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Nanoco Group PLC (GB:NANO)
LSE:NANO

Nanoco Group plc (NANO) AI Stock Analysis

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GB:NANO

Nanoco Group plc

(LSE:NANO)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
5.50p
▼(-32.27% Downside)
The score is weighed down primarily by weak financial performance (losses, weak operating cash flow, and negative equity) and bearish technicals (price below key moving averages with negative MACD). The earnings call provides partial offset via reduced cash burn, a solid cash position, and JDA progress, but valuation remains challenged due to negative earnings.
Positive Factors
Very high gross margin
A 91.8% gross margin indicates strong unit economics and proprietary material pricing power. This durable production efficiency gives Nanoco room to invest in R&D and absorb SG&A, improving odds of long-term profitability as revenue scales or licensing deals expand.
Reduced cash burn and solid cash buffer
A ~30% reduction in cash burn and a £14m year-end cash position materially extend runway and lower financing urgency. This provides time to execute JDAs and image-sensor strategy, reducing dilution risk and enabling targeted investment to reach stated breakeven goals.
Image-sensor leadership and JDA progress
Multiple JDAs and leading indium-arsenide sensor performance create a durable competitive edge in a specialized niche. Combined with in-house capacity for high-volume sensor production, these partnerships and tech leadership support scalable, higher-margin revenue streams.
Negative Factors
Negative shareholders' equity
Negative equity signals cumulative losses and capital erosion, limiting borrowing capacity and increasing refinancing or restructuring risk. This structural weakness can force equity raises or unfavorable financing terms, diluting shareholders and constraining long-term strategic flexibility.
Weak operating cash flow
Deteriorating operating cash flow shows core operations don't reliably generate cash, increasing dependency on external funding. Even with some free-cash-flow metrics positive, persistent negative operational cash conversion threatens liquidity and sustainable reinvestment without new capital.
Revenue decline, loss after tax & commoditised FPD market
A year-over-year revenue decline and a reported £2.2m loss underscore volatile demand and profitability challenges. Additionally, a commoditised flat-panel display market limits expansion options, forcing reliance on niche image-sensor success and strategic outcomes to drive durable growth.

Nanoco Group plc (NANO) vs. iShares MSCI United Kingdom ETF (EWC)

Nanoco Group plc Business Overview & Revenue Model

Company DescriptionNanoco Group plc, together with its subsidiaries, engages in the research, development, manufacture, and licensing of novel nanomaterials for use in various commercial applications. The company offers CFQD quantum dots which are fluorescent semiconductor nanoparticles for OLED and µLED colour conversion, QD-EL, and security tagging applications; CFQD fine color films; HEATWAVE quantum dots for use in the sensor industry applications; and VIVODOTS nanoparticles for medical and veterinary applications. It has operations in the United Kingdom, rest of Europe, Asia, and the United States. The company was formerly known as Evolutec Group plc and changed its name to Nanoco Group plc in April 2009. Nanoco Group plc was founded in 2001 and is headquartered in Manchester, the United Kingdom.
How the Company Makes MoneyNanoco Group plc generates revenue through the sale of its nanomaterials, primarily quantum dots, to manufacturers in the display and lighting industries. The company has established key partnerships with major players in these sectors, enabling it to supply its products for use in consumer electronics like televisions and monitors. Additionally, Nanoco engages in research and development collaborations that can lead to licensing agreements and contract manufacturing services, which contribute to its revenue streams. The focus on environmentally friendly, cadmium-free quantum dots positions Nanoco advantageously as regulatory standards evolve, further enhancing its market opportunities.

