Ilika plc IKA Trading Update

  Ilika plc (IKA) - Trading Update

RNS Number : 1450P
Ilika plc
22 October 2012
 



                                  Ilika plc

                          ("Ilika" or the "Company")

                                       

                           Half Year Trading Update

 

Ilika  (AIM:  IKA),  the  advanced  cleantech  materials  discovery   company, 
announces a trading update for the six months ended 31 October 2012. 

 

Financial Review

 

The Company expects total revenue  for the year ending  30 April 2013 to  show 
approximately 20% year-on-year  growth on its  continuing activities which  no 
longer include the wound care business as announced in September 2012.

 

Turnover from operations  for the period  will be lower  than the  comparative 
period for last year at around £0.5m (H1 2011: £0.8m). Historically, the first
half of  Ilika's financial  year, spanning  the summer  period, has  delivered 
lower revenues  than a  proportional split  of the  full year  would  predict. 
Discussions with  customers,  which  have moved  relatively  slowly  over  the 
summer, are maturing into firm contracts, which are now expected to contribute
to higher levels of revenue  in the second half.  Grant income of around  £20k 
(H1 2011: £200k) reflects the fact that  support from the Carbon Trust in  the 
period was  received as  an equity  investment of  £149,380 rather  than as  a 
grant.

 

The balance sheet remains strong with cash and cash equivalents expected to be
no less than £3.5m at the half year period end (as at April 2012: £5.3m).  The 
funds raised earlier in the year remain ring-fenced for the development of its
thin film battery technology. Progress is currently on track with the  company 
due to publish its initial technical results in Q1 2013.

 

Operational Review

 

The Company continues to see strong progress across the business including the
renewal of the relationship with its  largest customer for the development  of 
lithium-ion battery technology.  This will  extend the  relationship into  the 
fifth successive year  and more  detailed announcements  will be  made in  due 
course.

 

The recent press release from Toyota regarding the scaling back of its efforts
to release all-electric vehicle models should be understood in the context  of 
its ongoing commitment to expand its hybrid vehicle fleet. By 2015 it  expects 
to have 21 hybrid models on sale. The need for improved battery technology for
hybrid vehicles is underpinning Ilika's activities in this area.

 

Ilika's lead  automotive partner  has  also commenced  its assessment  of  the 
technical performance  of  Ilika's  proprietary  fuel  cell  catalysts.  These 
discussions  have  resulted  in  initial  samples  being  sent  to  them   for 
confirmatory testing prior to designing a larger scale programme. Having  made 
the initial sample  of material available,  Ilika has agreements  in place  to 
manufacture a larger batch for delivery in  the first half of CY 2013,  should 
the tests prove successful.

 

In addition, Ilika has secured a contract with a new UK customer in the energy
sector for the development of  energy conversion materials to increase  energy 
utilisation efficiency.

 

Ilika will  announce Interim  Results  for the  six  months ended  31  October 
2012 on 10 January 2012.

 

        Ilika plc                                                www.ilika.com
   Graeme Purdy, Chief                                      Tel: 023 8011 1400
        Executive
  Steve Boydell, Finance                                                      
         Director
                                                                              
 Numis Securities Limited                                   Tel: 020 7260 1000
Oliver Cardigan, Nominated                                                    
         Adviser
  James Black, Corporate                                                      
         Broking
                                                     
     Walbrook PR Ltd                                        Tel: 020 7933 8780
       Paul McManus          Mob: 07980 541 893 or paul.mcmanus@walbrookpr.com
      Paul Cornelius       Mob: 07827 879 460 or paul.cornelius@walbrookir.com

 

 

 

 

ABOUT ILIKA

 

Ilika is an advanced materials company which accelerates the discovery of  new 
and  patentable  materials  using  its  unique  high  throughput  technologies 
(''HTT'') process  for identified  end  uses in  the energy,  electronics  and 
biomedical sectors. This process enables hundreds of scalable materials to  be 
made in  a  single,  automated  operation  and  subsequently  tested  for  key 
properties.

 

Traditionally, materials development has  been a slow  and arduous task,  with 
manual, sequential methods  used to  make samples  of material  that are  then 
tested for suitability. On average,  it takes between 7  and 10 years to  move 
from  an  initial  discovery  through  to  the  first  commercial   prototype. 
Experiments carried out by the Company can be executed 10 to 100 times  faster 
than using traditional techniques.

 

The Company focuses  on three  principal sectors and  has a  number of  active 
development programmes addressing markets within each sector:

 

Energy - developing  innovative new  materials for  Lithium-ion batteries  for 
vehicles for Toyota; developing high capacity hydrogen storage materials  with 
Shell Hydrogen  and  Johnson  Matthey through  joint  development  programmes; 
developing cheaper alternatives to Platinum  electrodes for use in fuel  cells 
through a grant-funded project with the Carbon Trust; developing new materials
for  use  in  fuel  cells  for  the  transport  sector  for  a  major  vehicle 
manufacturer; and carrying  out in-house research  on film photovoltaic  solar 
cells.

 

Electronics -  developing lead-free  piezoelectric materials  through a  joint 
development programme with CeramTec; developing phase change memory  materials 
for high capacity memory chips and high-performing electronic materials for  a 
multi-national manufacturer.

 

Biomedical - developing polymers to enable the filtering of somatic stem cells
from blood with a major  global supplier of filters;  it has been selling  its 
Cryoskin and Myskin products for the treatment  of burns and wounds in the  UK 
through a specialist distributor  and intends to  commence clinical trials  of 
its corneal bandage candidate.

 

The Group's commercialisation strategy is  to enter into joint development  or 
licensing agreements with large multinational  companies which are seeking  to 
commercialise products  developed  using  the  intellectual  property  created 
through jointly-funded programmes. Current commercialisation partners  include 
large multinational  companies  such as  Toyota,  Shell, Johnson  Matthey  and 
CeramTec. The Company  generates revenues  from three  sources: licensing  and 
milestone payments from  joint development  programmes; fee  for service  from 
contract research projects; and from sales of Cryoskin and Myskin.

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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