Light Science Technologies CEO Simon Deacon says a new SMT production line will lift capacity by 50% and could take CM division revenue from roughly £9m at its prior peak to £14m-£15m. He frames the company as benefiting from a new large global client, stronger demand in healthcare/medical and defense, and a multi-division strategy aimed at higher revenue, margin expansion, and cash generation.
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Simon Deacon says the main near-term story is operational expansion: a new surface mount technology (SMT) line is being installed that should increase capacity by 50% and improve both efficiency and accuracy versus the older six-head machines. He ties that directly to revenue potential, saying the CM division previously generated around £9m at its high point and could now grow to £14m-£15m with the new equipment. A second pillar of the interview is the new client win. Deacon emphasizes that the customer belongs to a group turning over £12bn annually and is a leader in access and intelligence security systems operating in more than 70 countries. …
Tactically, the setup is positive if the new SMT line ramps smoothly and the client relationship turns into near-term orders; otherwise the stock could fade on execution questions. The immediate risk is that capacity expansion outruns demand proof.
Over the next few months, the base case is gradual improvement in revenue and margins if CM volume fills the added capacity and the company keeps adding customers across its target sectors. Confirmation would come from follow-on contracts, better utilization, and guidance that supports the £14m-£15m CM revenue path.
Structurally, the company is trying to build a diversified industrial-tech business tied to UK manufacturing, food security, and compliance-led demand. The long-term thesis only holds if those themes translate into repeatable cash flow and margin expansion, not just sporadic contract wins.
The new SMT line will increase capacity by 50%.
Directly stated as the impact of the new equipment and production line.
The CM division could grow revenue from around £9m to £14m-£15m with the new equipment.
This is the clearest quantitative revenue bridge in the transcript.
The new line improves accuracy because it has 12 heads versus six on the old machines.
He explains the operational improvement in mechanical terms.
How much additional revenue could the new surface mount technology line capacity support, and will the capacity be filled?
The new equipment and production line should lift capacity by about 50%. Simon says the contract manufacturing division could grow from around £9 million at its height to roughly £14-15 million in revenue with the new equipment installed.
Has the SMT line already improved operational efficiency in the division?
Yes. He says the new line uses 12 pick-and-place heads instead of six on the old machines, which increases efficiency and improves accuracy. He adds that the facility should produce better quality output and better service.
Could the partnership with the large global client grow quickly?
He believes it can, because the client is part of a £12 billion turnover group that operates in access and intelligence security systems across more than 70 countries. He says the opportunity is broad and fits the company’s goal of winning new customers in key sectors.
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