Announcement
Light Science Tech. : Rentokil Contract Extension and sensorGROW trials
RNS Number : 0767B
Light Science Tech. Holdings PLC
29 September 2022
Light Science Technologies Holdings plc
("LSTH", the "Company" or the "Group")
Rentokil Contract Extension and sensorGROW trials
· Additional orders received worth c.£500,000 from long-standing client
· Growing demand for contract electronics manufacturing services
· Two trials secured for sensorGROW with potential roll-on subscriptions worth up to £940,000, over a three-year period
Rentokil Orders
Light Science Technologies Holdings plc (AIM: LST), the controlled environment agriculture ("CEA") technology and contract electronics manufacturing ("CEM") group, is pleased to announce that it has received an additional £500,000 in forward orders from Rentokil Initial plc ("Rentokil"), which are expected to be fulfilled between November 2022 and March 2023. These new orders are in addition to historical forward order profiles.
The Group's CEM division, continues to grow in line with management expectations, driven by a strong demand for UK manufacturing in response to supply chain disruption.
The CEM division formed its customer partnership with Rentokil's pest control business over 10 years ago. The relationship has strengthened over the years with the Group providing a growing range of products.
The Group's CEM division continues to supply products to a growing number of customers across a range of market sectors and to target larger contracts which give better visibility.
sensorGROW Update
The CEA division has signed two trial contracts for the recently launched sensorGROW product. If successful, these trials could roll into subscriptions and be worth up to £940,000 in recurring revenues over a three year period. The Group is in talks regarding a number of other trials.
The Group has already established a strong footprint within the CEA market and the sensorGROW product provides an additional high margin route to market. The sensorGROW product provides recurring revenues as the Company provides technology, data collection, advisory and maintenance services for clients, on a three year contracted basis.
sensorGROW was launched in June 2022 and its t echnology enables farmers to monitor the following key growing factors (which are known as the nine cardinals of plant life) in real-time: air speed, carbon dioxide levels, humidity, light, oxygen, plant disease, soil, temperature and water pH levels - with benefits including reductions in water usage, nutrients, fertilisers and energy while increasing yields and producing healthier crops.
Simon Deacon, CEO and founder of Light Science Technologies, said : "We are delighted that Rentokil has chosen to increase its forward orders with us, as it shows our commitment to quality and high levels of service. This contract demonstrates the continued demand for UK manufacture, as we see customers focus on maintaining mid-term supply chain as well as controlling costs.
"I am also pleased to see confirmation of several sensorGROW trial contracts and expect more to be forthcoming. This demonstrates how growers see the importance of combining intelligence and increasing productivity to maximise yields within their indoor growing environments in a time when energy efficiency is crucial."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).
For further information, please contact:
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Light Science Technologies Holdings plc
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Simon Deacon, Chief Executive Officer Jim Snooks, Chief Financial Officer Andrew Hempsall, Chief Operating Officer |
via Walbrook PR |
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Strand Hanson Limited (Nominated & Financial Adviser)
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Tel: +44 (0) 20 7409 3494 |
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Ritchie Balmer / James Harris / Rob Patrick |
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Turner Pope Investments (TPI) Ltd (Broker) |
Tel: +44 (0) 20 3657 0050 |
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James Pope / Andy Thacker |
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Walbrook PR Ltd (Media & Investor Relations)
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Tel: +44 (0)20 7933 8780 or [email protected] |
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Nick Rome / Paul McManus |
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About Light Science Technologies Holdings plc (www.lightsciencetechnologiesholdings.com)
Light Science Technologies Holdings plc is the holding company of the Group's controlled environment agriculture ("CEA") division, Light Science Technologies Ltd ("Light Science Technologies"), and its contract electronics manufacturing ("CEM") division, UK Circuits and Electronics Solutions Limited ("UK Circuits").
Controlled Environment Agriculture
Light Science Technologies was founded in 2019 and is the Company's grow lights and sensor technology business, providing bespoke recipes and technologies tailored to customers' needs - with key targets including indoor, vertical, glasshouses, polytunnels and medicinal farming markets. The all-in-one CEA solution will include analysing customers' crop growing requirements to provide bespoke, low-energy and sustainable equipment.
Market drivers include food and water shortages in many parts of the world; growing global population; UK and other government policy encouraging sustainable and efficient growth methods; increased scrutiny of the effect of food production on climate change and the continuing transition away from processed foods.
Contract Electronics Manufacturing
UK Circuits is the Company's CEM focussed division, profit making with strong revenues. The Group designs, procures, and manufactures high-quality CEM products, specialising in Printed Circuit Boards, which are used in a range of sectors including audio, automotive, electronics, gas detection, lighting, pest control, telecommunications and, more recently, the CEA market.
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