Ilika plc (IKA) - Trading Update
RNS Number : 1450P
22 October 2012
("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.
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
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.
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
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
Ilika will announce Interim Results for the six months ended 31 October
2012on 10 January 2012.
Ilika plc www.ilika.com
Graeme Purdy, Chief Tel: 023 8011 1400
Steve Boydell, Finance
Numis Securities Limited Tel: 020 7260 1000
Oliver Cardigan, Nominated
James Black, Corporate
Walbrook PR Ltd Tel: 020 7933 8780
Paul McManus Mob: 07980 541 893 or firstname.lastname@example.org
Paul Cornelius Mob: 07827 879 460 or email@example.com
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
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
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
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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