Nanoco shares fall it defers licence fee revenue

Cadmium-free quantum dot and nanomaterial developer Nanoco Group announced an update on the timing of revenue recognition of July licence agreements on Friday.

The London-listed firm said upfront licence fees associated with the agreements are to be recognised over the period of Nanoco's contractual support.

“It is expected that £0.5m will be released to revenue in the year ending 31 July 2017 and £0.7m will be released over the following six years ending 31 July 2023,” the board said in a statement.

“Grant income will be presented as ‘other income’ in the current year.”

The group's accounts for the year ended 31 July 2016, which remain unaudited, are expected to include revenue of £0.4m, other income of £0.3m and £1.2m in deferred revenue on the group's balance sheet, giving a total of £1.9m.

Nanoco’s cash position is unaffected by these changes in accounting treatment, the board claimed.

At 0922 BST, shares in Nanoco were down 7.87% at 58.5p.