Results round-up
Nano-materials developer Nanoco saw its shares dive on Wednesday despite forecasting a significant increase in revenue for the year ended 31 July.
In a trading update, the company, which manufactures and develops miniature semiconductors for flat-screen displays known as quantum dots, said it expects revenues of approximately £3.3m, up 154% from the same period last year.
The increase was driven by unaudited revenues of up to £2.5m arising from a February agreement with an undisclosed US- listed corporation, based on management's assessment that the project will be complete by 31 December.
The company also announced a further agreement with the same company in April.
Michael Edelman, chief executive of Nanoco, said: "The second half of 2018 has been transformational for Nanoco with the signing of the development and supply agreement with our large US-listed partner in our nano-materials division. We have made meaningful progress in display and lighting with first commercial products expected later this calendar year."
The company’s patented CFQD resin is being used in the production of gaming monitors which are on track to launch to the public for the 2018 end of year holiday season.
Elsewhere, Nanoco said its new manufacturing facilities in Runcorn are progressing as planned and that small-scale commercial shipments are expected to commence in second quarter and volume production in the second half of calendar 2019.
The company's unaudited cash position as at 31 July has increased by £5.0m to £10.7m over the same point last year.
Broker Peel Hunt reiterated its 'buy' rating for shares in the company , which stated that "the investment case remains intact" after the trading update.
Car dealership Lookers posted a drop in first-half pre-tax profit on Wednesday due to a strong comparative period, but revenue rose and the company said results for the year should be in line with market expectations.
In the six months to 30 June, adjusted pre-tax profit declined 14% to £43.1m but turnover was up 5% to £2.58bn. Earnings per share increased to 9.71p from 9.07p in the first half of last year and Lookers upped its interim dividend by 5% to 1.48p.
Turnover in the new car business was flat at £1.3bn, while the used cars division saw turnover rise 12% to £996m and aftersales turnover was 6% higher at £228m. Leasing and other turnover fell 7% to £41m.
Chief executive Andy Bruce said he was pleased with the company's performance over the first half of the year, which has been delivered despite ongoing challenging market conditions.
"Although profits, excluding a profit of £7.6m on the sale of a property, are down on last year, as expected, this was due to a very strong comparative period, driven by record new car sales ahead of the decline seen across the market from April 2017.
"Against this backdrop, we continue to show good strategic momentum, winning market share and outperforming the wider industry, demonstrating the benefits of our clear strategy of having the right brands in the right locations, with a well invested dealership portfolio combined with excellent execution. We are also benefiting from our scale and our diversified business model which has resulted in revenue and gross profit growth across both used cars and aftersales."
Numis said the first-half performance was "robust", with the drop in pre-tax profit as expected.
"The soft H2 comparative and positive commentary on current trading leave us comfortable with our FY18 estimate (unchanged at £67.5m),” the brokerage said. “In our view, the current valuation (sub-8x price-to-earnings) does not reflect Lookers' forecast resilience, the substantial growth opportunity in used, cash flow dynamics set to improve markedly as dealership investments fade, and the clear potential to leverage its liquidity and track record into acquisitions."