Nanoco upbeat despite big loss

TECHNOLOGY firm Nanoco is optimistic of its future prospects through deals signed with major multi-national manufacturers, but losses nearly doubled last year.

Manchester-based Nanoco has been pioneering the production of 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, and are free of heavy metals such as cadmium.

It has a deal with the Dow Chemical Company which is preparing to build the world’s first large scale quantum dot factory in South Korea that is expected to power millions of televisions and other displays.

There is also a long-term arrangement with the lighting manufacturer Osram, and Nanoco ios working on other applications such as printable solar panels and cancer imaging.

But the early stage nature of its work means revenues are still low, and fell last year to £1.4m from £3.9m, while pre-tax losses grew from £5m to £9m. Nanoco said the wider loss was down to lower joint development revenues and higher wages and other costs associated with commercialising the technology.

Chairman Anthony Clinch said: “Dow’s recent announcement that it would begin construction of the world’s first large-scale cadmium-free quantum dot manufacturing plant using our technology marked a major milestone in the commercialisation of our quantum dots, which have the compelling competitive advantage of being cadmium-free.

“Commercialisation of our technology in the display market remains our primary focus but we also continue to make significant progress in all applications.”

At the year end its cash, and cash equivalents, stood at £12.1m, down from £14.5m. The firm is continuing to explore a move to the main market from the Alternative Investment Market.