14th Oct 2014 08:04
LONDON (Alliance News) - Nanoco Group PLC Tuesday expressed confidence for its current year, after posting a widened loss in the year to end-July as it continued to focus on commercialising its quantum dots technology.
Quantum dots are nanocrystals made of semiconductor materials, which can be used in solar cells, LEDs and diode lasers. Nanoco's quantum dots do not contain cadmium - a heavy metal that is restricted under European and other territories environmental legislation.
In September, the company announced that its licensing partner, the US's Dow Chemical Co, will begin construction of a large-scale cadmium-free quantum dot manufacturing plant in South Korea, which it said is a "landmark in the commercialisation of [its] technology".
The company posted a pretax loss of GBP9.1 million in the financial year to July 31, widened from a loss of GBP5.0 million the year before, as revenue fell to GBP1.4 million from GBP3.9 million, and administrative expenses rose.
The fall in revenue was partly due to lower income from Dow Chemical, as in the previous year it paid USD1.9 million following the signing of the licensing agreement. Additionally, it saw lower joint-development agreement revenue, as it completed some contracts in 2013.
Higher administration costs was as a result of upping headcount to an average of 104 in 2014, compared to 80 in the previous year, and high research and development spend.
Preparatory work for construction is "well advanced", Nanoco said, and production is expected to begin in mid-2015.
The company highlighted advances in LCD displays as a future driver, as its technology can be incorporated into any type of LCD display. In March the company signed the third phase of joint development agreement with a South Korean electronics company in the display market. Following the year end, it also saw a milestone payment from Dow Chemical, which it said shows customer demand for its technology.
Outside of displays, Nanoco said it also continued to make progress in LED general lighting, solar power, and early stage work in bio-imaging.
Nanoco said it was continuing to explore a move to a premium listing on the London main market from its current AIM listing.
"We look forward with confidence to the year ahead, during which time we expect to announce further material progress," said Chairman Anthony Clinch in a statement.
Shares in Nanoco are trading down 5.1% at 116.75 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Nanoco