TIDMIKA
RNS Number : 8017C
Ilika plc
22 January 2015
Ilika plc
('Ilika,' the 'Company,' or the 'Group')
Half Yearly Report
Ilika (AIM: IKA), the accelerated materials innovation company,
announces its unaudited half yearly report for the six months ended
31 October 2014, a period of continued progress with its solid
state battery development programme, increased commercial
interactions with its global customer base and strengthening of its
IP portfolio.
Ilika accelerates the discovery of new and patentable materials
using its unique high throughput technologies process for
identified end uses in the energy, electronics, and aerospace
sectors.
Operational Highlights
-- Grant of two patents covering methods for producing solid state batteries
-- 25 x increase in solid state battery size
-- Proof of concept contract win with European partner for
development of batteries for wireless sensor networks
-- Keith Jackson, CTO of Meggitt plc, appointed as NED to the board
-- Successful factory acceptance test of GBP3.3m pilot production line
Post Period End Events
-- Official opening of pilot line by Rt. Hon Greg Clark MP
-- 20 x larger deposition area of key battery materials
-- 5 x increase in materials deposition rate
Financial Summary
-- Total revenue for the period at GBP0.6m is in line with prior period (1H 2013: GBP0.6m)
-- Loss per share has reduced to 2p (1H 2013: 3p per share)
-- Net cash inflow in the period GBP0.1m (1H 2013: outflow GBP1.7m)
-- Cash balance at period end GBP7.3m (1H 2013: GBP1.4m)
Commenting on the results Graeme Purdy, CEO of Ilika, said:
"Ilika has continued to maintain both commercial and technical
momentum since the exciting announcement in January of 2014 of its
"world's first" for the fabrication of a solid state battery that
can be manufactured as a continuous stack. By the summer of 2014,
we were able to fabricate significantly larger batteries on a
footprint that is commercially relevant for our initial target
markets.
"Commercial interest has been strong from the leading players in
sensor network technology as well as global OEM's, which are
investing heavily in wearable technology. The remainder of this
year will see our efforts focused on producing prototypes for our
commercial partnerships."
Ilika plc
Graeme Purdy, Chief Executive
Steve Boydell, Finance Director +44 (0)23 8011 1400
NUMIS Securities Limited
Oliver Cardigan/ Adrian
Trimmings/
James Black +44 (0) 20 7260 1000
Walbrook PR Ltd +44 (0)20 7933 8780 or ilika@walbrookpr.com
Paul McManus (Media Enquiries) Mob: +44 (0)7980 541 893
Paul Cornelius (Investor Mob: +44 (0)7827 879 460
Enquiries)
CEO's Statement
Review of Period
A World First for Ilika: Solid State Battery Technology
2014 started with the exciting announcement that Ilika had
achieved a unique and simple methodology for producing a stacked
solid state battery that is likely to lead to significant
out-licensing opportunities for the Company. It was explained that
solid state batteries are currently available, but are restricted
to very small capacities, limiting their commercial relevance and
market opportunity. Ilika's innovation enables its commercial
partners to make larger batteries suitable for mainstream battery
applications, including consumer electronics.
Electrochemical testing of the stacked cells was completed in Q1
2014, confirming that Ilika's proprietary process had generated
performance data that validates the stacked architecture, with
two-cell stacks producing twice the voltage and power of a single
cell. Further work then proceeded to increase the cross sectional
area of the cells in order to make prototype batteries suitable for
initial commercialisation in wireless sensor networks, as part of
the "Internet of Things".
By July 2014, Ilika was able to announce that it had achieved a
25x increase in battery size, making the batteries on a footprint
relevant for commercial applications in wireless sensor networks
(WSN) and wearables.
Pilot Line Commissioning
The next step was to complete the fabrication of a pilot line to
allow the production of sufficient quantities of prototype
batteries to allow commercial validation by chosen OEM partners.
The pilot line produces batteries on a substrate which has a
diameter of 15cm (6"), which is an area approximately 20 x larger
than that used to initially develop the battery.
