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

0:01 Good afternoon, and 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 in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives in the meeting itself. However, the company will review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Simon Deacon, CEO. Good afternoon, sir.

0:33 Thank you very much. Good afternoon, everybody. Welcome to LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC final results for 2022 and where we are going for 2023 and where we're up to. So if we go to the first slide then then Andrew. Presenting today from the team is Jim Snooks, chief financial officer and company secretary Andrew Hemsall, chief operating officer myself, Simon Deacon, chief executive officer. Just to give you an overview of the group for those who who don't already know us. But in the group, there is two companies, trading companies, UK Circuits Electronic Solutions based up in Manchester, a business which is over twenty five years old and is in the contract electronics manufacturing, which we'll call CEM through through this presentation.

1:35 And on the other side of the business is LIGHT SCIENCE TECHNOLOGIES, which is in the controlled environment agriculture, which we'll call the CEA market. This business has been going just over three years and is award winning in smart technology and ag tech for that controlled environment of agriculture. Just some some highlights for for the business. We've grown in revenue terms 46% from '19 to '22. So we're a growth company, and we're in two different key sectors of the market. And the synergies here between the two companies really are we've got a manufacturing side. We do our manufacturing based up in Manchester with just over 70 employees in that business.

2:23 But on the light science technology side, we're we're really pushing the boundaries with the new lighting recipes and lights, which I'll talk through the the the presentation, but also sensor technology and which will eventually go into AI and so that it controls the the environment that we're what we're working in, but also moving into the advanced grow system, which I'll run through, which talks about all the different elements of extending the growing season. So we've got three product ranges which we launched last year. We shipped over half a million products in 2022 and were multi award winning.

3:08 But also, we had our biggest turnover last year in November turning over just over £1,200,000 in in the group also. Okay. Thank you, Andrew.

3:20 So I'm gonna hand you over to Jim, who's gonna talk to you about twenty twenty two's results. Thank you, Simon. So showing a four year window from 2019 to '22 here, Simon mentioned that 46% growth in revenue across that window with a 10 and a half percent growth from '21 to '22, which was very encouraging and underpinned by the the platform business, which is UK circuits in the contract electronic manufacturing sector. It was a challenging year. There's no doubt about it. '22 was a very challenging year. We're coming through the the the back end of COVID and then the Ukraine war and ensuing energy crisis and hyperinflation that that resulted from that.

4:14 And, you know, like many other business up and down the the country and in the world, that was something that, you know, wasn't anticipated. And, you know, it's doubtless, it had an effect on both divisions. You know, we had record sales within UKC, but margins were down on that expected, really down to supply chain issues. It's a difficult equation negotiating pricings with customers when you're in a volatile supply side market. So, you know, margins weren't where we wanted them to be, and we put a lot of work in the back end of the year to get them back on track. And I'm pleased to say that's that that those actions are are resulting in what we expected as we move through this year. So difficult times. On the CEA side, elongations of sales cycles where pipeline remaining very strong. You know, we've got a current pipeline at the moment of 43,000,000 plus 18,000,000 orders and contracts in place throughout the group.

5:28 And so though that that pipeline's remaining very strong, but it's elongated. And there were delays in decision making simply because growers didn't have enough definition on on pricing, in particular energy pricing, as we went through 2022. We see prices stabilizing now. So as we move through '23, we're anticipating conversion of that pipeline and particularly as we move into '24. Would you move to slide, Andrew, please? Looking at the balance sheet, notably, big investment in the the sort of product development on the CEA side. Those ranges that we launched, SENSOR Grow, Advance Grow, and Nurture Grow, you can see between '21 and '22, a £500,000 investment in capitalized development costs there.

