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 provided the following trading update ahead of the announcement of its Half Year results for the six months ended 31 January 2024, which are set to be released on 27 March 2024.
Operational overview
· Critical milestone of first ever commercial production order achieved with shipment of two first-generation materials for use in infra-red sensing applications in electronic devices.
· Significant progress with our two global electronics supply chain customers:
o Joint Development Agreement with STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, to optimise the performance of a second-generation sensing material over a two year period.
o Joint Development Agreement lasting two years with an important Asian Chemical customer to optimise a novel high performing nano-material for potential use in a number of global electronics applications.
· Building and fit out underway for new 300mm wafer device development and testing capability to shorten product research cycles and to support new customer engagement.
Financial overview
· Second and final tranche of litigation proceeds (net $71.75m) received from Samsung after settling last year on a no-fault basis for the alleged infringement of the Group’s IP. Net proceeds hedged at a rate of $1.22 / £1.00, generating £58.8m including a net gain of £2.1m compared to spot rates on the date of receipt.
· Set to return capital to shareholders, in line with previous commitments, in the range of £33.0-40.0m. The Group will announce its proposals for the amount and structure shortly.
· As previously communicated, retained proceeds will be invested in commercial opportunities and further expanding R&D activities through to the self-financing position that is expected during CY25.
· Revenue and Adjusted EBITDA remain in line with the Board’s expectations.
Brian Tenner, Chief Executive Officer of Nanoco, said:
“With the second tranche of litigation proceeds received, Nanoco will soon be able to make the promised return of capital to shareholders. The retained proceeds will then allow us to face the future on a fully funded basis, enabling careful strategic investment in R&D and expanded device capabilities and building on the commercial products that we have already delivered to market. The Group is well placed at the forefront of quantum dot technology to generate increases in shareholder value in the medium term. We look forward to announcing further progress, including the opening of our new fab.”
