REG - Light Science Tech. - Final Results
18/03/2025 07:00
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RNS Number : 0173B Light Science Tech. Holdings PLC 18 March 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) 596 / 2014 WHICH FORMS PART OF UNITED KINGDOM LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Light Science Technologies Holdings plc
("LSTH", "Light Science", the "Company" or the "Group")
Final Results & Notice of AGM
Record revenue, continued margin growth & net profitability achieved in H2
2024
Positioned for sustained profitable growth and increasing levels of cash
generation
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, announces its audited results
for the year ended 30 November 2024 (the "Period").
Strong trading across all divisions resulted in record revenues with the
Company trading at a net profitable level during the second half of the
Period. The performance was underpinned by increasing high margin
contributions from the Company's AgTech ("AGT") and Passive Fire Protection
("PFP") divisions which continue to provide the largest upside potential.
Financial Highlights
· Record revenue of £12.04m, up 29.5% (2023: £9.30m)
· Gross margins increased to 30.3% (2023: 23.4%)
· Trading at close to breakeven with reduced loss before tax of
£0.03m (2023: loss of £1.14m)
· Delivered profit before tax of £0.30m in H2 2024
· Positive net cash flow from operating activities of £1.53m
(2023: £0.18m)
· Cash and undrawn funds of £1.87m available as at 30 November
2024, including £1.21m in cash (2023: £0.98m)
Operational Highlights
· Internationalisation of AGT division via low cost distribution
agreements
· Broadening of AGT product suite - increasing number of end
users/markets
· PFP provided a new and growing revenue stream and strong cash
generation
· Rapid scaling up of PFP division with low cost addition of new
machinery and personnel
· Contract Electronics Manufacturing ("CEM") division benefited
from increasing levels of onshoring
· Strong and growing quoted Group pipeline of over £50m for
customers globally
· Foundations in place for sustained profitable growth, increasing
levels of recurring revenue and operational cash generation
· Graham Cooley and Richard Mills appointed to the Board, adding
significant City experience and international reach
Post Period-End Highlights
· Distribution partnership with Agrolux Nederland B.V., a
subsidiary of Scotts Miracle-Gro which was founded in 1868 and is a
constituent of the S&P 400, with a current market cap of $3.6bn, to
initially sell its LED lighting products into the UK and Irish markets
Online Analyst Briefing: 09.30, Tuesday 18 March
An online briefing for Analysts will be held at 09.30 today. Analysts
interested in attending should contact Walbrook PR on lst@walbrookpr.com or
020 7933 8780.
Retail Investor Presentation: 16:00, Tuesday 18 March
Management will be providing a presentation and hosting an investor Q&A
session on the Company's results and future prospects at 16:00 today.
Investors can sign up for free and register to meet LSTH via the following
link: https://www.investormeetcompany.com/light-science-technologies-holdings-plc/register-investor
(https://www.investormeetcompany.com/light-science-technologies-holdings-plc/register-investor)
Questions can be submitted pre-event via the platform or by
emailing lst@walbrookpr.com, or in real time during the presentation via the
"Ask a Question" function.
Ahead of this presentation investors are encouraged to watch the video of
LSTH's recent Capital Markets Day, which is available here along with a copy
of the slide deck used on the day: Events - Light Science Technologies
Holdings (https://lightsciencetechnologiesholdings.com/events/) .
Institutional Investor Meetings
The Company will be in London for meetings during the week commencing Monday
24 March. If you would like to meet with management, please contact
aimeemccusker@oberoninvestments.com.
Posting of Report & Accounts
The Company will be posting its annual report & accounts, together with
notice of AGM, to shareholders later today, with this document now available
on its website.
Simon Deacon, CEO of LSTH commented: "I am delighted with the strong
performance during the period. We have established a portfolio of businesses
with a demonstratable track record targeting a diverse and growing range of
end markets. Importantly, we are generating significantly increasing levels of
revenue, growing Group margins and are delivering increasing levels of cash
generation as we move towards our goal of achieving sustained profitability.
