Light Science Technologies Holdings PLC (AIM:LST) reported improved revenue growth and profit margins in the first half of its fiscal year.
LSTH, which operates in controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM), said it expects to meet full-year expectations as it benefits from further cost savings during the second half while also developing and converting opportunities.
Revenues of roughly £4.4mln were generated in the six months to 31 May 2023, up 22% on the same time last year. Revenues grew 10.5% in the last full year.
As of today’s date, the sales pipeline of quoted work was said to top £45mln, of which there are forward orders and contracts worth £18.8mln.
Benefits of operational improvements led to gross margins improving to around 20.9%, compared to 17.7% in the past year.
Margins were said to be helped by improving market conditions in the CEM division, UK Circuits, and easing supply chain constraints, while overheads were also cut 20% as part of remedial action mentioned previously.
Building on the record revenues last year, the CEM division continues to be LSTH’s main revenue generator, but it is also manufacturing the first batches of sister company Light Science Technologies’ new sensorGROW range, wireless modular lights designed to help indoor farmers increase profitability and yields in their crop growth.
International patent applications were made for sensorGROW in the US and EU, on top of UK applications.
This was part of the continued research and development at the CEA division, which LSTH said is a particular focus to position for growth, “with the aim of targeting global opportunities and addressing year round growing needs at the same time as reducing the requirement for food imports”.