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 announced 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 Group plc 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.”