Light Science Technologies Reshapes Business and Raises £6.6m to Target Higher Margins

Light Science Technologies (LSE:LST) reported annual revenue of £8.6 million, reflecting a sharp decline as the company intentionally reduced its exposure to lower-margin contract electronics work. Despite the top-line drop, gross margins improved to 33.8%, while the group recorded a pre-tax loss of £0.89 million, partly due to timing delays in fire protection contracts.

During the year, the company restructured its operations to focus on higher-value opportunities. Growth is now being driven primarily by its passive fire protection and AgTech divisions, while its contract electronics arm is being repositioned toward more specialised, higher-margin sectors such as defence, medical, and healthcare.

Following the year-end, Light Science Technologies raised £6.6 million to support a series of strategic acquisitions. These include the purchase of RLUK Injection, owner of the Injectaclad product, as well as the minority stake in UK Circuits and its Manchester facility. The transactions are expected to consolidate control over key assets, eliminate rental expenses, and establish a northern hub for fire protection distribution and training.

Management believes these initiatives, combined with a growing pipeline in fire remediation and new AgTech partnerships with universities, position the group for improved profitability and stronger performance in the second half of 2026.

The outlook remains mixed. While operational changes are supporting margin improvement and cash flow strength, revenue growth remains under pressure. Market indicators also point to weak share price momentum, increasing near-term risk. However, recent corporate activity and expansion in AgTech provide a counterweight, suggesting potential for longer-term growth.

More about Light Science Technologies Holdings plc

Light Science Technologies Holdings plc is a UK-based technology and manufacturing group operating across three core areas: passive fire protection, agricultural technology, and contract electronics. The company develops and delivers products and tailored solutions addressing challenges such as food security, climate change, and fire safety, serving markets ranging from indoor agriculture to large-scale fire remediation projects.