Nanoco awaits call from Korea
Nanoco (NANO) is closer to realising significant income from its semiconductor nanoparticles - so-called 'quantum dots'. After signing a licensing deal with Dow Chemical in January, the Americans have said commercial production will begin in 2014's first half. Nanoco's chief executive, Michael Edelman, expects the first commercial contract - probably with the big Korean TV manufacturers - "soon". That could open the floodgates and put Nanoco on the map.
Indeed, about 15m large LCD televisions are sold every year, more than half by Korea's Samsung and LG. Each 60-inch TV will use one gramme of quantum dots, which will vastly improve its colours - there will be similar results for smartphones, tablets and computer screens, too. Revenue has already risen sharply after Dow paid Nanoco $1m (£0.63m) and various milestone payments were triggered in the Far East. But costs have, too, and £661,000 spent hiring another 16 mostly technical staff increased group losses.
But this investment should pay off. Liberum Capital expects an adjusted pre-tax loss of £7.6m in 2014, giving an adjusted loss per share of 3.1p (2013: £4.2m loss/1.7p loss per share). But in 2015, following a full-year of production, the broker expects a £3.5m pre-tax profit and EPS of 1.5p, rising to 13.9p the year after and 35.5p in 2017. LED lighting projects, high-tech solar film and cancer imaging are also likely to make big contributions further down the line.
