Light Science Technologies Holdings PLC (AIM:LST) is poised to build on its second-half profitability as it continues to grow across all divisions.
The company, which develops technology for food security and fire safety, saw record revenue and profit margins in the year to November 2024. Management remains confident about future growth, with a £50 million pipeline of potential projects and a strong order book.
The company’s controlled environment agriculture business, now renamed AgTech, has a quoted pipeline worth over £40 million. A major partnership with Agrolux is already showing results, with a fruit crop lighting trial set to begin in March. If successful, it could lead to a large-scale order covering more than three hectares, with further deals expected soon.
LSTH's contract electronics manufacturing division is also seeing steady demand, particularly from the sports entertainment sector. The division’s forward order book stands at over £2.7 million, and the company’s recent ‘Made in Britain’ accreditation is expected to drive further business as more manufacturers bring production back to the UK.
The passive fire protection division is experiencing strong momentum, with a quoted pipeline now at £15 million. The company continues to benefit from growing legislative support and repeat orders from existing clients, with recent project wins in Wakefield and Greenwich. The market for fire safety solutions remains vast, with an estimated £50 billion needed to upgrade thousands of high-rise buildings across the UK.
With the AgTech and fire protection businesses delivering gross margins of 40-50%, about double those of the electronics division, Light Science is well placed to improve overall profitability as these high-margin areas continue to grow.
Chief executive Simon Deacon and his team will present a detailed update at the company’s Capital Markets Day, where they will outline key growth drivers and strategic priorities.
A recording will be available online, and retail investors will have the chance to participate in a Q&A session in March when full-year results are published.