Nanoco Group is a global leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, with c 375 patents. Focus applications are advanced electronics, displays, bio-imaging and horticulture.
Management has said that an order for around 100m sensor units could generate c £20m in revenue, which would equate to deployment across a high-volume handset range, especially if multiple sensors are included in the device. By way of context, Yole Research estimates that the CMOS image sensor market is worth $21.2bn, growing to $30bn by 2030, with applications across almost any market involving image capture mobile devices, automotive, industrial, surveying, security and agriculture.
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Brian Tenner
CEO
Liam Gray
CFO
Forecast net cash (£m)
20
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (11.0) | (18.1) | (13.6) |
Relative | (11.0) | (21.3) | (19.8) |
52 week high/low | 23.4p/13.8p |
Nanoco Group’s trading update flagged that, while its development work on second-generation materials continues to progress as expected, it does not expect to receive a follow-on order for commercial materials in FY24. These orders were expected to be low volume, hence the delay is not particularly material from a financial perspective, although it does remove an expected milestone to gauge Nanoco’s pathway to volume production. We have adjusted our estimates to reflect a more cautious scenario for the near-term ramp-up of volume material sales. Success will be defined by the extent to which Nanoco-based sensors are designed into handsets and other devices in the 2026/27 timeframe, when the infrared sensing market is expected to see an inflection. Nanoco and its lead partner hope to have more visibility on end-customers’ commercialisation pipelines by the time of the FY24 results in October.
Y/E Jul | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 2.5 | (2.1) | (4.6) | (1.32) | N/A | N/A |
2023A | 5.6 | (0.5) | (3.6) | (0.66) | N/A | N/A |
2024E | 7.9 | 0.5 | (0.2) | (0.26) | N/A | 88.8 |
2025E | 9.4 | 1.5 | 1.3 | 0.35 | 45.7 | 30.9 |