Preliminary Results for the year ended 31 July 2018
Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from our technology platform, is pleased to announce its preliminary results for the year ended 31 July 2018.
The Group’s nano-material platform technology supports opportunities across a wide range of markets and end-user applications. Recent performance in a number of these is summarised below:
Nano-materials (for use in the electronics industry)1
- Excellent progress in the execution of material development and supply agreements with undisclosed US Company
- £2.6 million received in milestone payments and fees from these contracts during the year
- Development of new manufacturing facilities in Runcorn, funded by £2.9 million advance payments by US Company against discounted future product sales
- Expansion project on track to complete by 31 December 2018
- Exploring further revenue generating commercial service opportunities in advance of product sales
- R&D activity changed focus during the year to improve dot performance in line with ever increasing technical requirements of the display industry
- Internal development and production resources pivoted away from Display to focus on the immediate nano-materials opportunity in the electronics market (noted above)
- Progress in Display continues to be hampered by the slow pace of market evolution
- Working with Wah Hong to provide film to a Taiwanese display panel maker targeting the gaming monitor niche. Revised customer launch date pushes back sales, previously expected in the 2018 Christmas holiday season
- Continue to explore a number of specialist applications in the UK and US, specifically targeting commercial vertical farms for vegetables and sports turf
- CareWear® (one of Carewear Corp’s products) gaining early traction in the US
- Further progress in exploring potential uses of the Company’s CFQD technology for imaging and diagnosis of cancer
- Initial toxicology tests passed successfully
- Significant increase in billings to £6.5 million (2017: £1.1 million)
- Revenue and other operating income more than doubled to £3.5 million (2017: £1.6 million)
- Loss after tax cut to £6.0 million (2017: £9.1 million) with £1.5 million full-year benefit of prior year cost reductions
- £7.9 million net proceeds from November 2017 fundraise
- Cash position increased to £10.7 million (31 January 2018: £8.7 million; 31 July 2017: £5.7 million), sufficient to fund Group assuming commercial production revenues early in H1 FY20. Cash includes an amount of £0.8 million received from a customer for the purchase of capital equipment. The cash cannot be used for any other purpose.
- Contingency plans in place to reduce costs and preserve cash in event of further delays to commercial revenue streams.
1 The Group’s platform technology is built on nano-materials. Nano-materials for use in the electronics industry are one subset of that platform. CFQD® quantum dots are another subset.
Dr Christopher Richards, Nanoco’s Chairman, commented on the results:
“The last year has clearly shown the benefits of Nanoco’s technological leadership, with some potentially very attractive commercial opportunities emerging in the short term. The rapid re-deployment of our internal resources to focus on emerging and attractive nano-materials opportunities demonstrates our agility and the strength of the Group’s technology platform, which allows us to respond quickly to our existing customers and to new unmet needs and opportunities that are emerging.
Our challenge is to execute and deliver on those opportunities within the constraints of our current resource base. The Executive team is alert to the potential of further delays in the realisation of those opportunities and contingency plans are in place to manage further delays to our commercial development.
While there are still hurdles to overcome and a degree of uncertainty to be navigated, the Group is currently actively engaged in potentially transformative technological and commercial activities. The Board is therefore confident about the relevance of our technology and excited about the prospects for the Group in both the short and the long term.”
Analyst meeting and webcast details
To listen to a webcast of the analyst briefing, please log on to the following web address approximately five minutes before 8.30am on 16 October 2018: http://webcasting.brrmedia.co.uk/broadcast/5bbde6c4269b0c1ded189741
A recording of the webcast will also be made available on Nanoco’s website, www.nanocogroup.com, later today.
A meeting for analysts will be held at 8.30am this morning, 16 October 2018 at the offices of MHP Communications, 6 Agar Street, WC2N 4HN. For further details please contact MHP Communications on 0203 128 8570.
For further information, please contact:
Michael Edelman, Chief Executive Officer
Brian Tenner, Chief Operating and Financial Officer
Tel: +44 (0) 161 603 7900
Caroline Watson, Investor Relations Manager
Tel: + 44 (0) 7799 897357
Tel: +44 (0) 20 7418 8900
Reg Hoare / Giles Robinson / Peter Lambie
Tel: +44 (0) 20 3128 8570
Notes for editors:
About Nanoco Group plc
Nanoco (LSE: NANO) harnesses the power of nano-materials. .Nano-materials are materials with dimensions typically in the range 1 – 100 nm. Nano-materials have a range of useful properties, including optical and electronic. Quantum dots are a subclass of nano-material that have size-dependent optical and electronic properties. The Group produces quantum dots. Within the sphere of quantum dots, the Group exploits different characteristics of the quantum dots to target different performance criteria that are attractive to specific markets or end-user applications such as the Display and Electronics markets. One of the interesting properties of quantum dots is photoluminescence: the emission of longer wavelength light upon excitation by light of a shorter wavelength. The colour of light emitted depends
on the particle size. Nanoco’s CFQD® quantum dots are free of cadmium and other toxic heavy metals, and can be tuned to emit light at different wavelengths across the visible and infrared spectrum, rendering them useful for a wide range of applications including displays, lighting and biological imaging.
Nanoco has non-exclusive manufacturing and marketing licensing agreements in display with The Dow Chemical Company, Merck KGaA of Germany and Wah Hong Industrial Corporation of Taiwan.
Nanoco was founded in 2001 and is headquartered in Manchester, UK, with a US subsidiary, Nanoco Inc., in Concord, MA. Nanoco continues to build out a world-class, patent-protected IP portfolio generated both by its own innovation engine, as well as through acquisition.
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.