PhotonStar LED supply contract cancelled

PhotonStar LED has terminated the supply contract with a UK-based electronics company that was announced in July.

The company, which designs and manufactures smart LED lighting solutions, insisted that only a small amount of revenue was actually generated from this contract and said it has been terminated as a result of the customer entering creditors' voluntary liquidation.

PhotonStar said the termination is not expected to have a significant adverse effect on its balance sheet.

Chief executive James McKenzie said: “PhotonStar will act to protect its reputation and financial position as a result of the company filing for a creditors voluntary liquidation."

The contract had been won by the group's Camtronics Vale contract manufacturing business and was expected to generate substantial revenues during the second half of 2015.

At 1028 GMT, shares were down 13% to 2.50p.