Light Science Technologies Holdings (LSE:LST) — Results and Company Update

0:00 Good morning. Welcome to the LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Please just simply type in your questions and press send. Before we begin, I'd like to submit the following poll. And now I'll turn you over to Simon Deakin, CEO. Good morning, sir. Thank you very much, and good morning, everybody. Welcome to our half year 2026 results and post period trading update. I'd like to just remind you a fresh year of memory of the management team. Today with us is Andrew Hempsel, chief operating officer Jim Snooks, CFO and company secretary and myself, Simon Deacon, chief executive officer. Me and Jim will be going through the presentation, and at the end, Andrew will support with the questions going through.

0:55 Thank you, Andrew. So group operation highlights. Passive fire protection has been, you know, incredibly busy in the last six months. We've increased the number of of building safety regulation, BSR applications within InjectaClad being specified. And really within the passive fire protection, being specified really gives us starts giving us that visibility. We've been accelerating the BSR approvals notes towards the end of half year of 2026, underpinning expectations for the significant improvement in h two. The government has given a 6,000,000,000 pledge funding towards remediation work, and this is really good to see and is being used.

1:49 There's over £1,000,000,000 of that now being used, and that continues to be so. Injector Clouds had around a 160 buildings now with remedial work put into it. So that's really good to see. We're seeing that increase more buildings, more tower blocks, commercial, residential going through around the country. In our contract electronics manufacturing sector, the CEM, we've positioned the business really to focus and move into higher margin defense and medical and health care markets. And while doing this, we've won four new clients, which have really taken the potential in generating up to a further £1,000,000 of revenue in the next twelve months.

2:36 And and some of those clients that we've taken onboard are within health sector and also security. And what that really shows is more visibility once you enter in with these clients. You normally get the consistency with those clients rolling through the years as we go forward of what we've seen with other clients. So that's proving a really good traction moving forward. In the ag tech, we've just completed Nottingham Trent University project, a smart agricultural center. This is the one of the largest projects we've done, and it was really interesting to do from a a design build purpose that we normally get involved just in the technology, but we actually designed the facility, built the facility, and also put the technology into it, which really gives us a really strong case study moving forward for growers internationally, but also can come to this facility and see all of our technology in operation.

3:43 We were awarded a £300,000 project with a Welsh university. So you can see, you know, we've always worked with universities, but these projects are starting to get larger, as we move forward. And this is really good to see because there's a lot of educational piece going now into food security and training the university students up to get more technology to grow our crops as we get more severe weathers across the world. We've also done an awful lot of in ag tech maintenance and refurbishment as well, and I'll highlight that a bit further on in in the slides. Group highlights. We raised proceeds of 6,600,000 with our funding round for three strategic acquisitions, which has really strengthened the group's balance sheet moving forward.

4:37 Following a strong close year half year of 2026, the group is positioned for high margin profitable growth in the second half of the year. So looking at group post period highlights, and this is really worth focusing on. You know, we had a slower half year, but what we are really seeing now is that momentum that we've been talking about for h two. And we've done just over 1,000,000 a month, you know, just over £2,000,000 in June and July. So you could start to see the momentum building for our year end, which is really encouraging to see that the hard work now is translating into that revenue.

5:25 We also got a strong 3,000,000,000 current group forward order book, and that's booked orders. So that really gives us that bit more visibility of revenue we've done already, also prior period, post period, and now the the booked forward order book. And so that's really encouraging to to see that we've got that key visibility that we all look for and gives the management that confidence. We've also have got 10 PFP, passive fire protection, installation network project in progress at the moment around the country. That's a lot of projects going on around the country and buildings being being remedial work going on with the Injecta Cloud material.

6:11 And we only see this from the pipeline growing as we really get down to the nitty gritty of acquiring Injecta Cloud and understanding the installer base. Our current group quoted sales pipeline is 50,000,000, and we're seeing that converting. So over the years, we've always had a strong quoted pipeline, which has been growing. We're now seeing a really good strong effort in all divisions of that being converted now into orders and then revenue. Really good to see is that our cash position, group cash, at the end of the the half year was 2,700,000. But what I'm really pleased to see is that it's increasing.

6:59 So at the end of July, it moved up to 2,900,000, 2,900,000 of group cash and undrawn working facilities. So that's a directory going in the right direction as the orders come through, cash generation is is moving up. I'm gonna hand you over to Jim who's gonna go over the financial numbers for the half year. Thank you, Simon. So as Simon indicated, we we knew that the the year's performance would be second half weighted. Over on the right hand side, the the block graph there shows the historic half year revenues and the full year revenue for last year on on the far right hand side. The table below shows the divisional splits and the group as a total for revenue and the respective gross profit margins that we delivered over those periods.

