REG - Nanoco Group PLC - Interim Results
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RNS Number : 0180B Nanoco Group PLC 20 April 2026
20 April 2026
NANOCO GROUP PLC
("Nanoco", the "Company" or the "Group")
Interim Results
Focused on maximising value
Nanoco Group plc (LSE: NANO), a world leader in the development and
manufacture of cadmium-free quantum dots and other specific nanomaterials
emanating from its technology platform, announces its unaudited interim
results for the half year ended 31 January 2026 ("the Period" or "H1 FY26").
Continued commercial progress
· Continue to achieve all milestones in the Joint Development Agreement
("JDA") with the first Asian Chemical Customer - now set to finalise R&D
in Quantum Dot ("QD") image sensors and transition to scale up phase over the
next few months
· JDA with second Asian Chemical Customer achieved positive results,
and we are currently in discussions around a further JDA
· Completed the Innovate UK grant to develop a one-step ink for our
first generation PbS materials, providing an easier to use product to
customers
· Continue to engage with a number of other customers in different
applications of quantum dots, such as Short-Wave Infrared ("SWIR"), Mid-Wave
Infrared ("MWIR") and display across Europe and Asia
Forecast growth in key markets provides an opportunity
· Our progress on second generation sensing materials, in collaboration
with our customers, demonstrates that our quantum dot materials are achieving
market-leading device metrics, positioning Nanoco as a key partner in an
emerging growth market
· Market sector forecasts(1) continue to indicate significant growth in
our key market of sensing
· Other markets continue to assess the opportunity to work with quantum
dots in their products, which may offer significant opportunity over the long
term
· We continue to progress as a research-led production company, with
the ambition of becoming cash breakeven in the medium term
Achieving value from our IP portfolio
· We announced a no-fault settlement agreement with LG Electronics for
a gross amount $5m, which was received in January 2026
· Settled litigation with Shoei Chemical Inc. and Shoei Electronic
Materials, Inc. (collectively, "Shoei"), following Shoei's initial filing of
the lawsuit against Nanoco and our counterclaims for infringement and damages
Further reductions in cost base to preserve value
· Further reorganisation completed, including a reduction in the
Board's size and cost - gross cash cost base reduced to between £0.3m -
£0.4m per month (FY25: £0.5m)
· We have also reduced the footprint of our manufacturing facility in
Runcorn, whilst maintaining our capabilities to research, test, develop and
manufacture quantum dots at scale
· We continue to monitor our cost base to assess whether further
reductions can be made
Discontinuation of the potential divestment of the Group's trading business
· Following a comprehensive process, no firm offers were received for
the potential sale of the trading business, and the Board is no longer seeking
a buyer for the trading subsidiary. Instead, we are investing in
high-potential organic prospects, while retaining a focus on minimising and
reducing the Group's operating expenses.
Results overview
Financial summary
· Reported revenue increased to £7.7m (H1 FY25: £3.4m) attributable
primarily to the receipt of settlement proceeds from the LG Electronics
litigation
· As a result of the increase in revenue, Adjusted EBITDA is
significantly ahead of prior year at £5.1m (H1 FY25: £0.5m)
· Period end reported cash of £14.4m (31 July 2025: £14.0m)
Full year outlook
· Two JDA customers signed up, with potential for further JDAs and
product revenues - full year revenue expected to be c. £11.3m, in line with
market expectations
· Cash at 30 April 2026 is expected to be c. £10.4m, which includes
the payment of £3.2m for costs incurred relating to the Shoei litigation
· Cost base has undergone a significant reduction, with
post-restructuring gross annual cash costs expected to be c.£4.2m from 1
August 2026 (2025: £6.0m)
· The Board continues to assess all options to deliver the best outcome
for all stakeholders
Liam Gray, Interim Chief Executive Officer of Nanoco Group plc, said:
"The past six months have been constructive for Nanoco, with the JDA with our
first Asian Chemical Customer continuing to progress and our focus remaining
on developing and scaling the materials over the next couple of years. We are
also in discussions regarding a potential extension to the JDA with the second
Asian Chemical Customer.
