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Currency in GBP
Last close As at 02/06/2023
GBP0.18
▲ −0.18 (−0.99%)
Market capitalisation
GBP58m
Nanoco Group is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, with c 560 patents. Focus applications are advanced electronics, displays, bio-imaging and horticulture.
Shortly after the H123 period end, Nanoco signed the final agreements to settle the litigation with Samsung on a no fault basis for the alleged infringement of the group’s IP. Samsung agreed to pay Nanoco $150m (£124.3m) in cash in two equal tranches. The first of these has been paid, the second is payable by 3 February 2024. After deducting litigation costs, Nanoco will retain c £71.4m net proceeds after costs. The settlement frees management to concentrate on getting the company ready for volume production in anticipation of receiving its first production order later in CY23.
Associate Analyst
Brian Tenner
CEO
Liam Gray
CFO
Forecast net cash (£m)
5.3
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (2.0) | (25.5) | (53.2) |
| Relative | 2.7 | (21.3) | (52.4) |
| 52 week high/low | 55.8p/17.3p |
Nanoco’s H123 revenues benefitted from the successful delivery of technical milestones for its European electronics customer, taking it close to full production validation of two different wavelength materials for use in sensing chips. Revenue jumped by 45% y-o-y to £1.6m, while adjusted EBITDA losses were stable at £1.1m. Net cash consumption during H123 was £0.8m, giving a cash balance of £6.0m at the period end.
| Y/E Jul | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 2.1 | (2.8) | (4.7) | (1.30) | N/A | N/A |
| 2022A | 2.5 | (2.1) | (4.6) | (1.32) | N/A | N/A |
| 2023E | 6.0 | 0.5 | (0.8) | (0.26) | N/A | 116.0 |
| 2024E | N/A | N/A | N/A | N/A | N/A | N/A |
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