Dow deal buoys Nanoco sales
MANCHESTER-based nanotechnology group Nanoco saw revenues double in the six months to January, helped by its “transformational” deal with the Dow Chemical Company.
Turnover hit £2.5m, up from £1.3m, while pre-tax losses shrank from £2.3m to £1.6m.
Management is not too concerned with these losses saying that at this stage in the business’s development, “revenues are primarily a reflection of the amount and timing of milestone and joint development payments from strategic partners.”
Nanoco makes quantum dots – tiny fluorescent particles of semiconductor material which have the ability to emit light. They are in demand by the makers of electronic goods because they consume less power than existing systems.
During the period it signed follow-on agreements with existing customers Tokyo Electron and Osram, and licenced the technology to Dow subsidiary, Dow Electronic Materials. Dow contriubuted to the revenue increase with an initial payment of £630,000.
The deal has trebled the company’s share price to around 180p in just four months. The business now has a market value of £380m.
Chairman Dr Peter Rowley said: “Our worldwide licensing agreement with The Dow Chemical Company is transformational for Nanoco.
“It represents a major endorsement of Nanoco’s technology, scalability and market potential, and addresses the manufacture of the much larger quantities of cadmium-free quantum dots that we now expect to be required by the LCD display industry. Full commercial production under this agreement is expected to begin in 2014.
“We continue to make good progress across our business and look forward to the future with confidence.”
Nanoco said its activities remained focused on Korea, the US, Japan, China and Taiwan and it is in discussions with “multiple potential customers” in these countries.
The firm, which employs around 80 staff, is continuing to expand its production base at The Heath Technology Park in Runcorn by acquiring further laboratory space.