Alongside this, we remain engaged with a number of other potential customers;
while these discussions are at an early stage, they could over time contribute
to additional revenues and a broader product portfolio.
We have also reduced our cost base significantly, preserving shareholder value
while pursuing our organic prospects with our core operational capabilities
and IP. We successfully negotiated a licence agreement with LG Electronics,
receiving a lump sum payment in the year, and also settled the litigation with
Shoei.
(1) Sources: Yole, IDTechEx
(2) The revenue forecast for FY26 is £11.3m, as prepared by Cavendish.
For further information, please contact:
Nanoco Group plc:
Jalal Bagherli, Executive
Chairman
+44
(0)1928 761 404
Liam Gray, Interim CEO & Company Secretary
Sodali & Co
Elly
Williamson
+44 (0)79 3535 1934
Pete Lambie
Oliver Banks
Nanoco@sodali.com (mailto:Nanoco@sodali.com)
Cavendish Capital Markets Limited (Financial Adviser and Corporate Broker):
Ed Frisby / George Lawson (Corporate Finance)
+44 (0) 20 7220 0500
Ella Bedford (Corporate Broking)
Jasper Berry (Sales)
Notes for editors:
About Nanoco Group plc
Nanoco (LSE: NANO) is a nanomaterial production and licensing group,
specialising in the production of its patented cadmium free quantum dots
(CFQD®) and other patented nanomaterials 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 its
existing scaled up production facilities for commercial orders.
Nanomaterials are materials with dimensions typically in the range 1 - 100 nm.
Nanomaterials have a range of useful properties, including optical and
electronic. Quantum dots are a subclass of nanomaterial 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 spectra, 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)
Business Review
Company lean and focused on delivering for our key market
During the Period, the Board continued to execute its previously announced
strategy, with key developments being;
· Continued focus on quantum dots for the image sensor market, with two
key customers pushing developments in this area;
· A successful outcome from the LG litigation;
· A significant reduction in the Group's cost base to minimise cash
burn and focus on commercial growth.
In addition to the two main customers in image sensing, the Company continues
to engage with a number of other customers across a variety of applications on
potential collaborations and JDAs. The increasing revenues, coupled with the
reduction in the cost base, mean Nanoco is on track to achieve its target of
breakeven in the medium term.
Sensing
As announced in November 2025, and following on from the success of the
two-year agreement, our first Asian Chemical Customer signed a further
three-year extension, which will take the product from R&D into
production. Towards the end of the first year of this extension, the customer
will select the material they want to move into scale up and then production.
We have also delivered on all milestones for the second Asian Chemical
Customer. We are currently in discussions around a further extension to this
JDA.
In addition, we continue to work with a number of other customers on potential
JDAs or material supply. This has recently extended to doing some exploratory
work on MWIR to develop a working prototype to test the capabilities of such a
device.
Display
We continue to engage with several Asian companies involved in existing Liquid
Crystal Display ("LCD") technologies. Due to the continuing trend of
substituting cadmium ("Cd") based products with Cd-free alternatives, we see
an opportunity to introduce Nanoco Cd-free QDs into these established supply
chains. Our engagement is at different points of the supply chain, including
both display manufacturers and component (QD film) makers.
Operations
As announced on 26 January 2026, Nanoco has been restructuring its workforce
and operations to reduce the gross monthly cash cost. This process included a
further reduction in the Board size and cost, reducing now to a Board of
three, effective 1 May 2026. Among the rest of the team, two leavers were not
replaced and a further five employees were made redundant.
We have also served notice on a number of locations on site and are in the
process of vacating these premises. The reduced floor space reduces the
quantity of PbS quantum dots that can be produced, but we can still scale up
and manufacture significant volumes in the remaining facilities of both PbS
and InAs quantum dots.
