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Nanoco Group plc (GB:NANO)
:NANO
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Nanoco Group plc
(LSE:NANO)
Rating:53Neutral
Price Target:
0.00p
▼(-100.00%Downside)
Nanoco Group plc (NANO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£23.87M
Dividend YieldN/A
Average Volume (3M)743.57K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-8.06%
EPS Growth-132.47%
CountryUK
Employees47
SectorTechnology
Sector Strength93
IndustrySemiconductors
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding194,608,030
10 Day Avg. Volume1,631,126
30 Day Avg. Volume743,567
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)-1.40
Price to Sales (P/S)0.00
P/FCF Ratio-6.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£11.50Price Target Upside-11.88% Downside
Rating ConsensusHold
Number of Analyst Covering0
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 primarily through the sale of its quantum dot materials and related technologies. The company's revenue model includes direct sales to manufacturers and licensing agreements with industrial partners who incorporate Nanoco's materials into their own products. Significant partnerships with major electronics and display manufacturers are a key factor contributing to the company's earnings, as these collaborations drive the adoption of its quantum dot technology in consumer electronics. Additionally, Nanoco may earn income from research and development contracts and government grants aimed at advancing nanomaterial technologies.
Nanoco Group plc Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q2-2025)
| % Change Since: 84.06%|
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with both positive and negative elements. The company highlighted significant progress with new customers, a completed device lab, and positive market growth projections. However, challenges included a decline in revenue, loss after tax, and delays in the M&A process. While the company is optimistic about future growth, concerns about securing commercial contracts persist.Q2-2025 Updates
Positive Updates
Successful Engagement with New Customers
The company made significant progress with existing customers and engaged several new customers, some approaching formalized contracts.
Fully Equipped Device Lab
Investment in the device lab is completed, allowing timely customer demos for image sensor market.
Reorganization and Reduced Cash Burn
Reorganization led to a more focused team and reduced cash burn by 30%, from £0.7 million to £0.5 million per month.
Market Growth Projections
Quantum dot materials market expected to reach $1 billion by 2029, with substantial growth drivers identified.
Significant Growth in Quantum Dot LCD Market
Robust growth of 27%-28% expected this year, largely fueled by mini-LED configuration tied to quantum dots.
Positive Financial Position
Finished the period with €15.5 million of cash in the bank, no external debt, and revenue forecast upgraded to £6.9 million.
Negative Updates
Revenue Decline
Revenue fell by 13% due to the cancellation of a contract with a European customer, impacting gross profit and adjusted EBITDA.
Loss After Tax
The loss after tax was €1.0 million compared to a profit of €1.8 million in the prior year.
Delays in M&A Process
Investors expressed frustration with the pace of the M&A process, which is taking longer than some expected.
Uncertainty in Commercial Contracts
Despite positive projections, there is a lack of real improvements in securing commercial contracts, leading to doubts about 'jam tomorrow' promises.
Company Guidance
During the interim results presentation for Nanoco Group PLC, the management provided extensive guidance on several operational and financial metrics. Dmitry Shashkov, the CEO, highlighted significant progress with existing and new customers, noting that some are nearing formalized contract stages. A key investment in their device lab has been completed, enhancing their image sensor market demos. The company successfully reorganized to focus more on commercial development, reducing monthly cash burn by approximately 30% from GBP 0.7 million to GBP 0.5 million, extending their cash runway. The update also indicated a robust market forecast for quantum dot materials, projecting growth to approximately $1 billion by 2029. Additionally, they are exploring new market segments, with a target to generate revenue within 12 to 24 months. Financially, revenue fell by 13% due to a contract cancellation, impacting adjusted EBITDA, which decreased from EUR 0.7 million to EUR 0.5 million. Despite this, the company's cash reserves remain healthy at EUR 15.5 million, with no external debt. The company also reported on their strategic review, revealing ongoing efforts to find new ownership for Nanoco's trading business, aiming for a sale agreement by the third quarter of 2025.Nanoco Group plc Financial Statement Overview
Summary
Nanoco Group plc shows strong revenue growth and excellent gross profit margins. However, the transition to a net loss and negative equity position signals underlying challenges. While cash flow management is commendable, the negative equity raises concerns about financial stability.Income Statement