"We have further developed our product suite and routes to market and are
extremely excited by the opportunity afforded to us across the business. The
combination of global pressures and trends as well as legislation all point to
an increasingly healthy orderbook and pipeline conversion, as we build on the
record period we are reporting on today."
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 AGT 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
more recently wider applications in broadacre 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. With development almost complete, it aims to extend
monitoring to soil temperature, soil moisture, and soil electroconductivity,
with further developments to monitor greenhouse gases, initially Nitrous Oxide
(N20). 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 licensed medicinal plants, addresses a robust market with an
anticipated global worth of £9.6 billion* by 2030. 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 specialisation in Printed Circuit Boards. These products
find application across diverse sectors such as audio, automotive,
electronics, gas detection, lighting, pest control, telecommunications, and
AgTech.
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 £6.1 billion allocation from the UK government. Serving as the
UK's premier independent approved installer, LSTH IFB utilises 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**.
*Report: Allied Market Research LED Grow Lights Market Analysis 2030;
(https://www.alliedmarketresearch.com/led-grow-lights-market-A12416): USD
$12.3 billion by 2030 converted at GBP £1 = USD $1.28.
(https://www.alliedmarketresearch.com/led-grow-lights-market-A12416)
** Estimators price cladding replacement at 10 times government budget
(theconstructionindex.co.uk)
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.theconstructionindex.co.uk_news_view_estimators-2Dprice-2Dcladding-2Dreplacement-2Dat-2D10-2Dtimes-2Dgovernment-2Dbudget&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=k3ztxpiL9GaLwCCGU9fPymgPVcqvYBuqTjjYyTHwiDE&m=FkrfCU8L8JbNSpJy2iOqi_ufsIhPkBWqki20NIFJFw75Xk8uHWT1vpic2OJY0ioQ&s=PR1_EBbDTB9ZM08WpCO_9ThUQ0hELxP6lsaT57zpanA&e=)
2021
Chairman's statement
Dear Shareholders,
2024 has been a transformational year for Light Science Technologies Holdings
plc, marking significant milestones as we continue our journey towards
sustained profitability and long-term growth. It has been a privilege to work
alongside a strengthened Board, following my appointment as Non-Executive
Chairman and the addition of Richard Mills as Independent Non-Executive
Director. As a Board, we are focused on steering the Group through an exciting
period of strategic evolution and market opportunity.
This year, we achieved record revenues of £12.04m (2023: £9.30m), growing by
29.5% year-on-year, a testament to the scalability of our business model. A
strong improvement in Group gross margins combined with a continued emphasis
on overhead cost control, translated into substantially reduced full-year
losses before tax to a near breakeven of £0.03m (2023: £1.14m loss). I am
particularly pleased to report that we delivered net profitability in H2 2024.
These results reflect not only the dedication of our teams but also the
success of our dual strategy of organic growth and earnings-enhancing
acquisitions.
The integration of two key acquisitions made towards the end of the prior
financial year, Tomtech in the AGT division and Injecta Fire Barrier in the
newly created PFP division, has been pivotal in driving new revenue streams
and reinforcing our diversified portfolio. PFP completed a milestone cavity
remediation contract win of £1.17m towards the end of the financial year,
further establishing our presence in a high-demand, high-margin sector.
We have seen encouraging progress in our AGT division, which remains a core
pillar of our growth strategy. In 2024, we expanded our global reach with a
new partnership in South Africa and an order for nurturGROW lighting from
Richel Group, worth £0.12m. These advancements position us well to capitalise
on the growing demand for sustainable food production solutions.
Organic growth continued in the CEM division with strong progress achieved in
the sports entertainment market, securing total orders with our new customer
worth £0.54m for the full-year.
In line with our long-term objectives, we have continued to focus on cost
discipline, operational efficiencies, and innovation to create a sustainable,
scalable, and cash-generative business. With a strong order book and a robust
quoted pipeline across all divisions, we are confident in our ability to
deliver shareholder value and drive meaningful environmental and social
impact.
Looking ahead to FY 2025, we are energised by the momentum generated in 2024
and the opportunities that lie ahead. The AGT and PFP divisions represent
significant growth opportunities in markets valued at billions of pounds
globally. With our strategic foundations firmly in place, we are
well-positioned to capitalise on these dynamics and deliver a compelling
growth story.
