FY18 results were as expected, with revenues up and losses narrowed despite the slow commercialisation cycle in display. FY19 will be a year of laying foundations to ready the facilities for volume production in nanomaterials, but we expect a doubling of revenues nonetheless. The move to volume production should support a further inflection in FY20.
Growth in revenues to £3.3m (vs £1.3m in FY17) reflects the contribution from the company’s tier one US customer. Adjusted operating loss dropped to £7.2m from £10.7m in 2017, with the higher revenues supported by the full-year benefit of FY17 cost savings. Year-end net cash of £10.7m (our forecast £7.9m) reflects the fact that billings increased to £6.5m from £1.1m, including £3.1m of deferred income; we had previously categorised some of this as a loan.
Nanoco Group PLC (LON:NANO) leads the world in the research, development and large-scale manufacture of heavy metal-free nanomaterials for use in displays, lighting, solar energy and bio-imaging.