LONDON (Alliance News) - Cadmium-free quantum dot maker Nanoco Group PLC on Tuesday said it looks forward with confidence as it reported a narrowed pretax loss for its first half.
For the financial half year to end-January the company reported a pretax loss of GBP6.3, widened from a loss of GBP4.1 million a year before, as revenue fell to GBP290,000 from GBP1.6 million, and it saw research and development and administrative costs rise. Nanoco attributed the fall in revenue to a GBP1.3 million milestone payment it had received in the previous period that was not repeated.
The European Commission is continuing to consider the use of heavy metal cadmium, which is currently restricted under European environmental law, in quantum dots. The commission is considering an exemption to allow the use of quantum dots containing cadmium for a limited period, and is expected to reach a decision on this in the coming months.
Nanoco, whose quantum dots do not contain the heavy metal, said it believes it would be "environmentally irresponsible to prolong the use of cadmium-based quantum dots."
Following the year end, at the end of March, Nanoco agreed with Dow Chemical Co Ltd to convert its worldwide licensing agreement with the company to a non-exclusive arrangement. This gives it "greater control" over the commercialisation of its quantum dot technology in the display industry, it said.
"The Dow plant in South Korea is now producing cadmium-free quantum dots for sampling to potential customers. We look forward to Dow receiving commercial orders as a result of this customer sampling," said Chairman Anthony Clinch in a statement.
"We continue to make progress in our other target markets and to build our organisation. We look forward to the months ahead with confidence," Clinch added.
Shares in Nanoco were down 1.7% at 44.75 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Nanoco (NANO)