Nanoco Group plc (LON: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from our technology platform, has today provided the following year end trading update ahead of the announcement of its final results for the year to 31 July 2019, which will be released on 15 October 2019.
Financial highlights of the year include:
· Unaudited revenues of £7.3m for the year ended 31 July 2019 were more than double FY18 and slightly ahead of market consensus expectations due to the early delivery of some revenue under the major services contract.
· Billings in the year amounted to £9.6m, which included £2.4m as the final sums payable to complete the new Runcorn production facility.
· The Company’s unaudited cash position at 31 July 2019 was £7.0m, an increase of £0.8m since 31 January 2019 (31 July 2018: £10.7m). The Group still expects to have around £6.0m of cash in hand at 31 December 2019.
· The cost base continues to be closely managed with a 20% reduction in headcount delivered in the fourth quarter without diminishing core R&D and production capabilities.
· The exceptional credit from the contract liability waiver will be largely offset by the exceptional charges for various contract specific assets and provisions (as detailed in the Company’s 31 July announcement).
Michael Edelman, Chief Executive of Nanoco Group, said:
“Over the last year we provided exceptional customer service in meeting all technical milestones and delivering a new Runcorn production facility that now gives us the capability to manufacture nano materials on a large scale for use in diverse electronics applications. This strong operational performance contributed to the best financial results in the Company’s history. We have also made major enhancements in the performance of our CFQD® Quantum dots, and continued to develop our IP portfolio, with over 100 new patents granted or applied for during the year.
“Clearly the news that the current major work programme will not be extended after it expires on 31 December 2019, for reasons unconnected to the performance of our materials or the new production facility, was extremely disappointing for the whole Nanoco team and our stakeholders. However, we remain focused on completion of the current contract deliverables whilst broadening our efforts to seek out other potential new customers in the electronics and display sectors.
“The completion of the new Runcorn facility and the waiver of the contract liability leaves the Group with a significantly expanded asset base and production capability across a wider range of market sectors. We are working hard to take advantage of this new capability, alongside our display opportunities, in the new financial year.”