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