Our device lab continues to provide timely feedback on the quantum dots being
developed, and our capabilities in device continue to expand and be recognised
by customers who wish to use our equipment for their testing and feedback.
IP Licensing
Our primary goal for Nanoco is the development, scale up and commercial
production of nanomaterials. Our IP portfolio is primarily used to support
those objectives. However, where we believe our IP is being used without a
licence, we will pursue for damages. This was evidenced in our successful
licence agreement with LG, who agreed to pay $5m for access to our IP
portfolio.
In December 2025, Shoei filed for a declaratory judgement against Nanoco. This
requested a court in Virginia conclude that Shoei did not infringe any of the
four patents used in the LG litigation. Nanoco filed counter claims, citing
patent infringement and damages. As we progressed through the litigation, it
became apparent that the lawsuit wasn't economically viable. Therefore, the
decision was made to negotiate with Shoei to achieve an outcome which
protected the future organic business of Nanoco.
The CDX Process
The Board had been exploring the potential sale of the trading subsidiary.
Whilst the outreach and engagement had been positive, ultimately the Board
believed there was greater value for shareholders in the organic prospects of
the business. Therefore, the formal outreach from Nanoco was cancelled in
January 2026.
The Board continues to evaluate strategic options to deliver the best outcome
for all stakeholders.
Board
As announced on 26 January 2026, the Board will be reduced from seven to
three. Dr Jalal Bagherli has become Executive Chairman. Liam Gray, previously
CFO, has stepped into the Chief Executive Officer role on an interim basis
following Dmitry Shashkov's departure in February 2026. The CFO role will not
be directly replaced in the short term. Nigel Pickett, CTO, also left the
business in February 2026. Alison Fielding and Dieter May, Non-Executive
Directors, will both step down at the end of April 2026.
Outlook - solid foundation for organic success
Market sector forecasts(1) continue to support strong growth for SWIR sensors
and quantum dot-based display technologies over the next five years. In
combination with other QD market segments, the Company estimates an
approximately $1.0bn market for quantum dots by 2029 across all applications.
In the Image Sensor market, we are seeing a strong trend towards heavy
metal-free materials, particularly in the automotive and consumer electronics
applications. Industrial and defence-based applications are more willing to
compromise on the materials, which provides a short-term opportunity for our
first generation PbS materials.
These trends position Nanoco to grow its product revenues, with further growth
coming from other applications of quantum dots that require longer
development.
Liam Gray
Interim Chief Executive Officer
20 April 2026
(1) Sources: Yole, IDTechEx
Statement regarding Shareholder Consultation following the 2025 Annual General
Meeting
At the Nanoco Group Plc Annual General Meeting ("AGM") held on 13 January
2026, two of the resolutions proposed, being the disapplication of statutory
pre-emption rights, were not passed. In addition, five of the other
resolutions, being the re-appointment of Dr Dmitry Shashkov as a Director of
the Company, the re-appointment of Dr Jalal Bagherli as a Director of the
Company, the re-appointment of Dr Alison Fielding as a Director of the
Company, the approval of the Directors' Remuneration Report and the authority
to allot shares were supported by 74.8%, 74.9, 74.5%, 74.4% and 74.4% of
shareholders respectively. While these passed with the necessary majority,
these resolutions received less than 80.0% of votes.
Consequently, in accordance with the UK Corporate Governance Code, the Company
engaged with a number of larger shareholders to solicit their feedback on
voting at the AGM, in particular on the resolutions referenced above. The
majority of shareholders we reached out to confirmed they had voted in favour
of these resolutions. The Board would like to thank all shareholders that
engaged in the process.
Financial review
Revenue
Reported revenue in the Period increased 123% to £7.7m (H1 FY25: £3.4m). The
majority of revenue relates to recurring licence revenue and the increase in
the period is due to the one-off LG licence revenue.
