Light Science Technologies Holdings PLC (AIM:LST) has swung to its first interim operating profit, underpinned by a sharp improvement in margins and a shift towards higher-value work.
The AIM-quoted technology and manufacturing group, which operates in passive fire protection, agricultural technology and contract electronics manufacturing, posted a £40,000 operating profit for the six months to 31 May, compared with a £190,000 loss a year earlier.
Revenue was broadly flat at £5.1 million, but the gross margin, the proportion of sales left after production costs, rose to 36.3% from 26.6% as the business focused on more profitable opportunities. This helped narrow the pre-tax loss by just over half to £160,000.
Sales in the passive fire protection unit jumped to 19% of total revenue from 6% last year, while agricultural technology also made gains, aided by new global routes to market and first orders from Europe.
Contract electronics manufacturing remained the largest contributor, though its share fell as the company reduced reliance on a handful of large customers.
Light Science ended the period with £1.1 million in cash and had £700,000 of undrawn debt facilities.
Since May, the order pipeline has grown to £58 million, while the fire protection arm’s Injectaclad system was shown to have a 50-year lifespan, more than triple the industry norm.
CEO Simon Deacon said: “Further scaling of the PFP and AGT divisions, in particular, is expected and the board remains confident that the Group is well-placed to achieve its short-term objectives of delivering sustained net profitability.
“We look forward to providing additional updates that will further underpin the Board’s full year expectations.”
