Sports entertainment driving strong trading for Light Science Technologies

20th Aug 2024 10:56

(Sharecast News) - Light Science Technologies, which operates across three divisions - controlled environment agriculture (CEA), contract electronics manufacturing (CEM), and passive fire protection (PFP) - announced strong trading in its CEM division on Tuesday, with the receipt of a third order from a key customer in the sports entertainment sector.

The AIM-traded firm said the latest order was valued at £0.13m, and added to the growing momentum in the segment.

Since first entering the sports entertainment market in February, Light Science Technologies said it had secured orders totaling more than £0.4m for 15,000 units.

The orders were scheduled to be fulfilled within the current financial year.

It said the customer, which currently operates 14 entertainment venues in the US and four in the UK, was expanding rapidly, with eight additional venues under construction stateside.

The board said it had identified the sports entertainment sector as a significant growth opportunity.

It expected to receive regular new orders as the customer continued to expand its footprint, and as existing units were replaced due to loss, damage, or the end of their life cycle.

That could create a steady, recurring revenue stream for the CEM division, enhancing the division's financial stability and visibility.

Additionally, the company said it saw potential for the application of its compact sensor circuit technology in other sports markets, which could further broaden its market reach and revenue opportunities.

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

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

"The group has really turned a corner this year in all market sectors, and we're seeing many of the changes we've made begin to yield positive results."

Deacon said that in CEM specifically, the firm had invested strategically in its ability to take on larger and more significant contracts, allowing it to capitalise on the post-Covid move away from Far East manufacturing.

"We are excited to play a part in our customer's expansion as they bring new and innovative solutions to market and we look forward to sharing further progress in the future."

At 1103 BST, shares in Light Science Technologies Holdings were down 1.67% at 2.95p.

Reporting by Josh White for Sharecast.com.