Nanoco Group PLC on Wednesday reported an annual profit decline and outlined a strategic restructuring to reduce costs.
The Runcorn, England-based developer and manufacturer of cadmium-free quantum dots and other nanomaterials saw pretax profit in the 12 months to July 31 slump 80% to £1.9 million from the prior year’s £9.6 million.
Nanoco’s revenue rose 40% to £7.9 million from £5.6 million the year before, boosted by Samsung Electronics Co licence income from the second tranche of its litigation proceeds against the South Korean electronics manufacturer. Excluding this, revenue declined 29%.
Nanoco netted a £68.7 million profit on the sale of intellectual property in the prior period, which was not repeated this time around, hurting its bottom-line.
Nanoco said it has restructured to minimise cash burn and focus on commercial growth. Actions include the reduction of 27% of employees, plans to reduce the size of the board during 2025 and all non-executive directors deferring at least 50% of their salaries until July.
Additionally, Nanoco has appointed CDX Advisors LLC to explore a potential sale of some assets. The board emphasised that the review of these assets will not impact the company‘s trading business.
Chief Executive Officer Dmitry Shashkov said: ‘We have a clear strategy to address our two core markets of Display and Sensing, along with working to define the opportunities outside of these.’
The company did not propose a dividend for 2024, consistent with its approach in recent years.
Shares in Nanoco were up 4.4% at 11.63 in London on Wednesday afternoon.
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