Nanoco gains as US contract extension instils revenue confidence

25th Jan 2019 09:39

(Sharecast News) - Nanoco Group was boosted on Friday after confirming the signing of an extension to a material development and supply agreement signed in February last year with its large unnamed US customer.The nano-materials manufacturer said the scope of the contract, which will now run until December, had been increased by the customer after Nanoco's completion of "a number of technical milestones" as well as its expansion of its facility Runcorn, Cheshire.As such, the London-listed company is preparing to carry out stress testing and process optimisation at the new production facility.Michael Edelman, chief executive of Nanoco, said: "We are pleased to announce today's contract extension with our US customer. This extension is a clear demonstration of Nanoco's unique capabilities and value proposition with respect to designing and producing complex nano-materials."A statement from Nanoco also stated that the contract extension underpins the board's current expectations that revenue will double in the year ended July 2019, as well as expectations for operating results and cash flows.Nanoco remains in active discussion on additional potential commercial agreements with a number of parties that could create upside to these expectations, the statement added."We are proud to be innovators in the development of quantum dots and other nano-materials, always improving their quality and performance, with extensive intellectual property and specialist knowledge that gives us a clear competitive lead in this technology. We look forward to further strengthening and deepening the relationship with the US customer," said Edelman.Nanoco's shares were up 4.37% at 45.87p at 1139 GMT.