6:29 Noncurrent assets, remaining noncurrent assets, really stable. That's the properties up at in Manchester, UK circuit, and down here in Derby, and all the plant, machinery equipment and lab, capitalized costs there. In terms of current assets accepting cash, we did see an increase in stock levels, and that was to try and offset the some of the supply chain issues that I mentioned a little bit earlier. It's a fine balance between overstocking and and mitigating, you know, volatility in the supply side. So we saw somewhere in the region of 300,000 increase in stock at the back end of last year. And cash from IPO ing back in October 2021 to the end of the financial year '22, you can see the position moved from 3 0.8 to just under 600,000.

7:26 And that that was a result of development in in in products, marketing, IP, all the other elements to get our products to the state of development so that we could get them into market and get them commercialized. Moving on for the focus for 2023. Well, there's a number of areas that we we see as absolutely vital here. Increasing revenue further and continuing the growth. We see really good opportunities in both divisions actually for continued growth. Margins getting those margins back in the c a CEM division, the contract electronics manufacturing division back to where we would expect them to be. Reducing overheads both in the holdings company level and, Life Science Technologies to tailor to what level we're operating at.

8:21 It's not to hamper conversion and prospects there, but we're just making sure that we control costs very carefully so that, ultimately, our one of our key aims is to become cash generative. And, you know, the plan is as we move through '23 and into '24, as as revenue start to ramp and that cost control takes effect, that we'll move into a position of cash generativity. We are looking to launch the developed products we've got also into broad geographical markets and new sectors, and Simon will talk a little bit more about that as we go through the course of presentation as well as creating global partnerships with people like Dyson Farming. And, again, Simon will expand on that as we move through the presentation.

9:13 Up at up at UK circuits, we're investing continuing to invest in automation and modernization of their systems and equipment. That will allow us to move into new higher sectors of the CEM market, areas potentially like medical and such higher higher requiring areas for sophistication of plants and equipment and quality standards. So, you know, we see not just organic growth within UKC, but also moving into new sectors there. And importantly, alongside organic growth throughout the group, we are actively exploring acquisition opportunities. So if I can hand back to Simon at this point.

10:01 Thank you, Jim. So let's just talk about the market opportunities for the group. There's an estimated combined market opportunity of just under 30,000,000,000 up to 2,030 for the group, which this really gives us a really good opportunity to look at the market and where we see fit to put the products into and get the most traction throughout. So the GrowLIGHT side of the business, our nurture grow product, the market opportunity there is 1,700,000,000, and this is about a recipe of light to grow certain crops throughout the year. And that growth rate is CAGR of 21.1% from 2020 to '25.

10:48 The other side of the business where is agricultural sensor side of the business is 2,100,000,000, and that's got a strong growth rate as well of 11.4% from 2018 to 2026. So we can see real growth there in both of those areas. And our advanced growth system fits into the same markets as well. So it gives us a really strong growth and and something to attack going forward. And that really is demonstrated in our group pipeline of opportunity, which is 43,000,000. And so it gives us something really to to go at, and we're doing this and doing quotes globally now. We've got circular of £18,000,000 in the forward order book, which is really strong. So we're keeping that consistency up in forward orders as well. So what's driving the global need for the improvement of food security and growth in UK based manufacturing?

11:48 Well, on the CEM side of the business, onshoring, we're seeing manufacturing returning back to The UK. Since the pandemic, we've seen a drive for more quality product, and that's why the drive, but also the shipping costs of moving goods around the world now has shot up in price. So manufacturing them locally is really important. You would have seen on the other side, food security, we all talk about food security, and we physically see it now in the supermarkets where we can't get the fresh produce necessarily when we want it all year round, if it'd be tomatoes, cucumbers, lettuce shortages. We've seen it on the media in the past few months. And this will continue with the environment changing, climate change, where imports of food. We currently import around 70% of our fresh produce into The UK, and this can't continue. So growing it locally is really important to what we do and the products that we support globally. We've obviously got a growing population, 10,000,000,000 people up until 2050.