In September 2014, the Company announced it had signed off the
factory acceptance test (FAT) of the pilot line. The next step was
to disassemble the line, pack it and ship it to its destination in
Southampton. This shipping process was successfully completed and
it was re-assembled in time for an official opening in November
2014 by the Rt. Hon. Greg Clark MP, Minister for Science, Education
and Cities.
At the time of issuing this half yearly report, the pilot line
has substantially completed its site acceptance test (SAT).
Official sign off is awaiting the delivery of a number of
non-critical items included in the delivery scope of the principal
system fabricator. The SAT has involved the production of the key
materials making up a solid state battery. In particular, the
battery production team has successfully deposited a functioning
cathode over the complete 176 cm(2) area of the standard 6"
substrate. The batteries required for WSN and wearable applications
will be made by masking (dividing up) this 176 cm(2) area. In
addition, the pilot line has been demonstrated to deposit materials
5x faster than Ilika's development workflow and a further doubling
of that rate is expected to be achievable. This deposition rate has
ensured that the batteries can be made at a price point that is
commercially attractive on the industrial scale. Production cost
models developed together with OEM's interested in Ilika's
technology have demonstrated that the batteries can offer the
expected technical benefits at a price point below incumbent
technology.
Intellectual Property Reinforcement
Clearly, the successful execution of Ilika's business model
requires a robust and comprehensive IP portfolio that can be
licensed as a package. Hence, it was reassuring that in May 2014,
the grant of two British patent applications jointly filed with
Toyota was confirmed. These patents contained methodology for
producing solid state batteries.
Commercial Progress
The commercialisation strategy for this technology involves
three phases of engagement:
-- optimisation of the battery architecture for specific applications
-- validation and integration of the batteries into application systems
-- technology transfer and licensing for manufacture
In the current financial year, the emphasis is on the first of
these phases and therefore the announcement in July of a proof of
concept contract with a European customer was an important
indicator that this strategy was on track.
In October 2014, the announcement of the appointment of Keith
Jackson, CTO of Meggitt plc, as Non-Executive Director was further
evidence that the Company is preparing itself for commercialisation
activities.
Portfolio Progress
Although the solid state battery programme makes up the majority
of Ilika's technology development activities, the Company has a
well-defined portfolio of opportunities at various stages of
maturity.
One of the most advanced of these programmes is the
commercialisation of platinum-free fuel cell catalysts. The Carbon
Trust in 2012 funded the development of these catalysts through an
equity investment. The Company has signed materials transfer
agreements and delivered samples of the catalyst for confirmatory
testing to OEMs in the USA, Japan and Europe. Initial feedback is
encouraging and further testing is expected in this financial year.
Post period end, Ilika received the news that its patent in Europe
had not been opposed by any third parties in the statutory 9-month
period after grant, resulting in Ilika having granted patents
covering fuel cell catalyst technology in the USA, Japan and
Europe.
An early stage technology programme at Ilika is the development
of aerospace alloys. Ilika has announced collaborations with Rolls
Royce and Boeing. Rolls Royce is interested in high temperature
superalloys for use in aerospace engines, while Boeing is focused
on high entropy alloys for deployment in aircraft structures. The
Rolls Royce programme is supported by a GBP1.33 million grant from
Innovate UK over a three year period, which started in April
2014.
Outlook
2015 promises to be an exciting year for Ilika, particularly for
tackling the next steps in the development of the Company's solid
state battery programme. Investors can expect to see announcements
regarding both technical and commercial progress associated with
the production of prototypes and the Company developing commercial
relationships with OEM partners. The management team remains
committed to bringing its technology programmes to successful
conclusions to deliver attractive returns to its shareholders.
Graeme Purdy, CEO
Ilika plc
Consolidated statement of comprehensive income for the six
months ended 31 October 2014
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 2014 31 Oct 2013 30 Apr 2014
Notes GBP GBP GBP
------------------------------------- ------ -------------- -------------- --------------
Revenue 606,328 612,999 1,049,879
Cost of sales (339,458) (345,894) (586,869)
-------------- -------------- --------------
Gross profit 266,870 267,105 463,010
Administrative expenses (1,866,561) (1,781,279) (3,569,696)
Other operating income - 809 810
-------------- -------------- --------------
Operating loss (1,599,691) (1,513,365) (3,105,876)
Financial income 27,080 10,292 22,131
Financial expense - (1,513) (1,513)
-------------- -------------- --------------
Loss before tax (1,572,611) (1,504,586) (3,085,258)
Taxation 167,500 152,528 287,171
Loss for period/total comprehensive
income attributable to owners
of parent (1,405,111) (1,352,058) (2,798,087)
Loss per share 2
Basic and diluted (0.02) (0.03) (0.05)
-------------- -------------- --------------
The results from the periods shown above are derived entirely
from continuing operations.