7:54 So we knew it was gonna be second half weighted, and that meant that, group revenue for the first half reduced to 3,700,000 from, the year before, the half year to 25, which was 5,100,000. And where's that reduction come from? Well, it's the hangover of the, building safety, regulated blockages in in the pacifier protection division. We we've written about that quite extensively. There was a change in that department structure that took effect at the start of the year. And we see the fruit being born from that now. Towards the end of the first half, we really start to see a a much heavier conversion of the pacifier pipeline and that takes us through the second half in a much stronger position as we as we first saw.

8:46 The other part of the reduction was reflected at the settling down of the CEM division's largest customer in the pest control sector. In the second half of last year, they brought to an end of life one of their main products that that we supply to them, and that's flushed through. That flushed through. So we we've had next to no revenue from that particular product. And, really, we see that client now, still an important client for the business. They've settled down into a a business as as usual state there and are performing in line with with our expectations. Turning to group gross profits. We saw a reduction to 30.5% for first half group profits down from 36.3% in the first half of twenty twenty five.

9:41 And that was born of a couple of things. Firstly, we ran a project in the in the PLP installation division that delivered thinner margins than we would normally expect. And the reason for that was that this particular client has got quite a substantial estate that that needs remediation. And we saw this as as a test bed to to sample a form of a cookie cut cutter design and to make sure that we learn from those experiences as we roll out to remediate as and when they, give us those further projects. The other part was the AgTech's NTU project. It was 600,000. Simon says it's being delivered now.

10:27 And, we see that very much as a test bed for rollout in the future to other universities. That's been a really sort of key, project for us running design through to install, through to fit out and commissioning. But it did produce thinner margins than we would normally expect within the ag tech division. And finally, the inherent delays that I mentioned above from passive fire reducing, revenue contribution and therefore fixed cost elements of gross profit had a dilutive effect for that period. The good news, as I say, we see we've seen the setting of the the CEM's main customer and an unblocking of of the P and P pipeline.

11:15 So what we see for the second half is that scaling of revenue, but it is importantly, those margins moving upwards with it. At the bottom table and graph on the right hand side show our adjusted loss before tax position. We've continued to control very tightly our overheads. And during the first half, we saw only a 1.7 year on year increase in administrative cost overheads. That's the big chunk of overhead costs in our p and l. From to 1,840,000 from 1,810,000 prior prior half year period in spite of ongoing inflationary pressures, around energy, which is obviously well versed.

12:04 So our adjusted loss before tax was 800,000 for the first half compared to 200,000 for the first half of twenty five. And that really was representative of that contribution at the top part, the the revenue and the and the gross margin delivering down at at at lower levels. As I say, it was expected, and we expected a very heavily weighted second half, which we are starting to see very healthily now. So we have a clear momentum as we move through h two, for that strong revenue, delivery at those improved margins with that continued overhead, cost control. So we see a very much more profitable and cash generative period as we flow through to the end of the year. Thank you, Andrew.

12:57 Looking at the balance sheet, obviously, having done a 6.6 gross fund raise and three strategic acquisitions. We've seen a reshaping of the balance sheet. Just to give the headlines on that, we've seen an increase in goodwill of 1,200,000. That was from the Inject Cloud acquisition and 3.2 millions worth of increase in intangible assets, which really the IP, the test data, and also the distributor installer relationships there that we we we fair value. So, sets us up very, very, very strongly with the control of the value chain and the intellectual property for that injector plan solution.

13:46 And as as Andrew as Simon will say, in in further slides, very much benefiting the PFE installation side as well with the the project flow we can control that now. We've also acquired acquisition of the remaining 10% interest, minority interest in the CEM division and the remainder of the Manchester property, further strength strengthening the balance sheet and providing us importantly with full operational control for that division with our move into higher margin, work like defense and health care. It was important that we have that operational control to make the improvements and the investments, to get us into those new sectors.

14:32 In terms of inventories, slightly elevated, at the half year point to just under a million, from the 0.75 for the previous half year. And that's mainly due to the Centimeters division gearing up for its new customer in the in the healthcare sector. And in inventory is predominantly allocated to specific, customer orders. Looking at cash, Simon's touched on it on his previous slide. At the half year point, we had 2,700,000 total cash and undrawn working capital facility availability, cash being 2.4 and facilities being point three. That compared to the previous half year points of 1.8 in total.

15:19 And we saw a significant improved year on year net cash debt position from a previous half year of negative 0.66 to a half year point of 1,200,000 at the 05/31/2025. Thank you, Andrew. So moving on post period, where does this leave us? We feel that we've got the ingredients for a very strong h two trading performance. In June and July, we booked revenue of over 2,100,000. That's 58% coverage of the entire first half's revenue in just those two months. We've got a committed board order book that stands at over 3,000,000 with 80% roughly of that expected to be recognized in the second half.

16:12 We've got incremental, InjectaClad material revenues expected to be delivered in the second half. And I think this is a really important point to understand. We have the, the the the installer database there, the installer network, and there's over 10 projects that are in progress at the moment. And what installers typically do is those projects are running month on month. They give us the orders because they don't want to order it all up front, obviously, but they're under contract to supply that installation. So we know that they they need injector pad to see that project project through from start to end. So if you like, these are latent orders that aren't included in our current, committed forward order book, but that's going to deliver significant revenue contribution as those installers, order to fulfill their projects, and that would be through the remainder of the second half and beyond.

