Nanoco Group PLC (LSE:NANO) shares slumped 29% to 14p after warning that revenues will be lower than expected.
The group no longer expects a further production order for its validated first-generation sensing products this year and has not signed a new display materials anchor customer, according to its year-end trading update.
As a result of the delayed receipt of the second production orders, the company expects the full-year revenue to be marginally below consensus forecasts, which are for £8.7 million.
Nanoco still anticipates its cash reserves to be roughly £20 million at the 31 July year-end, with commitment reaffirmed to completing the £3 million share buyback programme, of which £1.3 million has been returned to date.
The decrease in revenue, coupled with minor one-off increases in overheads, is likely to drag underlying profit (EBITDA) toward the lower end of the range of market forecasts, said broker Peel Hunt, which currently are for £0.5-1.5 million.
"This development appears to be a setback, given that production for Gen 1 was only achieved in December. This implies that we are unlikely to see any meaningful revenues until Gen 2 productions begin to deliver commercial orders, and the aim of reaching cash breakeven in FY25 will likely shift to the right," Peel Hunt analysts said.