UK tech pioneer Nanoco Group swung to a first-half operating profit after receiving its first-ever commercial production orders.
The University of Manchester spinoff scored a £2.4million operating profit in the six months ending January, compared to a £2.1million loss for the equivalent period the previous year.
In November, the Runcorn-based company fulfilled orders on two first-generation materials for use in infra-red sensing applications in electronic devices, such as cameras and imagers.
Good result: Nanoco scored a £2.4million operating profit in the six months ending January
Nanoco also signed deals with STMicroelectronics and an Asian chemicals business for work on ‘higher-performing’ second-generation materials.
Consequently, its revenue from licences jumped from just £52,000 to £3.1million, which offset a drop in underlying turnover caused by the timing between finishing previous development agreements and starting on new contracts.
The group further benefited from a £2.5million foreign-exchange hedge gain related to an intellectual property settlement with Samsung.
Nanoco began suing the South Korean conglomerate in 2020, claiming that its quantum dot technology was used without permission in the company’s LED televisions.
The case was resolved in February last year when Samsung agreed to pay the firm $150million (£123million) across two tranches.
After receiving a second tranche worth $71.75million, the company has decided to hand £33million to shareholders via a tender offer and share buyback scheme.
The remainder will be used to invest in ‘operational capability, enhancing future growth prospects, and improving gross margins’.
Brian Tenner, chief executive of Nanoco, said: ‘Having spent five years fighting for financial survival, we have now been able to make some cautious but important strategic investments in new capabilities and our resilience as a supply chain partner.
‘These will accelerate our development plans and commercial progress, as well as allowing us to self-fund IP licensing efforts.’
Tenner and the rest of Nanoco’s board survived an attempted ousting last summer by a small group of investors who were unhappy about how they handled the dispute with Samsung.
After proxy advisers Glass Lewis and Institutional Shareholder Services said they backed the board, more than 80 per cent of Nanoco investors voted against all 12 resolutions put forward at a general meeting.
Nanoco Group shares were 0.45 per cent down at 22.1p on Wednesday morning, but they have grown by around 28 per cent over the past six months.
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