Nanoco, a technology company based in Runcorn, has reported improved revenues in its unaudited results for the year ending 31 July 2024, although pre-tax profits have declined. Despite financial progress, the company is again facing challenges from shareholders, who have requisitioned a General Meeting for 13 December. Shareholders holding a 5.6% stake are seeking to appoint two Milkwood employees, Rhys Summerton and Andre Tonkin, to the board. The board has advised shareholders to oppose these proposals, citing Milkwood’s intention to convert Nanoco into an investment company.
The results showed turnover increased by 40% to £7.874 million, up from £5.618 million in 2023. Pre-tax profits, however, fell significantly to £1.865 million compared to £9.573 million last year. Cash reserves saw a robust improvement, rising from £8.2 million to £20.3 million. During this period, Nanoco delivered its first commercial production orders for infra-red sensing materials and initiated Joint Development Agreements with two customers, though one ended after the reporting period.
Nanoco also benefited from the second tranche of litigation proceeds from Samsung in January, amounting to $71.75 million, part of a $150 million intellectual property lawsuit settlement. The company pledged to return between £33 million and £40 million to shareholders as part of this windfall. However, revenue forecasts for the year were slightly below expectations due to the absence of a production order from a key customer. Additionally, the company announced in October its intention to sell its trading assets following a strategic review, with plans to return surplus cash to shareholders.
Recently appointed CEO Dmitry Shashkov expressed confidence in Nanoco’s potential, highlighting its unique intellectual property and efforts to restructure operations. The company has reduced its annual cost base to approximately £6 million and is actively seeking external investors. Chairman Christopher Richards reaffirmed the company’s commitment to delivering shareholder value, emphasising ongoing engagement with customers and plans to return surplus cash progressively during FY25.
Nanoco has faced similar shareholder disputes before, successfully defeating a board reconfiguration attempt last year when over 80% of shareholders supported the current board. Despite these challenges, the company has continued to strengthen its leadership, appointing two new non-executive directors and bringing Shashkov on board as CEO.
Nanoco’s improved revenues, solid cash reserves, and strategic initiatives position it for growth, but shareholder tensions remain a recurring hurdle. The board remains focused on maximising shareholder value through its planned actions, including asset sales and the return of cash to investors.
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, vertical farming, solar energy and bio-imaging.
