Nanoco Exceeds Revenue Forecasts and Announces CTO Retirement

Nanoco’s FY25 trading update: revenue beat, cash cushion, and a CTO transition

Nanoco has slipped out a tidy full year trading update, and there is a bit of everything for investors: a revenue beat, cash slightly ahead, progress on commercial partnerships, an active litigation docket, and a change at the top of R&D. The final results land in November, but today’s read-across is cautiously positive with clear near-term catalysts.

Headline: unaudited revenue of £7.6m versus a £7.2m market forecast, underlying adjusted EBITDA “moderately ahead”, and year-end cash of £14.0m versus a £13.5m forecast. The company is talking up market growth, keeping its joint development pipeline warm, and reiterating that it is exploring strategic options.

Key FY25 numbers and what drove the revenue beat

Metric	Reported / Guidance	Market forecast	Variance
Unaudited revenue	£7.6m	£7.2m	+£0.4m (+5.6%)
Underlying adjusted EBITDA	Moderately ahead	Not disclosed	Positive
Year-end cash	£14.0m	£13.5m	+£0.5m (+3.7%)
Gross monthly cash cost base	£0.5m	Not disclosed	In line
Additional services/product revenue	£0.1m	n/a	One-off item
Accelerated Samsung licence revenue	£0.3m	n/a	Related to 13 patents lapsing

The £0.4m revenue beat is explained in full: £0.1m of extra services/product sales and £0.3m of accelerated recognition of Samsung licence revenue triggered by the lapse of 13 patents this year. Translation: part of the beat is accounting timing rather than underlying demand. Still, EBITDA landing “moderately ahead” suggests cost control and a bit more gross margin than expected.

Cash ended at £14.0m, ahead due to lower litigation costs and favourable working capital. With a gross monthly cash cost base of £0.5m, the simple yardstick suggests healthy coverage. As ever, that back-of-the-envelope view excludes revenue inflows, capex, and any exceptional items, but it indicates a decent runway into the November results and beyond.

JDAs and pipeline breadth – building optionality for future sales

Nanoco continues to lean on JDAs – joint development agreements, essentially paid or co-funded R&D partnerships to tailor materials for specific customer needs. The company says it is making good progress on existing JDAs and is discussing an extension to a JDA with an Asian Chemical customer before the current contract expires in October 2025.

Discussions are also underway for further JDAs with several companies, including some outside Nanoco’s historical markets. That matters. The more end markets quantum dots and other nanomaterials can serve – from sensors to displays and broader electronics – the more diversified and resilient future revenue could become.

Industry backdrop helps. Nanoco cites third-party forecasts (Yole, DSCC, IDTechEx) pointing to significant growth across quantum dot markets. If the company can convert current conversations into signed JDAs, FY26 could see a richer mix of development income and the prospect of commercial orders down the line.

Litigation with LG Display – progressing as expected, outcome not disclosed

Nanoco has served its litigation against LG Display for alleged patent infringement. No extra colour on timing, potential outcomes, or quantum. That is standard at this stage. Litigation can unlock licence revenue or settlements, but it is uncertain by nature and timelines can stretch.

Positively, legal spend was lower than expected this year, helping the cash position. Investors should treat any litigation upside as a free option rather than a base case, pending concrete disclosures.

Assessing strategic options – what that usually means

Nanoco says it continues to assess strategic options for the operating business with a number of interested parties. The statement is deliberately high level. Typically, “strategic options” can cover anything from partnerships and licensing expansions to asset sales or a broader corporate transaction. None of that is confirmed here.

Why it matters: with a proprietary IP platform and production capability, there are several routes to value creation. Today’s note confirms there is outside interest. If anything moves from conversations to signed terms, that would be a clear catalyst.

CTO transition – founder steps back, experienced internal successor steps up

Dr Nigel Pickett, founder and CTO, is retiring from Nanoco. He steps down from the Board immediately but remains an employee until February 2026, which should provide continuity and knowledge transfer. After 24 years, his contribution is substantial, including around the Samsung settlement, and this is a meaningful leadership moment for the company.

His successor as Director of Technology is Dr Ombretta Masala, an 18-year Nanoco veteran who has reported directly to Nigel throughout. The role is not a Board position and reports to the CEO. On balance, this looks like a low-disruption handover within R&D, with continuity in the team that knows the IP and production processes intimately.

Issuance of 935,778 shares for deferred NED fees

As previously announced, non-executive directors had deferred a portion of their fees until year end or the completion of a transaction. With the year now complete, Nanoco will issue 935,778 ordinary shares to settle that deferral. The company notes that shares held in the EBT (Employee Benefit Trust) cannot be used for this, as the liability sits with the company.

This is an administrative issuance already trailed to the market. The precise dilution is not disclosed here because the current total shares in issue are not stated in the update.

Why this update matters for investors

• Revenue and cash ahead of expectations – even if part of the revenue beat is one-off, it signals delivery against guidance and disciplined cost control.
• JDA momentum and breadth – extension talks before the October 2025 expiry and new discussions outside core markets increase the chance of diversified future revenues.
• Litigation optionality – the LG Display case is moving, but outcomes are inherently uncertain. Treat it as upside until proven.
• Strategic options in play – confirmation of multiple interested parties keeps the door open to value crystallisation beyond organic growth.
• Leadership continuity – a founder’s departure is always noteworthy, but an experienced internal successor should help maintain technical execution.

What to watch between now and the November results

• JDA extension with the Asian Chemical customer before October 2025.
• Any new JDAs, especially in markets beyond Nanoco’s historical focus.
• Further milestones or disclosures in the LG Display litigation.
• Detail on the FY25 revenue mix and forward visibility for FY26 in the final results.
• Updates on the strategic options process and any indicative timelines.
• Cash trajectory and whether the £0.5m monthly cost base remains steady.

My take: a tidy, cautiously positive step with near-term catalysts

This is a solid trading update. Revenue and cash both nudged past forecasts, with EBITDA ahead and costs in check. Some of the revenue beat is accounting-driven, so let’s not over-celebrate, but operationally this reads like a team quietly executing while laying groundwork for the next phase.

The mix of expanding JDAs, a growing addressable market, and an active strategic options process gives Nanoco multiple shots on goal. Litigation is the wild card, as ever. The CTO transition is a natural moment of change, but the internal handover looks well managed.

Overall, I’d score this update as quietly encouraging. The bigger story will be told by JDA conversions, strategic outcomes, and any litigation developments over the coming months.