The company has demonstrated significant revenue growth from 2023 to 2024, with a revenue increase of approximately 40.1%. However, despite the revenue growth, the company has moved from a net profit in 2023 to a net loss in 2024, resulting in a negative net profit margin. The gross profit margin is strong at 84.6%, indicating efficient production or service delivery. Nonetheless, the transition to a net loss and the negative EBIT margin of 21.7% highlight profitability challenges.45
Neutral
Balance Sheet
The balance sheet reflects financial instability, as indicated by the negative stockholders' equity of -£17 million in 2024. This, coupled with a total debt of £1.9 million, raises concerns about the company's leverage and stability. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative. These factors suggest financial distress, potentially posing risks to creditors and stakeholders.30
Negative
Cash Flow
The cash flow statement shows a robust operating cash flow in 2024, significantly improving from previous years and resulting in a highly positive free cash flow. This indicates strong cash generation capabilities despite the net loss. The free cash flow to net income ratio is favorable, suggesting efficient cash management. However, the sustainability of this cash flow remains uncertain given the net loss scenario.65
Positive
| Breakdown | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.87M | 5.62M | 2.47M | 2.09M | 3.86M |
| Gross Profit | 6.66M | 4.77M | 1.09M | 757.00K | 1.78M |
| EBITDA | 3.58M | 15.94M | -3.82M | -3.88M | -4.16M |
| Net Income | -1.25M | 11.09M | -4.70M | -4.39M | -5.08M |
Balance Sheet | |||||
| Total Assets | 30.66M | 50.77M | 10.89M | 9.23M | 11.86M |
| Cash, Cash Equivalents and Short-Term Investments | 20.29M | 8.21M | 6.76M | 3.81M | 5.17M |
| Total Debt | 1.91M | 6.43M | 3.56M | 1.08M | 1.58M |
| Total Liabilities | 47.67M | 34.35M | 6.41M | 6.18M | 4.83M |
| Stockholders Equity | -17.01M | 16.41M | 4.48M | 3.05M | 7.03M |
Cash Flow | |||||
| Free Cash Flow | 49.88M | -28.22M | -1.90M | -3.75M | -4.24M |
| Operating Cash Flow | 51.48M | -27.84M | -1.78M | -3.36M | -3.53M |
| Investing Cash Flow | -816.00K | 34.18M | -82.00K | -344.00K | -704.00K |
| Financing Cash Flow | -38.92M | -5.08M | 4.79M | 2.32M | 2.40M |
Nanoco Group plc Technical Analysis
Positive
13.05
Price Trends
11.65
Positive
9.93
Positive
11.16
Positive
Market Momentum
0.67
Negative
60.52
Neutral
51.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NANO, the sentiment is Positive. The current price of 13.05 is above the 20-day moving average (MA) of 11.68, above the 50-day MA of 11.65, and above the 200-day MA of 11.16, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NANO.
Nanoco Group plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $869.09M | 10.84 | -16.27% | 2.50% | 10.41% | -36.05% | |
53 Neutral | £23.87M | ― | -5780.00% | ― | -8.06% | -132.47% | |
| ― | $1.55B | 47.22 | 7.03% | 1.74% | ― | ― | |
49 Neutral | £36.71M | 65.13 | -8.92% | ― | -46.97% | ― | |
48 Neutral | £22.65M | ― | -102.60% | ― | 11.59% | 75.79% | |
48 Neutral | £100.97M | ― | -25.13% | ― | 2.41% | -16.47% | |
44 Neutral | £29.65M | ― | -9.27% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
GB:NANO
Nanoco Group plc
13.05
-2.93
-18.34%
OXINF
Oxford Instruments
27.00
-4.23
-13.54%
GB:IQE
IQE plc
9.94
-20.46
-67.30%
GB:KBT
K3 Business Technology
77.50
-10.00
-11.43%
GB:CRTA
Wandisco
17.58
-35.92
-67.14%
GB:GST
GSTechnologies
1.28
0.54
72.97%
Nanoco Group plc Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Nanoco Group Expands Asian Partnerships with New Joint Development Agreement
Positive
Apr 28, 2025
Nanoco Group plc has entered a Joint Development Agreement with a second Asian chemical customer to optimize lead-free nanomaterials for electronics. This agreement is expected to boost the company’s revenue in FY25 and FY26 and strengthen its position in the consumer electronics market, particularly in quantum dot-enabled silicon sensors.
Legal Proceedings
Nanoco Group Initiates Patent Lawsuit Against LG Electronics
Negative
Apr 25, 2025
Nanoco Group plc has initiated a patent infringement lawsuit against LG Electronics, alleging unauthorized use of its patented quantum dot technology in LG’s television products. The company seeks a permanent injunction and monetary damages, although the exact amount is yet to be determined. Nanoco has engaged the law firm Caldwell, Cassady and Curry, known for their successful litigation against Samsung, to represent them. While litigation carries risks, Nanoco’s board believes the potential benefits justify the action, aiming to protect its intellectual property and ensure shareholder value.
Legal ProceedingsBusiness Operations and Strategy
Nanoco Group Secures High Court Approval for Capital Reduction
Positive
Apr 17, 2025
Nanoco Group plc announced the High Court of Justice in England and Wales has confirmed the company’s Capital Reduction, which was previously approved by 81.2% of shareholders. This move aims to create distributable reserves, enhancing the company’s financial flexibility and potentially benefiting stakeholders by supporting future growth and investment opportunities.
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.