The market had fallen out of love with cadmium-free quantum dots technology developer Nanoco (NANO:AIM) until recently. Since languishing at 91p in August, investors have been strong buyers of the shares, pushing the price up up to 135p and setting an interesting backdrop for full-year results (14 Oct).
It remains early days for operating performance and pre-tax losses of circa £9 million are on the cards for the 12 months to July. While most of the numbers will likely play second fiddle to commercial production news and end market demand, one numerical highlight should come from a possible $2 million or so milestone payment as part of its commercial deal with partner Dow Chemical (DOW:NYSE).
The US chemical giant has begun work on the world's first large-scale, cadmium-free quantum dot manufacturing plant in South Korea and first volumes will hopefully come on stream in the first half of 2015. That should kick start a rapid revenue stream build over the coming few years, from the £1.4 million estimated for the forthcoming financial results, potentially hitting $17 million in two years.
