Ilika plc (LON:IKA), a pioneer in solid-state battery technology, has provided an update on trading for the year ended 30th April 2020, an update on strategy for manufacturing Stereax® and notice of its full year results announcement.
Trading for the year ended 30 April 2020 has been in line with management expectations. The Company expects to announce revenues of approximately £2.8m (2019: £2.6m), an increase of 10% on the prior year, and an EBITDA loss of £2.1m (2019: EBITDA loss of £2.2m). Cash and cash equivalents at the period end were £14.9m (30 April 2019: £4m).
On 6 March 2020 the Company announced the over-subscribed Placing and Open Offer raising in aggregate £14.2m after expenses. Ilika outlined its plan to deploy the net proceeds to drive its roadmap across its portfolio of solid-state battery projects. In particular, Ilika explained that the proceeds would support the transfer of Stereax to a third-party fabrication facility, strengthen the balance sheet to meet working capital requirements and provide the option for investing in further growth in Stereax production capability, including implementing a dual source production capability in the future.
As stated in the RNS issued on the 25 March 2020, the Company established working practices to ensure compliance with UK Government guidelines in respect of COVID-19. Ilika’s headquarters in Romsey, where it carries out its large format Goliath development activities, has remained open throughout the period. In addition, many of the data analytics and business discussions have continued remotely, maintaining momentum within the business. Ilika expects its Stereax pilot line at the University of Southampton to re-open shortly and will update shareholders in due course. Ilika can confirm that no material changes to the Company have resulted from the pandemic so far.
Stereax Manufacturing Strategy Update
Since March 2020, Ilika has issued Requests for Information (RFI’s) to four 3rd party fabrication facilities (FABS) in Europe and North America to prepare for the selection of its preferred FAB partner. Initial responses have been received, allowing Ilika to enter the next phase of its selection process.
In addition, after a detailed specification and tendering process, Ilika has awarded a contract for the procurement of a custom-designed evaporation tool (Tool 1) for the rapid deposition of cathode materials for Ilika’s Stereax batteries. Tool 1 is designed to deliver a 70x productivity increase relative to Ilika’s current pilot line capability. The tool has the longest lead time of the manufacturing equipment required for FAB implementation and is expected to be ready for delivery to Ilika for process development in Q4 2020.
Despite the challenges of COVID-19, Ilika’s plans to implement its manufacturing strategy for Stereax remain on track.
Notice of Results
Ilika expects to announce its full year results for the year ended 30 April 2020 on 9 July 2020.
The management team will be hosting a remote analyst briefing on the day, 9 July 2020, at 9.30am. Analysts who wish to attend should contact Lianne Cawthorne at Walbrook PR on +44(0)20 7933 8780 or email firstname.lastname@example.org to register.
An investor presentation will be held on the day, 9 July 2020, 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 email@example.com.
Ilika plc CEO, Graeme Purdy, stated: “The past year has been significant in advancing our strategy of commercialisation. The capital raising has enabled Ilika to pursue these plans and has provided balance sheet strength to reach expected cashflow break-even.
“I’d like to thank the FAB partners and equipment vendors who continue to work tirelessly with us to implement our manufacturing strategy for Stereax. We are pleased to report no material changes to the Company have resulted from the pandemic and, despite the current environment, plans for Stereax manufacturing remain on track, underpinned by the successful fund raise. We look forward to updating shareholders further at our full year results in July.”