Light Science Technologies Holdings (LST) , a controlled environment agriculture technology and contract electronics manufacturing group, announced its interim results for the six months ended 31 May 2023.
The company noted a 22% revenue increase to £4.4 million, compared to £3.6 million in H1 2022. Margins remained consistent at 20.9%, up from 17.7% the previous year. Pre-tax losses decreased by 37% to £0.8 million.
Light Science's Contract Electronics Manufacturing division was its main revenue generator and normalised the company’s gross margins.
Strategic efforts included realigning costs and expanding market presence in the Controlled Environment Agriculture (CEA) division to counter sales cycle fluctuations. The company also raised £1.45 million in new funds, to be used for product development and IP protection within its CEA division.
Light Science continues to execute its broader strategy by expanding its client portfolio across the globe and growing its market reach into different sectors.
Simon Deacon, Chief Executive Officer of Light Science Technologies, said: "We continue to be excited by the growth potential across both divisions. With the CEM division continuing to be our predominant revenue generator, and the CEA division continuing to develop and market solutions to the unprecedented pressures affecting the agricultural sector, we are well placed to take advantage of growth opportunities.
“Daily discourse regarding food security and supply highlights the ongoing challenges and impacts of unreliable harvests and labour shortages and we believe that our solutions will help mitigate these issues."
View from Vox
Light Science Technologies Holdings is a UK-based company bringing together controlled environment agriculture (CEA) and contract electronic manufacturing (CEM) to accelerate the advancement of agricultural technology for global markets.
Its CEM-focussed division is primarily responsible for generating strong revenues by designing, producing, and manufacturing high-quality CEM products, while also 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.
Addressing the Controlled Environment Agriculture market, Light Science is LST's grow lights and sensor technology business, with targets including indoor, vertical, glasshouses, polytunnels and medicinal farming markets. Factors underpinning market growth include increasing water shortages across the globe, government policies, climate change, and an increasing global population.
Looking ahead, having implemented its cost-cutting measures, Light Science Technologies said it is now fully focused on delivering top line revenue growth.
LST shares jumped 19.5% on the report.
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