Light Science Technologies Holdings PLC (AIM:LST) (LSTH) said its pipeline of business increased due to demand for bringing food manufacturing back to the UK.
The maker of lighting for indoor farmers and provider of contract electronics manufacturing (CEM) reported £3.6mln of revenue for the six months to end-May, a 4.2% rise on a year ago.
A loss before tax of £1.3mln compared to £0.9mln last time, which it said was due primarily to the agriculture division's investment in product research & development and marketing, such as its new range of slimline lighting products.
Chief executive Simon Deacon said LSTH remains confident in its ability to achieve its revised forecasts for the full year, as guided in June.
With a forward order book and contracts worth £18mln, Decon said "we have seen an increase in our pipeline of quoted business due to a demand for reshoring manufacturing to the UK, as customers look to increase product security and reduce risk.
"As much as the macro trends are challenging in the short term, we are confident that the medium and long-term outlook for the group is promising, as the market continues to grow.
"With our experienced team, our technologies and energy saving products feeding into the growing pipeline, we are in a strong position to take advantage of the opportunities and achieve our objectives."
He said LSTH was seeing increased demand for growing intelligence tools and expect a "high take-up" as it rolls out its SensorGROW products over the next 12 months.
The SensorGROW software as a service range is designed to help growers optimise performance in their crop growth.
"With a low initial cost to the customer, we anticipate growers signing up to three-year contracts based on a monthly subscription model."
The new nurturGROW vertical farm lighting product was also launched in the second half, with a focus on delivering high-quality crop yields at lower energy.
"Increased costs impacting growing, such as fertiliser, labour, fuel, is driving a market need for more efficient technology to safeguard the future of food production and to help growers grow more with less," Deacon said.