Zeus Capital today noted the news from Ilika Plc (LON:IKA): In its trading statement on November 23rd 2016, Ilika referenced an existing blue-chip customer had given notice of intent to enter into a 12 month materials development program in a new application area worth $1m to Ilika. This morning it confirms that the deal with Toyota has successfully come to fruition and been signed. This is excellent news for Ilika and its shareholders for the following reasons. Firstly, it shows the strength of the company’s relationship with Toyota, and the belief Toyota has in Ilika’s world-class materials discovery platform. Secondly, it is further proof that the company’s core rapid materials development and optimization model for blue chip clients is in good health. Thirdly, that it is an ‘initial’ project, with the likelihood of follow-on and related programs in the same application area.
The application area is cited as ‘game changing energy materials’, which we speculate will be in the fuel-cell space, considering the deal is with Toyota, and therefore automotive related, and Ilika already has extensive collaboration with Toyota as a customer in the electric vehicle (‘EV’) battery space.