Nanoco Group has announced it is moving from “an R&D first mover to a commercial producer” following publication of its results for the year to July 31, 2023.
The developer and manufacturer of cadmium-free quantum dots added that it is “closer to commercial production than at any time in its 20-year history” alongside results which showed revenue more than doubled to £5.6m (FY22: £2.5m), adjusted LBITDA loss reduced by 83% to £0.4m (FY22: £2.3m LBITDA) and year-end cash reserves of £8.2m, an increase of £2.2m since 31 January 2023.
The results came at the end of an eventful period for the tech firm, which was awarded $150m from litigation with electronics giant Samsung, of which $90m will be used to fund future growth and much of the rest as a return to shareholders, as well as see off an attempted boardroom coup by a group of rebel shareholders.
A first, £59.2m, net tranche of the Samsung funds was received in March 2023 with a second tranche due next February.
Brian Tenner, Nanoco’s CEO, commented on the results: “We have driven Nanoco steadily towards its current inflection point. We have delivered all development and scale up milestones for our sensing customers. We have also significantly enhanced our robustness as an important partner in global electronics supply chains. We are now discussing the contract terms of our first ever commercial production order, expected to be received before the end of CY23.
“In parallel with the transition to production, we are also expanding our commercial R&D contracts with a number of customers with the goal of adding a further global electronics supply chain customer in FY24.
“Our transition from an R&D first mover to a commercial producer is underpinned by the proceeds from the settlement which are enabling us to invest carefully to expand the range and reach of our materials, whilst at the same time self-funding the monetisation of our IP.
“We started the litigation process in February 2020: a long legal road lay ahead, we had limited prospects for commercial production, there were no anchor customers in place, the Formal Sale Process was stalling in the face of Covid-19, and we had a recurring need to raise new funding every year. Fast forward: we exit FY23 with a successful outcome to the litigation, the expectation of a commercial production order before the end of CY23, two active global long-term customers, an expanding range of materials and device capability, a financially underpinned business and the ability to execute on our firm commitment to return significant capital to shareholders in Q1 CY24.
“The whole Nanoco team has worked hard to deliver these outcomes. A lot has been done. Our team will keep working hard as there is still a lot to do to capture the opportunities in front of us. The Board is therefore rightly confident in the strength of the investment proposition and value inherent in the business.”
