Nanoco Group PLC, the London-listed supplier of materials used in infrared sensing applications, experienced a sharp decline in share price today following the announcement of a major European customer loss.
The company revealed that the customer's decision was driven by its own strategic priorities, not concerns regarding the performance of Nanoco's materials.
Christopher Richards, non-executive chairman of Nanoco, expressed disappointment, stating that the loss "reflects the nature of high technology supply chains for consumer electronics." He further clarified that the customer's decision was not based on a lack of faith in or the performance of Nanoco's technology.
Richards highlighted the availability of "smaller scale opportunities" for Nanoco's technology in the short to medium term and outlined plans to target these niche markets directly and through partnerships with other companies.
Despite the setback, Richards stressed Nanoco's robust balance sheet and "financial stability" to support ongoing development and new business ventures.
Following the announcement, Nanoco shares fell by 30%, closing at 9.85p.
The company's focus on alternative opportunities and its commitment to innovation despite the loss of a significant customer remain key factors to watch as Nanoco navigates this challenging period.