Consolidated balance sheet as at 31 October 2014
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 2014 31 Oct 2013 30 Apr
2014
Notes GBP GBP GBP
------------------------------------ ------- -------------- ------------- -------------
ASSETS
Non-current assets
Intangible assets 35,192 7,048 793
Property, plant and equipment 553,246 737,690 607,627
-------------- ------------- -------------
Total non-current assets 588,438 744,738 608,420
-------------- ------------- -------------
Current assets
Trade and other receivables 636,454 992,499 572,304
Current tax receivable 137,975 113,548 248,191
Other financial assets - bank
deposits 6,052,336 293,007 1,776,767
Cash and cash equivalents 1,202,433 1,129,738 5,329,967
Total current assets 8,029,198 2,528,792 7,927,229
-------------- ------------- -------------
Total assets 8,617,636 3,273,530 8,535,649
-------------- ------------- -------------
Issued capital and reserves attributable
to owners of parent
Issued share capital 658,836 499,104 632,660
Share premium 17,391,768 9,509,020 16,082,944
Capital restructuring reserve 6,486,077 6,486,077 6,486,077
Retained earnings (16,831,890) (13,995,750) (15,426,779)
-------------- ------------- -------------
Total equity 7,704,791 2,498,451 7,774,902
-------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 762,845 625,079 610,747
Provisions 150,000 150,000 150,000
Total liabilities 912,845 775,079 760,747
-------------- ------------- -------------
Total equity and liabilities 8,617,636 3,273,530 8,535,649
-------------- ------------- -------------
Consolidated cash flow statement for the six months ended 31
October 2014
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 2014 31 Oct 2013 30 Apr 2014
GBP GBP GBP
------------------------------------------- ------------- ------------- -------------
Cash flows from operating activities
Loss before taxation (1,572,611) (1,504,586) (3,085,258)
Adjustments for:
Amortisation 4,644 2,378 8,632
Depreciation 190,999 366,088 556,795
Equity settled share based payments - - 15,000
(Profit)/loss on disposal of plant,
property and
equipment - (145) (145)
Net financial income (27,080) (8,779) (20,618)
------------- ------------- -------------
Operating cash flow before changes
in working capital, interest and
taxes (1,404,048) (1,145,044) (2,525,594)
Decrease/(increase) in trade and
other
receivables (64,150) (414,994) 5,200
Increase /(decrease) in trade and
other payables 152,098 138,433 116,560
------------- ------------- -------------
Cash utilised by operations (1,316,100) (1,421,605) (2,403,834)
Tax received 277,716 268,980 269,266
------------- ------------- -------------
Net cash flow from operating activities (1,038,384) (1,152,625) (2,134,568)
Cash flows from investing activities
Interest received 27,080 10,292 29,390
Sale of property plant and equipment 1,625 2,450 2,450
Purchase of property, plant and equipment (177,285) (377) (61,021)
(Increase)/ Decrease in other financial
assets (4,275,570) 1,162,085 (321,675)
------------- ------------- -------------
Net cash used in investing activities (4,424,150) 1,174,450 (350,856)
Cash flows from financing activities
Proceeds from issuance of ordinary
share capital 1,335,000 712,500 7,716,912
Share issue costs - (3,500) (300,434)
Capital element of finance leases - (7,544) (7,544)
Interest element of finance leases - (1,513) (1,513)
------------- ------------- -------------
Net cash from financing activities 1,335,000 699,943 7,407,421
------------- ------------- -------------
Net (decrease)/ increase in cash
and cash equivalents (4,127,534) 721,768 4,921,997
Cash and cash equivalents at the
start of the period 5,329,967 407,970 407,970
------------- ------------- -------------
Cash and cash equivalents at the
end of the period 1,202,433 1,129,738 5,329,967
============= ============= =============
Consolidated statement of changes in equity (unaudited)
Share premium Capital
account restructuring Retained
Share capital reserve earnings Total
GBP GBP GBP GBP GBP
----------------------- ---------------- -------------- --------------- -------------- --------------
As at 30 April
2013 475,354 8,823,770 6,486,077 (12,643,692) 3,141,509
Issue of shares 23,750 685,250 - - 709,000
Loss and total
comprehensive income - - - (1,352,058) (1,352,058)
