during H2.
Management will talk to the changing divisional mix and key growth drivers.
This will include deep-dives into the various business segments and product
portfolio, highlighting the continued focus on organic and acquisitive growth
with the Group targeting net profitability and being operationally
self-funded.

 

The slide deck from the event, which contains no new material information,
will be uploaded to the Company's website later today.

 

Continued growth across the Group

The Group continues to perform in line with management expectations, and with
a growing pipeline underpinning management's confidence.

 

With a growing product suite, incorporating turnkey solutions, software and
the development of a full environmental sensor, which enables the Group to
provide bespoke solutions to an increasing number of potential end users
including broadacre, the Group is renaming its controlled environment
agriculture division ("CEA") to AgTech ("AGT"), to better reflect the breadth
of its capabilities.

 

This division continues to provide significant growth opportunities, with a
quoted pipeline worth over £40m - significantly boosted by the recently
announced partnership with Agrolux. To this end it is commencing a trial in
March for a fruit crop which could lead to an order covering over three
hectares of lighting, with further projects expected in the near to medium
term.

 

The forward order book within the Contract Electronics Manufacturing ("CEM")
division is currently worth over £2.7m, with sports entertainment in
particular growing at pace. The Group has also recently been awarded 'Made in
Britain' accreditation, which management believes will help drive further
demand, with increasing levels of onshoring back to the UK.

 

The Passive Fire Protection ("PFP") quoted pipeline has grown to c.£15m. As
previously highlighted, this high margin growth is underpinned by legislative
backing, with the Group benefiting from growing levels of repeat work from
existing clients. Additionally, this division continues to receive orders from
new clients, with recent projects wins including one in Wakefield and one in
Greenwich.

 

Importantly, there is a significant need for targeted, cost effective and
scalable solutions, with 11,000 buildings over 18m high and 33,000 buildings
between 11m and 18m high requiring remediation works, underpinning a £50
billion* total estimated market opportunity.

 

Platform for growth

The continuing trends of increasing levels of order book conversion and
growing contributions from AGT and PFP divisions are underpinning enhanced
Group margin growth, which is expected to be maintained as the rebalancing of
the portfolio and sales mix continues. With AGT and PFP divisional gross
margins of 40-50% - approximately double those that are typically achieved
within CEM, the Group is well positioned to benefit from scaling of revenues
in these divisions as it focuses on building on profitable trading during H2
2024.

 

Retail Investor Presentation

As previously announced, management will be providing a recording of the
Capital Markets Day on the LSTH website following the event and investors are
invited to watch this in their own time.

 

The Company will host a retail investor Q&A session to discuss the Capital
Markets Day via the Investor Meet Company ("IMC") platform. This will take
place in March, with the date to coincide with the announcement of audited
results for the year ended 30 November 2024.

 

Investors can sign up to IMC for free and register to meet the Company via the
following link:

https://www.investormeetcompany.com/light-science-technologies-holdings-plc/register-investor
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_light-2Dscience-2Dtechnologies-2Dholdings-2Dplc_register-2Dinvestor&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=0WqPCFFYMMr53J75NNG-BSmrGKzuDCl1PVAVjgB_s44&m=4jTIS7rrujowcRJY3EMz37cuLHEaLNojYd4cGo1sa12bADDc3nvvQw_1TaJ40yWl&s=ISJo39TfVSpRjLpYCI7-p8k478zu0jWFn6Nv3BDdFCo&e=)

 

Those investors who have already registered on the IMC platform to meet the
Company will automatically be invited once the timing of the event has been
finalised.

 

Simon Deacon, CEO of LSTH commented: "I am delighted with the continued
progress across the business. Since joining the market three years ago we have
worked hard to position the Group for strong organic and acquisitive growth.
We are well positioned across exciting growth markets and have a team in place
to build on the strong growth momentum. I very much look forward to presenting
to institutional investors and analysts this morning and look forward to
presenting to our loyal retail investor base in due course."

