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Advance Nanotek (ASX:ANO) increases sales but expects poorer end of FY20 results

Consumer Discretionary, Materials
ASX:ANO      MCAP $44.95M
28 February 2020 06:00 (AEST)

Advance Nanotek (ANO) has given the market an update on its sales and coronavirus and revealed its Managing Director will be selling some of his holding.

Advance Nontek is a materials company which develops, manufactures and markets various products including for the sun care and cosmetic sectors.

The company reported its U.S. sales is up 280 per cent for 7 months to January 2020, compared to the same time last year.

Advance Nanotek said it is seeing signs of sales growth from its new distributor in Europe.

A large manufacturer is looking into trialling the company’s XP for large volume sunscreen sales to the United States and Australia. In addition, there is over 35 new customers trialling its zinc powders and dispersions

The company said it is witnessing a short term negative impact from the coronavirus on sales. Americans are cancelling or postponing travel plans for the upcoming summer.

It also said that the tube suppliers from China have delayed supplies to key manufacturers in Europe and U.S.. Advance Nanotek is expecting to have a negative effect on the sales target of $30 million for this financial year.

Managing Director, Geoff Acton will be selling some his shares for a total of $294,000. Geoff is finalising a family settlement matter with some of these transactions.

On market close, Advance Nanotek is down 7.34 per cent trading at $5.05 per share.

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