Ilika Plc (LON:IKA), a pioneer in solid-state battery technology, has provided an update on trading and notice of results for the six months ended 31 October 2023.
Operating Highlights:
Stereax
In the first half of the current financial year Ilika continued to develop the scale and potential reach of its Stereax business. The Period started with shipments of stacked M300 batteries from its UK manufacturing facility – being the first of a series of planned deliveries to customers.
The licencing and royalty agreement with US-headquartered Cirtec Medical (“Cirtec”), which was signed in August 2023, was a key milestone for the Group, enabling the transfer of Stereax production to Cirtec’s manufacturing facility in Lowell, MA.
Ilika has now completed the despatch of the key equipment required to manufacture Stereax batteries to Cirtec, with the exception of the cathode manufacturing process which will initially remain with Ilika in the UK. Cirtec is currently expanding its cleanroom capacity in Lowell to accommodate growth in its business, including Stereax manufacturing. Ilika and Cirtec continue to work closely with a portfolio of 20 customers to support their development plans and launch schedules.
Goliath Programme
Ilika’s Goliath programme also progressed strongly during the Period – especially from the perspective of improving technical parameters and implementing its production scale-up plans. Based on the performance of recent prototypes, the Company confirmed the achievement of its D4 technical milestone and remains firmly on track to achieve lithium-ion energy density parity by the end of 2023, in-line with guidance set out in November 2022.
The development efforts are supported by the Faraday Battery Challenge 24-month, £8.2m grant-funded HISTORY project, steered with input from BMW and WAE (Williams Advanced Engineering), to integrate high silicon content electrodes into Goliath. In parallel, Ilika has been trialling production-intent equipment at vendor sites and its pilot facility in the UK. Since October 2023, this scale-up work has been supported by the Automotive Transformation Fund 16-month, £2.7m grant-supported SiSTEM project, in which Ilika is collaborating with Mpac plc and UK Battery Industrialisation Centre (UKBIC). Ilika continues to interact closely with many of the global automotive OEMs, with a view to sharing Goliath P1 prototypes for their evaluation in H1 CY 2024, as a precursor to large-scale manufacturing through licensing.
Financial Highlights:
The Company expects to announce revenue of £1.3m (H1 2023: £0.2m) as a result of increased grant funding received during the Period through the HISTORY programme and the newly announced SiSTEM grant. This positive income position is not expected to be mirrored in the second half of the financial year due to phasing of the grant activity. EBITDA loss, excluding share-based payments, of £1.9m (H1 2023: loss of £4.1m) for the six months ended 31 October 2023, reflects the higher income and cost reduction resulting from the technology transfer of Stereax production to Cirtec. Cash and cash equivalents at the period end were £13.2m (H1 2023: £18.6m).
Notice of Results:
Ilika Plc expects to announce half-year results for the six months ended 31 October 2023 on Tuesday 23 January 2024.
Analyst Briefing
The management team will be hosting a hybrid analyst briefing on the day, 23 January 2024, at 9.30am. Analysts who wish to attend should contact Nick Rome at Walbrook PR on +44(0)20 7933 8780 or email ilika@walbrookpr.com to register.
