Nanoco Group (LSE: NANO)

Last close As at 27/03/2024

GBP0.21

−1.30 (−5.86%)

Market capitalisation

GBP73m

Nanoco Group is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, with c 375 patents. Focus applications are advanced electronics, displays, bio-imaging and horticulture.

Management has said that an order for around 100m sensor units could generate around £20m in revenue, which would equate to deployment across a high-volume handset range, especially if multiple sensors are included in the device. By way of context, Yole Research estimates the CMOS image sensor market is worth $21.2bn growing to $30bn by 2030, with applications across almost any market involving image capture mobile devices, automotive, industrial, surveying, security and agriculture.

Latest Insights

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TMT | Flash note

Nanoco — Mechanisms for shareholder returns confirmed

TMT | Flash note

Nanoco — Steps on the pathway to volume production

TMT | Flash note

Nanoco — Another major milestone delivered

Nanoco Group_resized

Sector

TMT

Equity Analyst

Max Hayes

Max Hayes

Associate Analyst

Dan Ridsdale

Head of Technology

Key Management

  • Brian Tenner

    CEO

  • Liam Gray

    CFO

Balance Sheet

Forecast net cash (£m)

25.8

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 13.4 20.5 9.4
Relative 9.9 17.4 2.2
52 week high/low 23.7p/15.6p

Financials

Following receipt of the £58.8m second tranche from the Samsung litigation on 24 January, Nanoco plans to return £30m to shareholders via a tender offer (c 38.5% of outstanding shares), alongside a £3m share buyback. After completing this £33m return and repaying c £5m outstanding debt, Nanoco expects to have c £23m cash to accelerate commercial production of nanomaterials at scale. With its validated technology, robust pipeline and strong financial position, we believe the group is positioned to drive long-term shareholder value creation. With Nanoco only valued marginally higher than the second tranche proceeds, we believe the market is undervaluing the group’s several commercial opportunities and intellectual property (IP) despite recent progress.

Y/E Jul Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 2.5 (2.1) (4.6) (1.32) N/A N/A
2023A 5.6 (0.4) (3.6) (0.66) N/A N/A
2024E 8.6 1.3 (0.4) (0.13) N/A 52.1
2025E N/A N/A N/A N/A N/A N/A

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

TMT

MediaWatch – Still waiting…

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