Nanoco Group plc, the Cheshire-based manufacture of cadmium-free quantum dots and other specific nanomaterials, has issued its year end trading update ahead of the announcement of its final results for the year to July 31, 2023 in October.
Among the financial highlights for the year, the company has more than doubled its revenues, compared to FY22 to £5.6m, in line with board expectations, used just over £62m of moneys received in its litigation with Samsung to pay advisors and funders, and plans to retain around a further $72m, due by February 2024, wholly for the company, after around $3m in Korean tax has been paid.
Unaudited cash position at 31 July 2023 stands at £8.2m, an increase of £2.2m since 31 January 2023.
Operationally, the company notes that, among other highlights, it has completed a major project for a European electronics customer as planned by April 2023, and has a fifth short-term project with an Asian chemical customer underway. It adds that it has discussions underway with major customers on future projects, has completed consolidation of operations at its Runcorn HQ, and has expanded its workforce and organic investment in preparation for a commercial production order “expected by the end of CY23.”
The company adds that it continues to actively pursue potential IP infringement, such as that claimed during the litigation with Samsung, and will return up to £40m to shareholders in early 2024.
Brian Tenner, chief executive of Nanoco, said: “Over the last year we have made significant progress, taking Nanoco to its current inflection point. Consistent feedback from the European customer supports the expectation of commercial production by the end of this calendar year. This transition from an R&D first mover to a commercial producer of scale is underpinned by the litigation proceeds and our validated IP for which we are actively pursuing further monetisation opportunities.”
Dr Christopher Richards, non-executive chairman of Nanoco, added: “Nanoco’s experienced board are firmly focused on delivering value for all shareholders. The litigation proceeds allow us to drive the organic business forward while underpinning our firm commitment to return up to £40m of cash to shareholders in early 2024. In addition to last year’s commercial progress, we committed to assess the option to appoint a further non-executive director to the board, based on business needs. A search process for a new independent non-executive director with strong electronics sector commercial experience is well underway.”
The update comes as Nanoco prepares for a general meeting next Monday at which a group of rebel shareholders led by Tariq Hamoodi will ask their fellow shareholders to remove the board and replace them with the rebels own nominations.