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21 Jun 2019 | 08:22

Nanoco to lose key US customer; shares tank

Nanomaterials manufacturer Nanoco Group said a customer in the US had decided not to continue its relationship with the company beyond a current contract ending this year.

Nanoco shares fell by more than 70% on the news.

The company had in January announced a major contract extension with the customer, which it had not identified.

The extension covered stress testing and commissioning services for the company's Runcorn facility in the year to December 2019.

'The US customer has now informed Nanoco that the project will not continue beyond the current contract, for reasons wholly unconnected to the performance of our materials and our service delivery,' Nanoco said.

'Other potential uses for the technology are being explored with a range of customers, including the US customer.'

'The group also continues to work on a number of opportunities in a range of sectors including display.'

Nanoco said it still expected to deliver a cash break-even position for the year through December, and to have a cash balance of around £6.0m at that time.

Revenues and associated cash flows under contract for the next financial year currently amounted to around £4.0m, the majority of which were included in the forecast cash position at 31 December 2019. At 8:22am: (LON:NANO) Nanoco Group PLC share price was -23.03p at 9.47p

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