12:59 So a growing population, lack of soil to grow in, climate change, water shortage. We've seen droughts last summer here in our own country as well as in Europe and other countries around the world. So it's really had a big impact. And obviously, Ukraine and the cost of living crisis has also hit us. Thank you, Andrew. So just running through the product range, what we sell in the controlled environment of agriculture looking at our energy efficient products, which increase yields and profitability for the growers. We have NurtureGrow, which is our lighting range. We have well over 100 different types of products so that you can grow from above from where you grow, put the light above the the plant and it grows. But also, if it's a stem plant, we've got products which grow and move the light moves with the plant as it grows, which is really important for something like a tomato plant as it's a stalk plant. We have created certain recipes of light in that, which I'll come on to in the next slide in a minute.

14:11 But it's a really important product range that we've got, which is unique

14:14 and also got patents to it. But also, it's really energy efficient, which is what the market is currently looking for. On the other side, we've got SENSOR Grow, I touched on our SENSOR product, which we've now got beta testing going on in the marketplace with growers. And this is capturing all the data that a grower might be growing in his environment. And really where we set out to do work to help increase yields for a grower, this has now also turned since the energy

14:47 crisis into monitoring the costs that it requires. So what does a plant require and when does it require it? So monitoring those costs and that data, so really important. And then the advanced growth, the semi automated crop care where we're extending, this is going into glass houses and polytunnels, we're extending the growing season, but also increasing the yields. And we've seen a really good increase in yields in the contract that we're doing with Zenith,

15:18 which is really good. Okay, Andrew. So just breaking it down, the nurture grow product, what is it? It's a modular interchangeable design, and that's what makes it unique. This means that when it comes to the end of its life, the electronics come to the end of their life in, you know, seven six to seven years' time, you don't need to get rid of the product and put it into landfill. It is a recyclable product, which is really, really key in the environment today, but also it's reusable. So you reuse the body of the light and you change the innards of the light, which gives us a partnership with growers so that when it comes to the end of its life, they're not just going out and looking for a different light. We can actually interchange the electronics within it, and give them a new, technology, a new recipe of light, for whatever they might be growing at the time, which really gives us uniqueness and a long partnership with our clients. So it's modular design, it's sustainable.

16:19 It's also a multi award winning product, which we won in '21 and also recently in '22. Interchangeable, as I mentioned, and also array of different recipes which we create here in Derbyshire in our scientific lab.

16:37 Thank you, Andrew. So moving on to our sensor product, we're very excited about This this product is on a subscription basis on a three year contract with our customers, and we are putting this product in, and it's monitoring the environment. You might say, well, what's the importance of of monitoring? But it's about having information.

17:00 Agriculture needs the information to be able to control what they're doing and when. Before, when we've had fertilizers, we we spray the field or we spray the crop internally in a in a glasshouse or a polytun or a vertical farm, and we dose it. But what does the actual plant need? Having that precise data is really important, and that's how you can control your your your cost of what you're putting on to these crops. So it might be CO2, it might be water, it it might be the nutrients, it might be the fertilizer that you're putting onto the land to make these crops grow. And so it's really important to have that data. And what we've seen with our clients is that there is a big saving in nutrients, which is shot up in price and fertilizer costs, which is shot up, so they can control those and have a better product for it.

17:50 The other side of it, we're we're really moving the technology on to do then root zones as well. So we've got air zones and moving on to root zones. But what we're hoping to do with this is then go open to open agricultural as well as enclosed. So we're doing enclosed at the moment, but then going to open. Our device, our sensor works off a battery, so it's rechargeable once a year. So we can swap these out.

18:16 The data it collects, there's no cables to it because it's battery operated and rechargeable, means that it can work three kilometers away from from the device, pulling in that information to our software back to the the source. And then from there, we can tell the the growers what they need to do, or it goes onto a platform, a digital device, and it will tell the the farmer or the grower at that particular time what he needs to change in that environment or to a control system where it automatically change the environment for them, if that be opening vents, changing the dosage of the different nutrients going into the ground. We're working with partners, Dyson Farming Research, Emerald Research, Berry Gardens, and Tiptree, the people who make the small pots of jams you might see when you go to hotels. So it's really exciting to have those partnerships, and we continue that going forward into 2023.

