Light Science’s bold move: buying Injectaclad, taking full control of UK Circuits, and raising up to £6.6 million
Light Science Technologies Holdings has announced two acquisitions and a fundraising to reshape the Group for higher-margin growth. The headline deal is the acquisition of RLUK Injection, owner of the Injectaclad passive fire protection system, for up to £4.8 million. Alongside that, the Group will buy the remaining 10% of UK Circuits and its Manchester property. To fund it, Light Science plans to raise up to £6.6 million at 1 pence per share via a placing and a retail offer.
On strategy, this is about margin, control, and scale. On risk, this is about execution, approvals, and dilution. Let’s unpack it.
Injectaclad acquisition secures IP, supply chain and margin in passive fire protection
The Company will acquire RLUK Injection, including Injectaclad, for up to £4.8 million in cash – £3.0 million upfront, £1.0 million deferred after 12 months, plus up to £0.8 million contingent on revenue targets over three years. Injectaclad is a patented, pumped graphite system for retrofitting cavity fire barriers without stripping building façades. This sits right in the heart of the UK’s cladding remediation market post-Grenfell.
Why this matters: Light Science already installs Injectaclad. Buying the IP and supply chain allows it to capture more of the value chain – installer margins plus product margins – while tightening control over quality, pricing and availability. It also creates a new revenue stream as a materials supplier to approved installers.
- Injectaclad financials show traction: unaudited revenue rose from £0.25 million (2022) to £1.42 million (2024), with gross margin rising to 53.5% in 2024 and 57.6% in the 10 months to 31 October 2025. Adjusted EBITDA reached £444,000 in that 10-month period.
- Market backdrop: estimated £4.42 billion addressable market for passive fire remediation. The division holds a quoted sales pipeline of approximately £24 million, pending Building Safety Regulator approvals.
- Product edge: patented system that expands 20x under heat, 50-year lifespan, and avoids façade removal – a cost and disruption win.
- Execution plan: consolidate installer base from 12 to 6, centralise quality auditing, standardise pricing, and build a Manchester distribution and training hub.
Jargon check: PFP means passive fire protection – products and systems that stop fire and smoke spreading. An earn-out is contingent consideration paid if milestones, here revenue targets, are hit.
Full ownership of UK Circuits and the Manchester property
Light Science will acquire the remaining 10% of UK Circuits for £270,000 and the connected Manchester property for £300,000 plus VAT. That removes around £45,000 of annual rent and gives optionality for future expansion or divestment.
- UK Circuits trading: audited profit before tax of £0.4 million on revenue of approximately £9.5 million in the year to 30 November 2024; unaudited net assets approximately £0.6 million at 31 May 2025.
- Pipeline and orders: quoted sales pipeline £0.7 million and forward orders £2.1 million.
- Strategic shift: target higher-margin defence and medical work, leveraging accreditations.
- PFP synergy: the property becomes the northern base, distribution point and training centre for Injectaclad.
Placing and retail offer at 1p – up to £6.6 million to fund the plan
The Company intends to raise up to £6.6 million before expenses at 1 pence per share. That includes a £6.0 million placing – approximately £0.7 million on existing authorities and approximately £5.3 million conditionally subject to shareholder approval – and a retail offer of up to £0.6 million. The placing is not underwritten.
- Pricing: 1 pence per share, a 65.5% discount to the 2.9 pence closing middle market price on 10 March 2026.
- Tax wrappers: an EIS/VCT tranche is planned, with EIS advance assurance obtained. Relief depends on qualifying conditions being met.
- Timetable highlights: First Admission expected 18 March; General Meeting on 9 April; Second and Third Admissions expected 13-14 April.
- Insider participation: the Chairman intends to subscribe £125,000 in the placing.
Jargon check: a placing is a share sale to institutional investors run quickly via a bookbuild. A retail offer lets existing UK retail holders apply on similar terms. EIS/VCT are UK tax relief schemes for qualifying investments.