17:15 We're working quite hard on capturing more and more information from the installers and working with them, to to, gain more and more information on their own pipeline and also on project progress. And, again, Simon will talk through some developments that we're looking at for in software where we can capture some of this this data later on. So we've got more than 10 installations currently in progress. They're all going to require injector pad material to complete their projects. That's falling on top of our committed forward order book. We've got four new clients in the CEM division that that we've acquired in the first half. That's going to deliver up to 1,000,000 annual revenue once those supply transitions are complete.

18:04 We're seeing more visible revenues in the second half at strengthening gross profit margins, particularly from from PSP. AgTech also, we see that higher margins. And as I mentioned earlier, the CEM division is is showing a strong increase in its margin delivery. We've got healthy working capital position. We had 2,900,000 at the end of July, cash and undrawn working capital facilities compared to two months before of 2.7. So, you know, we've got a good base financially. We've got a strengthened balance sheet. We've got a convert strongly converting pipeline.

18:50 We've got good revenue delivery for the first two months of the of the second half. So we feel that we're in a very strong position to deliver a a a full year performance that that reflects all that hard work that we that we undertook in the first half. So if I can hand back to Simon to look at the market opportunities and drivers. Thank you, Jim. So just to remind ourselves of the company's market opportunities and drivers here and if any of them have changed. You know, in passive fire protection, the market opportunity for us in remedial work for cavity barriers is a a circular of £4,000,000,000. And that work will take, you know, fifteen to twenty years to to complete, And and there's a real push by the government to get these high rise buildings, tall buildings complete within timescale. So there's a real push to do that. There's 40,000 buildings alone in The UK requiring remedial work, and the legislation is really driving those. We've got a quoted pipeline in this sector, which continues to to get converted and top back up of circa of £20,000,000.

20:08 And as Jim just explained, you know, the Injecta Cloud installers, we haven't got the full visibility of those orders currently that they're already working on those projects. So you can see that can expand quite quickly. And I'll come on in a further slide how we're going to get that information so that we've got better visit visibility moving forward. Looking at what routes to market in passive fire, it's very much fire engineers and architects and contractors and building owners. Those are routes to market, and we continue to focus on those. In contract electronics manufacture, market opportunity in electronics is of scale of 21,000,000,000. Our current quoted pipeline is 1,000,000,000.

20:56 And the reason it's much lower in this sector, our conversion rate is is much higher when we do a quote to conversion to order is much quicker and normally takes between five or six weeks to to from a quote that we do to becoming an actual order. So the quoted pipeline is always a lot less in this division. Drivers here really are on shoring. Procurement starts at home. The prime minister has just announced that. And we're seeing a lot of on shoring over the last few years, and that continues today. And our focus really is, as you know, moving into defense, medical, and healthcare. And the government's, you know, circa 300,000,000,000 spend on defense over the next four years, and we're very much getting ourselves ready for that so that we we got the right accreditations moving through to win those contracts and those orders.

21:56 Routes to market, primary through contract supply chains, building long term relationships. We've done that over the years with some of our customers being with us fifteen, twenty years and having that repeat business and providing that turnkey solution. We've got a great facility up in Manchester and providing that turnkey solution from electronic board, design electronic board to finished product. In ag tech, the market opportunity here is 12,700,000,000 and 30,000,000 in our current quoted pipeline. Really seeing a real shift in more technology being put into commercial glass houses, and this is really down to food security. There are extreme weather patterns we see globally.

22:43 The climate is changing. We can't ignore it. The the summer that we're in currently is extraordinary. And to grow crops outdoors is becoming harder and unpredictable. The cost of materials still continues to to increase. So using technology that we provide reduces those inputs, and we continue to to do that through various commercial glass houses that we supply. Routes to market, agronomists, growers, and resellers. Thank you, Andrew. So moving on a bit more detail within the passive fire protection division. We've got 11 injected installers across The UK since doing the acquisition, which was completed mid April.

23:31 So we've got 11 installers with the more than 10 of them with active projects. So we've got 10 active projects out there. Of three of those projects, we are installing with our own installation team, Liverpool, East Yorkshire, and Birmingham, and there's a lot more to to follow with future announcements coming up. We've created the new northern base up in Manchester, establishing a warehouse for the injector clad material to be distributed from, and we've also implemented an MRP system so that we're controlling all of what's going on with serial numbers, etcetera, and stop being distributed. Increasing number of BSR applications being specified with InjectaClad.

24:21 This is one of our key targets being specified within all the work that we do. I've mentioned earlier there's 40,000 buildings across The UK which require remedial work, and that really spans from, you know, hospitals, so government buildings to student accommodations, schools, hotels, commercial buildings. It is broad, and there's a lot to do. The government's led a pledge of 6,000,000,000, as I mentioned, for remedial work, and that's current currently being spent and being used. And some of the projects that we're on are funded by the government pledge. Unique platform really to for us, you know, acquiring Injecta Cloud has given that unique opportunity.

