Last close As at 05/08/2026
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Market capitalisation
GBP5m
Research: TMT
Since announcing the termination of the formal sale process in April, Nanoco has reshaped its activities while remaining focused on the commercialisation of its patented nano-material technology. Having defined the scope of the company’s activities, management has reassigned costs to maintain a cash runway to at least the end of calendar year 2022. As part of this programme and in line with the board’s succession planning, CEO Dr Michael Edelman has stepped down. Although our estimates remain under review, we hope to see fresh guidance when the FY20 results are announced in October.
Written by
Nanoco |
Focusing group resources |
Directorate changes |
Tech hardware & equipment |
1 September 2020 |
Share price performance
Business description
Analysts
Nanoco is a research client of Edison Investment Research Limited |
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Since announcing the termination of the formal sale process in April, Nanoco has reshaped its activities while remaining focused on the commercialisation of its patented nano-material technology. Having defined the scope of the company’s activities, management has reassigned costs to maintain a cash runway to at least the end of calendar year 2022. As part of this programme and in line with the board’s succession planning, CEO Dr Michael Edelman has stepped down. Although our estimates remain under review, we hope to see fresh guidance when the FY20 results are announced in October.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
07/18 |
3.3 |
(7.1) |
(2.6) |
0.0 |
N/A |
N/A |
07/19 |
7.1 |
(5.0) |
(1.8) |
0.0 |
N/A |
N/A |
07/20e |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
In May 2020 Nanoco signed a five-year framework agreement with STMicroelectronics covering multiple infrared sensing applications. It has also won a development contract for a new technology application in the display sector. Although these development activities may lead to significant future revenue from commercial production at the Runcorn facility, this will not be until end of calendar year 2021 at the earliest. The cost base has therefore 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.
Dr Edelman remains an employee during his notice period for an orderly handover to Mr Tenner and subsequently will be retained as a special adviser in respect of the patent litigation against Samsung. This lawsuit is being funded by a very large US litigation finance specialist (which is separate from the litigation counsel) as it is likely to take two years or more to complete and cost many millions of dollars to prosecute. Although the value of the potential pay-out has not been disclosed, in our May update we calculated that the lost revenue in the US attributable to the patent infringement to date could be in the region of US$200–250m. Any damages award could also make an additional allowance for sales in other territories and for future sales of Samsung TVs using quantum dots.
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Research: Industrials
Delignit’s H120 results were clearly affected by the COVID-19 pandemic, with revenues down 20.6% and EBITDA decreasing by 35%. Cost-cutting measures, such as using so-called Kurzarbeit (short-time working arrangements) and reducing temporary work, have somewhat limited the decline in profitability. Delignit’s FY20 guidance assumes a 5–21% y-o-y fall in revenues in H220, which implies at least flat revenue in H2 vs H1. Longer term, Delignit will benefit from expected growth in commercial vehicles, further geographical expansion and broadening its product offering.