I would like to extend my gratitude to our employees, customers, and
shareholders for their unwavering support and dedication. In particular, I
would like to thank the Executive team for sustaining a voluntary reduction in
remuneration over the last two years demonstrating a significant personal
commitment to the business. Together, we are building a business that is not
only profitable but also positioned to make a positive difference globally.
Graham Cooley
Non-Executive Chairman
17 March 2025
Chief Executive's report
Dear Shareholders,
2024 has been an exceptional year for Light Science Technologies Holdings plc,
one that has been defined by strong growth, operational achievements, and a
firm commitment to our long-term strategic objectives. Our progress reflects
the dedication of our teams, the trust of our partners and customers, and our
shared vision to drive innovation and sustainability across all divisions.
Operational and Financial Highlights
We made significant strides towards sustainable profitability in 2024. Our
revenues grew by an impressive 29.5% to £12.04m (2023: £9.30m), driven by a
combination of organic growth and the integration of key acquisitions. This
robust performance, combined with improved gross margins of 30.3% (2023:
23.4%), underscores the scalability of our business model and our focus on
operational excellence.
Most notably, we achieved net profitability in the second half of the year,
reducing our annual losses before tax to just £0.03m (2023: £1.14m loss).
This marks a critical milestone as we continue to lay the foundation for an
operationally self-funded business. These financial results highlight the
impact of our cost-efficiency measures, strategic investments, and the
strength of our diversified portfolio.
Our CEM division continued to grow organically, making a significant entry
into the sports entertainment market and securing total orders worth £0.54m,
underlaying the division's 4.7% year-on-year growth (2024: £9.51m; 2023:
£9.09m). We focused on de-risking high customer concentration in the pest
control sector, which as a Group, reduced to 49.2% from 58.3% in the prior
year. The expectation is to continue this reduction in concentration for FY
2025, as we expand further into sports entertainment and other key growth,
higher margin markets, such as Ministry of Defence and healthcare. The
Government has recently announced significant increases in spending in these
sectors.
The government has committed £1bn in addition to the existing £5bn fund, to
support fire safety remediation work in high-rise buildings and there is
estimated to be over 20 years of work to be performed to make safe all
high-rise buildings in the UK. Our PFP division is an early mover in this
market and has already started to reshape Group revenue and gross margin
contribution which we expect to continue.
The AGT division has designed, developed, trialled and manufactured a range
of unique and IP protected technology products in the AgTech market. These
products have enabled the Group to expand its servicing of the
controlled environment agriculture space into broadacre farming. With new
partnerships, we have continued to build our quoted pipeline in respect of
global lighting contracts and have recently started commercialising our
unique, multi-functional SensorGro product, which will create recurring
revenue streams in the future.
Acquisitions Driving Strategic Growth
2024 was also a year of transformational change with the successful
integration of Tomtech in the AGT division and the initial scale-up of Injecta
Fire Barrier within the newly created PFP division. These acquisitions not
only expanded our market reach but also unlocked new revenue streams.
Since the creation of the PFP division at the end of the prior year, total
contracts have been secured amounting to £2.68m, with the largest contract
win awarded in October 2024: a £1.17m project for cavity remediation in
residential towers.
In the AGT division Tomtech delivered operational cost efficiencies by
switching its supply source to our CEM division to produce its key product
assemblies, driving up Tomtech's gross margins whilst maintaining CEM target
gross margins. Furthermore, the integration of Tomtech's products into the AGT
division's range is enhancing market reach and cross selling capabilities,
creating a holistic, turnkey offering.
These achievements demonstrate the ability of our acquisitions to rapidly
generate meaningful contributions to revenue and highlight our expertise in
high-demand sectors.
Additionally, within our AGT division further significant milestones have also
been achieved: a new partnership in South Africa and a major order with Richel
Group for nurturGROW lighting are just the beginning of our global ambitions.
Our ongoing participation in Innovate UK's Transforming Food Production
Challenge also reaffirms our commitment to advancing sustainable and
innovative agricultural solutions.
