Light Science Technologies Holdings PLC (AIM:LST) has extended a key distribution agreement and expanded its pipeline of international contracts as demand builds for its agricultural technology products, used to improve crop yields and sustainability in indoor and broadacre farming.
The AIM-listed company said it had renewed its agreement with Gavita International, a major supplier of horticultural lighting, for another year through to the end of 2026.
The partnership, which provides lighting systems for greenhouses and other indoor growing facilities, has helped boost LSTH's pipeline of potential orders to more than £24 million, up from about £10 million when the deal was first announced in February.
Its AgTech division develops and supplies technology to monitor and control environmental conditions such as temperature, light, and soil gases.
It said new orders included turnkey greenhouse projects and retrofit work, as well as a significant deal with Haygrove, a global fruit producer and supplier of large-scale polytunnels.
The contract will see its SensorGROW monitoring platform deployed in five countries, Australia, New Zealand, Jordan, Poland and the United States, while its climate computers are set to be installed in a greenhouse project in Bhutan.
Simon Deacon, chief executive, said: “We are delighted with the increased recognition and opportunity globally and are in concrete talks regarding a number of exciting, and importantly, sizeable contracts.”
He added that distribution partnerships were central to LSTH's “low-risk, low-cost growth strategy” and said global interest in food security and sustainable growing methods continued to strengthen confidence in converting its £45 million AgTech pipeline into firm business.
The company is also expanding its product range, with ongoing research into environmental sensors that can measure gases such as methane, ammonia and water contaminants.
In a recent trial with Dyson, the firm’s SensorGROW platform was used to study how nitrous oxide, a greenhouse gas produced by fertilisers, can hinder crop growth.
LSTH said it saw “numerous market opportunities” in developing its sensor technology further as agriculture faces mounting pressure to grow food more efficiently and reduce environmental impact.