Light Science Technologies Holdings (AIM:LST), the AIM-listed technology and manufacturing group targeting fire safety and food security markets, posted revenue of £3.73m for the six months to 31 May, down from £5.06m a year earlier.
The group swung to an adjusted operating loss of £0.69m, before £0.08m of exceptional acquisition costs, against a £0.04m operating profit in the same period last year, as gross margin fell to 30.5% from 36.3%.
The decline reflects delays in project approvals at the Building Safety Regulator, which held back conversion in the passive fire protection (PFP) division, and the end-of-life of a key product for the contract electronics manufacturing (CEM) division's largest pest control customer.
The period was reshaped by a £6.6m gross fundraising (£6.1m net) that funded three acquisitions, most notably RLUK Injection, owner of the Injectaclad fire barrier system, completed on 14 April. Total Group cash and undrawn facilities stood at £2.72m at period end, up from £1.77m a year earlier, and rose further to £2.93m by 31 July.
In the two months since the period end, the group generated £2.15m of revenue, with a committed forward order book of £3.09m, mostly expected to convert in the second half.
"The strong end to H1 and strong momentum carried into the current period underpins management's confidence in a substantially stronger second half," said chief executive Simon Deacon.
More than ten Injectaclad installations are currently in progress across the installer network, with material orders yet to be placed for most, which the board expects to generate further incremental revenue this financial year.
News Intelligence what this means for the company
Light Science Technologies reported H1 revenue down 26% to £3.73m and swung to a £0.69m adjusted operating loss, driven by Building Safety Regulator delays in passive fire protection and end-of-life of a key pest control customer product. The company raised £6.1m net to fund three acquisitions, notably RLUK Injection (Injectaclad), completed 14 April, and is pointing to post-period momentum: £2.15m revenue in the two months since period end and £3.09m committed forward orders, with more than ten Injectaclad installations in progress expected to drive incremental revenue.
The H1 decline reflects near-term headwinds (regulatory delays, customer product end-of-life) rather than structural weakness, and the Injectaclad acquisition appears to be gaining traction post-close with material orders yet to be placed. However, cash of £2.93m as of 31 July leaves limited runway if H2 conversion disappoints; the investment case now hinges on whether the forward order book and installer network momentum translate to the 'substantially stronger second half' management expects.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
