Light Science Technologies Holdings PLC (AIM:LST, FRA:9FD) said recent UK regulatory changes could help unlock a backlog of fire safety projects, according to analysis from Shore Capital.
LSTH highlighted the UK Building Safety Regulator’s new strategic plan for 2026-2027, which aims to speed up approvals for cladding remediation. The regulator is targeting decisions within 12 weeks for simpler cases and has said building control approval should no longer delay repairs.
House broker Shore Capital said this could support the company's passive fire protection division, which has faced delays due to regulatory bottlenecks. The unit installs Injectaclad, a system used to bring buildings in line with fire safety rules.
The broker said improved approval timelines should help convert an existing pipeline of around £24 million into revenue, improving visibility over future earnings.
LSTH has invested in the division following its acquisition in 2023, with the product positioned as a lower-cost alternative to traditional cladding replacement.
Shore Capital values the shares at 4.6p on a discounted cash flow basis tied to a £20 million revenue target, compared with a current price of 1.2p.