19:14 The advanced growth system is what we've been working on at Zenith Nurseries. It's a contract that we won for just over £13,000,000. So that goes through its gateways. But what we've seen here, which is really important, this is now operational. It's working. So we're we're getting those results, which are really important. But what we've seen is that we've seen a good increase over 40% in increase in yields, And we grew, we did a trial in December where we normally wouldn't grow the crops in

19:46 December because it's too cold to do so, there isn't enough light. And our advanced growth system grew yield which was 40 more than it would normally do. It's in December. And this is what it's all about, extending the actual growing season, which is really important to make sure that we can start growing all year round and and stop these imports. What we're doing here for 2023 is trying to get a commercial product out to supply the 4,000 UK growers,

20:17 which are out there in the country, which have got glass houses and polytunnels and start semi automating equipment. So rather than using tractors up and down into these environments, you're saving 25% of the area. So you gain 25% of the growing area, which is really important to to do so, and also start reducing the labor. There's a big labor shortage in agriculture, and so it's one of the big feedbacks we've had from our our clients is increasing yields, growing for twelve months of the year, and also reducing labor by having semi automation. So really important to get that, and that's what we're doing there. UK Circuits Electronic Solutions, a company which has been running twenty five years.

21:09 Year on year, we get growth from it. So we're looking at making sure increasing the margins is really important to us. We saw a drop in margin, as Jim mentioned, in 2022. So we're now focusing and bringing that margin back, which is happening. We had our largest turnover month in that company in November, so over a million pounds that we're doing in that particular month. But so we're looking at investing more equipment automation equipment and technology so that we can look at other clients who are further up the food chain, which will help us increase those margins and do bigger contracts. And so better equipment, improving the equipment in the that facility.

21:56 And that's really a very good backstage to our business because it also manufactures our sensor product, our lighting products going forward. So it's really good to have that key business in our in our group. We work with customers like Rent Kill, Switch

22:10 To Cloud, and some of these partnerships are well over ten years old. And we recently renewed last year the contract with Rent A Kill going forward, which is a really important part of our business, broadening our relationship going forward. So we believe we've got a compelling market opportunity here for investment. We've got a good strong pipeline, which is now over £43,000,000 in the CEA and market combined. We've got a circular of £18,000,000 forward order book and contract value. And that's really important to keep that value going because, obviously, we're having big months of turnover of revenue months, and we're still managing to contain contain that that revenue and that growth going through through the business. And as I mentioned earlier, we we've grown, you know, in 2022 just over 10%, which is really important.

23:06 Recurring revenue model in in our sensor product and also in our lighting product. We've got a three year subscription model based there, and we've got some beta testing being done at the moment. And we're really excited about that sensor product because it bring in AI and automation into some of these new real hybrid glass houses and vertical farms which are out in the marketplace. We've also made sure that we've got a family of pending products, So we're protecting our product range as we design and develop it and manufacture. And so we're always protecting that as we go into different global markets. Some of the recent achievements in 2022 are, you know, we shipped over half a million goods last year.

23:59 We've created global opportunities in America and Canada. We attended over 10 global events last year, and we continue to do so. We launched three key products in the controlled environment agriculture, the SENSOR GROW, ADVANCE GROW, and NURTURE GROW range. And we've won multiple awards for our products, so they're now being seen worldwide for our products, which is really important to get that notice around the world for different projects which are going on. We've also got our in house lab and also our lighting testing facility, which is really important to be able to prove the technology that we do with our partners, and we're really getting some good traction now going into '23 and '24.

