Light Science receives first order as Injectaclad supplier after RLUK acquisition

(Sharecast News) - Light Science Technologies said on Tuesday that its passive fire protection division had secured its first order as a supplier of the Injectaclad fire-resistant graphite barrier system, shortly after completing the acquisition of RLUK Injection.

The AIM-traded technology and manufacturing group said it had received contract confirmation from one of its approved Injectaclad installers for about £0.41m of material to be called off over a 19-week project period.

Work was scheduled to begin in early May on a five-storey residential building in East Yorkshire.

The company said revenue of about £0.41m from the project was expected to be fully recognised in the current financial year, subject to the work progressing as anticipated.

Light Science completed the acquisition of RLUK on 14 April.

In the just-over-two weeks since completion, commitments for Injectaclad products had been secured from five of the 11 quality-accredited installation contractors.

Before the acquisition, Light Science operated only as an Injectaclad quality-accredited installation contractor.

The company said a central reason for acquiring RLUK was to establish a higher-margin revenue stream by supplying Injectaclad materials to approved installers.

There are currently 11 qualified installers in the network, each with a substantial project pipeline.

Light Science said that positioned the group to capture a greater share of the value chain and accelerate growth in its passive fire protection division, particularly as the Building Safety Regulator focussed on reducing delays and speeding up cladding remediation programmes.

The company said it had made significant progress with integration since the acquisition.

Core infrastructure needed for business continuity has been integrated, including IT systems, management information systems, data migration, insurance arrangements and legal frameworks.

Light Science said it had also engaged with its supply chain and quality-assured installer network, and refined its strategy through discussions with fire engineers, architects and contractors.

Partnerships with fire engineers had been established to strengthen design capabilities, while enhanced testing requirements have been scoped.

Operationally, the group has established a warehouse facility at its contract electronics manufacturing site in Manchester and developed a supporting logistics network.

It also promoted Injectaclad at the three-day Fire Safety Event at the NEC last week.

Chief executive Simon Deacon said the order highlighted the opportunity to position the company as both an installer and supplier of Injectaclad.

"The PFP division is gaining increased visibility and is well placed to secure a growing number of projects that would otherwise require full façade removal and replacement, delivering substantial cost savings and minimising disruption for residents," he said.

The next phase of integration will focus on strengthening the team with additional technical, quality and governance expertise.

Light Science said it would communicate its strategy more widely to quality-assured installers, existing customers and prospective clients, while updating marketing materials.

The company said it would also continue supporting clients and contractors with technical guidance to help convert projects awaiting Building Safety Regulator approval.

Enhanced testing programmes would be carried out with selected partners, while further engagement with technical experts would support the development of brand ambassadors.

Deacon said the Injectaclad acquisition gave the company access to a broad and growing pipeline of potential projects.

"The company is also seeing a growing number of BSR applications specifying Injectaclad," he said.

"This represents a highly exciting opportunity for the group, not only within the PFP division but across all our operations, as we focus on driving order conversion, increasing recurring revenues and delivering sustainable profitability."

At 1145 BST, shares in Light Science Technologies Holdings were up 17.71% at 1.83p.

Reporting by Josh White for Sharecast.com.

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