nanosynth Group plc (LON:NNN), the AIM quoted company specialising in the synthesis and application of nanoparticles to create new and improve existing products, has announced its final audited results for the year ended 31 December 2021.
The Company also announced that the Company’s Annual General Meeting will be held at 9am on 22 July 2022 at the London Marriott Hotel Maida Vale, Plaza Parade, Maida Vale, NW6 5RP.
The Company’s annual report and accounts, Notice of AGM and Forms of Proxy will be dispatched to shareholders later today and will shortly be available on the website at www.nanosynthgroup.com
The last eighteen months has been a period of major change at nanosynth group plc (nnn) with a new name, a new board and a new direction. During the year the Group refocused on the development and commercialisation of its core nano-particle platform technology and dispensed with non-core activities, including the return of Cloudveil Limited to its founders and, the disposal of the majority of Gyrometric Systems Ltd. The Group also announced a strategic review and has emerged in a stronger position than this time last year with a healthy balance sheet, a clear and achievable business strategy and a new team positioned to deliver against the Group’s strategic goals.
The Company implemented a number of board changes in the period. The major challenge for the new board was a complete strategic review. The Board was also keen to build on the innovations behind the anti-viral face mask and develop further products using the same technology, alongside the development of products for the agricultural sector, which had been the founding principle behind Pharm2Farm (P2F).
With a year of substantial change and complete refocus, the results for the 2021 financial year provide limited meaningful insight into the future of the business and in fact incorporate costs associated with the required strategic shift.
Operating expenses related to continuing operations before current asset impairments increased to £2,538k from £960k in 2020 reflecting the greater activity within the Group and incorporating a number of one-off costs required to reposition the business. Revenue from continuing operations increased to £209k in 2021 from £1k in 2020, which was derived solely from the P2F division.
During the period the Company raised £939,225 net of costs through the issue of new shares as a result of the exercise of warrants and options. In addition, £1,505,000 was received during this financial year in respect of shares issued in the previous period.
Cash as at 31st December 2021 was £3.8m, and at the date of this report, the Group had net cash of £1.8m which is considered to be more than sufficient to cover the expected working capital requirements of the Group for at least the next twelve months.
As a result of the deep strategic review, the decision was made to evolve the Group’s mask strategy to focus on licensing the core anti-viral technology into the market rather than manufacturing masks directly. As a result of market changes it was not considered financially viable to continue manufacturing masks and, as previously notified, the mask machine was disposed of and the existing stock has been fully provided for in these accounts given the likely incremental cost of readying that stock for commercial sale. The remaining masks that have been manufactured will be made available to good causes including local hospitals and care homes.
The ground-breaking technology that was developed for the anti-viral face masks is being further refined for use in the HVAC market through a joint venture company, Virosynth, that has been formed with a leading vertically integrated media manufacturer, Volz Luftfilter GmbH. Through the JV arrangement, nanosynth expects to benefit from the heightened awareness of, and demand for, cleaner air in all public environments.
Beyond HVAC, there are seven additional specific market verticals that have been identified for the development and application of nanoparticle technology with strategic partners. These areas include animal health and wellbeing, cosmetics, medical, plants, food and drink, functional coatings and electronics. In each of these areas, specific use-cases and development projects have been defined and strategic partners have been identified. The Company is currently in discussion with a number of major companies and trading partners within the seven identified markets and will be progressing these discussions in order to target the conclusion of successful commercial agreements within the second half of 2022, galvanising the confidence and clear value the Board see in nanosynth group and its new commercial strategy.
At this point, it is noted the future strategy shared on 1 June 2022 is not impacted by the current situation surrounding Ukraine nor the associated sanctions imposed on Russia other than the global shift in commodity prices, a risk we aim to manage with our target trading partners and supply agreements.
29 June 2022
Mark Duffin, Chief Executive of nanosynth Group, commented:
“I would like to thank all of the Company’s shareholders for their support. The Board is firmly focused on delivering concrete agreements with commercial parties and looks forward to updating shareholders as it progresses its various initiatives. At the beginning of the year, the Board was considering various M&A opportunities however, in the current economic climate this is not now a near term focus though the Company will always consider opportunities where it can deliver value to shareholders and build scale to its operations. After the groundwork that has been carried out during the year to date, I am confident that the second half of 2022 will see further positive developments at nanosynth and we look forward with renewed optimism.”