Nanoco Group plc Earnings Call Summary

Earnings Call Date:Nov 18, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
The earnings call reflects significant strategic advancements and operational improvements, particularly in the image sensor market, alongside financial stability. However, challenges such as revenue decline, strategic review delays, and a loss after tax offset these achievements. The mixed performance in market segments like flat panel displays also tempers the overall outlook.
Q4-2025 Updates
Positive Updates
Reduction in Cash Burn
Nanoco reduced its cash burn by approximately 30%, extending its cash runway and allowing reinvestment in business development.
Joint Development Agreements
Signed a second joint development agreement in spring 2025 and extended the first agreement by an additional 3 years, marking important milestones in company development.
Advancements in Image Sensor Market
Nanoco achieved best-in-class performance with indium arsenide technology and is positioned as a leader in the image sensor market.
Stable Financial Position
End-of-year cash position at GBP 14 million with a stable ongoing cash cost base of GBP 0.5 million per month.
Order Book Stability
Order book of GBP 7.6 million matches FY '25 revenue, providing a solid foundation for potential financial outperformance.
Negative Updates
Revenue Decline
Revenue for FY '25 was GBP 7.6 million, down GBP 0.3 million from the previous year, due to the cancellation of a JDA with a European customer.
Ongoing Strategic Review Delays
The strategic review process with CDX has taken longer than expected, with no high-value option yet identified for shareholders.
Challenges in Flat Panel Display Market
Flat panel display market remains commoditized with few opportunities absent regulatory changes, limiting focus and investment.
Loss After Tax
Reported a loss after tax of GBP 2.2 million despite other financial improvements.
Company Guidance
In the recent investor call, Nanoco Group plc provided comprehensive guidance for Fiscal Year 2025, highlighting significant strategic and operational advancements. The company reported a 30% reduction in cash burn, extending its cash runway to reinvest in business development. The strategic focus remains on the image sensor market, identified as a top priority due to favorable market trends and Nanoco's strong competitive position. Key achievements include signing a second joint development agreement and extending an existing one for three years. Financially, Nanoco reported revenue of GBP 7.6 million, with an adjusted EBITDA of GBP 1.5 million, and a year-end cash position of GBP 14 million. The order book stands at GBP 7.6 million, setting a solid foundation for future growth. The company aims to achieve breakeven by 2027, with existing facilities capable of producing quantum dot materials for up to 700 million sensors annually. The strategic review with CDX continues, aiming to explore high-value options for shareholders.

Nanoco Group plc Financial Statement Overview

Summary
Financials are weak overall: negative profitability (net margin -28.84%, EBIT margin -11.56%) and deteriorating operating cash flow, while the balance sheet is stressed with negative equity. A strong gross margin (91.84%) and slight revenue growth provide some support but do not offset solvency and cash-flow concerns.
Income Statement
45
Neutral
Nanoco Group plc has shown a slight revenue growth of 3.42% in the latest year, but profitability remains a concern with a negative net profit margin of -28.84% and an EBIT margin of -11.56%. The gross profit margin is strong at 91.84%, indicating efficient cost management at the production level. However, the overall negative margins suggest challenges in operational efficiency and profitability.
Balance Sheet
30
Negative
The balance sheet reflects a negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The equity ratio is not calculable due to negative equity, highlighting a need for financial restructuring to improve balance sheet health.
Cash Flow
40
Negative
Cash flow analysis shows a significant decline in operating cash flow, with a negative operating cash flow to net income ratio of -0.59. Despite a positive free cash flow to net income ratio of 1.08, the overall cash flow situation is weak, indicating potential liquidity challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.62M7.62M7.87M5.62M2.47M2.09M
Gross Profit5.63M7.00M6.66M4.77M1.09M757.00K
EBITDA483.00K483.00K3.58M15.94M-3.82M-3.88M
Net Income-2.20M-2.20M-1.25M11.09M-4.70M-4.39M
Balance Sheet
Total Assets21.23M21.23M30.66M50.77M10.89M9.23M
Cash, Cash Equivalents and Short-Term Investments14.00M14.00M20.29M8.21M6.76M3.81M
Total Debt1.30M1.30M1.91M6.43M4.09M4.17M
Total Liabilities40.73M40.73M47.67M34.35M6.41M6.18M
Stockholders Equity-19.51M-19.51M-17.01M16.41M4.48M3.05M
Cash Flow
Free Cash Flow-4.42M-5.24M49.88M-28.22M-1.90M-3.75M
Operating Cash Flow-4.14M-4.87M51.48M-27.84M-1.78M-3.36M
Investing Cash Flow-373.00K358.00K-816.00K34.18M-82.00K-344.00K
Financing Cash Flow-1.74M-1.74M-38.92M-5.08M4.79M2.32M

