Nanoco Group

LN: NANO1

£35.1m market cap

12.25p last close

Nanoco is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials. Its platform includes c 700 patents and specialist manufacturing lines. Focus applications are advanced electronics, displays, lighting and bio-imaging.

Investment summary

Nanoco’s post-close trading update disclosed unaudited revenues of £7.3m for FY19. This was more than double FY18’s level and slightly ahead of consensus because of the early delivery of some revenue under the major services contract. FY19 billings totalled £9.6m, including £2.4m as the final sum payable to complete the new Runcorn production facility. Cash at end FY19 was £7.0m, an increase of £0.8m since end January 2019. Management expects to have around £6.0m of cash at end December 2019.

Y/E Jul
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 1.3 (9.4) (10.6) (4.46) N/A N/A
2018A 3.3 (6.2) (7.1) (2.63) N/A N/A
2019E 6.7 (4.2) (4.8) (1.67) N/A N/A
2020E 4.0 (6.5) (7.8) (2.72) N/A N/A
Last updated on 13/09/2019
Industry outlook

Although Nanoco’s major US client will not progress to volume production in the foreseeable future, commissioning work continues on the new production capacity, which is scheduled to complete by December. Once that is completed, the facility will be able to produce high quality nanomaterials for use in a number of electronics applications. It could therefore be used to service future demand from the US customer or potential new customers with whom Nanoco is in the early stages of discussion.

Last updated on 13/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 5.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.4) (66.9) (67.6)
Relative* (2.7) (67.1) (67.8)
52-week high/low 55.0p/8.5p
*% relative to local index
Key management
Michael Edelman CEO
Brian Tenner CFO

Content on Nanoco Group