Nanoco plunges after US customer fails to extend contract

(Sharecast News) - Nanoco's shares lost more than two-thirds of their value after the nano-materials manufacturer said its large US customer had declined to extend an important contract.In January, Nanoco announced a year-long contract extension to its initial agreement with the unidentified US customer, covering stress testing and commissioning at its facility in Runcorn, Cheshire.In an update on Friday, Nanoco said the project would not be extended past its end date of December 2019. Nanoco shares fell 68.77% to 10.15p at 08:15 BST.The UK company said its US customer had taken the decision "for reasons wholly unconnected to the performance of our materials and our service delivery"."Other potential uses for the technology are being explored with a range of customers, including the US customer," Nanoco said. "The group also continues to work on a number of opportunities in a range of sectors including display."Nanoco said the news would not affect its current contract with the US customer. In January, it said the contract underpinned its expectation that revenue would double in the year ending in July 2019."The group still expects to deliver a cash breakeven position, as previously announced, for the twelve months ending December 2019 and to have a cash balance of approximately £6.0m at that time," Nanoco said.Nanoco said revenues and associated cash flows under contract for the financial year ending in July 2020 were about £4m, most of which are included in the cash position forecast on 31 December 2019.