‘Quantum dots’ might sound like the latest pattern to hit the catwalk. But they are, in fact, a subclass of nano-materials – materials with microscopic dimensions. And Nanoco’s (NANO) patent-loaded cadmium-free quantum dots can be tailored “to emit light at different wavelengths across the visible and infrared spectrum”. This means they can be used across various potential applications from TV, to lighting – even to image-guided surgery. That said, ‘potential’ is perhaps a fitting qualification; the group has further to go to prove its wide-ranging commercial viability.
These half-year results were broadly encouraging – particularly after last October’s news that full-year revenues would be lower than previously expected. Sales stemmed largely from the group’s key – anonymous – US customer, and were buoyed by the completion of commercial contracts signed during the second half of FY2018.
Nanoco signed a contract extension with its unnamed US customer in January 2019, following the “substantial completion” of its newly expanded Runcorn plant in December. The facility is designed for the production of nano-materials to be used in the electronics industry. The plant should be ready for commercial production in the second half of this calendar year, although Nanoco requires “a firm demand signal” from the customer before releasing a date for full-scale commercial production.
House broker Peel Hunt expects adjusted pre-tax losses of £5.7m and losses per share of 2p for the year to July 2019, against losses of £7.1m and 2.1p in FY2018.
| NANOCO (NANO) | ||||
| ORD PRICE: | 46.5p | MARKET VALUE: | £133m | |
| TOUCH: | 46.5-46.6p | 12-MONTH HIGH: | 56p | LOW: 30p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 4p* | NET CASH: | £6.2 | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 (restated) | 0.2 | -4.84 | -1.63 | nil |
| 2019 | 3.2 | -3.07 | -0.88 | nil |
| % change | +1500 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £3.7m, or 1p a share | ||||
