FOR IMMEDIATE RELEASE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR").
Nanoco Group PLC
("Nanoco", the "Group", or the "Company")
30 August 2024
Commercial Update
Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from our technology platform, today provides the following update in relation to the Group's materials for use in infrared sensing applications in electronic devices with its European customer.
In July 2024, the Group announced that it no longer expected to receive a further production order for its validated first generation sensing products during the financial year ending 31 July 2024 ("FY24"), and that the Group was working with the European customer to understand the range of possible outcomes and any potential impact beyond FY24.
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 has served notice on the Group's two year Joint Development Agreement for second generation sensing materials that was previously announced in January 2024.
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.
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.
Outlook
As a result of the above, the Group expects revenues for the year ending 31 July 2025 ("FY25") to be approximately 25% below consensus forecasts1.
The Group 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.
As per the announcement on 2 July 2024, the Group also continues with other, small-scale commercial engagements for customers interested in display materials, alongside additional new business development activities and outreach.
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.
We also continue to work with our Asian customer in developing our second generation sensing materials, with commercial potential over the medium term. The Group's strong balance sheet provides us with the financial stability to continue this development work and our new business development activities."
1The consensus revenue forecast for FY25 is £9.5m, being the average of forecasts from Cavendish and Edison.
- Ends -
For further information, please contact:
Nanoco Group plc:
Brian Tenner, CEO 44 (0)1928 761 404
Liam Gray, CFO & Company Secretary
Cavendish Capital Markets Limited (Financial Adviser & Corporate Broker):
Ed Frisby / George Lawson (Corporate Finance) 44 (0) 20 7220 0500
Tim Redfern / Charlie Combe (Corporate Broking)
Jasper Berry (Sales)
Sodali & Co (Public Relations) 44 (0)20 7250 1446
Elly Williamson
Pete Lambie
Nanoco@sodali.com
The person responsible for arranging for the release of this announcement on behalf of Nanoco is Liam Gray, Chief Financial Officer.
FORWARD LOOKING STATEMENTS
This announcement (including information incorporated by reference in this announcement) and other information published by Nanoco may contain statements about Nanoco that are or may be deemed to be forward looking statements. Such statements are prospective in nature. All statements other than historical statements of facts may be forward looking statements. Without limitation, statements containing the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or "considers" or other similar words may be forward looking statements.
Forward looking statements inherently contain risks and uncertainties as they relate to events or circumstances in the future. Important factors such as business or economic cycles, the terms and conditions of Nanoco's financing arrangements, tax rates, or increased competition may cause Nanoco's actual financial results, performance or achievements to differ materially from any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof. Nanoco disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.
About Nanoco Group plc
Nanoco (LSE: NANO) is a nano-material production and licensing company, specialising in the production of its patented cadmium free quantum dots (CFQD®) and other patented nano-materials for use in the electronics industries.
Founded in 2001 and headquartered in Runcorn, UK, Nanoco continues to build out a world-class, patent-protected IP portfolio alongside the scaling of the production for commercial orders.
Nano-materials are materials with dimensions typically in the range 1 - 100 nm. Nano-materials have a range of useful properties, including optical and electronic. Quantum dots are a subclass of nano-material that have size-dependent optical and electronic properties. Within the sphere of quantum dots, the Group exploits different characteristics of the quantum dots to target different performance criteria that are attractive to specific markets or end-user applications such as the Sensor, Electronics and Display markets. Nanoco's CFQD® quantum dots are free of cadmium and other toxic heavy metals, and can be tuned to emit light at different wavelengths across the visible and infrared spectrum, rendering them useful for a wide range of display applications. Nanoco's HEATWAVE™ quantum dots can be tuned to absorb light at different wavelengths across the near-infrared spectrum, rendering them useful for applications including cameras and image sensors.
Nanoco is listed on the Main Market of the London Stock Exchange, holds the LSE's Green Economy Mark, and trades under the ticker symbol NANO. For further information please visit: www.nanocotechnologies.com
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