Light Science Technologies Holdings PLC (AIM:LST, FRA:9FD) reported results for its past financial year as it shifted its focus towards higher-margin growth areas.
The AIM-listed technology and manufacturing group posted revenue of £8.6 million for the year to 30 November 2025, down from £12.0 million the year before, reflecting a planned reduction in lower-margin contract electronics manufacturing activity.
Reflecting the move towards higher-value opportunities, gross margin increased to 33.8% from 30.3%.
A loss before tax of £0.89 million was reported, which the company said was driven by timing effects in converting contracts for its Passive Fire Protection (PFP) business and reduced activity in pest control within the Contract Electronics Manufacturing (CEM) division.
Cash at the period end was £0.7 million, with a £6.6 million placing and retail offer completed post-period to fund acquisitions, including RLUK Injection, the remaining minority in UK Circuits and additional units at its Manchester site. The deals are intended to increase control over key assets, remove rental costs and support scaling of its fire protection operations.
Chief executive Simon Deacon said: "This was a transitional period for the group with a focus on creating a platform for high-margin growth across all of our divisions.
"We rebalanced the sales mix, with PFP and AGT providing the most significant scope for growth, while we further de-risked the CEM division, which is now well positioned to enter defence, medical and healthcare markets."
The post-period acquisitions will be "transformational" for the group, he added, significantly enhancing LFTH's profile and ability to generate scale and further grow margins to help reach the mid-term revenues target of £50 million.
The acquisitions are seen as putting the group in a stronger position to capture a greater share of the value chain, helping accelerate growth and go for higher-margin, larger contracts and increasing recurring revenues
"We believe that our solutions will become ever more prominent as both legislation - with the recently published BSR Strategic Plan highlighting the need to expedite schemes - and global issues set to underpin increased demand."
Following completion of the fundraise and acquisitions, he said the group is "well placed for a strong second half of the current financial year as we fully integrate Injectaclad into the group, which will support growth for the years to come."