Light Science Technologies Share Discussion Threads

[rivaldo] 15/10/2021 14:22

EDIT - sold out at around 25p-27p as posted on the thread, but may re-enter at the right price.

This is a new IPO on AIM today. It's raised £5m at 10p per share, with 174.15m shares in issue, so a £17.4m m/cap:







LST comprises (1) an electronics manufacturing division, and (2) an agri-tech division providing complete solutions for vertical farms, greenhouses, polytunnels etc.

Re (1), it's worth noting that the core electronics division is highly profitable:

"Generated £6.9 million of revenue and c. £800,000 of EBITDA in 2020. Current forward order book of £5 million for the next 6 to 9 months provides good visibility of revenue and cash flow generation."



Re (2), the agri-tech division has (a) "a substantial and growing pipeline to date, with a potential aggregate value of £40.6 million[4], with potential customers including established and start-up vertical farmers, established glasshouse growers, emerging medicinal growers and Tier 2 construction groups"

and (b) an additional contract with Zenith Nurseries which "has the potential, albeit with no guarantee, or commitment on Zenith Nurseries' part and subject to the availability of funding by Zenith Nurseries, to secure a further contract for the Group of up to a further £12.56 million in revenue over a period of 2 to 3 years commencing after the completion of the initial product development stages".

This is an initial summary of the company from its initial AIM team RNS of 12th October - I'll add more to this introduction soon:



"UK Circuits was founded in 1997 and is a contract electronics manufacturer with strong revenue and cash generation. The Group's manufacturing facilities in Manchester, England enable the Group to design, manufacture and test high-quality CEM products used in a broad range of sectors including, audio, automotive, electronics, gas detection, lighting, pest control, and more recently moving into the CEA market. UK Circuits designs, procures and manufactures high-quality CEM products, specialising in PCBs, for over 70 recurring customers.

Light Science Technologies was founded in September 2019 and facilitates the Company's CEA operations which, in light of Light Science Technologies' current live project quotes, are highly prospective. The Group's state-of-the-art laboratory facilities in Derby, England, enable the Group to design, test and provide innovative CEA products and services. Light Science Technologies offers integrated, cost-saving and sustainable CEA solutions to crop growers, with a focus on the indoor, vertical and medicinal farming markets, which is expected to be the major growth area for the Group going forwards in light of the market landscape and in view of competing offerings currently in the marketplace.

Light Science Technologies' all-in-one CEA solution includes analysing customers' crop growing requirements to provide bespoke, low-energy products, which subsequently monitor the nine cardinals of plant life (namely air speed, carbon dioxide levels, humidity, light, oxygen, plant disease, soil, temperature and water pH levels) in order to maintain optimal growing conditions, maximise crop yields and minimise resource usage."

Major shareholders post-IPO:

Simon Lincoln Deacon 46.3%
Intuitive Investments Group plc 7.6%
Herald Investment Management 5.7%
David Evans (ex-FD of Axis-Shield PLC) 5.7%
LSTH Trustee 5.1%
Gordon James Hall (ex-CEO of Axis-Shield PLC) 4.9%