Current trading: revenue dip, mixed divisional picture, cash tight
For FY25 (year to 30 November 2025), Light Science reports unaudited Group revenue of £8.6 million (FY24: £12.0 million) and an unaudited operating loss of £0.6 million (FY24: operating profit £0.3 million). The main drag was lower sales from a key CEM customer.
- CEM: £6.3 million revenue and £0.4 million operating profit, with a pivot towards defence and medical.
- AGT: £1.0 million revenue and £0.3 million operating loss.
- PFP: £1.4 million revenue and £0.3 million operating profit, with the pipeline awaiting regulator approvals.
- Cash: £0.7 million at 30 November 2025, with working capital facilities fully utilised. The 2026 financial year is expected to be cash generative.
Key numbers at a glance
| Injectaclad consideration | Up to £4.8 million (initial £3.0 million, deferred £1.0 million, contingent up to £0.8 million) |
| UK Circuits minority | £270,000 |
| Manchester property | £300,000 plus VAT; rent saving approximately £45,000 per year |
| Fundraising | Up to £6.6 million at 1 pence per share (Placing £6.0 million, Retail Offer up to £0.6 million) |
| Issue price discount | 65.5% to the 2.9 pence close on 10 March 2026 |
| PFP pipeline | Approximately £24 million, pending BSR approvals |
| Addressable market | £4.42 billion for passive fire remediation |
| FY25 Group revenue | £8.6 million (unaudited); operating loss £0.6 million (unaudited) |
| Cash at 30 Nov 2025 | £0.7 million; facilities fully utilised |
Why this matters for shareholders
This is a decisive tilt towards higher-margin activities. Owning Injectaclad’s IP and supply chain can lift division-level economics and remove a key dependency. Folding in the last 10% of UK Circuits and buying the site simplifies control, cuts rent, and anchors a northern hub for PFP. The Board is talking about a mid-term revenue ambition of around £50 million, combining organic and inorganic growth – the acquisitions and balance sheet reset are the enablers.
My take: positives
- Margin mix improvement – PFP and product supply can carry stronger gross margins, evidenced by Injectaclad’s rising gross margin profile.
- Strategic control – IP ownership, installer base rationalisation, and a training centre should tighten quality and pricing.
- Clear synergy – UK Circuits’ site doubles as the PFP base, supporting faster rollout and logistics.
- Tax-efficient capital – EIS/VCT capacity could broaden demand for the raise.
- Chairman buying – a useful signal of confidence, albeit not a guarantee.
But also, the watch-outs
- Dilution – issuing shares at a 65.5% discount is painful for existing holders. The exact number of new shares in the placing tranches is not disclosed.
- Not underwritten – the placing is not guaranteed to complete in full, and key tranches require shareholder approval.
- Execution risk – integration, installer consolidation, and scaling a distribution model while maintaining high quality is not trivial.
- Regulatory timing – a large PFP pipeline depends on Building Safety Regulator approvals, which have been subject to delays.
- Cash and working capital – starting from £0.7 million cash and fully utilised facilities puts a premium on completing the raise and delivering cash generative growth in 2026.
- Earn-out hurdles – up to £0.8 million extra is payable if Injectaclad hits £3.0 million, £4.0 million and £5.0 million revenue in years 1-3 post-completion. Ambitious, but aligned.
What could move the share price next
- Bookbuild result and size of allocations at 1p.
- Shareholder vote on 9 April and subsequent admissions on 13-14 April.
- Conversion of the PFP pipeline as BSR approvals land.
- FY25 audited results in April 2026, and any FY26 trading commentary on cash generation.
Bottom line
This is a high-conviction pivot into owning the crown jewels of Light Science’s passive fire proposition while simplifying the Group and building a platform for scale. The valuation reset via a deep-discount raise is the cost of admission. If management executes – approvals arrive, installers consolidate, and product and install margins stack – the Group’s margin and cash profile should improve. If approvals stall or the raise under-delivers, the plan becomes harder.
On balance, strategically positive, financially demanding. Clear milestones to watch over the next quarter.
