REG - Light Science Tech. - Trading Update

Light Science Technologies HoldingsAnnouncement

02/12/2022 07:00

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RNS Number : 3565I  Light Science Tech. Holdings PLC  02 December 2022

 

 

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, provides an update on current trading.

 

As of today's date, the sales pipeline of quoted work is over £60 million,
of which there are forward orders and contracts worth £18 million*. Key in
contributing to the strong sales pipeline is the pressing need for food
security and to grow more produce locally, sustainably and energy
efficiently.

 

Group revenue grew by approximately 10.5%, for the year ended 30 November
2022. However, the positive pipeline has been negated by an elongation of the
sales cycle, predominantly driven by input inflation experienced by growers
which cannot currently be passed on to customers, leading to growers delaying
capital expenditure. Additionally, gross margins at the Group's CEM division
have been diluted through the second half of the year, driven by significant
price volatility in the global electronics component market.

 

The Group was anticipating certain revenue streams materialising before 30
November 2022, which would have delivered financials in line with market
forecasts for the period. However, for the reasons mentioned above, these have
been delayed. Whilst there is no guarantee, these revenue streams are now
expected to materialise in year ending 30 November 2023.

 

As a result, for the year ending 30 November 2022, Group revenue is now
expected to be approximately 13 per cent. below market expectations and Group
loss before tax is expected to be approximately £850k higher than market
expectations.

 

The benefit of the conversion of the pipeline will, in the Board's view, fall
into the year ending 30 November 2023, accompanied by a return to normalised
gross margins at the Group's CEM division.

 

Notwithstanding the challenges faced, the Board will be building on the 10.5%
revenue growth  and is confident the overall prospects for the Company remain
strong.

 

*  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 further 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
 Turner Pope Investments (TPI) Ltd (Broker)                 Tel: +44 (0) 20 3657 0050
 James Pope / Andy Thacker

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