Nanoco Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.12
Price Trends
50DMA
7.96
Negative
100DMA
8.94
Negative
200DMA
10.47
Negative
Market Momentum
MACD
-0.60
Positive
RSI
31.98
Neutral
STOCH
10.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NANO, the sentiment is Negative. The current price of 8.12 is above the 20-day moving average (MA) of 7.37, above the 50-day MA of 7.96, and below the 200-day MA of 10.47, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 31.98 is Neutral, neither overbought nor oversold. The STOCH value of 10.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NANO.

Nanoco Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£66.16M5.417.39%36.61%
66
Neutral
£41.85M35.442.28%3.67%-21.33%-11.35%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
51
Neutral
£77.77M-1.54-37.55%-24.75%-110.79%
46
Neutral
£30.76M-6.49-34.14%-13.95%4.29%
44
Neutral
£10.71M-5.25-3.25%-172.09%
39
Underperform
£39.99M-34.62-17.36%-14.81%-1362.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NANO
Nanoco Group plc
6.14
-5.06
-45.18%
GB:CML
CML Microsystems
252.00
6.11
2.48%
GB:CYAN
CyanConnode Holdings
8.70
-5.55
-38.95%
GB:IQE
IQE plc
7.81
-8.27
-51.43%
GB:KMK
Kromek Group plc
10.50
4.00
61.54%
GB:WPHO
Windar Photonics
40.50
-12.50
-23.58%

Nanoco Group plc Corporate Events

Business Operations and StrategyExecutive/Board ChangesLegal Proceedings
Nanoco Abandons Sale Talks, Tightens Costs and Reshapes Board to Pursue Standalone Growth
Negative
Jan 26, 2026

Nanoco Group has ended its formal process to seek a buyer for its trading business after extensive but ultimately inconclusive talks with multiple potential acquirers, opting instead to pursue greater value through focused investment in its existing high-potential business lines and a sharp reduction in operating costs to £300,000–£400,000 per month. The decision follows progress in its core operations, including a new joint development agreement with a second Asian chemical customer and an extension of its first such partnership, as well as the receipt of litigation proceeds from LG Electronics and the launch of fresh IP infringement proceedings against Shoei Chemical and Shoei Electronic Materials, while triggering a broad governance reshuffle that will see CEO Dmitry Shashkov depart, Chairman Jalal Bagherli assume an executive role, CFO Liam Gray become interim CEO, and the non-executive board slimmed down to lower costs as the group focuses on capital preservation and shareholder value.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Financial DisclosuresLegal Proceedings
Nanoco Receives $4.5m Litigation Settlement from LG Electronics
Positive
Jan 15, 2026

Nanoco Group has received $4.5 million in litigation settlement proceeds from LG Electronics Inc. and LG Electronics U.S.A., Inc., following a previously agreed gross settlement of $5 million. The 10% difference has been withheld at source to meet applicable tax liabilities, while the full gross amount will be recognised as revenue in Nanoco’s current financial year, providing a direct boost to its reported top line and financial position.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Nanoco AGM Sees Most Resolutions Passed but Key Governance Items Face Investor Pushback
Neutral
Jan 13, 2026

Nanoco Group plc reported the voting outcomes of its Annual General Meeting, confirming that 13 of the 15 proposed resolutions were approved by shareholders, while two special resolutions failed to reach the 75% approval threshold required. Several resolutions, including numbers 4, 5, 7, 10, 11, 12 and 13, attracted less than 80% support, largely due to opposition from a single investor holding around 4.3% of the company’s issued share capital but accounting for nearly a quarter of votes cast amid relatively low turnout of roughly 17.6% of total voting rights. The board acknowledged this concentrated dissent and, in line with the UK Corporate Governance Code, has committed to consult with the relevant shareholders to better understand their concerns and to provide an update within six months, signalling continued engagement on governance matters despite the overall approval of most AGM business.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Business Operations and StrategyLegal Proceedings
Nanoco Launches Patent Infringement Counterclaims Against Shoei Over Quantum Dot Technology
Neutral
Jan 12, 2026