Sources of revenue H1 FY26 H1 FY25 FY25
£m £m £m
Services 0.8 0.3 1.2
Material sales 0.1 0.1 0.1
Licences 6.8 3.0 6.3
Total revenue 7.7 3.4 7.6
Excluding the licence revenue, services revenues continue to be the major
revenue driver, primarily from the two JDAs. The increase on H1 FY25 is due to
the second JDA which commenced in the prior year. Material sales represent
shipments of nanomaterials to supply chain partners in sensing and display
markets.
Operating expenses
Operating expenses comprise R&D and administrative expenses. Gross
investment in R&D to support the ongoing development of our nanomaterials
was £0.9m in the Period (H1 FY26: £0.7m) and administrative expenses were
£3.8m (H1 FY24: £3.7m).
Operating profit and adjusted EBITDA
The increased revenue in the Period directly impacted adjusted operating
profit in the Period, increasing to a £4.1m profit (2025: loss of £0.2m).
Adjusted EBITDA in the Period increased to £5.1m.
H1 FY26 H1 FY25 FY25
£m £m £m
Operating profit/(loss) 2.5 (1.2) (1.6)
Requisitioned general meeting - 0.2 0.2
Strategic review fees 0.1 0.2 0.3
Restructuring costs 0.1 0.1 0.1
Litigation costs 1.2 - 0.3
Foreign exchange 0.1 - -
Share-based payment charge 0.1 0.5 0.7
Employers NI on SBP 0.0 0.0 0.1
Adjusted operating profit/(loss) 4.1 (0.2) 0.1
Depreciation 0.8 0.6 1.2
Amortisation 0.1 0.1 0.1
Impairment 0.1 0.0 0.1
Adjusted EBITDA 5.1 0.5 1.5
Management monitor Adjusted EBITDA as an Alternative Performance Measure. The
non-cash charges for share-based payments (including the associated national
insurance charges), depreciation and amortisation are added back to the
operating result to arrive at Adjusted EBTIDA. One-off cash costs are also
excluded from Adjusted EBITDA. These items are excluded to provide users of
the accounts with a clearer understanding of underlying business performance.
Taxation
A deferred tax asset for brought forward losses expected to be utilised in
future years was recognised in FY24 and remains at the period end. The Korean
withholding tax on the Samsung licence agreement creates a UK tax asset of
£1.7m which can be offset against future tax liabilities (£0.1m of which has
been charged against current period profits).
Net result
The profit after tax for H1 FY26 was £2.3m (H1 FY25: loss of £1.0m).
Earnings per share
The basic profit per share was 1.15 pence per share (H1 FY25: loss of 0.53
pence). As at 31 January 2026 there were 195,543,816 ordinary shares in issue
(31 July 2025: 194,608,038) including treasury shares.
Cash position and liquidity
Following the receipt of LG licence income the Group had a cash balance at 31
January 2026 of £14.4m (2025: £15.5m).
Working capital
Our contracts with customers include mechanisms to give Nanoco advance notice
of significant changes in demand that should be adequate to ensure that Nanoco
has appropriate raw materials on hand when production needs to be ramped up.
Principal risks
The Directors have considered the principal risks which may have a material
impact on the Group's performance. The majority of applicable risks throughout
the Period remained materially unchanged to those as disclosed on pages 33 to
35 of the 2025 Annual Report and Accounts.
Going concern
The interim condensed consolidated financial statements have been prepared on
a going concern basis. In determining the appropriate basis of preparation of
the financial statements, the Directors are required to consider whether the
Group can continue in operational existence for the foreseeable future.
For the purposes of assessing whether 'going concern' is an appropriate basis
for preparing the interim condensed consolidated financial statements, the
Directors have used their detailed forecasts for the period to 31 July 2030
(the "Forecast Period"). These reflect current and expected business
activities as well as the matters set out in the section above on Principal
risks.
