Currency in GBP
Last close As at 09/06/2023
GBP0.01
— 0.00 (0.00%)
Market capitalisation
GBP4m
Light Science Technologies Holdings (LSTH) has received an additional £0.5m in forward orders for contract electronics manufacturing (CEM) services from long-standing customer Rentokil Initial. It has also signed up for the first two trials of its sensorGROW system with controlled environment agriculture (CEA) customers, which could potentially lead to up to £0.9m in revenues from subscriptions over a three year period.
Light Science Technologies Holdings |
Progress in both divisions |
30 September 2022 |
Share price performance Business description
Analyst
Light Science Technologies Holdings is a research client of Edison Investment Research Limited |
Light Science Technologies Holdings (LSTH) has received an additional £0.5m in forward orders for contract electronics manufacturing (CEM) services from long-standing customer Rentokil Initial. It has also signed up for the first two trials of its sensorGROW system with controlled environment agriculture (CEA) customers, which could potentially lead to up to £0.9m in revenues from subscriptions over a three year period.
Contract wins |
Tech hardware and equipment |
Year end |
Revenue (£m) |
EBITDA (£m) |
PBT* |
PAT |
DPS** |
11/18 |
5.6 |
0.5 |
0.2 |
0.4 |
0.00 |
11/19 |
5.6 |
0.5 |
0.1 |
0.1 |
0.00 |
11/20*** |
6.9 |
0.5 |
0.2 |
0.2 |
0.00 |
11/21 |
7.4 |
(1.1) |
(1.6) |
(2.1) |
0.00 |
Note: *PBT is normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Excluding payments pre-IPO. ***Restated for predecessor method of merger accounting.
The group’s CEM division has been providing services to Rentokil Initial for over 10 years. The group has received an uplift of £0.5m in forward orders from Rentokil for fulfilment between November 2022 and March 2023. This uplift is in addition to historical forward order profiles for advance pest control products. For example, revenues attributable to Rentokil totalled £2.0m in the six months ended May 2022. Management notes that, overall, the CEM division continues to grow in line with its expectations. Demand for the division’s services is growing as UK companies respond to global supply chain disruption by moving manufacturing back to the UK. In addition, investment of some of the funds raised at the IPO in October 2021 in more sophisticated equipment will benefit the division by enabling it to target the typically larger contracts in new sectors, giving better order book visibility.
The group’s CEA division has signed the first two trial contracts for its sensorGROW product, which launched in June 2022. If successful, these two trials could roll into subscription contracts which generate up to £0.9m in recurring revenues from the provision of technology, data collection, advisory and maintenance services over a three year period. sensorGROW is a smart sensor system with associated software for use in outdoor agricultural environments, vertical farms, polytunnels and glasshouses. The level of interest in signing up for sensorGROW trials demonstrates a high level of engagement from growers in exploring how the new sensorGROW can help them maximise yields and reduce energy, nutrient and water costs within their growing environments.
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