Innovation and Market Opportunities
Innovation continues to be the cornerstone of our strategy. We are at the
forefront of the evolving AgTech market expected to grow between 2023 and 2033
at a CAGR of 11.3% to £47bn*, presenting a substantial global opportunity for
our AGT division, as governments and businesses seek sustainable solutions to
address food security, resource efficiency, and climate resilience.
Our product portfolio is designed to meet these needs by reducing growers'
operational costs while increasing yields. With new global partnerships,
distribution agreements, and ongoing investment in research and development,
we are well-positioned to capitalise on the rising demand for
technology-driven solutions in agriculture and beyond.
The PFP division is equally poised for growth, as regulatory changes such as
the Fire Safety Act 2021 and the Building Safety Act 2022, create a
significant market opportunity estimated to be worth up to £50bn**. The
growing emphasis on fire safety retrofitting in residential and commercial
buildings ensures a strong pipeline of demand, which we are uniquely
positioned to address.
Financial Review
Income Statement
The CEM division saw a year-on-year revenue growth of 4.7% from £9.09m to
£9.51m, with an improved gross margin facilitated by an easing of supply
chain constraints, an enhanced ability to pass on inflationary increases to
the end customer and operational efficiencies gained as a result of continued
investment in equipment and systems. CEM gross margin increased year-on-year
from 22.6% to 24.3%, and the Board continues to take various actions aimed at
maintaining and improving margin generation, against the risk of persisting
inflationary pressures.
The PFP division recorded its first revenues of £1.78m, following its
acquisition of Injecta Fire Barrier late in the previous financial year.
Pleasingly, very strong margins of 53.3% were delivered, demonstrating the
rationale for the acquisition, being profitable and cash generative for the
Group.
The AGT division saw a year-on-year revenue growth of 250% from £0.22m to
£0.78m, predominantly from a full year's revenue contribution by Tomtech,
following its prior year acquisition and subsequent integration into the
Group. The division generated healthy gross margins of just under 50%.
At a Group level, revenues grew by 29.5% to £12.04m (2023: £9.30m) and gross
margin increased substantially to 30.3% (2023: 23.4%).
Despite additional overhead costs attributable to the new acquisitions, the
Group maintained a tight control of overheads, with administrative expenses
increasing only 10.3% from £3.03m to £3.34m, compared with the 29.5% growth
in revenues.
The additional gross profit contribution for the financial year coupled with
tight overhead control, reduced the Group's loss before tax by 97.3% from
£1.14m to £0.03m, delivering a near break-even performance. Encouragingly,
the Group delivered a profit before tax of £0.30m for H2 2024, demonstrating
the strong progress in moving towards becoming a profitable, cash generative
and operationally self-sufficient Group.
Balance Sheet
The Group continued to invest in developing the AGT division's core product
offering, leading to additions in the year of £0.28m in intangible
development assets. Development costs relating to sensorGROW's extended
functionality into nitrous oxide and plant rootzones were partly covered by
UKRI grants, so a further £0.19m of grant income has been deferred within the
year in respect of these intangible assets, and is shown separately within
other payables.
Additionally, further investment in the CEM's plant and machinery was
delivered during the year, totalling £0.11m, to continue driving efficiencies
and gross margin improvements for the division.
As supply chain shortages returned to pre-pandemic norms, inventory levels
reduced to £0.81m at the year-end, from £1.40m for the prior year. Inventory
is predominantly allocated to specific customer orders. Due to the decrease in
inventory, the associated stock loan facility was not forecast to provide any
meaningful working capital to the Group and accordingly the Directors took the
decision to close the facility at the year end.
Cash Flow
Cash and cash equivalents increased to £1.21m (2023: £0.98m) at the year
end, and there was a further £0.66m in additional undrawn funds availability
under banking facilities with Close Brothers. Increased cash reflected a
£0.85m loan facility provided by Close Brothers during H1 2024, alongside
cash generated from operations during H2 2024. Net debt decreased to £0.71m
(2023: £1.38m).
Cash generated from operations for the full-year increased by 874% to £1.53m
(2023: £0.18m), demonstrating the Directors' firm commitment to transitioning
the Group to become operationally cash generative.
