Runcorn nano-material firm Nanoco Group plc has put its trading business and intellectual property up for sale after the loss of a major customer prompted a strategic review. 

The company, which develops and makes cadmium-free quantum dots used in sensors, said it had appointed CDX Advisors LLC to “review the options for the company’s business and assets, including the potential for a sale of the trading business,” including its intellectual property. 

At the same time, it said it would cut jobs and costs and reduce the size of its board. Non-executive directors will also defer payment of at least half of their fees. Nanoco said this will reduce its annualised cash cost base by £2.6 million, or 34% compared with last year. 

It said it would also return surplus cash to shareholders during the course of the financial year, and intends to return an initial sum via a capital return following the release of its annual results, with the timing and size yet to be established. 

Chris Richards, Non-Executive Chairman of Nanoco, said: “Following our review, the Board continues to believe in the inherent value and commercial potential of our technology, IP and trading business. We have concluded that it is in the Company’s best interests to appoint CDX Advisors to review the options for the Company’s trading business, IP and other assets, including the potential for a sale of the trading business and assets.”

“The Board is determined to deliver shareholder value as rapidly as possible. The Board is therefore committed to a return of surplus cash to shareholders over the current financial year as and when it is prudent and advisable to do so.”