Nanoco Group plc has filed an answer and counterclaims in the US District Court for the Eastern District of Virginia against Shoei Chemical Inc. and Shoei Electronic Materials, Inc., alleging infringement of several of its US patents covering quantum dot technology. The move follows Shoei’s earlier declaratory judgment action seeking a ruling of non-infringement after it acquired most of the assets of rival quantum dot maker Nanosys in 2023, and targets a supplier embedded in the global technology supply chain. Nanoco, represented by Dallas-based IP firm Caldwell, Cassady and Curry, is funding the case from existing cash reserves and expects the trial to be heard in 2026, positioning the litigation as part of its broader strategy to defend and monetise its intellectual property following successful actions against Samsung and LG, while cautioning shareholders about the inherent risks and uncertain financial outcomes of the lawsuit.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Shareholder Meetings
Nanoco Group Announces AGM Details and Proxy Voting Instructions
Neutral
Dec 8, 2025

Nanoco Group plc has announced the availability of its Notice of Annual General Meeting and Proxy voting forms to shareholders, with options for both electronic and paper communications. The AGM will be held on January 13, 2026, with both in-person and remote attendance options, though remote attendees cannot vote during the meeting. Shareholders are encouraged to submit Proxy Forms and appoint the Chairman as their proxy to ensure their votes are counted.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Legal Proceedings
Nanoco Group Addresses Patent Non-Infringement Claim
Neutral
Nov 27, 2025

Nanoco Group plc is responding to a legal claim by Shoei Chemical Inc. and Shoei Electronic Materials, Inc., who are seeking a declaratory judgment of non-infringement regarding certain Nanoco patents. This legal action follows Shoei’s acquisition of assets from Nanosys, Inc., another quantum dot manufacturer. Nanoco is consulting with legal counsel to determine its next steps and will provide updates to its shareholders as the situation develops.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
Nanoco Group Releases Annual Report for 2025
Neutral
Nov 26, 2025

Nanoco Group plc has released its Annual Report and Accounts for the financial year ending 31 July 2025, now accessible to shareholders on the company’s website. This release marks a significant step in transparency and regulatory compliance, potentially impacting investor relations and stakeholder confidence.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Legal Proceedings
Nanoco Group Reaches $5 Million Settlement with LG Electronics
Positive
Nov 20, 2025

Nanoco Group plc has reached a no-fault settlement agreement with LG Electronics Inc., resolving their ongoing litigation. As part of the settlement, LG will pay Nanoco $5 million, with Nanoco having incurred $0.6 million in litigation costs. The settlement is expected to positively impact Nanoco’s financial position and may enhance its industry standing by resolving the legal dispute.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresLegal Proceedings
Nanoco Group Unveils Strategic Overhaul and Leadership Changes in 2025 Results
Neutral
Nov 18, 2025

Nanoco Group plc has announced its unaudited preliminary results for the year ending July 31, 2025, highlighting a strategic overhaul and leadership changes aimed at enhancing shareholder value. The company appointed a new CEO, Dmitry Shashkov, and other key leaders to drive commercial engagement and implemented a refreshed strategy focusing on quantum dot image sensors and other market areas. Despite a slight revenue decrease due to a contract cancellation, the company improved its EBITDA and maintained a strong cash position. Nanoco is exploring potential divestment of its trading business and has initiated litigation against LG Electronics for patent infringement. The company is well-positioned for growth in high-potential markets, with significant opportunities in QD sensing and display technologies, and aims to become cash breakeven in the medium term.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Financial Disclosures
Nanoco Group to Announce Final Results and Host Investor Presentation
Neutral
Nov 13, 2025

Nanoco Group plc has announced that it will release its final results for the year ended 31 July 2025 on 18 November 2025. An investor presentation will be held on the same day through the Investor Meet Company platform, allowing stakeholders to engage with the company and submit questions, highlighting Nanoco’s commitment to transparency and investor relations.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 05, 2026