Nanoco Group PLC has released its unaudited Interim Results for the half year ended 31 January 2024, showcasing a fully funded business with commercial traction and investing for steady growth. The company achieved a critical milestone with its first-ever commercial orders, including shipments of first-generation materials for infra-red sensing applications in electronic devices. Nanoco also made progress with two global electronics supply chain customers, signing joint development agreements to optimize the performance of second-generation sensing materials. The company received the second tranche of litigation proceeds, returning £33 million to shareholders via Tender Offer and Share Buyback.
Nanoco is now debt-free and fully funded through to cash breakeven, expected during CY25. The company has financial resources to defend its intellectual property and leverage it for value. Nanoco has successfully transitioned from a speculative R&D first mover to a financially underpinned, organic growth-focused company, surrounded by validated and enforceable IP moat. The core sensing and display markets are forecasted to experience rapid growth over the next five years, with the adoption of QD technology in mobile phones and small screen micro-LEDs expected to lead to a significant increase in addressable markets for Nanoco.
Operationally, Nanoco has invested in new capabilities and supply chain resilience, completing the building and fit-out of a new wafer device development and testing facility to support engagement with new and existing customers. The company has also increased its gross cash cost base to approximately £0.6 million per month. Financially, Nanoco reported increased revenue and operating profit, with reported cash of £59.3 million at the period end.
Looking ahead, Nanoco plans to expand its range of services to include sensing device development work and expects its FY24 performance to be in line with market expectations. The company aims to become cash breakeven during CY25, in line with its previously set out timeframe.
Brian Tenner, Chief Executive Officer of Nanoco Group plc, expressed his satisfaction with the achievement of delivering the company's first-ever commercial orders and highlighted the potential for further significant growth through the adoption of the technology in mobile phones. He emphasized Nanoco's leadership in novel nanomaterials and the validation of its key display and sensing IP in recent litigation. Tenner also noted the development of new second-generation materials that will open up new applications in automotive and dynamic image capture.
In conclusion, Nanoco is returning £33.0 million of value to shareholders while retaining funds for strategic investments in new capabilities and supply chain resilience. The company's fully funded business with commercial traction provides a strong foundation for future growth and development.