25:11 We've now got the full supply chain, and we're supplying it with a great brand of InjectaClad. So that's really making us to increase our market share of in that 4,000,000,000 and really focuses our mind to be the leading cavity barrier remediation provider. And we're really seeing that. You know, you'll see on the right hand side of the bottom there, we're exhibitioning at various shows, and we're educating through we've done 34 CBD sessions where we're educating engineers, architects, fire engineers, surveyors on our product, and this is what gets us specified and gets our brand out there, and so we're doing increasing development there. Trials are in progress currently with proprietary software to develop a real golden thread, which is LINE digital data.

26:09 This is really important because if we roll this out to our installation network of installers, what it will provide is more of an insight of the jobs being logged onto that system than the visibility and the scale of how much product they need. So it gives us more information, but it also really critically controls how that is being installed and it's being installed correctly, providing that key golden thread. You know, out of all the reports which have gone forward in the past, it's all about for the future is making sure all the data is being recorded, and we'll be providing that software for the installation teams so that we and we then get further visibility through it. So it's a really important system, and it's on trial currently at two sites.

27:01 Building the team, obviously, we're scaling massively here, so it's all about building the team and making sure that the brand for the rest of this year moving into 2027, 2027, the division continues to scale. Also, the government is funding now announcements were made in the last few weeks buildings under 11 meters for a period of time. That's really good to see that that's happening. So continued government support. I've mentioned about the education and and the buildings across The UK, which has now got Injecta Cloud system in it. So we're well established in this field. There's a lot of product gone into buildings, and we're starting to make a difference in the industry, which is pleasing to see. Thank you, Andrew.

27:50 In contract electronics manufacturing, it's all about repositioning, moving into higher margins, defense, medical, and health care, and we're already seeing the benefit of doing this. We've already won new contracts in health care and security, which have come on board more recently, which will produce in the next twelve months around a million pounds worth of revenue. But moving forward, some of these clients are spending, you know, a couple of million pounds a year, so it's really good to see that we're onboarding these clients, we're working with them, and we're starting to gain more of their business. So that's really exciting development in this sector. Investment continues with new equipment technology.

28:36 You know, technology moves fast. You would have seen announcements that we've made over the last few months of improving our efficiency by buying new equipment and making sure we've got the right quality standards in there as well to make sure that we're getting the right accreditations to move into defense and the medical side of the business. We acquired the remaining 10% minority interest in the business alongside the property facility. This was hugely important for us to do that as part of the three acquisitions we did earlier on in the year, and that's made a massive difference to making sure that we can get those accreditations, but also housing the distribution center here in this facility at the contract electronics manufacturing facility.

29:25 The new process at implementing the right accreditations, we've just achieved Cyber Essentials Plus, which is really important, especially, obviously, in defense, and we've managed to achieve that. Future developments, continue investment in upgrading, enhancing the capacity so that we're ready also to continue the scale of the business and defense readiness. We've placed just over 11,000,000 components in the half year. It's amazing how much these machines place in a short period of time. Our gross margin in this sector, which is one of the things we've mentioned in the past that we want to keep improving, In the last half year, it was 27.8% gross margin. Now it's 28.5%.

30:15 So it's really moving up, and that's really important. You know, in this sector, those things are quite hard to do, and they're achieving it. So they're really doing a a great job. And we also launched a digital factory tour, and this really broadens our our base where people can't get to us, but they can see our facility. So this is on our website for UK circuits within this division, And you can have a tour around the factory with a three d model, but also a drone flying through the factory. And this broadens the reach to new clients and more international clients as well. Thank you, Andrew. Moving into AgTech division. On the right hand side there, you'll see a picture which you'll you you get to see the currently, there's a bit of a media blackout on on this till it's launched in September, but we just completed the smart agricultural research center for for Nottingham Trent University. And this is the first time we've designed, manufactured, and put our technology within a facility.

31:21 And you see then the the picture below that, it shows the facility inside with combining units, which are growing chambers. And then within the cubicles going around the outside, you've got vertical growing going on. You've got our sensor that you can see in the bottom half, our lighting, and our environment computer, bringing all of our technology together, our our three core technologies, which have been a really exciting project. But this really springboards us for the future, you know, with other universities, as I mentioned earlier, more education's going into this because of food security being so important and our climate changing. So this is a real good case study that we'll be able to use for ourselves, but also do for others, here in The UK and internationally.

32:09 We've also been part of a fund, for a PhD student who will be one of the first to use this facility, this smart research facility. So we're pleased to to announce that, and it's fully backed, funded research from from the council, which is is really good to see, and we're part of that. We've also awarded a £300,000 project with a Welsh university comprising of irrigation systems, electric refurbishment, and control and environment computers. So there, again, more technology going in. We're installing it, and it's at a university. So we're starting to really gain more larger orders through our growing community, if it be commercial glass houses or if it be an educational piece through the universities.

