Nanoco triples losses after growing admin costs

17th Oct 2011 11:30

Nanoco, a firm which makes tiny semi-conductors, saw its losses more than double, primarily as a result of the costs associated with setting up the Runcorn manufacturing facilities and commissioning the plant.Revenue for the year ended July fell slightly from £2.9m to £2.6m, but after administration costs rose from £3.87m to £4.94m, operating losses widened to £3.23m (2010: £1.26m). Loss before tax was £3.22m, versus a loss of £1.37m the year before. Dr. Peter Rowley, the firm's chairman, said: "During the year we made major steps in the development and commercialisation of our technology. We built and commissioned our first manufacturing plant, made significant progress in our commercial contracts and strengthened our balance sheet for the next stage in our development.The group's cash at the end of the period was at £17m, compared to £5.68m the year before, after it raised £15m (gross) in January through a placing of 16.7m shares.The funds raised have been earmarked to speed up the manufacturing programme, and to invest further in product development, as well as to build its technical sales and marketing team.Dr. Rowley added: "Our momentum has continued in the current year and we look forward to achieving further technical and commercial progress in the months ahead."The share price fell 17.82% to 41.5p by 12:07.NR