Nanoco has delivered a strong performance this year, achieving our best ever financial results in the Company’s history. We pushed our innovative platform technology into a range of potentially lucrative commercial applications including IR sensing, while significantly enhancing the performance of our nano-materials and actively engaging in development work in all three display technology generations.
It was clearly disappointing, for reasons wholly unconnected to Nanoco’s performance or our materials, that the US Customer decided not to continue the current project contract when it expires in December 2019. However, we remain confident in the Group’s assets, team and capabilities. Our expected positive cash position of £6.0m following completion of the current contract deliverables for the US Customer provides us with reasonable headroom to deliver on new sources of commercial income.
Our commercial focus going forward will primarily be in the electronics and display markets. We are already actively engaged with an encouraging pipeline of potentially attractive opportunities, all of which can be delivered by our current asset and cost base. As ever, the Executive team is alert to the impact of further delays in the realisation of these opportunities and contingency plans are in place to manage any such delays to our commercial development.
There are still challenges and uncertainties to be managed and the Board remains focused on maximizing shareholder value. Our expanded platform technology continues to be relevant across a wide range of market applications and has created a number of commercial opportunities to pursue. The Board, therefore, remains confident in the value inherent in the business.
Dr Christopher Richards, Nanoco’s Chairman
Operational highlights
Platform technology strategy implemented – focus on capabilities in design, development and scale-up of cadmium-free quantum dots (CFQD® quantum dots) and novel nano-materials
Significant improvements in dot performance
Continued investment in IP portfolio with 745 granted and pending patents (2018: 654)
Core R&D, IP and production capabilities retained following display resource pivot
Commercial efforts focussed on two attractive, high growth markets which are summarised below:
Nano-materials (for use in the electronics industry)
- Achieved US Customer milestones, with £7.8 million contract delivering through to December 2019
- Completed new Runcorn manufacturing facility, funded by US Customer, now in final product validation
- Patented nano-material technology now proven in devices
- Actively engaging with other potential customers in Infrared (IR) sensing market
Display
- Further deepening of R&D activity into QD-OLED and micro-LED (Gen 2) and electro-luminescent (Gen 3) displays while enhancing performance of dots for film based application as it moves into the mass market (Gen1)
- Significant improvements in key performance characteristics in Green and Red dots
- Engaged in commercial opportunities in all three generations of display technology as noted above
Financial highlights
Significant increase in billings
(2018: £6.5 million)
Revenue more than doubled to
(2018: £3.3 million)
Loss after tax
reduced to
(2018: £6.0 million)
Now delivering
of savings in FY20
Waiver of
contract liability by US Customer
Cash of
as at 31 July 2019