33:03 We wanna know an ad adopt grant with partnering with Dyson Farming with a small value circle of 31,000, But working with partners with with Dyson Farming is really important. You know, the name alone really springboards us into other opportunities, and we continue to work with them, really pushing forward with our SensiGrowth product, environment computer, and and other areas, which is really important to keep getting that springboard for future orders coming through and getting recognized alongside them. SensiGrow product has been installed UK, Australia, Mexico, Poland, all trials underway with clients.

33:48 And this really shows how we can really expand the SensorGrove product globally around the world to make sure that it's easy to install and you're sending a package, you can switch it on, and you're getting live data straight away. And as we've mentioned, the climate changing this information to grow is extremely important. We've also just received an order from a Dutch glasshouse builder based here doing a an installation near Cambridge for £60,000. So you can see that there's really good momentum, and you can see this because the revenue in this division has increased. It's up 54% year on year for the h for the half year. So that's really important to see that growth in this division and, you know, all what we talked about in the past is actually happening, taking place, and creating revenue.

34:44 The 79 maintenance visits this year and nine glasshouse refurbishments in the half year as well. So we've been very busy in this sector as you can see. Thank you, Andrew. Just looking on group communications and events, we're always very busy with our communications, and I hope you you see that as investors. We were in mail on Sunday in the half year. We're in the international trade journals across various divisions across the group. We've done over seven proactive interviews which get launched onto their YouTube and our YouTube channels, and we've done 19 r and s's or on r and s r's over that period as well. So we're very active.

35:30 We've been to a lot of trade shows for the various divisions, making sure that we're increasing brand awareness, making sure people know what the products do, and really expanding and scaling the business, and that's what we see for for h two. Thank you very much, Andrew. So looking at the outlook and moving forward, we still got a very strong quoted pipeline, 50,000,000. We've got a 3,000,000 group four order book, which gives us good visibility. And really importantly, cash and undrawn facilities are increasing, which are 2,900,000. And we see the cash continuing to increase as revenues are being driven throughout the rest of the year.

36:21 We're focusing on providing really strong market opportunity for a platform growth here, improving margins. I've talked about that in the past, and we're starting to see and you will see at the end of this financial year a leveling up where contract electronics used to be the largest proportion of our division with revenue, but with a lower margin. That margin's increasing, but what you will see, PFP, pacifier protection, injector clad coming through, revenue rising, and the margins are much better in that sector. And I've already shown you in AgTech, we're 54% up in in revenue, and the margins are better there as well. So it's getting it's improving. It's getting better all the time as we scale, and we're really doing what we said that we would do in in the past.

37:14 It's really important to just just take a step back and and just say, you know, there's an awful lot of work goes on within within the group, within the divisions. Sometimes the number when you're giving results are not what they what you want them to be, but they're they're what what we expected them to be for the half year, and we really do see the rest of the this year being, you know, very successful because we've got that visibility. And we're very excited to see that changing to revenue, profitability, margin growth, and the cash generation moving through. On the right hand side there, you can see some pictures. Passive fire protection on the right going into a building there, very typical building through lifts, contract electronics facility with machinery.

38:02 That's what our our our manufacturing production lines, which we keep improving and being more efficient. And at the bottom there, you're seeing a small picture of one of the NTUs and our our SensiGrow product inside of one of our our those chambers. So you can see overall really moving in the right direction as we scale the business, getting stronger for future growth and moving into 2027. Thank you, Andrew. I'll put to the floor any any questions that you you might have. Thank you very much. Okay. I can what I'll do is I'll read I'll read them out, and feel free to add them into the q and a part of the chat. So first one for Simon. What benefits has the group seen from the acquisition of InjectaClad?

38:50 Are you are in The UK, and what were your goals for the acquisitions, and how has this division performed against them? The acquisition was extremely important for us to to to get Injecta Cloud. It gives us that really underpinning underlying key supply chain. We've got our IP. We've got the installers across the country, which really makes makes that difference. And what we've seen since we've acquired it, which has been circa sixteen, seventeen weeks now, is seeing more visibility of how many jobs are are going and happening around the country, which increases that order flow. And you can see the the orders flowing through now, the ones that we have announced more recently, but also moving forward, starting to get that more visibility.

39:44 So it's made a big impact, but also it gives us the opportunity to talk directly with fire engineers, architects, surveyors. And these individuals and companies are the ones who are going to specifiers within tool buildings and those 40,000 buildings which need doing. And that's what we're doing. So it's given us access to that by acquiring InjectaClad as well as having that IP. So very exciting position to be in, and I'm pleased we got it across the line. Thanks, Simon. I can take this one. How has government regulation regarding BSR affected PFP sales and inject cloud installations? I think sort of pretty typically an inject five hours last trading year, the previous year, you know, the delays and the movement of of the BSR from the health and safety executive into the new body had a massive impact across all 11 contractors that work on it. And, I mean, we we didn't have a good year, and we did it probably 30% of all the installations across that network. And what we're really seeing now is that that there's a whole culprit projects of ten, eleven projects that have been released almost within a couple of months.

