Ilika plc (LON:IKA), a pioneer in solid-state battery technology, has provided an update on trading for the six months ended 31 October 2020.
Financial Highlights
Trading in the first half of the year has been broadly in-line with our expectations in accordance with our assessment of the financial impact of COVID-19 restrictions, which resulted in the three-month shutdown of the Stereax pilot line between March and June 2020. Despite the restrictions, revenue recognition for the period was £1.3m (H1 2019: £1.5m). The EBITDA loss for the period remained unchanged relative to the EBITDA loss for the same period last year at £1.0m (H1 2019: loss of £1.0m). Cash and cash equivalents at the period end were £12.4m (H1 2019: £1.9m).
Operating Highlights
StereaxÒ
Following the successful conclusion of our over-subscribed £15m equity placing in April 2020, the Company is now implementing the manufacturing scale-up plans for StereaxÒ, Ilika’s miniature solid-state batteries designed for industrial wireless sensors in hostile environments and medical implants. This involves selecting a fabrication facility (FAB) into which the Company will install key equipment for its proprietary cell manufacturing process. The Company is well advanced with that selection process and still expects to finalise details by the end of 2020 with key tools, which have already been ordered, expected to be installed in the first half of FY22 and manufacturing commencing by the second half of FY22. This will result in a 70x increase in Stereax production capacity by the end of 2021. In order to manage this process the Company has made a key hire, Paul Marron, Technology Transfer Director.
Goliath Programme
The Company’s continued collaborations with its Faraday Battery Challenge partners have resulted in a steady increase in the Goliath large format cell performance. The plans for the scale-up of the Goliath programme progressed in September 2020 with the announcement of the framework agreement with the UK Battery Industrialisation Centre, or UKBIC. Ilika’s Goliath pre-pilot line in Romsey is a prototyping facility with a capacity of 1 kWh/week, which we intend to increase to 10 kWh/week by 2022 with the support of further grant funding. Beyond that, the UKBIC will facilitate the production of 5MWh/week, enabling the launch of the first Goliath-powered commercial products.
Notice of Results
Ilika expects to announce half-year results for the six months ended 31 October 2020 on Thursday 14 January 2021.
Analyst Briefing
The management team will be hosting a remote analyst briefing on the day, 14 January 2021, at 9.30am. Analysts who wish to attend should contact Lianne Cawthorne at Walbrook PR on +44(0)20 7933 8780 or email ilika@walbrookpr.com to register.
Investor Presentation
An investor presentation will be held on the day, 14 January 2021, at 4.30pm and will be hosted through the digital platform, Investor Meet Company. Investors can sign up to Investor Meet Company for free and add to meet Ilika plc via the following link: https://www.investormeetcompany.com/ilika-plc/register-investor or for more information please contact Walbrook PR at ilika@walbrookpr.com.
Ilika’s CEO Graeme Purdy, stated, “Despite the operational challenges posed by the restrictions accompanying the COVID-19 pandemic, Ilika has progressed both the implementation of its manufacturing plans for Stereax and continued the development of its Goliath large format cells. The Company has a clear pathway to increased production, revenue generation and cash flow break even, with a focus on a number of exciting target markets. We look forward to maintaining the on-schedule implementation of our plans in the second half of our current financial year and updating the market on our progress.”
