Light Science Tech. Holdings PLC Passive Fire Protection Update

RNS Number : 8572I

Light Science Tech. Holdings PLC

21 October 2024

 

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")

 

Passive Fire Protection Update

 

£1.17m follow on order and Increased visibility

 

Light Science Technologies Holdings plc (AIM: LST), comprising three divisions: Controlled Environment Agriculture ("CEA"); Contract Electronics Manufacturing ("CEM"); and Passive Fire Protection ("PFP"), announces a significant follow on order from an existing customer in its PFP division, worth £1.17m.

 

The customer, a construction services company based in Manchester, has placed a further order for Injectaclad cavity remediation in two additional residential tower blocks. This order, which will be completed in H1 2025, follows on from the first project with the same customer, where the PFP division has now completed c.£520,000 of an order worth c.£600,000.

 

The majority of LSTH's clients and target market are responsible for property portfolios requiring remedial passive fire protection work, highlighting the potential for follow-on contracts within their portfolios. This underscores the significant potential to drive near-term revenues and cash generation at the same time as increasing visibility.

 

To understand more about the product and opportunity and view the latest divisional video please click here

 

Increasing levels of visibility

Management expects the combination of this contract and order flow seen this year to underpin a strong inaugural contribution from the PFP division during the current period (YE 30 November). Having generated revenues of c.£300,000 during H1, the FY contribution from the PFP division is now expected to be £1.5m to £1.7m, while ongoing contracts provide a good level of visibility into the next financial year.

 

Simon Deacon, CEO of LSTH, commented: "We're pleased to win this considerable contract which also increases our visibility and represents growing traction in the conversion of the wider Group quoted pipeline, which currently stands at £50m.

 

"The division is well placed to capitalise on the UK's fast growing fire safety market, which has a potential total value of up to £50bn* and is being driven by increasing regulation. We've previously highlighted the considerable opportunity for follow on contracts in this division so are pleased to report early evidence of our ability to win both new and repeat work. We are seeing increasing levels of enquiries as this market develops - with regulation and our proven ability to service our customers underpinning confidence in our ability to further grow our client base.

 

"PFP has now received orders worth in excess of £2.5m since being established in November 2023. With a committed order book currently standing at approximately £1.4m, it is well positioned within a significant growth market. We are excited by the significant opportunities within our existing and potential customer base, and with £1 billion of the Government's £5.1 billion allocated spend on cladding remedial works now committed, we look forward to providing further updates in due course."

 

* Estimators price cladding replacement at 10 times government budget (theconstructionindex.co.uk)

 

 

For additional 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) Ritchie Balmer / James Harris / Rob Patrick	Tel: [phone]
Oberon Capital (Broker) Mike Seabrook / Nick Lovering	Tel: [phone]
Walbrook PR Ltd (Media & Investor Relations)	Tel: [phone] or [e-mail]
Nick Rome / Joe Walker

 

Notes to Editors:

 

About Light Science Technologies Holdings plc (www.lightsciencetechnologiesholdings.com)

Light Science Technologies Holdings plc operates through three divisions: controlled environment agriculture ("CEA"); 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 CEA division; UK Circuits and Electronics Solutions Limited ("UK Circuits") in the CEM division; and LSTH IFB Limited ("LSTH IFB") in the PFP division.

 

Controlled Environment Agriculture

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 medicinal 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. In development, it aims to extend monitoring to soil temperature, soil moisture, and soil electroconductivity. 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/ . The nurturGROW sustainable grow lighting product range, applicable to greenhouses, vertical farming, polytunnels, and medicinal plants, addresses a robust market with an anticipated global worth exceeding US$6.5 billion by 2026. Explore solutions here 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/

 

Contract Electronics Manufacturing (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 specialization in Printed Circuit Boards. These products find application across diverse sectors such as audio, automotive, electronics, gas detection, lighting, pest control, telecommunications, and, more recently, in the CEA market.

 

Passive Fire Protection (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 £5.1 billion allocation from the UK government. Serving as the UK's premier independent approved installer, LSTH IFB utilizes 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*.

 

 

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