AIM-listed technology group plans acquisitions to build scale in passive fire protection and contract electronics manufacturing
Light Science Technologies Holdings PLC (AIM:LST, FRA:9FD), the AIM-listed technology and manufacturing group, is raising up to £6.6 million through a share placing and retail offer to fund the acquisitions of two businesses as it pursues a target of £50 million in revenues.
The company has agreed to buy RLUK Injection, the holding company of Injectaclad, a specialist in cavity fire barrier remediation systems used to prevent the spread of fire through building cavities, for up to £4.8 million.
The deal comprises an initial payment of £3 million, deferred consideration of £1 million and up to £0.8 million in contingent payments linked to revenue targets.
LSTH's passive fire protection (PFP) division is already an installer of Injectaclad products, meaning the acquisition would bring the intellectual property and supply chain for the system in-house, allowing the company to capture a greater share of the value chain.
In the ten months to 31 October 2025, Injectaclad generated revenues of £1.17 million and a profit before tax of £0.26 million.
The company is also acquiring the remaining 10% minority interest in UK Circuits and Electronics Solutions, its contract electronics manufacturing (CEM) subsidiary, for £270,000, alongside a property purchase for £300,000.
Full ownership of UK Circuits will eliminate annual rental costs and give the board complete control over strategy, with an emphasis on growing higher-margin work in the defence and medical sectors.
The property, located in the North-West, will also serve as a distribution base and training centre for the PFP division, extending its geographic reach.
The fundraising consists of a £6 million placing arranged through Shore Capital Stockbrokers, split between a firm placing of approximately £700,00 using existing share authorities and a conditional placing of approximately £5.3 million requiring shareholder approval.
There will also be a retail offer of up to £600,000 to allow existing shareholders to participate at the issue price of 1 penny per share.
Shareholder approval will be sought at a general meeting expected on or around 9 April 2026.
Simon Deacon, chief executive of Light Science, said the acquisitions would strengthen the group's margin profile and position it to win larger contracts, with mid-term revenue ambitions of around £50 million through a combination of organic and acquisition-led growth.
Shore Capital's base case has the fire division generating £5.3 million in the current year and £11.8 million two years later.
Its discounted cash flow valuation of 4.6p per share, against a current price of 2.9p, is derived entirely from the fire division hitting management's £20 million revenue target.
The agriculture technology and contract electronics divisions, which carry a combined £35 million sales pipeline and management five-year targets of £15 million each, are not modelled as material contributors.
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