Interim results for the six months ended 31 January 2017
Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, is pleased to announce its interim results for the six months ended 31 January 2017.
- First commercial sales of Nanoco’s products expected in the remainder of the second half of this financial year
- Debuted at CES, the global consumer electronics and consumer technology tradeshow, demonstrating Hisense, TCL and TPV Philips televisions containing Nanoco Fine Color Film™
- Nanoco cadmium-free quantum dot (CFQD®) technology being evaluated in 14 active TV and monitor programmes with nine major Original Equipment Manufacturers (OEMs)
- Creation of a robust global supply chain for display and lighting OEMs – including a ten-fold increase in manufacturing capacity at Nanoco’s Runcorn plant, delivered with little additional capex
- On track technology transfer to Merck, which has successfully produced CFQD®s in Germany
- Merck is evaluating plans for its own manufacturing facility and will continue to purchase product from Nanoco until that facility is commissioned
- Merck’s own marketing efforts have resulted in a clear understanding of significant potential for Nanoco’s technology
- Dow is progressing well with initial commercialisation following the transfer of Nanoco’s improved green CFQD® production process
- Intellectual property portfolio expanded to c.550 (2016: c.400) patents and patent applications
- Although first half results are in line with the Board’s expectation, sales have not yet materialised in the second half and we are therefore lowering our full year expectations
- Personnel cost savings of £1.1 million per annum following cost cuts in December 2016
- Cash and cash equivalents of £8.3 million plus R&D tax credit receivable of £1.9 million; the Board believes this gives the Company sufficient headroom under the expected timeframe for commercial sales to commence and has carried out detailed contingency planning in event that sales are further delayed
Dr Michael Edelman, Nanoco’s Chief Executive Officer, said:
“We have continued to make good progress in our first half. We were particularly encouraged by the positive feedback and significant interest shown in Nanoco’s CFQD® quantum dots at CES by major display manufacturers, customers, partners and the financial community.
“In response to growing global interest in our technology, we and our partners have been making further enhancements to our manufacturing processes, ensuring the Group is fully prepared to fulfil commercial orders, which are anticipated in the near future.
“Nanoco is engaged with more near term commercial opportunities than at any time in its history, so it is frustrating not to be able to report significant revenues to date and it is essential that sales commence as expected. This activity, combined with our cash position and careful management of our cost base, means we look forward to the future with confidence.”
This announcement contains inside information.
Analyst meeting and webcast details
A meeting for analysts will be held at 10am this morning, 4 April 2017, at the offices of Peel Hunt, Moor House, 120 London Wall, London, EC2Y 5ET. For further details, please contact MHP on 020 3128 8570.
To listen to a live webcast of the analyst briefing, please log on to the following web address approximately 5 minutes before the event: http://webcasting.brrmedia.co.uk/broadcast/58d925805afb680410263991.
A recording of the webcast will be made available later today on Nanoco’s website, www.nanocogroup.com.
For further information please contact:
Dr. Michael Edelman, Chief Executive Officer
David Blain, Chief Financial Officer
+ 44 (0) 161 603 7900
Caroline Watson, Investor Relations Manager
+ 44 (0) 7799 897357
+44 (0) 20 7418 8900
Reg Hoare / Andrew Leach / Giles Robinson / Peter Lambie
+44 (0) 20 3128 8570
Notes for editors:
About Nanoco Group plc
Nanoco is a world leader in the development and production of cadmium-free quantum dots and other nanomaterials for use in multiple applications including LCD displays, lighting, solar cells and bio-imaging. In the display market, Nanoco has non-exclusive manufacturing and marketing licensing agreements with The Dow Chemical Company, Merck KGaA and Taiwan’s Wah Hong Industrial Corporation. Nanoco also has a strategy of direct sales in display and in its other target markets, including lighting.
Nanoco was founded in 2001 and is headquartered in Manchester, UK. It has production facilities in Runcorn, UK, and a US subsidiary, Nanoco US Inc, based in Concord, MA. Nanoco also has business development executives in Japan and Korea. Its technology is protected worldwide by a large and growing patent estate.
Nanoco is listed on the main market of the London Stock Exchange and trades under the ticker symbol NANO. For further information please visit: www.nanocogroup.com.