Shares in Nanoco Group PLC, the Cheshire-based Manchester University spinout and supplier of materials used in infrared sensing applications, plummeted in opening exchanges after announcing the loss of a key European customer.
According to Nanoco, the customer’s decision was based on its own strategic priorities and not as a result of concerns with the performance of Nanoco’s materials.
Christopher Richards, non-executive chairman of Nanoco, stated: “This is obviously disappointing news and reflects the nature of high technology supply chains for consumer electronics.
“It is noteworthy that our customer has taken these decisions based on its own strategic priorities and not on a lack of belief in, or the performance of, Nanoco’s technology.
“Smaller scale opportunities are available for this technology in the short to medium term and we aim to address those niche markets directly and in partnership with other companies.”
Richards highlighted Nanoco’s strong balance sheet and “financial stability to continue this development work and our new business development activities.”
Shares fells 30% to 9.85p on the news.
The group said it will be negotiating end of project terms with the European customer, and that it now expects revenues for the 2025 fiscal year to be approximately 25% below consensus forecasts.
Nanoco reiterated that it continues to work well with its Asian customer on its Joint Development Agreement for second generation sensing materials, with the potential for production orders in the medium term, subject to end user adoption of the technology.
The group also continues with other, small-scale commercial engagements for customers interested in display materials, alongside additional new business development activities and outreach.
