Nanoco Group

LN: NANO1

£133m market cap

46.5p last close

Nanoco is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials. Nanoco’s platform includes specialist manufacturing lines and over 650 patents. Focus applications are advanced electronics, displays, lighting and bio-imaging.

Investment summary

Nanoco’s contract extension for work with its US customer fully underpins our FY19 estimates and gives the business a c £3m+ head start entering FY20. Our forecasts are unchanged, but progress with this major customer has shone a bright light on Nanoco’s IP and execution credentials. Discussions are now ongoing with a number of parties, which could drive upside to our near-term estimates.

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 (5.0) (5.6) (1.95) N/A N/A
2020E 13.0 (0.8) (2.1) (0.74) N/A N/A
Last updated on 22/03/2019
Industry outlook

The rising volume of patent filings mentioning quantum dots suggests that the technology may now be starting to come of age across a range of markets, although the timing and rate of volume uptake of individual applications is always difficult to gauge. Progress in display been slow, but the opportunity in the high growth 3D sensing market looks exciting, with Yole Development forecasting a 43% end-market CAGR from c $1.9bn in 2018 to over $18bn in 2023.

Last updated on 22/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 3.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (14.5) 27.8 22.5
Relative* (14.6) 18.9 19.6
52-week high/low 55.0p/33.2p
*% relative to local index
Key management
Michael Edelman CEO
Brian Tenner CFO

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