REG - Nanoco Group PLC - Half Year Trading Update

NanocoAnnouncement

08/02/2024 07:15

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RNS Number : 4093C  Nanoco Group PLC  08 February 2024

Nanoco Group PLC

("Nanoco", the "Group", or the "Company")

8 February 2024

Half Year Trading Update

 

Performance in line

 

Continued strategic progress towards commercial production at scale

 

Nanoco Group plc (LSE: NANO), a world leader in the development and
manufacture of cadmium-free quantum dots and other specific nanomaterials
emanating from our technology platform, today provides the following trading
update ahead of the announcement of its Half Year results for the six months
ended 31 January 2024, which are set to be released on 27 March 2024.

 

Operational overview

·    Critical milestone of first ever commercial production order achieved
with shipment of two first-generation materials for use in infra-red sensing
applications in electronic devices.

·    Significant progress with our two global electronics supply chain
customers:

o  Joint Development Agreement with STMicroelectronics, a global
semiconductor leader serving customers across the spectrum of electronics
applications, to optimise the performance of a second-generation sensing
material over a two year period.

o  Joint Development Agreement lasting two years with an important Asian
Chemical customer to optimise a novel high performing nano-material for
potential use in a number of global electronics applications.

·    Building and fit out underway for new 300mm wafer device development
and testing capability to shorten product research cycles and to support new
customer engagement.

Financial overview

·    Second and final tranche of litigation proceeds (net $71.75m)
received from Samsung after settling last year on a no-fault basis for the
alleged infringement of the Group's IP. Net proceeds hedged at a rate of $1.22
/ £1.00, generating £58.8m including a net gain of £2.1m compared to spot
rates on the date of receipt.

·    Set to return capital to shareholders, in line with previous
commitments, in the range of £33.0-40.0m. The Group will announce its
proposals for the amount and structure shortly.

·    As previously communicated, retained proceeds will be invested in
commercial opportunities and further expanding R&D activities through to
the self-financing position that is expected during CY25.

·    Revenue and Adjusted EBITDA remain in line with the Board's
expectations.

Brian Tenner, Chief Executive Officer of Nanoco, said:

"With the second tranche of litigation proceeds received, Nanoco will soon be
able to make the promised return of capital to shareholders. The retained
proceeds will then allow us to face the future on a fully funded basis,
enabling careful strategic investment in R&D and expanded device
capabilities and building on the commercial products that we have already
delivered to market. The Group is well placed at the forefront of quantum dot
technology to generate increases in shareholder value in the medium term. We
look forward to announcing further progress, including the opening of our new
fab."

- Ends -

 

For further information, please contact:

 

Nanoco Group plc:

Brian Tenner,
CEO
44 (0)1928 761 404

Liam Gray, CFO & Company Secretary

 

Cavendish Capital Markets Limited (Financial Adviser & Joint Corporate
Broker):

Ed Frisby / George Lawson (Corporate Finance)
 
44 (0) 20 7220 0500

Tim Redfern / Charlie Combe (Corporate Broking)

Jasper Berry (Sales)

 

Turner Pope Investments (Joint Corporate Broker):

Andrew
Thacker
44 (0) 20 3657 0050

James Pope

 

Powerscourt (Public
Relations)
44 (0)7970 246 725

Elly Williamson

Ollie Simmonds

Nanoco@powerscourt-group.com

 

The person responsible for arranging for the release of this announcement on
behalf of Nanoco is Liam Gray, Chief Financial Officer.

FORWARD LOOKING STATEMENTS

This announcement (including information incorporated by reference in this
announcement) and other information published by Nanoco may contain statements
about Nanoco that are or may be deemed to be forward looking statements.
Such statements are prospective in nature.  All statements other than
historical statements of facts may be forward looking statements.  Without
limitation, statements containing the words "targets", "plans", "believes",
"expects", "aims", "intends", "will", "may", "anticipates", "estimates",
"projects" or "considers" or other similar words may be forward looking
statements.

Forward looking statements inherently contain risks and uncertainties as they
relate to events or circumstances in the future.  Important factors such as
business or economic cycles, the terms and conditions of Nanoco's financing
arrangements, tax rates, or increased competition may cause Nanoco's actual
financial results, performance or achievements to differ materially from any
forward looking statements.  Due to such uncertainties and risks, readers are
cautioned not to place undue reliance on such forward looking statements,
which speak only as of the date hereof.  Nanoco disclaims any obligation to
update any forward looking or other statements contained herein, except as
required by applicable law.

About Nanoco Group plc

 

Nanoco (LSE: NANO) is a nano-material production and licensing company,
specialising in the production of its patented cadmium free quantum dots
(CFQD®) and other patented nano-materials for use in the electronics
industries.

Founded in 2001 and headquartered in Runcorn, UK, Nanoco continues to build
out a world-class, patent-protected IP portfolio alongside the scaling of the
production for commercial orders.

Nano-materials are materials with dimensions typically in the range 1 - 100
nm. Nano-materials have a range of useful properties, including optical and
electronic. Quantum dots are a subclass of nano-material that have
size-dependent optical and electronic properties. Within the sphere of quantum
dots, the Group exploits different characteristics of the quantum dots to
target different performance criteria that are attractive to specific markets
or end-user applications such as the Sensor, Electronics and Display markets.
Nanoco's CFQD® quantum dots are free of cadmium and other toxic heavy metals,
and can be tuned to emit light at different wavelengths across the visible and
infrared spectrum, rendering them useful for a wide range of display
applications. Nanoco's HEATWAVE™ quantum dots can be tuned to absorb light
at different wavelengths across the near-infrared spectrum, rendering them
useful for applications including cameras and image sensors.

Nanoco is listed on the Main Market of the London Stock Exchange, holds the
LSE's Green Economy Mark, and trades under the ticker symbol NANO. For further
information please visit: www.nanocotechnologies.com
(http://www.nanocotechnologies.com)

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