Nanoco Group

LN: NANO1

£51.2m market cap

16.75p last close

Nanoco is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials. Its platform includes c 750 patents and specialist manufacturing lines. Focus applications are advanced electronics, displays, lighting and bio-imaging.

Investment summary

In May Nanoco announced it had taken actions to extend the cash runway from July this year to calendar year Q221. It has recently raised £3.4m at 17.5p/share, extending the cash runway to at least the end of calendar year 2022. While our estimates remain under review, we hope to see fresh guidance from management in the new financial year.

Y/E Jul
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 3.3 (6.2) (7.1) (2.63) N/A N/A
2019A 7.1 (3.8) (5.0) (1.75) N/A N/A
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Securing third-party funding for the patent infringement lawsuit means the proceeds from the fundraising can be focused on development work for customers and company operations. In our May update we calculated that the lost revenue in the US attributable to the patent infringement to date could be US$200–250m. Any damages awarded could also make an additional allowance for sales in other territories and for future sales of Samsung TVs using quantum dots. With a fully funded lawsuit and the underlying business operations now funded to the end of calendar year 2022, the risk of a reduction in value through delaying tactics in the litigation is now significantly reduced.

Last updated on 07/08/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.5) 69.2 22.7
Relative* (8.9) 64.4 43.5
52-week high/low 29.0p/6.5p
*% relative to local index
Key management
Michael Edelman CEO
Brian Tenner CFO

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