Light Science Technologies Holdings PLC (AIM:LST) said it expects to be EBITDA positive for the first half of the year for the first time as its focus on managing costs while growing the top line met with more than a measure of success.
According to CEO Simon Deacon, the financial performance, set against a tough economic backdrop, sets a “firm foundation” for growth in the second half of the year.
Underlining this point, LSTH’s sales pipeline currently stands at over £47 million, with a committed order book worth £5 million.
Turning to the period ended May 31, revenues are expected to be around £5.2 million, a 19.3% year-on-year increase.
Margins are projected to grow to 26.5%, up from 20.9% in the previous year with the improvement attributed to an increasingly strong-margin sales mix.
Net losses for the period are anticipated to more than halve to around £334,000 from £809,000 in H1 2023.
LSTH said its working capital position has also benefited from increased gross profit generation and stringent overhead cost control.
In May, the company enhanced its debt facilities with Close Brothers, securing an additional £850,000, which has strengthened the group’s financial resilience.
“LSTH entered the period with a strong platform for growth and a realigned cost base having successfully navigated considerable global pressures,” said CEO Deacon.
“I am delighted to say that from that base we have seen significant progress – with strong revenue growth and a healthy committed order book, which is expected to increase in the coming months, currently worth nearly £5 million, underpinning our goal of becoming an operationally self-funded, cash backed, group.
“As such, we are delighted to see a further reduction in losses, with the company expected to report a positive EBITDA during the period, for the first time in its history.”
Light Science Technologies Holdings set up for a strong second half (proactiveinvestors.co.uk)
