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.
Nanoco hit all the key milestones for its US customer during H119, including completing the build and fit out of the expanded Runcorn facility dedicated to the production of nanomaterials. It therefore earned the contracted milestone revenues in full and secured a contract extension reaching to December 2019 to commission and stress test the facility to be ready to commence volume production in calendar H219. H119 revenues were £3.2m compared with £0.2m in H118. £2.9m of this was service revenues from the US customer. Adjusted EBITDA loss reduced from £4.2m to £2.5m. After investing £1.7m to complete the Runcorn facility expansion, the costs of which were funded by the US customer, net cash reduced by £4.6m during the period to £5.7m.
The contract extension runs from January 2019 to December 2019 with limited deferrals, contingent or milestone payments. This gives contracted orders for delivery in H219 of £3.4m, which completely underpins our FY19 estimates. Our FY20 forecast is predicated on a firm contract for full-scale commercial production from the US customer the timing of which depends on a complex supply chain and cannot be predicted with any certainty.