Light Science Technologies, the controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, is benefitting from operational improvements after a year ending with widening losses (loss before tax of £2.72m) despite rising revenue.
In a new update for the six months to 31 May 2023, the company has shown trading in line with expectations, with revenue for the period expected to be £4.4m, up approximately 22% from £3.6m in the same period of last year.
Light Science Technologies said: “The group’s performance reflected the benefits of operational improvements undertaken to improve gross margins, which grew to c.20.9%, compared to 17.7% in FY 2022. Improving market conditions and reduced supply chain constraints within the CEM division underpinned this increase while the group also successfully reduced overheads by approximately 20%, as part of the previously announced cost base realignment.”
The CEM division was the group’s predominant revenue generator, building on record sales achieved during the firm’s 2022 financial year.
Within the CEA division, meanwhile, the group continued to develop its portfolio and potential market reach. The business noted there is still material uncertainty over the level and timing of revenue in the CEA division.
With a view to building on opportunities within both divisions, management is evaluating acquisition opportunities that are cash flow generative.
Looking ahead, the company currently anticipates meeting full year expectations as it benefits from further cost savings during its second half, at the same time as continuing to develop and convert opportunities.
Currently, Light Science Technologies’ sales pipeline of quoted work is over £45m, of which there are forward orders and contracts worth £18.8m.
