Light Science Technologies Holdings PLC (AIM:LST) has confirmed that it is on track to achieve net profitability and operational self-sufficiency, supported by strong revenue and margin growth.
The company posted record group revenues for the 12 months ended November 30 of around £12 million, a 29% increase from £9.3 million in 2023, and achieved net profitability in the second half of the year.
The company reported improved gross margins of 28%, up from 23.4% last year, and significantly reduced annual losses to £0.2 million from £1.1 million in 2023.
LSTH’s cash position also strengthened, ending the year with £1.2 million and access to an additional £0.7 million in undrawn debt facilities.
Growth was driven by all three divisions: Controlled Environment Agriculture (CEA), Contract Electronics Manufacturing (CEM), and Passive Fire Protection (PFP).
The CEM division, LSTH’s largest, generated £9.5 million in revenue, while the CEA division grew by 250% year-on-year to £0.8 million, bolstered by the Tomtech acquisition and new distribution agreements.
Meanwhile, the PFP division contributed £1.8 million, establishing a new revenue stream supported by repeat orders and legislative demand.
LSTH is focusing on diversifying its portfolio, anticipating further growth from the high-margin CEA and PFP sectors while mitigating uncertainties in CEM due to changes in customer product lines.
Management remains confident in sustaining profitability and driving further growth through a £50 million quoted sales pipeline.
Chief executive Simon Deacon said: “We are an innovative business, and management has worked hard to stabilise and scale operations within growth markets.
“We believe that we are positioned to generate increasing levels of recurring revenue and cash and have a portfolio of well-balanced sustainable businesses that are positioned to benefit from broader market trends as we focus 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.”
Light Science Technologies posts second half profit; expects to be self-funding
