REG - Nanoco Group PLC - Commercial Update

NanocoAnnouncement

30/08/2024 07:00

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RNS Number : 2321C  Nanoco Group PLC  30 August 2024

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 forecasts(1).

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."

(1)The 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
(http://www.nanocotechnologies.com)

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