24:52 Thank you very much. I'll hand you back and hopefully we'll go through the questions now and answer some of the questions you might have. Perfect. Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab which is situated on the top right hand corner of your screen. But just while the company take a few moments to review those questions submitted today, I'd like to remind you that the recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. As you can see, we received a number of questions throughout today's presentation. And Andrew, if I could just hand over to you to read out those questions, I'll pick up from you at the end. Absolutely. Yes. We'll start with Simon with how do you view the current conditions for the existing year? There's no doubt that the energy crisis has caused a delay in some of the the projects that we've got in the pipeline.

25:45 But saying that, what we've seen is in 2022, everybody in in the growing environment and in the energy crisis revalued their their site and what they were using in energy. And what we've seen is increasing some of those quoted business to now look at all of their lighting requirements in their estate, which I think is important. So they're looking at bigger investments. And so we'll start seeing those starting to come through to actual orders and deliver them and then on to '24 and '25, which becomes the really exciting time, really, for the CA market and and agriculture. And that the similar vein, Jim, what current trading is looking like? Well, as we covered, you know, 2022 was was difficult.

26:36 Margins at UKC were down, but we took actions in that final quarter that are feeding through. We've got much high levels of visibility throughout the business having implemented an MRP system up at UK circuits. That's now delivering results. It's it's cutting down on a lot of duplication of workflow. It's giving us high levels of visibility commercially through the procurement manufacturing right through to the sales side of the process. So, you know, we're pleased that those actions are delivering on the CEA side of the market. You know, energy costs seem to be stabilizing finally now. That's what's key to our customers.

27:23 They need to be able to see in investing in our products and solutions, you know, what sort of paybacks they're going to get. So the turmoil that we've had over the last sort of year in that area, you know, coming to a stable period now, we do expect to see that very healthy pipeline convert as we move through the the sort of second half of twenty three. Okay. We've got what are the key growth opportunities across both divisions. I can take that one. It's really in the CEM side. It's sort of was moving into all the markets like medical and defense and particularly to the tier one side of it like we are with rent to kill, really. We've also got to sort of offer an injection molding because we do a lot of assembly work where we're sort of finishing the final product, which gives us more control over it. So offering something like injection molding in house as well. Many of our parts go into injection molding, so that would make sense. It's not huge amount of capital spend.

28:22 On the CA side, it's really the global opportunities. We've gotta be looking at areas where, you know, know, they're they're not suffering from the energy crisis as much as we are. So, you know, UAE, United States, Canada, those sorts of markets, and really doing those through sort of partners, if you like, sales partners rather than bearing all the cost of the sales ourselves. And then the other area is the energy saving devices, so things like the sensors and the rolling plush where we're saving labor or we're saving energy, you know, really working for the growers. We've got another one which is, are there any synergies you can drive across the business? We're already setting up UKC with a line where they can make our lives, and there's actually at this moment, say, the first manufacturing batch of sensors going through the factory in Manchester at the moment. So, there are lots of synergies. We share certain things like sort of new business lead generations, marketing, even electronics engineering.

29:21 We share across both sides. So, yeah, lots of synergies synergies there. There, but, know, we can always do more. We've got the same MRP system as well, another proprietary systems. So, yeah, it's that one. Simon, any what type of news flow can we expect over the next twelve months and sort of key milestones? I think the key for us to to grow as globally is to make sure that we've got partnerships in various countries around the world to sell our products through. I think it's the most sensible way of keeping costs low, but also expanding our product range into into countries. So I think you will see more partnerships coming through. We're also always on the lookout for for acquisition opportunities as well going forward, which is really important for the business not just to grow organically, but also through acquisition.

30:13 I think we'll also see other awards coming through that we would have applied for. And also other news, which is how developments are going with customers and contracts coming through, continuing signing, if it be Centimeters or CA division contracts to extend the the forward orders and and the revenue that we we deliver each month. And, Jim, can you provide more detail regarding the cash position? Sure. So recently, having gone through a a fundraise, we were reassured by the market that we raised over 1,500,000 gross proceeds.

