Shares in Nanoco Group PLC, a renowned provider of materials for infrared sensing applications, experienced a significant decline after the company announced the loss of a key European customer.
The decline in Nanoco’s share price, which fell by 30% to 9.85p, followed the announcement that a major European customer decided to cease its association with the company. This decision, however, was attributed to the customer’s own strategic priorities and not any concerns regarding the performance of Nanoco’s materials.
Christopher Richards, non-executive chairman of Nanoco, expressed his disappointment, stating: “This is obviously disappointing news and reflects the nature of high technology supply chains for consumer electronics.” He further clarified that the customer’s decision was based on strategic priorities and not a lack of confidence in Nanoco’s technology.
Richards also emphasised Nanoco’s plans to pursue smaller scale opportunities in niche markets both directly and in partnership with other companies, leveraging the company’s strong balance sheet and financial stability to continue development work and new business initiatives.
The company revealed that they are negotiating the end-of-project terms with the European customer and now expect revenues for the 2025 fiscal year to be approximately 25% below consensus forecasts.
Additionally, Nanoco continues to collaborate with an Asian customer under a Joint Development Agreement for second generation sensing materials, with the potential for future production orders depending on end user adoption of the technology. The group also remains engaged in other small-scale commercial ventures related to display materials and is actively pursuing new business development activities.
The loss of a key European customer represents a significant setback for Nanoco, impacting its share price and revenue projections. Nevertheless, the company remains focused on leveraging its financial stability to explore new opportunities and maintain its position in the market through strategic partnerships and ongoing development work.