Outlook
As we enter 2025, we are energised by the momentum we have built and the
opportunities ahead. Our immediate focus remains on scaling our operations as
the markets continue to grow for all of our divisions. With a combined
potential market opportunity worth £120bnΔ, we have established a strong and
growing quoted pipeline of over £50m for customers globally, laying the
foundations for sustained profitable growth and operational cash generation.
Since listing on the London Stock Exchange's AIM market over three years ago,
Group revenue has grown by 62.8% (2024: £12.04m; 2021: £7.39m) and gross
margins by 36.2% (2024: 30.3%; 2021: 22.2%), becoming profitable and cash
generative in H2 2024. The Directors are confident in the Group's ability to
continue this trajectory and deliver strong results going forwards.
I would like to take this opportunity to thank our shareholders, employees,
and partners for their unwavering support and belief in our mission. Together,
we are not just building a business, we are creating a legacy of innovation,
sustainability, and value for all stakeholders.
Simon Deacon
Chief Executive Officer
17 March 2025
*Report: Smart Agriculture Market Size & Share, Growth Report 2033
(gminsights.com): USD $60.1 billion by 2033 converted at GBP £1 = USD $1.28.
** Estimators price cladding replacement at 10 times government budget
(theconstructionindex.co.uk)
Δ Aggregation of the 2 above market sizes (* and **) plus UK CEM market
Report - Horizon Grand View Research 2030
(https://www.grandviewresearch.com/horizon/outlook/electronic-contract-manufacturing-and-design-services-market/uk):
USD $28.2 billion by 2030 converted at GBP £1 - USD $1.28.
Consolidated Statement of Comprehensive Income
For the year ended 30 November 2024
2024 2023
Notes £ £
Revenue 3 12,037,142 9,295,160
Cost of sales (8,393,288) (7,122,419)
Gross profit 3,643,854 2,172,741
Administrative expenses (3,337,101) (3,026,483)
Non-underlying administrative expenses (127,241) (255,363)
Other operating income 169,616 249,197
Operating profit / (loss) 4 349,128 (859,908)
Finance costs (379,537) (279,077)
Loss on ordinary activities before taxation (30,409) (1,138,985)
Income tax credit 5 10,844 213,376
Profit / (loss) for the year and total comprehensive income for the year (19,565) (925,609)
Attributable to: (46,721) (953,164)
The owners of the Company
Non-controlling interests 27,156 27,555
(19,565) (925,609)
Loss per share
Basic and diluted (pence) 6 (0.01) (0.36)
Consolidated Balance Sheet
Registered Number: 12398098
As at 30 November 2024
30 November 2024 30 November
2023
£ £
Assets
Non-current assets
Goodwill 920,867 920,867
Intangible assets 1,533,074 1,560,130
Property, plant and equipment 724,205 854,512
Right-of-use assets 473,440 423,881
3,651,586 3,759,390
Current assets
Inventories 810,920 1,399,597
Trade and other receivables 2,616,313 2,154,961
Corporation tax receivable 25,542 37,897
Cash and cash equivalents 1,214,780 981,357
4,667,555 4,573,812
Total assets 8,319,141 8,333,202
Liabilities
Current liabilities
Borrowings (893,569) (1,779,712)
Trade and other payables (2,341,070) (1,878,435)
Consideration payable (394,859) (364,580)
Lease liabilities (150,633) (101,240)
(3,780,131) (4,123,967)
Non-current liabilities
Borrowings (595,000) (180,555)
Trade and other payables (346,218) (240,017)
Consideration payable (827,035) (1,017,406)
Lease liabilities (289,875) (303,978)
(2,058,128) (1,741,956)
Total liabilities (5,838,259) (5,865,923)
Net assets 2,480,882 2,467,279
Capital and reserves attributable to the owners of the Company 3,330,055 3,330,055
Share capital 5,520,243 5,520,243
Share premium account 523,782 546,614
Share based payment reserve
Warrant reserve 159,593 159,593
Merger reserve (3,478,435) (3,478,435)
Retained earnings (3,971,366) (3,980,645)
2,083,872 2,097,425
Non-controlling interests 397,010 369,854
Total equity 2,480,882 2,467,279
Consolidated Statements of Changes in Equity
For the year ended 30 November 2024
