Nanoco secures more license agreements in display sector

The firm signed non-exclusive agreements with German pharmaceutical company Merck and Taiwanese optical film producer Wah Hong in July 2016. The deals add to its revised agreement with American headquartered Dow chemical company, signed in January 2013.

“These deals, together with the revised agreement with The Dow Chemical Company, put Nanoco in an excellent position to accelerate the commercialisation of its technology in display,” said Chairman Christopher Richards.

Sample requests for Dow's TREVISTA™ cadmium-free quantum dots have increased over the past few months and the firm expects initial manufacturing trials with Merck to run in the near future.

The group’s revenue for the year ending 31 July 2016 fell to £0.47m compared to £2.03m in 2015. Loss after tax of £10.61m rose from £8.97m loss in the previous period. Billings in July 2016 deferred into future years amounted to £1.18m.

Cash and cash on deposit at 31 July 2016 fell to £14.51m from £24.31m in 2015.

Cash outflows from operating activities increased from -£8.9m in the comparable year-ago period to -£10.68m, amid large increases in its trade receivables.

The firm’s intellectual property (IP) portfolio grew to 467 patents and patents pending at year end. Process improvements and efficiencies have also “significantly” increased manufacturing capacity during the year, the company said in a statement.

"I am encouraged that the significant progress made during the year, especially in new licensing agreements and manufacturing improvements, have put the Group in a strong position for rapid revenue growth. Combined with our solid cash position, we look forward to the future with confidence," said Richards.

The share price fell 10.76% to 52.43 at 1244 BST on Tuesday.