REG - Nanoco Group PLC - Trading Update

NanocoAnnouncement

08/08/2023 07:00

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RNS Number : 5721I  Nanoco Group PLC  08 August 2023

For Immediate
Release
8 August 2023

 

NANOCO GROUP PLC

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

 

Year End Trading Update

 

Transitioning from an R&D first mover to a commercial producer of 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 year end
trading update ahead of the announcement of its final results for the year to
31 July 2023, which will be released in October 2023.

Overview

·    Nanoco is now closer to commercial production than at any time in its
20-year history

·    Nanoco is in the strongest financial position since its inception

·    Nanoco's core markets of sensing and display are forecast to
experience rapid growth

·    Nanoco is leveraging its Samsung litigation experience to generate
further value from its IP

Operational highlights for the year

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

o  European electronics customer: major work package completed as planned by
Nanoco in April 2023 for two materials now in final validation - awaiting
final response from customer

o  Major Asian chemical customer: fifth short term work package underway
having successfully delivered all technical milestones in four others during
FY23 / FY22

o  Ongoing discussions with both major customers on longer and deeper
collaborations

o  European and Asian customers above have reach into thousands of their own
customers

·    Successfully completed consolidation of all operations into the
Group's Runcorn production site

·    Expansion of workforce and organic investment in preparation for a
commercial production order expected bythe end of CY23

·    Nanoco and advisers actively working to pursue potential infringers
of the Group's IP

·    Completed capital reduction to facilitate return of up to £40m to
shareholders in early 2024

Financial highlights

·    Unaudited revenues of £5.6m more than double FY22 and in line with
the Board's expectations

·    Underlying adjusted EBITDA also remains in line with the Board's
expectations

·    The expected impact of the litigation settlement on the Group's
income statement remains in line with the disclosures set out in Note 7 to the
Interim Results for the six months ended 31 January 2023 and is still subject
to statutory audit, detailed tax calculations and changes in exchange rates

·    Payment and use of proceeds from the litigation settlement:

o  First tranche of £62.1m received in March 2023 with majority used to pay
funder and advisors

o  Second $75.0m tranche due by 3 February 2024 will be wholly for Nanoco
(less $3.25m Korean withholding tax)

·    Unaudited cash position at 31 July 2023 of £8.2m, an increase of
£2.2m since 31 January 2023

·    Gross fixed cash cost base c.£0.5m per month before revenue, other
operating income and tax impacts - an increase of just over £0.1m per month
following investment in new staff capacity and inflationary cost increases in
H2 FY23

Notice of final results

The Company expects to announce its final results for the year ended 31 July
2023 in the second half of October 2023.

Brian Tenner, Chief Executive of Nanoco, said:

"Over the last year we have made significant progress, taking Nanoco to its
current inflection point. Consistent feedback from the European customer
supports the expectation of commercial production by the end of this calendar
year. This transition from an R&D first mover to a commercial producer of
scale is underpinned by the litigation proceeds and our validated IP for which
we are actively pursuing further monetisation opportunities."

 

Dr Christopher Richards, Non-Executive Chairman of Nanoco, said:

"Nanoco's experienced Board are firmly focused on delivering value for all
shareholders. The litigation proceeds allow us to drive the organic business
forward while underpinning our firm commitment to return up to £40m of cash
to shareholders in early 2024. In addition to last year's commercial progress,
we committed to assess the option to appoint a further Non-Executive Director
to the Board, based on business needs. A search process for a new independent
Non-Executive Director with strong electronics sector commercial experience is
well underway."

 

- Ends -

For further information, please contact:

Nanoco Group PLC:

Brian Tenner,
CEO
+44 (0) 161 603 7900

Liam Gray, CFO & Company
Secretary
+44 (0) 161 603 7900

 

Peel Hunt (Joint Corporate Broker):

Paul
Gillam
+44 (0) 20 7418 8900

Richard Chambers

James Smith

 

Turner Pope Investments (Joint Corporate Broker):

Andrew
Thacker
+44 (0) 20 3657 0050

James Pope

 

MHP
Communications:
+44 (0) 203 128 8570

Reg Hoare

Pete Lambie

nanoco@mhpc.com

 

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 Manchester, 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.

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