Share based payment reserve Warrant reserve Merger reserve Retained earnings Non- controlling
Share capital Share premium account interests
£ Total equity
£ £ £ £ £ £ £
At 30 November 2023
3,330,055 5,520,243 546,614 159,593 (3,478,435) (3,980,645) 369,854 2,467,279
Transactions with shareholders
Share based payments
- - 33,168 - - - - 33,168
Share based payments - lapsed options
- - (56,000) - - 56,000 - -
Total transactions with shareholders
- - (22,832) - - 56,000 - 33,168
Comprehensive income
(Loss)/profit for the year
- - - - - (46,721) 27,156 (19,565)
Total comprehensive income
- - - - - (46,721) 27,156 (19,565)
At 30 November 2024
3,330,055 5,520,243 523,782 159,593 (3,478,435) (3,971,366) 397,010 2,480,882
Share based payment reserve Warrant reserve Merger reserve Retained earnings Non- controlling
Share capital Share premium account interests
Total equity
£ £ £ £ £ £ £ £
At 30 November 2022
1,741,500 5,654,011 726,000 159,593 (3,478,435) (3,209,481) 342,299 1,935,487
Transactions with shareholders
Share based payments
- - 2,614 - - - - 2,614
Shares issued during the year
1,588,555 (133,768) - - - - - 1,454,787
Share based payments - lapsed options
- - (182,000) - - 182,000 - -
Total transactions with shareholders
1,588,555 (133,768) (179,386) - - 182,000 - 1,457,401
Comprehensive income
Loss for the year - - - - - (953,164) 27,555 (925,609)
Total comprehensive income
- - - - - (953,164) 27,555 (925,609)
At 30 November 2023
3,330,055 5,520,243 546,614 159,593 (3,478,435) (3,980,645) 369,854 2,467,279
Consolidated Cash Flow Statement
For the year ended 30 November 2024
30 November 30 November
2024 2023
Notes £ £
Cash flows from operating activities (19,565) (925,609)
Loss after tax
Adjustments for: 4 150,441 115,371
Depreciation of tangible assets
Depreciation of right-of-use assets 4 124,237 187,318
Amortisation and impairment of intangible assets 4 307,901 245,618
Loss on disposal of tangible and right-of-use assets 429 30,278
Foreign exchange loss 4 2,015 2,185
Unwind of discount on consideration 100,420 7,496
Interest payable - loan and leases 128,715 103,219
Taxation and RDEC credit 5 (55,129) (266,112)
Share based payment 33,168 2,614
588,677 207,925
Changes in working capital:
Decrease in inventory
(Increase)/decrease in trade and other receivables (461,352) 492,087
Increase/(decrease) in trade and other payables 566,821 (209,934)
Cash inflow/(outflow) from operations 1,466,778 (7,544)
Tax received 5 67,484 183,111
Net cash inflow from operating activities 1,534,262 175,567
Cash flows from investing activities (29,253) (18,809)
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment 8,690 27,456
Acquisition of subsidiaries, net of cash acquired - 142,507
Deferred consideration paid (260,512) -
Purchase of intangible fixed assets (280,845) (592,405)
Purchase of right-of-use-assets (15,741) (16,172)
Net cash outflow from investing activities (577,661) (457,423)
Cash flows from financing activities
Capital issued (net of issue costs) - 1,454,787
Repayment of loans (301,666) (216,667)
Proceeds from new loans 850,000 -
Lease payments (154,636) (267,281)
Net repayment of working capital facilities (1,020,032) (228,235)
Interest paid on loans (96,844) (70,064)
Net cash (outflow)/inflow from financing activities (723,178) 672,540
Increase in cash and cash equivalents 233,423 390,684
981,357 590,673
Cash and cash equivalents at the start of the year
Cash and cash equivalents at the end of the year 1,214,780 981,357
Notes to the financial statements
1 General Information
In accordance with Section 435 of the Companies Act 2006, the Group confirms
that the financial information for the years ended 30 November 2024 and 2023
are derived from the Group's audited financial statements and that these are
not statutory accounts and, as such, do not contain all information required
to be disclosed in the financial statements prepared in accordance with
UK-adopted International Accounting Standards. The statutory accounts for the
year ended 30 November 2023 have been delivered to the Registrar of Companies.
