Trading Update

RNS Number : 3976O

Light Science Tech. Holdings PLC

10 June 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.

A s 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*. The sales pipeline continues to grow with a number of factors contributing, including the pressing need for food security and to grow more produce locally, sustainably and energy efficiently.

However, the positive pipeline growth is negated by the elongation of the sales cycle due to a number of factors, including government grant delays and input inflation experienced by growers which cannot be passed on to customers, which has led to capital expenditure by growers being delayed. As a result, Group revenue is now expected to be approximately 35 per cent. below market expectations for the year ending 30 November 2022. Accordingly, the Group currently expects to report a loss before tax for the current year in the region of £2 million.

The benefit of the conversion of the pipeline  will, in the Board's view, fall into the next financial year. Notwithstanding the delay in revenue, the Board 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

For further information, please contact:

Light Science Technologies Holdings plc	www.lightsciencetechnologiesholdings.com
Simon Deacon, Chief Executive Officer Jim Snooks, Chief Financial Officer Andrew Hempsall, Chief Operating Officer	via Walbrook PR
Strand Hanson Limited (Nominated & Financial Adviser)	Tel: [phone]
Ritchie Balmer / James Harris / Rob Patrick
Turner Pope Investments (TPI) Ltd (Broker)	Tel: [phone]
James Pope / Andy Thacker
Walbrook PR Ltd (Media & Investor Relations)	Tel: [phone] or  [e-mail]
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. 

Contract Electronics Manufacturing

UK Circuits is the Company's CEM focussed division, with strong revenue and cash generation. 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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