TIDMLST
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.
A s of today's date, the sales pipeline of quoted work is over
GBP60 million, of which there are forward orders and contracts
worth GBP18 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 1 0.5%, 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 GBP850k 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 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
Financial Adviser) 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
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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