Nanoco Group

LN: NANO1

£29.6m market cap

9.67p last close

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 is now focused on generating value from three core areas: nanomaterials for the sensor market, where it has a framework agreement with STMicroelectronics; quantum dots for TV displays where a number of development projects are underway; and pursuit of the patent infringement litigation against Samsung. Noting that net cash consumption is now c £0.3m per month, which management, led by Brian Tenner, estimates gives a cash runway to December 2022, we have reinstated our estimates.

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 1.0 (2.9) (4.4) (1.14) N/A N/A
2022E 2.6 (1.3) (2.6) (0.65) N/A N/A
Industry outlook

The cost base has been realigned to ensure the £3.4m (gross) raised in July will be sufficient to support business development activity with existing and potential new customers in both display and sensing through to the commercial production phase. As part of the restructuring, Brian Tenner, who was formerly CFO and COO of Nanoco, has become CEO and is handing over most of his finance activities to the group financial controller. Former CEO Dr Michael Edelman has stepped down.

Last updated on 22/10/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 2.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (27.3) (45.4) (18.1)
Relative* (27.8) (41.9) (0.4)
52-week high/low 29.0p/6.5p
*% relative to local index
Key management
Brian Tenner CFO
Brian Tenner CEO elect

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