Light Science flags strong momentum in contact electronics division

22nd Jul 2024 12:22

(Sharecast News) - Light Science Technologies, which operates through three divisions - controlled environment agriculture (CEA), contract electronics manufacturing (CEM), and passive fire protection (PFP) - reported strong momentum in its CEM division on Monday, driven by a record-breaking year in the pest control market.

The AIM-traded company said it expected pest control revenue for the current year to significantly exceed those of the 2023 financial year.

Recently, Light Science Technologies added £0.63m in committed forward orders within its CEM division.

The orders were over and above the historical forward order profiles.

Consequently, pest control revenues already booked and forward orders to be fulfilled in the current financial year were £0.83m, or 15% higher than the total revenues from the segment in 2023.

Additionally, the CEM division had experienced strong trading in new market segments.

The division received a follow-on order worth £0.13m from a client in the sports entertainment segment.

That follow-on order, announced initially in February, indicated the beginning of a broader rollout and reflected the significant revenue potential from the segment, the board said.

The CEM division was continuing to capitalise on its recent strategic positioning to manage larger volume projects, leveraging wider market trends and the shift away from manufacturing in the Far East.

Overall, Light Science Technologies anticipated reporting full-year revenues for the CEM segment between £9m and £9.5m.

Trading in the company's other two divisions, CEA and PFP, remained in line with management expectations as reported on 4 July.

"I'm delighted with the continued momentum within the CEM division," said chief executive officer Simon Deacon.

"Importantly we are establishing long-term relationships with clients that have the ability to underpin repeat business opportunities, which will result in increased visibility as we convert our strong quoted sales pipeline.

"We are excited by the significant opportunity within our existing and potential customer base and look forward to providing further updates in due course."

At 1420 BST, shares in Light Science Technologies were up 6.67% at 2.88p.

Reporting by Josh White for Sharecast.com.