Light Science Tech. Holdings PLC Trading Update (3565I)

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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. 

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: [phone] 
  Financial Adviser)                             3494 
 Ritchie Balmer / James Harris / Rob 
  Patrick 
 Turner Pope Investments (TPI) Ltd (Broker)     Tel: [phone] 
                                                 0050 
 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.

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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December 02, 2022 02:00 ET (07:00 GMT)