Light Science Technologies shares plummeted 24.6% to 8.8p after its recent trading update announced anticipated revenues approximately 35% below market expectations for FY 2022. The company warned it expected a pre-tax loss of £2 million for the entire year.
Light Science Technologies noted a sales pipeline of quoted work over £60 million, including forward orders and contracts valued at £18 million. The pipeline has been growing on several factors, such as the necessity for food security and the requirement to grow more produce using sustainable and energy-efficient methods.
However, the firm mentioned that its sales pipeline growth had been negatively impacted by the elongation of the sales cycle, with government grant delays and grower input inflation which can’t be passed onto consumers leading to a delay in capital expenditure.
Light Science Technologies commented that it expected the benefit of the pipeline conversion to fall into the next financial year.
The company said its board remained confident in the group’s overall prospects, notwithstanding the current delay in revenue.