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LSTH predicts vertical farming boost from Ukraine disruption

Published: 08:24 26 Apr 2022 BST

Plant
Vertical farming (indoors) and hydroponics are tipped as the future

Light Science Technologies Holdings PLC (AIM:LST) said it expects demand for indoor and vertical farming products to be boosted by the disruption to agriculture caused by the Ukraine war and supply chain shortages.

The problems will “drive the desire to grow more produce locally, sustainably and energy efficiently”, it said, adding it is well positioned to play its part in tackling these issues.

LSTH, which joined AIM last year raising £5mln, reported a 6% rise in revenues to £7.4mln in the year to end-December 2021 with losses of £2.35mln, which reflected the cost of joining the junior market, said the statement.

A contract has now started with Zenith Nurseries, a major UK salad grower, worth a possible £14mln while a new lab is now open in Derbyshire, the statement added.

Simon Deacon, chief executive, said: “This was a pivotal period for the company, with the fundraising and admission to AIM providing the foundations for the next stage of our growth trajectory.

“In our CEM [contract electronics manufacturing] division, we predict there to be no change in the increased demand for electronics. As a result of this and our forward order book, we have begun a programme of investment to automate further production lines to win larger contracts in sensor and medical markets. 

"In the CEA [controlled-environment agriculture] division, we will continue to build on our contracts and sales pipeline, and expand into new markets in lighting, sensors and automated crop production and management systems, with an aspiration to enter the European and US market over the medium- to long-term.

“In doing so, we intend to strategically expand our facilities specifically in laboratory R&D at our new planned premises in 2023."

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