A sensitivity analysis has been performed to reflect a possible downside
scenario that only includes already contracted revenues for the Forecast
Period.
On the basis of the information above and having made appropriate enquiries,
at the time of approving the interim condensed consolidated financial
statements, the Directors have a reasonable expectation that the Company has
access to adequate resources to continue in operational existence for the
foreseeable future, at least 12 months from the date of the issue of these
interim condensed consolidated financial statements.
Accordingly, they continue to adopt the going concern basis in preparing the
interim condensed consolidated financial statements. The financial statements
do not reflect any adjustments that would be required to be made if they were
prepared on a basis other than the going concern basis.
Liam Gray
Interim Chief Executive Officer
20 April 2026
Responsibility statement
The Directors of Nanoco Group plc, as listed on pages 50 and 51 of the 2024
Annual Report and Accounts, excluding Dr Dmitry Shashkov and Dr Nigel Pickett
who have both left the business, confirm to the best of their knowledge:
a) the interim condensed consolidated financial statements have been
prepared in accordance with International Accounting Standard 34 Interim
Financial Reporting, as required by paragraph 4.2.4 of the Disclosure Guidance
and Transparency Rules ("DTR");
b) the interim condensed consolidated financial statements, which have
been prepared in accordance with the applicable set of accounting standards,
give a true and fair view of the assets, liabilities, financial position and
profit or loss of the issuer, or the undertakings included in the
consolidation as a whole as required by DTR 4.2.10;
c) the interim management report includes a fair review of the
information required by DTR 4.2.7 - an indication of important events which
have occurred during the first six months of the year and a description of the
principal risks and uncertainties for the remaining six months of the year;
and
d) the interim management report includes a fair review of the
information required by DTR 4.2.8 - the disclosure of related party
transactions occurring during the first six months of the year and any changes
in related party transactions disclosed in the 2025 Annual Report and
Accounts.
By order of the Board
Liam Gray
Interim Chief Executive Officer
20 April 2026
Condensed consolidated statement of comprehensive income
For the six months ended 31 January 2026
H1 FY26 H1 FY25 FY25
(Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000
Revenue 3 7,700 3,448 7,618
Cost of sales (379) (259) (622)
Gross profit 7,321 3,189 6,996
Other operating income
Government grants 45 8 8
Operating expenses
Research and development expenses (903) (741) (1,349)
Administrative expenses (3,949) (3,705) (7,267)
Operating profit/(loss) 2,514 (1,249) (1,612)
- Before share-based payments and non-recurring items 3,973 (296) 27
- Share-based payments (63) (458) (731)
- Strategic review fees (76) (210) (313)
- Litigation costs (1,192) - (255)
- EGM requisition costs (211) (230)
- Capital reduction fees - - (37)
- Restructuring costs (128) (74) (73)
Finance income 234 339 731
Finance expense (34) (50) (92)
Profit/(loss) before taxation 2,714 (960) (973)
Taxation (458) (74) (1,224)
Profit/(loss) after tax 2,256 (1,034) (2,197)
Other comprehensive income
Loss on exchange rate translations (3) (7) (6)
Total comprehensive profit/(loss) for the year 2,253 (1,041) (2,203)
Earnings/(loss) per share:
Basic earnings/(loss) 4 1.15p (0.53p) (1.13p)
Diluted earnings/(loss) 4 1.10p (0.53p) (1.13p)
The (Loss)/profit for the current and preceding year arise from the Group's
continuing operations and is attributable to the equity holders of the Parent
Company.
The basic and diluted loss per share reported in H1 FY25 and FY25 are the
same, as the effect of share options is anti-dilutive.
