Nanoco Group PLC, a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, has provided a year-end trading update. The company is now closer to commercial production than ever before and is in its strongest financial position since its inception. Nanoco's core markets of sensing and display are expected to experience rapid growth. The company is leveraging its Samsung litigation experience to generate further value from its intellectual property (IP).
Operational highlights for the year include significant progress with two global electronics supply chain customers. A major work package for a European electronics customer has been completed, and two materials are now in final validation. Nanoco is awaiting the final response from the customer. Additionally, a major Asian chemical customer has a fifth short-term work package underway, having successfully delivered all technical milestones in four others. Nanoco is in ongoing discussions with both customers for longer and deeper collaborations.
Nanoco has successfully completed the consolidation of all operations into its Runcorn production site and has expanded its workforce and made organic investments in preparation for a commercial production order expected by the end of 2023. The company is actively working to pursue potential infringers of its IP. Nanoco has also completed a capital reduction to facilitate the return of up to £40m to shareholders in early 2024.
Financially, Nanoco has reported unaudited revenues of £5.6m, more than double the previous year, and in line with the board's expectations. Underlying adjusted EBITDA also remains in line with expectations. The impact of the litigation settlement on the company's income statement is still being determined and is subject to audit and tax calculations. Nanoco has a cash position of £8.2m as of July 31, 2023, an increase of £2.2m since January 31, 2023.
The company expects to announce its final results for the year ended July 31, 2023, in the second half of October 2023. CEO Brian Tenner stated, "Consistent feedback from the European customer supports the expectation of commercial production by the end of this calendar year." Non-Executive Chairman Dr. Christopher Richards added, "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."