30:59 We we do see that as we ramp turnover and increase divisional turnover in the CEM division that our aim towards cash self sufficiency will will move through in in financial year '24. We're that's one of our absolute planks of focus that, you know, we do want to become cash generative and self sufficient. So, yeah, that that fundraise was very important, and we we were reassured and and very thankful to to our shareholders who we we look forward to continue working with closely over the months and years. I think we need to be very careful. I answer this one, Simon. It's how would you describe life on the market to date?

31:48 Hard work. I I think for for a small team as we've got, you know, we haven't got a lot of management with us, which more boots on the ground and manufacturing. Manufacturing. You know, we've got just over 80 employees in in the whole group. But I think at the end of the day, it's it's a learning curve. It's something you learn every day. There's an awful lot of work which requires for the city, but we continue to make sure that we we give as many updates as possible. But at the end of the day, it's in the results. It's keeping that revenue continuing to grow, which is really important as we have done in '22 and also focusing on for for '23. And turning the business into a cash generative business is our focus and where really the management team have been used to driving businesses before into cash generative and growing businesses, which will attract more investors to us, we believe we're in the right space to do that. So we're very excited to continue doing that. Okay. Thank you.

32:51 What sets you apart from competitors? I can take this one. The I think on the CDM side, it's very difficult to differentiate. I think what we focus on there is building long term relationships with our customers. You know? A lot of them, eleven, twelve year sort of relationships. So it's about being reliable, being transparent, particularly at the moment when we've got sort of lots of either these bad news on costs or on lead times that we gotta get customers. We gotta give them other options and sort of so that we feel like we're giving them somewhere to go. And that's really we're doing really well there. We've actually taken quite a bit of work from other contractors where they were kinda saying the company says this is the price, and this is the lead time we're striving to find the better solution, if you like, that's more favorable. On the CEA side, really, what we're doing is we're creating a bespoke solution for them that's really focused around what is the environment they're growing in, what type of environment is it, and developing the product there rather than with some of our competitors.

33:47 They've literally got a price list with a lot of brown box items on it, and this is the nearest fit to what you want. So it's it's a very different sort of approach, if you like, really. On consignment, what could the business look like in three years' time? I think in three years' time, I think it's, you know, the CEM side of the business continues to grow with our partners that we already have in the business. So it's making sure that we look for also the next tier up, as I mentioned in the presentation, with the equipment that we're investing in. So we see continued growth there. And in the CA market and the controlled environment agriculture, we really see, you know, I think we'll see a big step change in how we look at food and where it comes from and the more importance to to the general public and making sure it's available all year round. But it tastes good.

34:38 You know, when when you import food like we do as a country, 70% import, the food doesn't taste as good as it does if you have a a a strawberry which is grown in The UK. And I think we will see see a lot more importance. I think the government will invest more, and I think more companies will come out to be growing in these hybrid buildings, it be polytunnels, glasshouses, vertical farms, and we'll see a real shift change to growing more locally. Whatever country you're you're from, I I think we'll see that. And that's what we we see. So I think it's a a good place for the business to be and the products that we're selling, and I think we'll focus more on the turnkey solution for our customers and providing those those products in. This this question, it relates really around recent news where you've seen on the on the news.

35:27 There's also photos, pictures of empty supermarket shelves and things like that. This question is really about how do our products support the growers. I guess what the main thing is is on things like the sensor grow, we're helping them save energy, which is really vital at times. Some of them, we've heard stories of up to nine times increases in their energy prices. So if we can use the sensors to direct the right amount of light DLR DLI to the crops, it means their lights can be tuned down when they're when the DLIs when the DLIs is satisfactory. So they're only using the minimal amount of energy that they need to. And then things like ex advanced growing, evolving plush, you you know, know, by extending the seasons. It's very Simon has said earlier, it's very difficult to get staff to work in in these places.