Condensed consolidated statement of changes in equity
For the six months ended 31 January 2026
Capital Reverse Share-based Shares
Share Redemption Share acquisition payment Merger held Accumulated
capital Reserve Premium reserve reserve reserve by EBT loss Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 July 2024 (audited) 20,257 12,186 - (77,868) 1,572 (1,242) (3,348) 31,432 (17,011)
Loss for the six months to 31 January 2025 - - - - - - - (1,041) (1,041)
Share buy-back (796) 796 - - - - 28 (1,045) (1,017)
Exercise of share options - - - - (233) - 158 75 -
Share-based payments - - - - 458 - - - 458
At 31 January 2025 (unaudited) 19,461 12,982 - (77,868) 1,797 (1,242) (3,162) 29,421 (18,611)
Loss for the six months to 31 July 2025 - - - - - - - (1,162) (1,162)
Share buy-back - - - - - - - (6) (6)
Capital reduction - (12,186) - - - - - 12,186 -
Transfer of expired options - - - - (380) - - 380 -
Share-based payments - - - - 273 - - - 273
At 31 July 2025 (audited) 19,461 - - (77,868) 1,690 (1,242) (3,162) 41,615 (19,506)
Profit for the six months to 31 January 2026 - - - - - - - 2,253 2,253
Share issue 94 - 7 - (101) - - - -
Exercise of share options - - - - (118) - 139 (21) -
Share-based payments - - - - 63 - - - 63
At 31 January 2026 (unaudited) 19,555 - 7 (77,868) 1,534 (1,242) (3,023) 43,847 (17,190)
Condensed consolidated statement of financial position
As at 31 January 2026
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000
Assets
Non-current assets
Tangible fixed assets 1,280 1,652 1,492
Right of use assets 675 1,827 1,452
Intangible assets 454 683 600
Deferred tax asset 1,599 2,350 1,599
Foreign withholding tax receivable 704 1,590 780
4,712 8,102 5,923
Current assets
Inventories 131 168 165
Trade and other receivables 772 1,010 670
Foreign withholding tax receivable 152 149 152
Income tax asset 319 235 319
Cash and cash equivalents 14,365 15,484 13,998
15,739 17,046 15,304
Total assets 20,451 25,148 21,227
Liabilities
Current liabilities
Trade and other payables (1,992) (943) (1,495)
Lease liabilities 6 (545) (693) (643)
Deferred revenue 5 (6,075) (5,944) (6,090)
(8,612) (7,580) (8,228)
Non-current liabilities
Lease liabilities 6 (217) (917) (655)
Provisions (669) (659) (669)
Deferred revenue 5 (28,143) (34,603) (31,181)
(29,029) (36,179) (32,505)
Total liabilities (37,641) (43,759) (40,733)
Net (liabilities)/assets (17,190) (18,611) (19,506)
Capital and reserves
Share capital 19,555 19,461 19,461
Capital redemption reserve - 12,982 -
Share Premium 7 - -
Reverse Acquisition Reserve (77,868) (77,868) (77,868)
Share-based payment reserve 1,534 1,797 1,690
Merger reserve (1,242) (1,242) (1,242)
Shares held by EBT (3,023) (3,162) (3,162)
Accumulated profit/(loss) 43,847 29,421 41,615
Total equity (17,190) (18,611) (19,506)
Approved by the Board and authorised for issue on 20 April 2026.
