REG - Nanoco Group PLC - Trading Update

NanocoAnnouncement

03/02/2023 07:15

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RNS Number : 8579O  Nanoco Group PLC  03 February 2023

FOR IMMEDIATE
RELEASE
 
3 February 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK
LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI
2019/310) ("UK MAR").

Nanoco Group PLC

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

 

Half year trading update - ahead of expectations

 

Separately to the update on the litigation settlement published today, Nanoco
today issues a trading update for the half year ended 31 January 2023 (the
"Period") in relation to the organic business, which has continued to make
further progress in customer delivery and scaling for potential production
orders this year.

 

Operational overview

 

·    Continued successful delivery of technical milestones throughout the
Period for the European Electronics and Asian Chemical customers.

·    Increase in demand for volumes of development materials.

·    On track to deliver two fully validated production materials for use
in infra-red sensing.

·    Manchester exit and Runcorn relocation delivered on budget and
slightly ahead of time.

·    Runcorn CFQD facility re-commissioning alongside recruitment of
additional production and production support personnel.

·    Focus remains on delivering production ready facility and validated
materials in anticipation of production orders in CY23.

 

Financial overview

 

·    Revenue remains comfortably in line with the Board's expectations.

·    Active cost management is delivering costs also comfortably in line
with the Board's expectations.

·    As a result of the factors above, combined with FX tailwinds, the
Adjusted EBITDA loss for the year is now expected to be narrower than (and
therefore ahead of) the Board's expectations.

·    Net cash consumption in the Period was £0.8m, leaving a cash balance
of £6.0m, also comfortably in line with the Board's expectations.

The Company expects to announce its Interim Results for the half year ended 31
January 2023 on 28 March 2023. The financial impact of the litigation
settlement will be included in the Company's results from the second half of
this financial year, onwards.

Brian Tenner, CEO of Nanoco, said:

"In the first half, we have continued to build on the significant positive
momentum achieved in the last few years, positioning ourselves for significant
organic growth in the near term.

 

"For potential customers, the validation of our IP and the funding that the
litigation settlement announced separately today cements the viability of
Nanoco as a robust and reliable supplier operating in huge international
electronics markets."

 

For further information, please contact:

Nanoco Group PLC:

Brian Tenner, CEO
 
+44 (0)1928 761 404

Liam Gray, CFO & Company Secretary

 

Peel Hunt (Joint Corporate Broker):

Paul
Gillam
+44 (0) 20 7418 8900

James Smith

 

Turner Pope Investments (Joint Corporate Broker):

Andrew
Thacker
+44 (0) 20 3657 0050

James Pope

 

MHP:
+44 (0) 203 128 8570

Reg Hoare

Pete Lambie

nanoco@mhpgroup.com

 

- Ends -

 

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

MAR

The information contained within this announcement is considered by the
Company to contain inside information for the purposes of UK MAR.  Upon the
publication of this announcement via a Regulatory Information Service, this
inside information will be considered to be in the public domain.

 

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.

 

Notes for editors:

About Nanoco Group plc

Nanoco (LSE: NANO) harnesses the power of nano-materials. 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. The Group produces quantum dots and other
nano-materials. 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 Display, Sensor and Electronics markets. An interesting property of
quantum dots is their absorption spectrum. 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 image sensors.
Another interesting property of quantum dots is photoluminescence: the
emission of longer wavelength light upon excitation by light of a shorter
wavelength. The colour of light emitted depends on the particle size. 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 applications
including displays, lighting and biological imaging.

Nanoco was founded in 2001 and is headquartered in Runcorn, UK, with a US
subsidiary, Nanoco Inc., in Concord, MA. Nanoco continues to build out a
world-class, patent-protected IP portfolio generated both by its own
innovation engine, as well as through acquisition.

Nanoco is listed on the Main Market of the London Stock Exchange and trades
under the ticker symbol NANO. For further information please visit:
www.nanocotechnologies.com.

 

visit: www.nanocotechnologies.com (http://www.nanocotechnologies.com) .

 

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