Nanoco Group PLC has released its year-end trading update for the financial year ending 31 July 2024. The company, a leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials, provided an operational and financial overview in the update.

In terms of operations, Nanoco has successfully delivered all milestones in its two-year Joint Development Agreements (JDAs) for second-generation sensing materials with ST Microelectronics and an Asian chemical company. The new Device Fab is fully operational, and sample devices have been shipped. However, the company no longer expects to receive a further production order for its validated first-generation sensing products during FY24. Nanoco is working with its customer to understand the potential impact on the company beyond the financial year.

On the financial front, due to the delayed receipt of the second production orders, full-year revenue is expected to be marginally below consensus forecasts. This, alongside some small one-off increases in overheads, means Adjusted EBITDA is likely to be towards the lower end of the range of market forecasts. The impact of the delayed demand on the company's aim of becoming cash breakeven during CY25 will depend on the duration of that delay and subsequent speed of ramp-up in demand for its technology. Nanoco expects its cash reserves to be approximately £20.0m on 31 July 2024.

Brian Tenner, Chief Executive Officer of Nanoco, stated, "We continue to work hard across a range of products, customers, and market sectors to deliver the adoption of quantum dot technology. The majority of our income-generating staff remain engaged in paid-for development work on new products in sensing and display applications. By investing across a broad range of business development opportunities, we aim to further reduce any dependency on a single customer and to deliver increases in shareholder value in the medium term."

The company expects to announce its full-year results on 22 October 2024.