Liam
Gray
Interim Chief Executive
Officer
Condensed consolidated cash flow statement
For the six months ended 31 January 2026
Six months to Six months to Year to
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) Audited
£'000 £'000 £'000
Profit/(loss) before tax 2,714 (960) (973)
Adjustments for:
Net finance income (200) (289) (639)
Loss on exchange rate translations 103 5 37
Depreciation of tangible fixed assets 211 201 412
Depreciation of right of use asset 562 376 763
Amortisation of intangible assets 81 96 189
Impairment of intangible assets 98 2 51
Share-based payments 63 458 731
(Profit) / loss on disposal of tangible fixed assets 25 - 25
Increase/(decrease) in inventory provision 150 78
Changes in working capital:
Decrease/(increase) in inventories 34 (13) 62
(Increase)/decrease in trade and other receivables (102) 73 413
Increase/(decrease) in trade and other payables 497 (635) (83)
Decrease in deferred revenue (3,053) (2,981) (6,257)
Cash inflow/(outflow) from operating activities 1,033 (3,517) (5,191)
Foreign withholding tax paid (382) - -
Research and development tax credit received - - 325
Net cash outflow from operating activities 651 (3,517) (4,866)
Cash flows from investing activities
Purchases of tangible fixed assets (24) (203) (282)
Purchases of intangible fixed assets (33) (38) (95)
Proceeds from sale of tangible fixed assets - - 4
Interest received 234 339 731
Net cash outflow from investing activities 177 98 358
Cash flows from financing activities
Return of capital to shareholders - (1,010) (1,009)
Fees on return of capital to shareholders - (7) (14)
Payment of lease liabilities (capital) (321) (314) (627)
Payment of lease liabilities (interest) (31) (48) (87)
Interest paid (3) (3) (6)
Net cash outflow from financing activities (355) (1,382) (1,743)
Increase / (Decrease) in cash and cash equivalents 473 (4,801) (6,251)
Cash and cash equivalents at the start of the period 13,998 20,293 20,293
Effects of exchange rate changes (106) (8) (44)
Cash and cash equivalents at the end of the period 14,365 15,484 13,998
Notes to the interim condensed consolidated financial statements
For the six months ended 31 January 2026
1. Corporate information
Nanoco Group plc (the "Company"), a public company limited by shares, is on
the equity shares (commercial companies) list of the London Stock Exchange and
is incorporated and domiciled in the UK. The Group Interim Report and Accounts
for the six months ended 31 January 2026 was authorised for issue in
accordance with a resolution by the Directors on 20 April 2026.
These interim condensed consolidated financial statements include the
financial statements of Nanoco Group plc and the entities it controls (its
subsidiaries).
These interim condensed consolidated financial statements are unaudited and do
not constitute statutory accounts of the Group as defined in section 434 of
the Companies Act 2006.
2. Accounting policies
a. Basis of preparation
These interim condensed consolidated financial statements have been prepared
in accordance with the Disclosure and Transparency Rules of the Financial
Conduct Authority, UK-adopted IAS 34 Interim Financial Reporting, using the
recognition and measurement principles of UK-adopted IFRS and have been
prepared under the historical cost convention. As required by the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority the
accounting policies adopted in these condensed consolidated financial
statements are consistent with those followed in the preparation of the
Group's Annual Report and Accounts for the year to 31 July 2025.
These interim condensed consolidated financial statements include audited
comparatives for the year to 31 July 2025. The 2025 Annual Report and
Accounts, which was prepared in accordance with UK-adopted International
Financial Reporting Standards ("IFRS"), received an unqualified audit opinion
and have been filed with the Registrar of Companies. The financial statements
of the Group for the year ended 31 July 2025 are available from the Company's
registered office, or from the website www.nanocotechnologies.com.
b. Presentation of figures
Certain figures contained in this announcement, including financial
information, have been subject to rounding adjustments. Accordingly, in some
cases, the sum or percentage change of the numbers contained in this
announcement may not conform exactly to the total figure given.
c. Going concern
The interim condensed consolidated financial statements have been prepared on
a going concern basis as set out in the Financial Review section.
d. Use of estimates and judgements
Preparation of the interim condensed consolidated financial statements
requires management to make judgements, estimates and assumptions affecting
the application of accounting policies and the reporting of assets,
liabilities, income and expenses. Actual results may differ from these
estimates. The significant judgements made by management in applying the
Group's accounting policies and key sources of estimated uncertainty were the
same as those applied to the consolidated financial statements for the year
ended 31 July 2025. These are summarised below:
Estimates Judgements
Period over which to amortise Samsung licence Revenue recognition
Equity-settled share-based payments Samsung licence of IP
Deferred tax Capitalisation (or not) of research and development expenditure
3. Segmental information
Operating segments
At 31 January 2026 and 2025, the Group operated as one segment, being the
research, development and manufacture of products and services based on high
performance nanoparticles. This is the level at which operating results are
reviewed by the chief operating decision maker (i.e. the Board) to make
decisions about resources, and for which financial information is available.
