Share price slumps to all-time low at Derbyshire agri-tech firm
Shares in Derbyshire-based agri-tech company Light Sciences Technologies fell to an all-time low on early trading this morning (June 10) after the firm issued a profit warning.
Stocks were changing hands for just 7.49p at just before 8am – over 36% down on their opening price – and the lowest price since the firm floated on AIM last October.
Light Science Technologies issued the profit warning after being hit by Government grant delays and rising inflation.
The firm says it has pipeline of quoted work of over £60m, of which there are forward orders and contracts worth £18m.
However, in a statement, Light Science Technologies said: “The positive pipeline growth is negated by the elongation of the sales cycle due to a number of factors, including government grant delays and input inflation experienced by growers which cannot be passed on to customers, which has led to capital expenditure by growers being delayed.”
As a result, group revenue is now expected to be approximately 35% below market expectations for the year ending 30 November 2022. The company currently expects to report a loss before tax for the current year in the region of £2m.
In April, the company said it had made of loss of £2.35m last year, attributing the cost of its admission to the AIM market as the reason.
The statement added: “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.”