Confidence is mounting as Nanoco Group makes tangible strides toward commercialisation. With critical partnerships maturing, cash burn reduced, and fresh bid interest emerging, investors are beginning to notice the company’s strategic repositioning and strong fundamentals.
Nanoco Group’s latest interim results point to a business turning a corner, with positive indicators spanning both technical execution and commercial engagement. These are the first updates since the arrival of new CEO Dmitry Shashkov and the appointment of Jalal Bagherli as chair—leadership changes that now appear to be bearing fruit. Notably, all deliverables have been met under the ongoing joint development agreement (JDA) with an Asian chemical customer. With phase one successfully completed, planning for phase two is underway and scheduled to launch in autumn 2025, reinforcing the strength of the partnership.
The company is also in the final stages of negotiating a second major JDA—this time with another Asian chemical player. The focus of this collaboration is the development of cadmium-free quantum dots for short-wave infrared (SWIR) image sensors, an area with expansive potential in fields ranging from surveillance to medical imaging. This initiative is expected to generate fresh service revenues and could lead to sustained product revenues if the project moves to full-scale manufacturing. Encouragingly, Nanoco has identified 10 more prospects within the SWIR segment and is actively engaging with around half of them.
Beyond imaging, the company maintains a presence in display technologies, continuing to support both traditional liquid crystal display formats and next-generation platforms like micro displays. Simultaneously, Nanoco is seeking to monetise its substantial intellectual property portfolio, which includes approximately 375 patents—a move that could unlock further non-dilutive revenue streams.
While headline revenue dipped by 13% to £3.4m, largely due to the termination of a European JDA, this masks underlying progress. Licensing revenues remained stable at £3.0m, reflecting ongoing drawdowns from the Samsung IP settlement. More importantly, cost-control measures have sharply reduced the monthly cash burn to just £0.5m, with net cash at £15.2m as of early April. This is particularly compelling given Nanoco’s market capitalisation of £13.9m, suggesting the market may be significantly undervaluing the company’s financial resilience and growth prospects.
The operational cash outflow during the interim period was £3.5m, supplemented by a £1m return to shareholders. Despite these outflows, the balance sheet remains healthy, bolstered by receipts from its Asian customer. As new commercial partners are onboarded and current projects progress, management anticipates achieving commercial product revenues by 2026—offering a clear path to value creation.
Adding further intrigue is Nanoco’s ongoing engagement with potential suitors. Discussions with several interested bidders are active, with preliminary proposals expected this summer. The very presence of such interest is a strong vote of confidence in the company’s strategic direction and technological assets.
Nanoco Group PLC (LON:NANO) leads the world in the research, development and large-scale manufacture of heavy metal-free nanomaterials for use in displays, lighting, vertical farming, solar energy and bio-imaging.
