Nanoco Group

LN: NANO1

Market Cap£66m

Last Close 21.6p

Nanoco is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials. Its platform includes c 740 patents and specialist manufacturing lines. Focus applications are advanced electronics, displays, lighting and bio-imaging.

Investment summary

Nanoco has expanded its product and customer portfolio of nanomaterials for use in infrared-sensing applications from a single customer and one material-development programme in 2018 to five customers and eight different materials. For example, in July Nanoco signed a development agreement for a project with a very significant Asian chemical company.

Y/E Jul	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (p)	P/E (x)	P/CF (x)
2019A	7.1	(3.8)	(5.0)	(1.34)	N/A	N/A
2020A	3.9	(2.9)	(4.9)	(1.38)	N/A	N/A
2021E	1.9	(2.6)	(3.9)	(0.99)	N/A	N/A
2022E	2.0	(2.2)	(3.6)	(0.97)	N/A	N/A

Industry outlook

Nanoco had previously supplied the Asian customer with nanomaterial for infrared sensing applications and has recently completed feasibility work on a potential new nanomaterial operating at a different wavelength, which will be suitable for use in electronic devices across a number of sensing applications and end-markets. The Asian customer intends to incorporate Nanoco’s nanomaterials in its own materials, which it will sell globally to companies making electronic devices. The first phase of the development project with this customer is scheduled to complete in calendar H221. If successful, there will be a further two development phases extending to the end of FY22 prior to
a scale-up phase, suggesting that any volume production for the customer would not commence until FY24.

Last updated on 20/10/2021