Ilika plc (LON:IKA) interims today show the company is executing its solid-state battery commercialisation strategy as planned. We leave FY17 & FY18 forecasts unchanged and look for first OEM licensing deals and associated up-front payments in the coming months. The very low leakage currents, high energy densities, extended life span and hot operation capability of Ilika’s, state-of-the-art, Stereax™ solid-state platform, compared to incumbent lithium ion technologies, open up lucrative, high-growth, miniaturized (1mm2), elevated temperature and energy harvesting sensor markets. Examples of such are internet of things (‘IoT’), bio-electronic, industrial and transport applications. Ilika is rightly focussing (c.75% of resource) on solid-state battery commercialisation. The remaining resource is focussed on core materials development contracts in other areas, including aerospace engine super-alloys, electronic materials, and lithium-sulphur batteries for scale storage, with BAE systems & GKN, Seagate and Johnson Matthey respectively.
* Interims in-line, solid-state battery commercialisation with OEM licensing partners in key target markets on track. In H117 Ilika has been progressing discussions with a selection of potential solid-sate battery commercialisation OEM partners, and we expect these to produce first OEM licencing deals in key application areas in the coming months. Initial up-front licensing payments, coupled with on-going materials development contract revenues, will drive the top line, and we currently leave FY17 and FY18 forecasts unchanged.
* Solid cash position. Ilika completed a successful net £5.8m equity fundraise in October, to provide balance sheet strength ahead of key OEM licensing negotiations. The company is debt free, and has a well-controlled sub-£4m annual cash burn, resulting in a healthy cash position of £7.1m at period end.
* The company is focussing on solid-sate battery commercialisation and has world-class technology capable of exploiting explosive growth mass markets. Ilika’s advanced Stereax™ solid-state battery platform enables OEM’s, device designers and system integrators to create differentiated products including ‘leave for life’, bio-compatible and high-temperature batteries for sensors at a time when markets for such technologies are exploding. Circa15 billion sensors for wireless networks were sold in 2015, constituting a 200% per annum growth rate. Ilika is gaining recognition as a world-leader in this rapidly evolving field.
* The company continues to run its core materials discovery and optimisation model. In addition to solid-state battery commercialisation, Ilika continues to run its core business model, performing rapid materials discovery and development programs with blue-chip clients in a number of high-tech fields. These include 2 contracts on super-alloys for aerospace engines; the first with Rolls Royce on improved thermal performance, and the second with GKN and BAE systems developing self-healing super-alloys suitable for mass production by 3D printing.
Commenting on the results Graeme Purdy, CEO of Ilika Plc, said: “In the first half of the year we have intensified commercial discussions with potential solid-state battery licensees, further strengthened our IP portfolio and augmented our materials discovery programmes.”