Tech firm sees substantial improvement in revenues

Manchester-based TV technology firm Nanoco reported substantially better revenues, and reduced losses, for the six months to January 31.

Turnover soared from £196,000 to £3.192m, while the pre-tax loss of £3.074m was down on £4.835m the previous year.

The Manchester University spin-out firm develops materials used in the manufacture of monitors and TV screens.

During the reporting period the firm announced that its capital investment at its Runcorn production plant was substantially completed and a US customer is now funding stress testing and optimisation.

It has contracted orders for delivery in the second half of the financial year of £3.4m and subsequent years of £4.8m.

Cash at the period end of £6.2m, compared with £8.7m a year ago, and £10.7m at July 31, 2018.

Cash flow for the 12 months to December 31, 2019 is expected to be broadly neutral.

Nanoco chief executive Dr Michael Edelman said: “Significant progress was made in the first half of the financial year, during which we hit all key milestones for our US customer, launched a major re-allocation of resources to focus on near term revenue opportunities, and increased our R&D resources directed at further enhancing the performance of our CFQD’s for commercial applications.

“Towards the end of the period we agreed a significant contract extension with the US customer that covers the provision of commissioning and stress testing services to December 2019.

“The new extension reflects Nanoco’s improving capabilities as an operating partner.”

He said: “The group’s contracted orders fully underpin the board’s expectations for the full year. We are also pursuing potential upsides from material sales and other potential commercial engagements.

“These significantly improved financial results are a welcome step forward.

“At the same time we also continue to carefully manage our cost base and cash resources.

“The group is gaining improved visibility of future cash flows which increases our scope to deliver further improvements in financial performance going forward.”