Nanoco: Turner Pope

Nanoco Group Plc (NANO) Follow | NANO

Nanoco yesterday released its half year results to 31 January 2024 (‘the Period’). Very much in line with expectations, these following confirmation of the Group’s Final Litigation proceeds earlier this month along with a proposal to shortly return up to £33m to Shareholders (the ‘Return of Value’, abbreviated remaining timetable below). Emerging from this, the Group finds itself positioned as a fully funded business with commercial traction, investing to secure organic growth that is supported through extensive and validated IP. Given that the coming five years are projected to deliver global CAGR of over 40% and c. 20% resp. across its core sensing (cameras and imagers) and display markets, in tandem with wider adoption of QD technology in mobile phones and small screen micro-LEDs that are also anticipated over this period, the scale of Nanoco’s addressable opportunity looks set to expand sharply. Finding itself debt free (by the end of FY2023/24) while holding resources sufficient to carry it through to expected cash breakeven during CY2025, it remains particularly surprising that Nanoco’s equity continues to price-in so very little for its almost unique positioning/product offering that has already secured commercial orders while continuing to advance collaborations with two global electronics supply-chain customers.

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