The statutory accounts for the year ended 30 November 2024 have been audited
and approved but have not yet been filed. The Group's audited financial
statements for the year ended 30 November 2024 received an unqualified audit
opinion and the auditor's report contained no statement under section 498(2)
or 498(3) of the Companies Act 2006.
The financial information contained within this full year results statement
was approved and authorised for issue by the Board on 17 March 2025. The 2024
accounts, together with notice of the Annual General Meeting, are expected to
be posted to shareholders on 18 March 2025 and will be available from the
Light Science Technologies Holdings plc website
(www.lightsciencetechnologiesholdings.com
(http://www.lightsciencetechnologiesholdings.com) ) from the 18 March 2025.
They will also be available from the Chief Financial Officer, Light Science
Technologies Holdings plc, Ednaston Park Business Centre, Painters Lane,
Ednaston, Ashbourne, DE6 3FA.
The Group financial statements have been prepared under the historical cost
convention and under the basis of going concern. The principal accounting
policies adopted are consistent with those disclosed in the financial
statements for the year ended 30 November 2023.
2 Going concern
Working capital forecasts have been prepared by management
which show that the Group can meet its day-to-day cash flow requirements and
operate within all the terms of its borrowing facilities.
The Directors are satisfied that the Group has sufficient
financing in place to continue to meet its liabilities as they fall due for a
period of at least 12 months from the date of approval of this report and
hence have prepared the financial statements on a going concern basis.
The Directors acknowledge that there is uncertainty on the
level and timing of revenues especially in the Agtech and Passive Fire
Protection divisions, and there would be a possible need to renegotiate the
terms of its borrowing facilities or obtain a temporary covenant waiver,
should the Group's expectations for revenue generation over the coming 12
months not materialise as expected. The Directors note that this material
uncertainty may cast significant doubt on the Group's and Company's ability to
continue as a going concern.
In response to these matters the Group is continuing
to manage cash flows and discretionary spending.
3 Revenue and segmental reporting
The Group has three operating segments 'Contract electronics manufacture'
relating to the development and manufacturing of electronic boards; 'Agtech'
relating to the development, manufacturing and installation of lighting,
technology and other products for the Agtech (AGT) sector, this division was
previously known as the controlled environment agriculture division, but was
renamed to better reflect the breadth of its capabilities; and 'Passive fire
protection' (PFP) relating to the installation of a retrospective cavity
barrier in wall and floor constructions. Corporate refers to the Group's
centralised resources used by the segments. The Chief Operating Decision Maker
(CODM) has been determined to be the Board. The performance of the three
reportable segments is based upon a review of profits and segmental
assets/liabilities.
The total revenue of the Group for the period has been derived from its
principal activity wholly undertaken in the United Kingdom and Republic of
Ireland.
Revenue in respect of the supply of hardware and project services is
recognised at a point in time either at the point of customer collection,
dispatch or project completion. Revenue in respect of services is recognised
over time evenly over the number of months supported or as measured by the
number of linear meters installed.
Revenue by products and services: 2024 2023
£ £
Supply of hardware (CEM) 9,513,624 9,085,484
Supply of hardware (AGT) 199,139 67,681
Supply of project services (AGT) 437,784 142,321
Supply of maintenance services (AGT) 141,248 12,306
Supply of installation services (PFP) 1,778,281 -
Intercompany eliminations (32,934) (12,632)
12,037,142 9,295,160
During the year to 30 November 2024 one CEM customer represented 49.2% of
total revenue (2023: 58.3%).
