Runcorn technology company Nanoco is continuing to consider leaving the stock market after blaming a “highly challenging” UK public market environment for small companies.
The technology group, which develops materials used in the manufacture of monitors and TV screens as well as technologies for medical imaging and the early diagnosis of cancer, first announced plans to delist in May in a move it said could save £0.7m.
Nanoco said its decision was based on a “highly challenging” public market environment in the UK for small companies, which it said was “characterised by persistent undervaluation and limited liquidity, particularly for companies such as Nanoco with early-stage, pre-commercialisation technology and IP, where there is a significant key customer concentration risk.”
However, the company put the move on hold in June and committed to further discussions with shareholders following concerns about the potential lack of liquidity if its shares were delisted.
At the time, the board said it continued to believe a delisting would be in the best interests of all shareholders, but recognised the resolutions were unlikely to secure the required approval of 75% of votes cast at a General Meeting.
In its latest trading update, Nanoco said the shareholder consultation process launched on June 26 remains ongoing following receipt of submissions.
The update came as the Runcorn group said trading was in line with expectations for the year to July 31, 2026.
Unaudited revenue of £11.3m was in line with market expectations, while unaudited revenue excluding licence agreements was £1.5m.
Underlying unaudited adjusted EBITDA of £6.1m and year-end cash of £9.3m were both slightly ahead of market expectations.
Nanoco has also completed a reorganisation and reduction in its cost base during the financial year. Its gross cash cost base is now £0.3m to £0.4m per month, compared with £0.5m in 2025, with the company continuing to assess whether further reductions can be made.
The group said it remains on track to achieve all milestones in the first year of its three-year Joint Development Agreement with its first Asian chemical customer. Volumes are expected to more than double in its 2027 financial year, albeit from what it described as a relatively small base.
Discussions are also continuing with a second Asian chemical customer following a small programme extension in June, while Nanoco is engaging with other potential customers over further Joint Development Agreements or material supply contracts, primarily in sensing.
Nanoco’s shares closed on August 18 at 2.81p, giving the company a market value of £5.49m. Its shares have traded as high as 14.19p and as low as 2p this year.
