Runcorn nano-material firm Nanoco Group plc confirmed that a European customer would make no follow on orders for materials used in infrared sensing applications and had served notice on the companies’ two-year joint development agreement for second generation sensing materials that was announced in January 2024.
Shares of the company, a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, fell more than 30% to 9.31p on the London Stock Exchange.
“Following further dialogue with the European customer, the Group now no longer expects to receive further orders for its first generation sensing materials. In addition, the European customer Nanoco had achieved all of the required development milestones to date and had received positive feedback on the performance of the new material. Nanoco understands that the European customer’s decision has been based on its own strategic priorities and not as a result of concerns with the performance of Nanoco’s materials,” Nanoco said.
“The Group will be negotiating end of project terms with the European customer. Amongst other matters, Nanoco will be seeking the removal of any obstacle to its direct pursuit of already identified small scale market opportunities. These opportunities include sectors such as industrial, defence, agriculture, security and surveillance, healthcare, and automotive.”
As a result of the move, Nanoco said it now expects revenues for the year ending 31 July 2025 to be about 25% below the consensus forecast of of £9.5 million.
Christopher Richards, Non-Executive Chairman of Nanoco, said: “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.