Light Science Technologies flags record full-year revenue
By Josh White
Date: Wednesday 04 Dec 2024
(Sharecast News) - Light Science Technologies reported record full-year revenue in an update on Wednesday, with group sales rising around 29% over the 12 months ended 30 November, to £12m.
The AIM-traded firm said gross margins improved to 28% from 23.4%, while full-year losses narrowed significantly to £0.2m from £1.1m in the prior year.
Notably, the company achieved net profitability during the second half of 2024, a milestone it said it aimed to build upon in 2025.
The firm's diversified portfolio, encompassing controlled environment agriculture (CEA), contract electronics manufacturing (CEM), and passive fire protection (PFP), drove growth across all divisions.
Revenue from the CEM segment increased 5% to £9.5m, bolstered by strong demand in sports entertainment and ongoing investments in automation, enabling larger-scale projects and improved margins.
CEA revenues surged 250% to £0.8m, aided by the TomTech acquisition and distribution agreements facilitating global market penetration.
The company said it anticipated its sensor technologies, currently focused on agriculture, to find applications in broader sectors, including environmental monitoring and water management.
LST said the newly-established PFP division contributed £1.8m, a sharp increase from £0.3m in the first half, supported by repeat orders and legislative drivers.
Recent investments in machinery positioned the division as a key cash generator for the group.
Looking ahead, Light Science said it expected continued growth in CEA and PFP to enhance group margins and offset potential headwinds in the CEM segment, where a major pest control customer was winding down a product line.
It remained confident in achieving operational self-funding and sustained profitability, supported by a growing pipeline valued at over £50m.
"Our key focus is on continuing the profitability we have seen in H2 with increasing levels of margin contributions from PFP and CEA; and by realising further efficiency gains across the group," said chief executive officer Simon Deacon.
"We are an innovative business, and management has worked hard to stabilise and scale operations within growth markets."
Deacon said the company believed it was positioned to generate increasing levels of recurring revenue and cash, with a portfolio of "well-balanced sustainable businesses" that were positioned to benefit from broader market trends as it focused on long-term profitable trading.
"We have a number of exciting opportunities across all three divisions and are confident that the business will provide strong and growing returns."
At 0822 GMT, shares in Light Science Technology Holdings were up 0.42% at 2.41p.
Reporting by Josh White for Sharecast.com.
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