Light Science Technologies (LST) , a specialist in controlled environment agriculture (CEA), contract electronics manufacturing (CEM), and passive fire protection (PFP), announced a new contract with a blue chip customer worth over £750k for its passive fire protection division Injecta Fire Barrier (IFB).
The contract will see IFB install its proprietary 'Injectaclad' graphite cavity sealant throughout an 11-storey student accommodation block in Nottingham. For the job, IFB will provide an 8-person team that will drill access holes through structural insulated timber panels, then install Injectaclad horizontally at every floor level.
LST said work on the contract has already commenced and is expected to run until December 2024, with revenues being recognised in H2 of the current financial year.
Simon Deacon, CEO of Light Science Technologies commenting: "Injecta Fire Barrier is a cash-generative, high-margin and scalable business and this latest contract win highlights the significant potential here. We are delighted to be working with a world leader in construction, and expect that this initial contract could lead to further work within their extensive portfolio and provide us with a case study we can take to new customers. They have an extremely strong footprint in the UK and with legislation underpinning demand for increased building safety, we believe that we are well placed to rapidly scale."
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Light Science Technologies announces a major £750k initial contract with a new blue chip customer for its newly acquired passive fire protection division Injecta Fire Barrier (IFB). The undisclosed customer is a global leader in the construction sector, active in over 120 countries.
Since announcing the acquisition of IFB in November 2023, LST has positioned the brand to take advantage of the growing fire safety retrofit market in the UK, valued at an estimated £50 billion. This is IFB's second contract since the acquisition following November's £600k deal, which is now over 50% progressed and due to be completed in H2 2024.
The new contract further demonstrates LST's ability to convert its passive fire protection quoted pipeline, which currently stands at c. £10m. As the new division has hit the ground running, there is significant potential to further expand IFB's sales pipeline and operating reach. LST said it was in active talks with a number of prospects, so investors should stay tuned for further potential contracts in the coming months.
LST shares jumped 10% on the news, adding to a significant rally over the past year that has seen LST shares climb 160%. Today's positive update adds to last month's upbeat FY23 final results where LST reported record revenues of £9.30m, up 13% year-on-year, with a significant improvement in margins to 23.4% from 17.7% in FY22. Additionally, loss before tax halved to £1.14m from £2.72m LY, and the group boosted its balance sheet with a £1.45m fundraise in April.
Overall, LST's portfolio of businesses has a market potential of over US$100bn. In the CEA sector, cumulative smart agriculture sales growth between 2023-2032 is projected to be US$55bn at 12% CAGR. And as mentioned, in the PFP sector the market is potentially worth £50bn.
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