Nanoco losses widen but progress continues

NANOCO, the high-tech manufacturer of quantum dots, which are used by  the makers of the latest home entertainment and lighting products, has reported higher half year losses.

The Manchester University spin-out-company said the six months to the end of January had seen it make further rapid progress in its “transition from a research-based company to a commercially focused, high-tech manufacturing business.”

The group, which has just over 60 employees at its Manchester base and production facility in Runcorn, it has received outline planning permission for a new facility in Runcorn, called Kilo Lab, which will take 18 months to build.

Nanoco said its business development activities were focused on the Far East – where many of its customers and potential customers are based.

Chairman Dr Peter Rowley said: “Our existing commercial agreements are proceeding well and we continue in discussions with further potential customers. We are now working to deliver a 1kg batch of green quantum dots to a Japanese customer, attracting a US$2 million milestone payment.”

Nanoco’s green quantum dots are designed for use with LEDs for backlighting LCD displays and for solid-state lighting in the home.

The LEDs in which they are used  have a life-span of almost six years of non-stop use, and consume less electricity than traditional lighting.
 
Revenues in the six months to January 31 were £1.32m up from £1.14m a year ago and the loss before tax was £2.36m, compared with £1.65m in the first half of 2011.

The company said: “Cost of sales increased over the prior year period partly as a consequence of the increase in joint development programmes.

“Administrative expenses have increased as a consequence, primarily, of:  new technical staff in support of the joint development projects, higher patent related costs, costs of designing the Kilo Lab and the additional costs associated with the Semi-Tech plant at Runcorn, which was commissioned in January 2011.”