As at 31 October
2013 499,104 9,509,020 6,486,077 (13,995,750) 2,498,451
Issue of shares 133,556 6,874,357 - - 7,007,913
Expenses of share
issue (300,433) - - (300,433)
Share based payment - - - 15,000 15,000
Loss and total
comprehensive income - - - (1,446,029) (1,446,029)
As at 30 April
2014 632,660 16,082,944 6,486,077 (15,426,779) 7,774,902
Issue of shares 26,176 1,308,824 - - 1,335,000
Loss and total
comprehensive income - - - (1,405,111) (1,405,111)
As at 31 October
2014 658,836 17,391,768 6,486,077 (16,831,890) 7,704,791
Share capital
The share capital represents the nominal value of the equity
shares in issue.
Share premium account
When shares are issued, any premium paid above the nominal value
is credited to the share premium reserve.
Retained earnings
The retained earnings reserve records the accumulated profits
and losses of the Group since inception of the business.
Capital restructuring reserve
The capital restructuring reserve arises on the accounting for
the share for share exchange. It represents the difference between
the value of the issued equity instruments of Ilika Technologies
Limited immediately before the share for share exchange and the
equity instruments of Ilika plc along with the shares issued to
effect the share for share exchange.
Notes to the consolidated financial statements
1. Accounting policies
Basis of preparation
The interim financial statements, which are unaudited, have been
prepared on the basis of accounting policies consistent with
International Financial Reporting Standards ("IFRSs") adopted by
the European Union. The accounting policies are the same as applied
in the Group's latest financial statements.
The interim financial statements do not include all of the
information required for full annual financial statements and do
not comply with all the disclosures in IAS 34 'Interim Financial
Reporting'. Accordingly, whilst the interim financial statements
have been prepared in accordance with IFRS they cannot be construed
as being in full compliance with IFRS.
The financial information for the year ended 30 April 2014 does
not constitute the full statutory accounts for that period. The
Annual Report and Accounts for 30 April 2014 have been filed with
the Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Accounts for 2014 was unqualified and did not
include references to any matters which the auditors drew attention
by way of emphasis without qualifying their report and did not
contain statements under Section 498(2) or 498(3) of the Companies
Act 2006.
Going concern
The financial statements are prepared on a going concern basis
which the directors believe continues to be appropriate. The Group
meets its day-to-day working capital requirements through existing
cash resources which, at 31 October 2014, amounted to GBP7,254,769.
The directors have prepared projected cash flow information for the
period ending twelve months from the date of their approval of
these financial statements. On the basis of this cash flow
information the directors believe that the Group will be able to
continue to trade for the foreseeable future.
2. Loss per share
Loss per ordinary share have been calculated using the weighted
average number of shares in issue during the relevant financial
periods. The weighted average number of equity shares in issue and
the earnings, being loss after tax, are as follows:
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 2014 31 Oct 2013 30 Apr 2014
Number Number Number
----------------------------------- ------------- ------------- -------------
Weighted average number of equity
shares 65,626,980 49,691,004 52,153,675
GBP GBP GBP
----------------------------------- ------------- ------------- -------------
Loss, being loss after tax (1,405,111) (1,352,058) (2,798,087)
The loss attributable to ordinary shareholders and weighted
average number of ordinary shares for the purpose of calculating
the diluted earnings per ordinary share are identical to those used
for basic earnings per share. This is because the exercise of share
options and warrants would have the effect of reducing the loss per
ordinary share and is therefore not dilutive under the terms of IAS
33.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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