Nanoco Group

LN: NANO1

£29m market cap

9.5p 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. Focus applications are nanomaterials for 3D sensing, displays and bio-imaging.

Investment summary

Nanoco has secured just under £1m grant funding for a life sciences project to develop a heavy metal-free quantum dot testing kit to detect COVID-19. The project will last 18 months and represents a potential third segment for generating future revenues in addition to established activities in sensing and display applications. We have made minor adjustments to our estimates, although there is no impact on EBITDA or cash flow.

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 1.4 (2.9) (4.4) (1.14) N/A N/A
2022E 3.2 (1.3) (2.6) (0.65) N/A N/A
Industry outlook

The project is an extension of Nanoco’s earlier work using its VIVODOT quantum dots conjugated with antibodies as a diagnostic tool in the detection of cancer, which completed the proof-of-concept stage. The new project focuses specifically on COVID-19 antibodies and, if successful, the technology developed will be used to detect other viruses found in saliva, potentially including flu and future COVID-19 variants. Part of the funds are allocated for the development of a delivery system for the test, which will be done by a partner selected by Nanoco. The goal is to create an accurate and rapid self-administered test with results produced in situ.

Last updated on 14/01/2021
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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 (2.6) (18.1) (24.9)
Relative* (6.7) (28.8) (17.3)
52-week high/low 29.0p/6.5p
*% relative to local index
Key management
Brian Tenner CEO

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