41:00 And we're now yeah. So we're now starting to see those sort of come through, which is good news. You know, the BSR is not where it wants to be. It wants to be at eight weeks, and it's still well above that. But it is prioritizing high risk buildings, which is good. And there's further legislation coming out called PAS nine nine eighty, which really works quite nicely for us because it's about a risk based approach from fire engineers. And, you know, that was due for reading in July. It's moved back a couple of months because of the change in prime minister, and that's now due to be heard. Second reading in September, so that'll be good news as well. One for Jim next. Has trading in h two began to show that the group is returning to profitable growth? Sure. I mean, you know, in the first two months, we've done 2,150,000.

41:45 And with that strong committed forward order book plus that latent order book that we've got from the inject pad material installer network, all of that is giving us confidence that that that sort of growth through the second half will continue and at stronger margins because, you know, Pacifier delivers those strong margins. AG Tech is probably next down in in in level of margin delivery. And then CEM is moving from what was the mid twenties up to towards the 30% mark. So, you know, taking all of that that that incremental revenue delivery with stronger margins, continuing close control over overhead costs, we do see profitable delivery through the second half and beyond.

42:41 Hi, Stephen. While you're at it, how does the revenue mix shift across the PFPC, M and A GT divisions? Yeah. So, you know, historically, when we floated four, five years ago, pretty much all of our revenue was CEM. It's at the half year point, it was the mid sixties. And what we're seeing, and Simon touched on it, is a rebalancing of divisional contribution to revenue. So, you know, AGTEC stepped up at the first half year. Pacifier reduced slide because of the blockages, but we what we really see in the second half is pacifier coming starting to level up and balancing that historic CEM reliance with ag tech sort of, you know, coming alongside. So definitely, we see the profile.

43:33 It has changed historically, and we see that continuing to change through the second half and beyond into further financial years, future financial years. Thanks, Jim. I could take this one. It's how much actual revenues are expected from injection material in the remaining months of the second half? Obviously, we can't give you exact, you know, figures as such we're not allowed to. But as we've as sort of Jim explained, you know, there's 10 of 11 projects on the way. And, you know, there's two reasons, you know, that they order as they go along. One, you'd you very rarely have space on sites. You know, you're working in a you've got compound area that's often quite small, you know, car park or somewhere like that. So they just literally don't have the room to store too much material. And the other one is obviously for the cash flows.

44:19 That does sometimes work in our favor. We had the 400 odd thousand pound order that came through for the project in East Yorkshire in one go because the main contractor wants to invest the materials the title to those materials. So it meant the hot the sale went through all in one go. And it's really handy then that we've got space in our warehouse in Manchester to sort of store a lot of that material for them as well. It gives us both options, really. And I'll say how otherwise, how in PFP, how close are you to winning, say, single 5 to £10,000,000 order? An individual building wouldn't worth 5,000,000. I've seen a couple of 3,000,000, but what you do get is you get the kind of cookie cutter design. So there's one at the moment which would be significant where testing starts in October, November to to effectively get, a top approval for that construction.

45:11 You know, we saw it with Inject five Bar as well in the past where we're kind of doing, you know, nine or 10 buildings for one person. So it's kind of gradually now. We've done the one offs. We're now getting the kind of repeat business. And, you know, the project we're doing at Liverpool at the moment is the third project we've done for that particular contractor. So that's that's the the way that it will come through. So this one for Simon in ag tech, when will the results from university trials be used to win large awards from farms rather than further awards from universities? Oh, they they already are. I mean, we've been doing trials with various products with universities or Dyson farming or our partners for a number of years. And what comes out of that is then they once the trials are done, they go out to market.

46:00 And sometimes go straight and get orders from it or you get trials with with customers. So it depends what product it is, but the reality is it it's already happening. Okay. Thank you. Another one, inventory elevation is status mainly driven by the CEM division. Are we expecting an increase in inventories for the PFP division too given the step change in activity post half year? Why have inventories in PFP not been elevated as of the end of May in advance of this increased activity? So I can answer that one. What we do there is a is a very fast turnaround of the stock. So what I've got is I mean, you know, we've got about a £180,000 worth of injector class stock, so that has been part partly of it. But what we do mainly is I've got at least £200,000 of orders sitting and stock sitting in suppliers. So, you know, a big order would go straight from the supplier. Wouldn't even come into the warehouse in Manchester, go straight from the supplier to to the site on a big order.