30 November 2024 Contract electronics manufacture Agtech Passive fire protection Corporate and intercompany eliminations Total
£ £ £ £ £
Revenue 9,513,624 778,171 1,778,281 (32,934) 12,037,142
Gross profit 2,313,801 388,356 947,341 (5,644) 3,643,854
Depreciation, amortisation and impairment (192,802) (281,465) (93,817) (14,495) (582,579)
Operating profit/(loss) 638,571 (521,401) 632,841 (400,883) 349,128
Segment assets 4,128,273 2,321,235 1,742,981 126,652 8,319,141
Segment liabilities (3,540,781) (740,761) (1,193,867) (362,850) (5,838,259)
30 November 2023 Contract electronics manufacture Agtech Passive fire protection Corporate and intercompany eliminations Total
£ £ £ £ £
Revenue 9,085,484 222,308 - (12,632) 9,295,160
Gross profit 2,057,780 120,549 - (5,588) 2,172,741
Depreciation, amortisation and impairment (176,610) (366,727) (23) (4,947) (548,307)
Operating profit/(loss) 594,029 (789,724) (31,112) (633,101) (859,908)
Segment assets 4,331,514 2,269,204 1,193,586 538,898 8,333,202
Segment liabilities (3,539,171) (672,835) (1,204,911) (449,006) (5,865,923)
4 Operating loss
Operating profit/(loss) is stated after charging: 2024 2023
£ £
Depreciation on property, plant and equipment 150,441 115,371
Depreciation on right-of-use assets 124,237 187,318
Amortisation of intangible assets 180,660 35,618
Loss on sale of fixed assets 429 24,214
Impairment of intangible assets 127,241 210,000
Research and development expenses 26,399 8,327
Inventory expensed 6,261,469 5,726,181
Foreign exchange losses 2,015 2,185
Short term low value lease expenses 24,638 12,085
Share based payments 33,168 2,614
5 Taxation
The tax credit is made up as follows:
2024 2023
£ £
Current tax expense
UK corporation tax for the year (11,406) (15,896)
Adjustment in respect of prior year 562 (53,445)
Total current income tax (10,844) (69,341)
Deferred tax
Origination and reversal of timing difference - (142,170)
Adjustment in respect of prior year - (1,865)
- (144,035)
(10,844) (213,376)
Reconciliation of effective tax rate
The tax assessed for the year varies from the average standard rate of
corporation as explained below:
2024 2023
£ £
Loss on ordinary activities before taxation (30,409) (1,138,985)
UK tax credit at average standard rate of 25% (2023: 23%) (7,602) (261,967)
Fixed asset differences 4,546 3,389
Expenses not deductible for tax 22,975 33,313
Adjustment to corporation tax in respect of prior periods 562 (53,445)
Adjustment for R&D tax credit including SME claims (64,375) (88,759)
Surrender of tax losses for R&D tax credit refund 11,071 48,370
Adjustments to deferred tax in respect of prior years - (1,865)
Movement in deferred tax not recognised 21,979 107,588
Tax credit in statement of comprehensive income (10,844) (213,376)
Corporation tax increased from 19% to 25% from April 2023.
6 Loss per share
Basic loss per share is calculation on the loss for the
year after taxation attributable to the owners of the parent of £46,721
(2023: £953,164) and on 324,105,500 ordinary shares (2023: 262,534,137),
being the weighted number in issue during the year excluding shares held by
the Employee Benefit Trust.
30 November 2024 30 November 2023
Weighted average number of shares (000's) Per share amount (pence) Weighted average number of shares (000's) Per share amount (pence)
Loss Loss
£ £
Basic and Diluted EPS
Weighted average number of ordinary shares 333,005,500 271,434,137
Adjusted for the effect of own shares held by Employee Benefit Trust (EBT) (8,900,000) (8,900,000)
Earnings attributable to ordinary shareholders of the Company (46,721) 324,105,500 (0.01) (953,164) 262,534,137 (0.36)
Diluted earnings per share
Basic and diluted earnings per share are equal for 2024 and 2023,
since where a loss is incurred the effect of outstanding share options and
warrants is considered anti-dilutive and is ignored for the purpose of the
loss per share calculation.
7 Annual General Meeting
The annual general meeting is to be held at midday on Tuesday, 15
April 2025 at Ednaston Park Business Centre, Painters Lane, Ednaston,
Ashbourne, DE6 3FA. Please refer to the Notice of AGM for full details.
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