Nanoco Group plc (LON: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from its technology platform, has announced its unaudited Group Preliminary Results for the year ended 31 July 2024.
A clear strategy to maximise value and deliver returns
· Having received advice following the commencement of the CDX process, the Board remains confident that the Group has commercial potential and inherent value
· The Board has:
o appointed CDX Advisors to explore an orderly sale of the Group’s trading business (including IP);
o significantly reduced the Group’s cost base;
o determined that surplus cash reserves will be returned to Shareholders; and
o appointed Dmitry Shashkov as CEO, bringing a track record of driving shareholder value through transformational business development
· Christopher Richards will retire as Non-Executive Chairman of Nanoco at the Annual General Meeting in January 2025 and will be succeeded by Jalal Bagherli, bringing his commercial expertise and track record to the leadership of the Board
· Cash will be progressively returned to Shareholders as the CDX process progresses and the Board gains more certainty on the execution of a potential sale process and clarity in the Group’s working capital requirements and the surplus nature of the Group’s cash balance.
Operational Summary – investing in our capabilities
· Nanoco delivered its first ever commercial production orders for two different first generation materials for use in infra-red sensing materials
· Commenced Joint Development Agreements with two customers on second generation sensing materials, with one of these ending post year end
· Continue to achieve all development, scale up and production readiness milestones
· Completed fit out of device and analytical testing facility
· Achieved ISO 14001 accreditation – a key customer requirement
· Increasing customer engagements across all materials
Financial Summary – performance in line with Board expectations, financially underpinned
· Revenue increased by 40% to £7.9m (FY23: £5.6m)
· Adjusted EBITDA improved to £1.2m (FY23: £0.4m LBITDA)
· Cash of £20.3m at year end (FY23: £8.2m)
· Tender offer of £30m completed during the year, and share buyback of £3m completed post year end
· Post year end restructuring ongoing following the cancellation of the JDA with the European customer
Dmitry Shashkov, CEO of Nanoco, said:
“I joined Nanoco because I saw an organisation with unique IP and inherent value to be realised. Having only been here a short time, my confidence in the value in this business has only been reinforced. We have a clear strategy to address our two core markets of Display and Sensing, along with working to define the opportunities outside of these. We have restructured the organisation to minimise cash burn and focus on commercial growth, reducing our gross annual cost base to around £6 million. In tandem, we are engaged with CDX to identify and pursue external investors for our operating business.
Taken together, there is a clear opportunity to maximise value in the trading business and deliver returns to shareholders.”
Christopher Richards, Nanoco’s Chairman, commented on the results:
“Nanoco is strongly positioned to take advantage of developing markets. We have delivered all development milestones for our sensing customers, and whilst the cancellation of the JDA with the European customer post year end was disappointing, we continue to engage with a variety of customers in a number of different markets.
“The Board is determined to deliver shareholder value as rapidly as possible. In light of the plans set out to shareholders, the Board has committed to a return of surplus cash to shareholders during the course of FY25. Cash will be progressively returned to Shareholders as the CDX process progresses and the Board gains more certainty on the execution of a potential sale process and clarity in the Group’s working capital requirements and the surplus nature of the Group’s cash balance. We returned £30m to shareholders through the tender process, and post year end completed the additional £3m share buyback program.
“We have increased the industry expertise of the Board, with two non-executive appointments during the year, and post year end we have appointed Dmitry Shashkov as CEO.
“As a Board we are committed to achieving the best value for shareholders, and the whole team is committed to making Nanoco a highly successful nanomaterials group.”