46:59 Other than that, I'll just draw it in and say 50,000 pound lots at a time. So that's why the stock gone up. It's But it's just after that, Andrew. Yeah. In our report, we said that the predominant increase in Centimeters, it's it's absolutely fair question. And it's right that there was an element of increase within within PSP there because we've acquired the division. So there was PSP stock value there. But, you know, we didn't go into the full detail, but, you know, the predominant part of it was that gearing up for this CN's new customer in health care. But definitely a part of it was was PLC stock stock taking. So another one here for for probably Jim or or Simon. Hi there. Hi, all. Thanks for the presentation. And, clearly, there's a positive momentum across the business. So the somewhat arbitrary timing of the half year obscures what seems to be a strong ramp up in PFP particularly.

47:54 Do you see that $1,000,000 a month continuing? Can we think of that as a sustainable level of revenue? How did this post period revenue mix breakdown by division compared to the rest of h one? So, yes, I mean, if you well, if you look at the average of of June, July, that is averaging over 1,000,000 a month. What I'd say to that is, you know, on top of that, we have got the strong committed board and the latest orders in in the installer network in passive fire. Hand on heart, I think it's a little early to be saying that we're gonna average million a a month, But we're working on gleaning this data from the passive fire protection installation.

48:39 They install a network. And I think, you know, we are certainly heading towards being able to get that sort of information. We're in a much stronger position than we were a year ago in regards to that. You know, there's certain areas of our business that are lumpy. So, you know, like some of the ag tech projects. So, you know, it it it does make for a difficult you know, we're going to do a million a month, but we are in a lot stronger position for visibility than we were a year ago through the group. And I would say that, you know, it it's not gonna be so long before we could have that that sort of reliance upon a a level of platform platform revenue for the group. Another one I'll which I could take, thinking ahead on the Centimeters division and the focus on defense, health care applications, and uses.

49:31 How is progress going here for the CapEx needed to refit some of the manufacturing capabilities? Same to the certifications, trying to get a feel for when we can expect this high margin works come through CEN. So we've got a five point plan from an operational perspective of implementation, and we have been sort of about halfway through phase two. And we've actually also already started on some elements in phase three as well. And the whole idea is that and, you know, then we've scoped to, for example, the AOI equipment that we would need from a quality perspective, and we've done all the design work for the changes to the building that required. So we're looking at those at the moment. So but it's never been a case of we don't wanna just go and do spend all this money and get to the end of stage five and go, right. We're ready and stick our handle. You know? What we will do is we're starting at the lower tiers of the supply chain, you know, so we don't start at the top. We work our way up as as progress kinda goes through, and that's really been the case with the health care orders that we've already got through.

50:31 You know? And the more of those that you build up, the easier it's gonna be to get that work when we get through all those stages. You know? And, you know, when we start working with tier two, you know, we're gonna have to be probably at the end of the end of stage five, but we can work lower down in the meantime. Got one here. One for Simon. What is the typical profile of customer to which CEM's capabilities particularly appeals? It's It's quite broad. The Centimeters manufacturing division, UK circuits, you know, is in a lot of different markets because, you know, it's for us, it's focusing on car industry is not of an interest, for example, just because the margins are so low. So what we look for is medium volume.

51:17 Obviously, higher volume gets tends to get attracted either abroad or with lower margins attached to it. So we look for those one boards which are a little bit more complex, still have volume attached to them, but can give us those higher margins. And where there's onshoring, if it be for events or or or health care or other areas where they they want it to be more secure, obviously, we look for those markets too. So we've been working with scanning companies, security companies, drone manufacturers as an example, and health care providers for NHS and other international hospitals. So those are sort of customers that we look for rather than what you probably typically see trying to go for and competing with somebody like the the car industry.

52:11 Yeah. Another one which is probably more of a comment, but what saying worth emphasizing that LST focuses on solving problems at the bottom end of Maslow's hierarchy of needs. Yeah. I guess if you're not fed, you don't feel safe in safe building, for example, then, yeah, that's the kind of biggest need that you would have at any point. So and, yeah, that's, you know, really what we look at when we're looking at the kind of drivers in the market of each of them. You know, they're all very strongly driven by macro events. So so yeah. And and regulatory then. Someone that's new an investor that's new to LST, why sales significantly declined versus comparable prior year period? Probably one for Jim there. Yes. So resulting from in the passive fire protection division, the BSR blockages, which have unblocked towards the end of the second half and conversion levels have increased significantly.

53:04 And the second part is the contract electronics where the large customer in the pest control sector brought to end of life one of its products in the second half of last year. That revenue is flushed through now, and the their business with us is now operating as as steady state again, and they're still a very important customer. But those two chunks together were were really the reduction in the year on year half year revenue. One asking about the outlook of dividends. You know, we're we're definitely not a dividend share. We're really a growth share. You know, we invest in the business and and grow the business. But another one for Jim, when does LST to expect to return to capital markets?

53:52 And if not, when will LST become cash flow positive? Well, we through the second half, we're expecting to be cash flow positive because we're converting pipeline to to orders and converting that to revenue at stronger margins and that conversion has significantly gone up. We're working on elevating margins within the CEM division. The passive fire division is strong margins, and it's a it's a very simple sort of a model in terms of profit to cash generation because it's not CapEx intensive. There's not massive stock holdings or all those sort of pools on cash that you would get in in other types of businesses. So, yeah, the expectation is through the second half that we we generate revenues that's profitable and beyond.

