Light Science Technology (LST), the innovative agritech and fire safety solutions provider, has reported a stellar set of full-year results, marking significant strides towards profitability and underscoring its strategic expansion across key markets. The company, which published its final results to end-November this morning, has seen record revenues soar to £12m, a 29.5% year-on-year increase, with gross margins expanding to 30.3%. This financial performance is a testament to the hard work and strategic investments LST has made over the past year.
Speaking to The Armchair Trader, LST’s chief executive, Simon Deacon, expressed his satisfaction with the company’s progress. “We’re really pleased with our progress,” Deacon said. “We’re in three very different key markets, and the work that we’ve put in in developing our businesses is now starting to come to fruition.” The company’s journey towards profitability is particularly noteworthy, with LST reporting a mere £30,000 shortfall from breaking even, a dramatic turnaround from the £1.14m losses incurred in 2023. This financial resilience is further evidenced by the £300,000 profit before tax delivered in the second half of the fiscal year and positive net cash flow from operations of £1.53m, up from £0.18m year-on-year. LST’s strong financial position is bolstered by cash and undrawn funds totaling £1.9m.
One of the most significant developments for LST is the rebranding of its Controlled Environment Agriculture division to AgTech. This rebranding reflects LST’s capabilities in controlled environment agriculture and sets the stage for the division to become the company’s bridgehead into overseas markets. Deacon is bullish about the future of AgTech, believing it will be the cornerstone of LST’s global expansion. This strategic shift is already bearing fruit, with AgTech securing a distribution partnership with Agrolux Nederland, a subsidiary of the US multinational horticultural supplies and equipment firm, Scotts Miracle-Gro. The deal, which initially focuses on the UK and Irish markets, has the potential to blossom into a much wider distribution agreement, further solidifying LST’s foothold in the global market.
LST’s AgTech division is also making waves in the UK, with collaborations that include working with James Dyson’s farming businesses. Dyson, known for his innovative vacuum cleaners, has been a significant investor in agriculture, owning four farms in the UK that have adopted controlled agriculture environments. Deacon highlighted that Dyson Farms is excited about LST’s controlled environment capabilities, seeing it as a key to sustainable food production and food security. This alignment with forward-thinking agricultural practices positions LST at the forefront of the industry’s technological revolution.
The global agricultural landscape is facing unprecedented challenges, with demographic pressures and environmental degradation threatening food security. Deacon pointed out that the world is running out of productive farmland due to intensive farming practices and the degradation of water sources. This, coupled with increased population pressure and unpredictable weather events, underscores the urgent need for controlled agricultural environments. LST’s AgTech division is well-positioned to address these challenges, offering sustainable solutions that protect the environment and conserve resources.
Beyond AgTech, LST’s Passive Fire Protection (PFP) division has also shown impressive growth. The division, which focuses on remedial passive fire protection work, has secured significant contracts, including a follow-up order to install PFP’s Injectaclad cavity remediation in Mancunian tower blocks. The PFP division’s performance has been robust, generating revenues of around £1.6m for the full year, with ongoing contracts providing visibility into the next financial year. The UK’s fast-growing fire safety market, driven by increasing regulation and the need for renovations post-Grenfell, presents a substantial opportunity for PFP. With a potential total value of up to £50bn, PFP is well-placed to capitalise on this demand, offering economic and less-invasive solutions for fire protection.
LST’s contract electronics business, the division from which the company traces its history, remains a vital part of its operations. This division provides in-house design and fabrication capabilities for LST’s other products, ensuring robust supply chains and the ability to attract business from European and American firms looking for reliable components suppliers closer to home. The geopolitical tensions in Asia are also expected to drive demand for LST’s contract electronics, with potential orders from the Defence and Aerospace industries, including the UK Ministry of Defence.
In summary, LST’s strategic investments and partnerships are paying off, with strong revenue growth, near break-even performance, and expanding market opportunities. The company’s focus on AgTech and Passive Fire Protection, coupled with its robust contract