* Estimators price cladding replacement at 10 times government budget
(https://www.theconstructionindex.co.uk/news/view/estimators-price-cladding-replacement-at-10-times-government-budget)

 For additional information please contact:

 

 Light Science Technologies Holdings plc                    www.lightsciencetechnologiesholdings.com

                                                          (http://www.lightsciencetechnologiesholdings.com/)

 Simon Deacon, Chief Executive Officer                      via Walbrook PR

 Jim Snooks, Chief Financial Officer

 Andrew Hempsall, Chief Operating Officer

 Strand Hanson Limited (Nominated & Financial Adviser)      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer / James Harris / Rob Patrick

 Oberon Capital (Broker)                                    Tel: +44 (0) 203 179 5300

 Mike Seabrook / Nick Lovering

 Walbrook PR Ltd (Media & Investor Relations)               Tel: +44 (0)20 7933 8780 or lst@walbrookpr.com (mailto:lst@walbrookpr.com)
 Nick Rome / Joe Walker

 

Notes to Editors:

 

About Light Science Technologies Holdings
plc (www.lightsciencetechnologiesholdings.com
(http://www.lightsciencetechnologiesholdings.com/) )

Light Science Technologies Holdings plc operates through three divisions:
AgTech ("AGT"); contract electronics manufacturing ("CEM"); and passive fire
protection ("PFP"). The Company is involved in the design, manufacturing, and
installation of products and customized solutions spanning various industry
sectors, including commercial horticulture, pest control, lighting, audio, gas
detection, and fire protection. With a focus on addressing global challenges
related to food security, climate change, and fire protection, the Group is
committed to developing robust solutions in these rapidly growing market
sectors.

 

LSTH is the holding company for Light Science Technologies Ltd ("Light Science
Technologies") and Tomtech (UK) Limited ("Tomtech") in the CEA division; UK
Circuits and Electronics Solutions Limited ("UK Circuits") in the CEM
division; and LSTH IFB Limited ("LSTH IFB") in the PFP division.

 

AgTech

The Group's tailored solutions encompass control systems, grow lights, sensor
technology, venting, and irrigation systems, catering to both UK and global
customers. Key markets include indoor, vertical, glasshouses, polytunnels, and
medicinal farming. Driving factors comprise global food and water shortages, a
growing population, government policies promoting sustainable growth methods,
heightened scrutiny of food production's impact on climate change, and a shift
away from processed foods. Key markets span the Americas, Australasia, and
select locations in the Middle East.

 

The sensorGROW technology enables real-time monitoring of essential air zone
growing factors such as carbon dioxide, air humidity, air pressure, air
temperature, and light. In development, it aims to extend monitoring to soil
temperature, soil moisture, and soil electroconductivity. This empowers
farmers to enhance resource management, saving costs on water, nutrients,
fertilizers, and energy, while simultaneously increasing yields and
cultivating healthier crops. Learn more here
https://lightsciencetech.com/sensorgrow/
(https://lightsciencetech.com/sensorgrow/) . The nurturGROW sustainable grow
lighting product range, applicable to greenhouses, vertical farming,
polytunnels, and medicinal plants, addresses a robust market with an
anticipated global worth exceeding US$6.5 billion by 2026. Explore solutions
here https://lightsciencetech.com/solutions/greenhouse/
(https://lightsciencetech.com/solutions/greenhouse/)

 

Through Tomtech, the Group stands out as a UK leader in control systems for
commercial greenhouses and polytunnels. Tomtech enables growers in optimizing
and automating cultivation environments, leading to superior crop growth. The
product range includes control systems, software, irrigation, lighting,
sensors, and venting, applicable across various crops, ultimately improving
yields and profitability. Discover more here https://www.tomtech.co.uk/
(https://www.tomtech.co.uk/)

 

Contract Electronics Manufacturing (https://www.ukcircuits.co.uk/
(https://www.ukcircuits.co.uk/) )

 

UK Circuits serves as the Group's profitable and revenue-strong CEM-focused
division. It excels in designing, procuring, and manufacturing high-quality
CEM products, with a specialization in Printed Circuit Boards. These products
find application across diverse sectors such as audio, automotive,
electronics, gas detection, lighting, pest control, telecommunications, and,
more recently, in the CEA market.

 

Passive Fire Protection (https://injectafirebarrier.com/
(https://injectafirebarrier.com/) )

 

LSTH IFB offers a practical and cost-effective solution to rectify
non-compliant public and private buildings, spanning residential, commercial,
and industrial sectors, with regard to fire safety regulations-a challenge
addressed by a £5.1 billion allocation from the UK government. Serving as the
UK's premier independent approved installer, LSTH IFB utilizes the
ground-breaking Injectaclad fire-resistant graphite barrier system. This
system is retroactively installed within building cavities, reinstating
fire-resistant performance and containing the spread of fire and smoke
compliant with regulatory requirements. This innovative solution stands out as
an appealing alternative to the more costly and disruptive method of removing
external facades and installing traditional fire barriers. With a proven track
record in the passive fire protection market and a robust sales pipeline, LSTH
IFB targets a UK market potentially valued at up to £50 billion*.

 

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