Nanoco Group PLC on Tuesday warned delayed receipt of an order would see sales fall short of consensus forecasts.

In response, shares in the Runcorn, England-based developer and manufacturer of cadmium-free quantum dots and other nanomaterials plunged 24% to 14.94 pence in London on Tuesday morning.

Nanoco said the delay was for a further production order for its first generation sensing products. This is no longer expected in financial 2024.

The company said it is working with the customer to understand ‘the range of possible outcomes and any potential impact on Nanoco beyond the end of the financial year’.

A further update is expected alongside full year results in October.

As a result, full year revenue is expected to be marginally below consensus forecasts of around £8.4 million, Nanoco said.

The impact of the reduction in revenue alongside some small one-off increases in overheads means adjusted earnings before interest, tax, depreciation and amortisation is likely to be towards the lower end of the range of market forecasts, Nanoco added.

The company put the analyst range for adjusted Ebitda at between £0.5 million to £1.5 million.

The impact of the delayed demand on the group’s aim of becoming cash breakeven during financial 2025 will depend on the duration of that delay and subsequent speed of ramp up in demand for its technology, the company added.

Chief Executive Brian Tenner said: ‘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.’

Nanoco still expects cash reserves to be around £20.0 million on July 31, and remains committed to completing its £3.0 million share buy back programme.

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