Tech firm announces revision of deal with US partner

Nanoco

Manchester technology firm Nanoco has announced a major contract with a US customer is to end in December this year.

The firm, a spin-out from Manchester University which develops materials used in the manufacture of monitors and TV screens, announced in January this year that it had agreed a major contract extension to its initial agreement with the US customer.

This covered a range of stress testing and commissioning services of its Runcorn facility in the 12 month period to December 2019.

However, in an update to the stock exchange today, Nanoco said the US customer has now decided that the project will not continue beyond the current contract, “for reasons wholly unconnected to the performance of our materials and our service delivery”, it added.

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

The group is also continuing to work on a number of opportunities in a range of sectors, including display.

Nanoco said this decision does not affect the current contract which runs until the end of December 2019.

It added: “The group still expects to deliver a cash break even positon, as previously announced, for the 12 months ending December 2019, and to have a cash balance of approximately £6m at that time.

“At this time, revenues and associated cash flows under contract for the next financial year ending July 31, 2020, amount to approximately £4m, the majority of which are included in the forecast cash position at December 31, 2019.”

In October last year the firm announced the development of new manufacturing facilities in Runcorn, funded by £2.9m advance payments by a US company against discounted future product sales.

Nanoco is a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from its technology platform.

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