Nanoco Group plc (LON:NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from its technology platform, has announced its unaudited interim results for the half year ended 31 January 2025.
Refocused on strategic growth
Continued commercial progress and revitalised engagement
· Appointed a new Chairperson in Dr Jalal Bagherli, recruited and appointed a new CEO in Dmitry Shashkov, and appointed a Global Head of Business Development to help drive commercial engagement.
· Entered the second year of the Joint Development Agreement (“JDA”) with the Asian Chemical customer – all milestones successfully achieved to-date and discussions commenced regarding next steps.
· Advanced discussions with a potential second significant Asian chemical company, a major advanced materials and chemicals manufacturer, to work on next generation heavy metal-free quantum dot materials and device technology for Short Wave Infrared (SWIR) applications.
· Increased the size of commercial pipeline to greater than ten projects, with strong focus on Image Sensor and Flat Panel Display markets, and additional early-stage engagements in other segments such as Photovoltaic, Agriculture, and Coatings and Paints.
Significant forecast growth in key markets provides an opportunity
· We remain at the forefront of quantum dot development for sensing applications. The company is financially underpinned and supported by our validated and enforceable IP.
· Market sector forecasts1 continue to indicate significant growth in our key markets of sensing and display – the adoption of quantum dot technology in mobile phones for sensors and small screen micro-LEDs for display should lead to a step change in addressable markets for Nanoco.
· Other markets are assessing the opportunity to work with quantum dots in their products, which could also offer significant opportunity over the long term.
· We continue to progress as a research-led production company, with the ambition of becoming cash breakeven in the medium term.
Right sized the business for growth
· Completed a reorganisation of the business to reduce overhead costs, which included a reduction in the Board’s size and cost – cash cost base reduced to £0.5m per month (FY24 Q4 £0.7m).
· Lead Sulphide (“PbS”) quantum dot production facility mothballed to save cash costs while retaining the capability to turn this on at short notice. We retain the ability to make sufficient levels of these quantum dots to meet current market demands.
· Retained our capabilities to research, develop and manufacture a variety of quantum dots at scale, whilst also allowing us to test the progress of our materials on devices.
Leveraging our intellectual property portfolio
· We continue to assess and pursue opportunities to leverage our strong and proven IP, particularly in relation to display applications.
Divestment of the Group’s trading business (the “CDX process”)
· Making progress on strategic options with CDX Advisors LLC (“CDX”) – contact made with a broad range of potential investors across relevant industries globally, with several actively engaged
· Expect to receive initial proposals from potential bidders during the summer. The Board will provide an update as appropriate in due course.
Results overview
Financial summary
· Reported revenue decreased to £3.4m (H1 FY24: £4.0m) due to the previously announced cancellation of the contract with the European Customer.
· As a result of the fall in revenue, Adjusted EBITDA is also slightly behind prior year at £0.5m (H1 FY24: £0.7m).
· Period end reported cash of £15.5m. Cash at 4 April 2025 £15.2m.
· During the period we completed the on-market buyback, fulfilling our commitment to return £33 million to shareholders.
Full year outlook ahead of expectations
· Investment in business development is showing progress, with an increasing number of potential commercial opportunities.
· Additional £311k revenue to be recognised in H2 of FY25 following the completion of a settlement agreement with the European electronics customer.
· As a result of completion of the settlement agreement with the European electronics customer in addition to some other small commercial wins, revenue for the year ended 31 July 2025 is now expected to be ahead of current market expectations2.
Dmitry Shashkov, Chief Executive Officer of Nanoco Group plc, said:
“Having been at Nanoco for almost six months, I am more confident than ever in the commercial potential of our technology platform. Commercial traction takes time and we have done the heavy lifting required to put in place the foundations to drive a new go-to-market strategy.
We continue to accelerate the pace of our commercial development, especially in the image sensors sector. As a result, we are in advanced negotiations to add another Asian chemical customer to help drive commercialisation of QD based SWIR sensors, and with other potential customers in the pipeline, I am confident we will see early product revenues by next calendar year.
On the Flat Panel Display side, we also have some small-scale engagements that cover both existing LCD architecture as well as newer technologies. And we will continue to explore our licencing options. It is our conviction that our extensive and validated IP portfolio will continue to deliver value to our shareholders as we expand our IP licensing efforts.
We have the right strategy, a reinvigorated team and a relentless focus on driving commercial engagement. In parallel, the CDX process is moving forward at a good pace, with several active engagements. I look forward to further updating shareholders on our progress on both initiatives in due course.”
1 Sources: Yole, IDTechEx
2 The revenue forecast for FY25 is £6.6m, as prepared by Cavendish.
