Light Science Technologies' pipeline growth negated by elongation of sales cycle

Technology and manufacturing firm Light Science Technologies said on Friday that positive pipeline growth had been negated by the elongation of its sales cycle, with the benefit of its pipeline now set to fall into the next financial year.

Light Science stated its sales pipeline of quoted work was over £60.0m, of which there were forward orders and contracts worth £18.0m, as its pipeline continued to grow due to the "pressing" needs for food security and to grow more produce locally, sustainably and energy efficiently.

However, the AIM-listed group highlighted that government grant delays and input inflation experienced by growers, which cannot be passed on to customers, have led to capital expenditure by growers being delayed.

As a result, Light Science now expects full-year revenues to be approximately 35% below market expectations for the year ending 30 November and issued guidance for a pre-tax loss of roughly £2.0m.

"The benefit of the conversion of the pipeline will, in the board's view, fall into the next financial year. Notwithstanding the delay in revenue, the board is confident the overall prospects for the company remain strong," said Light Science.

As of 0950 BST, Light Science shares had tumbled 28.94% to 8.35p.

Reporting by Iain Gilbert at Sharecast.com