36:13 And what you can't also, what they don't wanna do is let them go at the end of the season because they're never gonna get back again. So So with this, what this allows them to do, we retain a smaller number all the year round and get them keep them, you know, occupied all the year round if you like, which has been a real benefit for them on there. So there's a couple of examples there. Do we see this growth continuing? I think that the large forward orders that we've seen, traditionally, we used to be on something like, you know, three or four months worth of forward order books. We've now got around about a year of forward order books. And that a lot is driven by the fact that they know that there's shortages, so they wanna get their orders in early. So that will obviously, as as supply comes back, tail off a little bit, but it'll be counted by another trend that's been happening, which is, you know, people wanna reshore. They don't wanna have that risk of of items sat in the Far East.

37:09 The other issue is that, you know, that they're more inclined as as to to dip into the gray market than we would be in The UK. So, you know, in the gray market, really know what you're buying. You don't know what's inside that chip. So, you know, I think from a quality and a trust perspective, there's been a lot of reassurance going on, which should offset that sort of a drop as as time goes on. So the usage is not changing. It's just the well, you say that you've got electric cars and things like that, so usage is increasing in that market as well. I think in CA, what we're looking for there is that latent demand coming back a bit like after COVID. If nothing's been happening in CA for eighteen months because of the energy crisis, The word we're getting is the projects are not being canceled. They've just been put on hold. You know, if they come back, that latent demand should should follow with it. That's what we're sort of hoping for.

37:59 We've got a question here about who do you see as your primary competition. We've got a couple of questions along that theme. In the c b m side of things, it's very local. You know, there's there's lots and lots of companies like this. So it's it's quite a local. Our sales reps are by region rather than globally. So our competition in there would be something around the corner. So, you know, there's a company called UK Electronics, which is quite similar, but they they would be our primary competition. On the CA side of things, it would be the Philips and the GE that are producing the brown box items, very competitive. But, you know, we are kind of alongside them in price most of the time. But then in terms of like, because where we're very differentiated in terms of sites backed bespoke, it would be somebody like Helix Spectrum in Sweden.

38:50 But, again, I think we can we can kind of beat them up price because they they they manufacture in Sweden as well largely. So so, yeah, they will be our main competitors. I've got one on the site. There's one about what is the interest of ICL. That one is really around the nitrous oxide, And this is a partnership with Dyson Farming plus another six growing groups as well. And really but this is really exciting because it it takes us into outdoor growing. It's not just CA. It's outdoor growing as well. So it gives the sense of another kind of job if you like.

39:36 So so that's what their interest is in there. It's early days with that one yet, although it's progressing very well with the Dyson farming group and the other the other consortium there. So there'll be stuff coming out later on the year on that. One for Jim, I think. Can you confirm the number of shares issued is 333,000,005 o o five o o five o? Correct. 4,000,000. That's a long number there. Yeah. So and I think yeah. We've got any more questions. Andrew, I I think that's all of them. I think you've addressed all of those questions from investors. And, course, the company will review all questions submitted today, and we'll publish those on the investor meet company platform. But just before redirecting investors to provide you with their feedback, which you know is particularly important to the company. Simon, could I just ask you for a few closing comments?

40:36 Yeah. I think it's been a, you know, a difficult 2022, but we have managed to make sure that we invest in in our product range and our our three launches that we did last year, which is really important. We still kept and managed to grow in difficult times over 10%, which which is important in revenue. We're, this year, making sure that we're focusing on margin and may getting to that cash generative position, which is really important in '24 and '25 and and onwards so that we're generating that cash as a business as we've, you know, spent a lot of money on developing a product range in a new market. And we'll continue to look at, you know, acquisitions moving forward so that we can grow not just organically but through acquisitions as well. So we're we're open to that as as well going forward.

41:27 So we think the market, we're in a good place as a business. We've got the the new investment of 1.5 just over 1,500,000 that we raised. And so we're excited about going forward. We know what needs to be achieved, and we've got the right team to do it. Simon, Jim, Andrew, thanks once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team for LIGHT SCIENCE TECHNOLOGIES HOLDINGS PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all. Thank you. Thank you very much.