54:46 Could you provide a competitor overview? I mean, they've been obviously very different in the three divisions. I don't think we'd have a competitor if you took our three divisions as a holdings company, but breaking them down in the pacifier side up, we see the competitor is is either removing the external facade of the building or our solution. So it's it's kind of one or the other. And, obviously, the other one is a lot more cost, waste, and intrusion for residents. On the contract manufacturing side, you know, there are a lot of companies that are doing the same thing in that one. You know, it's it's quite commoditized. You know, we really try to get that wrap run that by being as agile as possible, and that really worked for us in COVID and the shortage global shortages of components.

55:36 You know, we really try to offer alternatives and, you you know, to lead times and prices and things like that and manage to secure a lot of work from those competitors. On the ad tech side, you've got the lighting side, which again is heavily commoditized. And what we try to do there is but we've got a pattern for the short circuit board that allows us to effectively build any length and and color range of lights very quickly. So a standard operator like Philips, we've we've been aware of sort of two to three year lead times for a change of product. We can do that in six weeks. So we, you know, we know we're not gonna rock up and start producing lights cheaper than Philips. We've got to go about it another way. So we can generally provide less lights than them because we can tune the ingredient. So the light price might be more expensive, but we need less of them.

56:24 On the other side of it, the sensors, again, that's a patented product. There's no one else offering an all in one sensor with that amount of sensors on it, you know, for that sort of same market, if you like. So, again, that context out there. But, yeah, there were there were lots of sensor companies, but most of them do one or two and specialize in a particular area. But, you know, what we found with the sensors is, you know, we're working on the Dyson project and measuring nitrous oxide. And the opposite, you know, the the alternative product only measures nitrous oxide because we've got eight other environmental sensors on ours. Actually, that environmental monitoring was able to kinda show them why the nitrous saws are peaking at different times, whereas either one couldn't. So so yeah. So that's that's the kind of competitive landscape, if you like.

57:15 Would there be any well, for Simon, would there be any benefit in sharing SMT machinery with CapEx limited given the growing quality connection? I I've met Lars with those that don't know. I I've met met Lars, and I understand that the CapEx and their product range and where they're at. Machinery, we we couldn't share because, obviously, making their their product is is very different from what we do, but it is interesting. And, you know, it's good to to keep tabs and understand where they're going in the future, and we'll we'll have to wait and see what happens in the future. And, LIGHT, on Simon, are you targeting agricultural colleges for agri tech?

58:03 Yes. Yeah. We're we're targeting agricultural colleges as well, but also other universities who haven't been in that sector and schools who are actually opening up into that into that marketplace. So, yes, we are. Okay. I think you've answered the one the other one about different divisions offering to existing competitors. Jim, do you expect to meet market expectations for 2026? Not you and your own, Sorry, Jim. Well, we've got all the ingredients there. I think, you know, we've we've talked during the presentation, you know, that that massive ramp up towards the end of the the first half, you know, it was expected that it would be second half weighted. We all three divisions are are performing well, strong margins.

58:53 Pacifier's got, you know, that very, very significant potential, and we see and we're seeing better visibility than we ever had before. I think that's one of the key things. It's been very hard for us historically with kind of nascent divisions apart from the CEM to to, you know, to forecast particularly, as I said earlier, with, you know, some of that business being lumpy. So, you know, we believe we've got a very strong momentum going and ingredients to to do what we need to do. Probably lastly then because we're gonna run out of time. What is Centimeters developing for Drone Assignment? So we some stuff I can't talk about, but we've done stuff for drone blockers for for obvious reasons, and that continues. You would have seen a lot of things in the past in the newspaper about airports and drones going across or drones going into prisons.

59:55 And obviously, it's huge now in defense. And so we continue moving further into that marketplace as well as defense. Thank you. I think we should perhaps have some closing comments on you now, Simon. Thank you. Thank you, Andrew. I'd just like to say, you know, we are really scaling this business for h two. We've got the visibility that we've all talked about and need. So we are confident of what the forecasts are out in the market. Know, we're excited about the future. We've got a great opportunity. We had a very successful funding round to do the three acquisitions. We do have the IP for the passive fire, which is a very big market and is expanding and will help us scale the business for our future expansion plans for in a medium term to get the business up to 50,000,000 revenue.

1:00:52 At the moment, the focus is controlling overheads, making sure that we become profitable and growing that cash generation moving forward while we do that. And so we believe we're in in a strong position to scale our group. And I would like just to say thank you for your support and continued support. Thank you very much. Perfect. Thank you guys for updating investors today. Please ask investors not to close this session as you now be automatically redirected to provide your feedback. Would you help the company better understand your views and expectations? On behalf of the management team of LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC, we would like to thank you for attending today's presentation, and good afternoon to you all.