Light Science Technologies Holdings PLC (AIM:LST) said the ‘structural changes’ made to business were evident in an improved financial and operational performance in the first half of its financial year.
It also highlighted as pivotal the controlled environment agriculture (CEA) business, which has materially improved and “remains the most significant long-term growth opportunity for the group”.
“The focus is currently on growing the international reach of the division, selling into the regions in most immediate need of innovative control systems to combat declining global growing conditions,” the company said in commentary alongside the interim results.
“Negotiations with targeted global partners are currently in progress and the company expects to complete further regional strategic distribution partnerships in due course.”
As well as the CEA arm, LSTH also operates contract electronics manufacturing (CEM) and passive fire protection (PFP).
Together, they generated revenues of £5.2 million in the six months ended May 31, up 26% on the comparable period last year.
LSTH increased its gross profit margin from 20.9% to 26.6%, while the loss before tax narrowed from £800,000 to just £300,000. Crucially, LSTH exited the half with just over £1 million in the bank.
Operationally, it was a strong six months with the CEM division winning key contracts and expanding into new sectors with strong prospects of follow-on revenues.
PFP, meanwhile, made a strong maiden contribution with a first contract valued at £600,000 and secured a further deal worth £750,000 from a blue-chip client.
“In the first half of 2024, the structural changes made in the business began to take hold and we are seeing accelerated growth in both revenues and margins,” said CEO Simon Deacon.
“With this progress, our losses are narrowing and therefore we are confident of achieving break even with continued progression across our divisions.
“Strategically, we are better positioned as a group than we ever have been. CEM continues to provide robust revenues and expand into new markets, PFP is adding strong margin revenues in a large addressable market that benefits from regulatory tailwinds, and we continue to establish a global footprint in CEA; a market that we believe underpins exponential long-term growth opportunities for LSTH.”
