Nanoco's potential is compelling

Nanoco’s quantum dots – comprising tiny semiconducting particles which are heavy-metal free – enhance energy efficiency in electrical products. And a well developed relationship with a Japanese electronics manufacturer yielded a $2m (£1.26m) milestone payment last April – for delivery of 1kg of red quantum dots. Another $2m is expected before the middle of this year when 1kg of green quantum dots is delivered. The red and green dots will be combined with blue LEDs by the Japanese manufacturer to produce back-lighting for LCD televisions and other lighting. Moreover, a Korean television company has also been signed and is expected to want to progress quickly towards a commercial product. Nanoco made its first move into the potentially huge US market, too, with a major lighting manufacturer.

The challenge now is to scale-up production. Management is reluctant to commit to a huge step change before firm orders appear, but chief executive Michael Edelman expects the first commercial order in the next financial year, followed by rapid progress. Current capacity is 25kg a year but there are plans to expand that to 40kg and then to add two more increments of 40kg before a major scale-up.