Tech firm says annual revenues will be ahead of market consensus

Dr Michael Edelman

Nanoco Group will report the best financial results in its history when it delivers trading figures for the year to July 31, in October, it said today.

The firm – a spin-out from Manchester University which develops materials used in the manufacture of monitors and TV screens – released a trading update ahead of its scheduled results announcement on October 15.

It said financial highlights included unaudited revenues of £7.3m, more than double 2018 levels and slightly ahead of market consensus expectations due to the early delivery of some revenue under a major services contract.

Billings in the year amounted to £9.6m, which included £2.4m as the final sums payable to complete its new Runcorn production facility.

The company’s unaudited cash position at July 31, was £7m, an increase of £800,000 since January 31, 2019, compared with £10.7m at July 31, 2018. The group still expects to have around £6m of cash in hand at December 31, 2019.

Nanoco’s cost base continues to be closely managed with a 20% reduction in headcount delivered in the fourth quarter without diminishing core R&D and production capabilities.

Chief executive Michael Edelman said: “Over the last year we provided exceptional customer service in meeting all technical milestones and delivering a new Runcorn production facility that now gives us the capability to manufacture nano materials on a large scale for use in diverse electronics applications.

“This strong operational performance contributed to the best financial results in the company’s history.

“We have also made major enhancements in the performance of our CFQD Quantum dots, and continued to develop our IP portfolio, with over 100 new patents granted or applied for during the year.”

In June the company revealed that a major contract with a US customer would end in December this year.

Mr Edelman said: “Clearly, the news that the current major work programme will not be extended after it expires on 31 December 2019, for reasons unconnected to the performance of our materials or the new production facility, was extremely disappointing for the whole Nanoco team and our stakeholders.

“However, we remain focused on completion of the current contract deliverables whilst broadening our efforts to seek out other potential new customers in the electronics and display sectors.

“The completion of the new Runcorn facility and the waiver of the contract liability leaves the group with a significantly expanded asset base and production capability across a wider range of market sectors.

“We are working hard to take advantage of this new capability, alongside our display opportunities, in the new financial year.”

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