Losses grow for cadmium-free quantum dots pioneer

NANOCO Group, a specialist in the development of cadmium-free quantum dots for the display industry has reported losses rising to £5.24m (H1 2015: £3.15m) as it invests in research and development.

In its interim results for the six months to January 31, the listed Manchester company said its decision to convert the company’s worldwide licensing agreement with the Dow Chemical Company to non-exclusive give it greater control over where it sells its products.

Chief executive Michael Edelman told TheBusinessDesk that the move was key to maximising the revenue opportunities of the ground-breaking technology.

“Once new lincensing agreements come in, there will be significant up front payments,” he said. “Our strategy has been all about regaining control over our future in the display industry, and the non-exlusivity allows to do that and get the technology out to other OEMs.”

He also said capacity of Nanoco’s plant in Runcorn continues to be enhanced by process improvements, allowing the it to directly target original equipment manufacturer display makers, film converters and other display partners with its own products.

Dow’s plant in Cheonan, South Korea, continues to supply sample material to meet potential customers’ requirements.

A further joint development agreement  has also been signed with Osram in general lighting and Nanoco’s own Lighting Division launched four product lines.

Nanoco has formed a life sciences division to pursue potentially significant opportunities in the medical devices and medical diagnostics markets.

David Blain joined the company as chief financial officer in August 2015 and Chris Richards was appointed a non-executive director in November 2015. Dr Peter Rowley is retiring from the Board after 10 years.

The company said its balance sheet remains strong with cash, cash equivalents and deposits at  January 31 2016 of £18.3m (January 31 2015: £9.4m; July 31 2015: £24.3m) with a £1.9m R&D tax credit expected to be received this month.

Chairman Anthony Clinch said: “We have made substantial progress in the financial year to date. The decision to convert the worldwide licensing agreement with Dow to non-exclusive gives us greater control over the commercialisation of our technology in the display industry.

“We have an exciting strategy in display in which we are now targeting multiple routes to market.

“The Dow plant in South Korea is now producing cadmium-free quantum dots for sampling to potential customers.  We look forward to Dow receiving commercial orders as a result of this customer sampling.

“We continue to make progress in our other target markets and to build our organisation. We look forward to the months ahead with confidence.”