All revenues have been generated from continuing operations and are from
external customers.
Six months to Six months to Year to
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Analysis of revenue - by type
Products sold 42 60 131
Rendering of services 816 416 1,215
Licences 6,842 2,972 6,272
7,700 3,448 7,618
There were two material customers who generated product and service revenue of
£848,000 (2025: two material customers amounting to £442,000). £3,037,000
of the licence revenue related to the Samsung licence (2025: £2,972,000) and
£3,806,000 related to LG Electronics.
The Group operates in a number of countries across the world, although all are
managed in the UK. The Group's revenue per country based on the customer's
location is as follows:
Six months to Six months to Year to
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Analysis of revenue - by geography
South Korea 6,842 2,972 6,272
Japan 849 268 810
Netherlands - 174 492
UK 1 34 34
France - - 9
Belgium 4 - 1
China 2 - -
Canada 1 - -
Spain 1 - -
7,700 3,448 7,618
All the Group's assets are held in the UK and all of its capital expenditure
arises in the UK. The profit before taxation and attributable to the single
segment was £2,714,000 (2025: £960,000 profit).
4. Earnings per share
Six months to Six months to Year to
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Profit/(loss) for the period attributable to equity shareholders 2,253 (1,041) (2,203)
Share-based payments 63 458 731
Profit/(loss) for the period before share-based payments (583) (1,472)
2,316
Weighted average number of shares No. No. No.
Ordinary shares in issue 195,289,529 196,522,718 195,615,212
Options exercisable at the reporting date 1,754,872 990,407 4,021,999
Options not yet exercisable at the reporting date 7,323,453 15,649,778 10,732,098
Diluted weighted average number of shares 204,367,854 213,162,903 210,369,309
Adjusted profit/(loss) per share before share-based payments (pence) 1.18 (0.30) (0.75)
Basic profit/(loss) per share (pence) 1.15 (0.53) (1.13)
Diluted adjusted profit/(loss) per share before share-based payments (pence) 1.13 (0.30) (0.75)
Diluted profit/(loss) per share (pence) 1.10 (0.53) (1.13)
Diluted loss per share is not presented for the 6 months to January 2025 and
the year to July 2025 as the effect of share options issued is anti-dilutive.
The adjusted loss is presented as the Board measures underlying business
performance which excludes non-cash IFRS2 charges.
5. Deferred revenue
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Current
Upfront licence fees 6,075 5,944 6,075
Contract liability on JDA - - 15
Total current 6,075 5,944 6,090
Non-current
Upfront licence fees 28,143 34,603 31,181
Total non-current 28,143 34,603 31,181
Total deferred revenue 34,218 40,547 37,271
Deferred revenue arises under IFRS where upfront licence fees are accounted
for on a straight-line basis over the initial term of the contract or where
performance criteria have not been satisfied in the accounting period.
6. Lease liabilities
31 January 31 January 31 July
2026 2025 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Current
Property Leases 545 691 642
Equipment leases - 2 1
Non-current
Property Leases 217 917 655
Equipment leases - - -
Total lease liabilities 762 1,610 1,298
7. Post Balance Sheet Event
As announced on 26 March 2026, the Company entered into a definitive agreement
with Shoei Chemical Inc. and Shoei Electronic Materials, Inc. (collectively,
"Shoei") to settle the ongoing litigation. Costs incurred between December
2025 and March 2026 relating to this litigation amounted to £3.2m.
- Ends -
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