Nanoco Group Plc (LON:NANO) has released its unaudited Interim Results for the half year ended 31 January 2023 (‘the Period’ or ‘H1 FY2022/23’). While H1 FY2022/23 numbers were very much in line with expectations, February’s transformative securing of final definitive agreements (collectively the ‘Settlement’) with Samsung amounting to US$150m (c.£124.3m) in settlement of ongoing litigation, now places the Group on a firm footing from which to exploit significant growth opportunities presented through its organic business.
Continuing to make strong progress in terms of customer delivery and scaling, the Board anticipates receipt of potential ‘milestone’ commercial production orders by the end of CY2023. After servicing the various ‘high ticket’ costs directly and indirectly related to the litigation, Nanoco has been left with a balance of c.£4.5m from the first tranche payment which, together with end-January 2023 net cash of £6.0m on its balance sheet, leaves it with ‘firepower’ sufficient to comprehensively address all immediate end market and licensing opportunities, while also actively chasing other potentially infringing parties.
The second tranche payment due in February 2024 will by contrast be received largely unencumbered. Recognising this along with the protection offered through existing carried forward tax losses (in excess of £40m), weighing the Board’s likely wish to continue investing substantially in its technologies for creation of a self-sustaining organic business, Turner Pope Investments nevertheless considers it may be in a position to recommend distributing a good proportion of the available surplus, possibly up to £45m (presumably in the form of special dividends and/or a share buy-back).
Author, Barry Gibb, Research Analyst, Turner Pope Investments
Nanoco Group plc (LON:NANO) is listed on the main market of the London Stock Exchange. They are the market leader in the research, development, licensing and manufacture of heavy-metal-free quantum dots, called CFQD® quantum dots, for use in various commercial applications.
