Ilika (IKA) H2 2024 earnings summary

Executive summary

• Asset-light licensing business model focused on solid-state battery technology for medical and automotive applications, leveraging partnerships for manufacturing and scale-up.

• Two main product lines: Stereax (miniature batteries for medical/IoT) and Goliath (large-format batteries for EVs and appliances), with significant progress in technology milestones, commercial partnerships, and prototype shipments.

• Achieved first customer shipments of Stereax M300 batteries and entered a 10-year licensing and technology transfer agreement with Cirtec Medical for Stereax manufacturing.

• Goliath development reached D4 design freeze, achieved lithium-ion energy density parity, and shipped P1 prototypes to automotive customers, with ongoing collaborations with OEMs and gigafactory partners.

• Portfolio expanded to 62 granted patents, with 10 new grants and four additional international filings.

Financial highlights

• Turnover for the year reached £2.1 million (2023: £0.7 million), with total income of £2.6 million (2023: £0.8 million), driven by grant funding.

• EBITDA loss reduced to £4.1 million from £7 million in the prior year, reflecting cost optimization and higher grant income.

• Year-end cash balance was just under £12 million (April 2024: £11.9m), supplemented by a post-year-end capital raise of £2.3 million.

• R&D tax credits contributed £0.5 million in other income.

• Administrative expenses decreased to £7.4m (2023: £8.9m); staff costs reduced to £4.8m (2023: £5.2m).

Outlook and guidance

• Stereax revenue expected to commence in 2025 as production ramps up at Cirtec's facility, with commercial sample production targeted for late CY2024.

• Goliath licensing and royalty revenue anticipated to begin after MVP product milestone, with licensing discussions starting in 2025 and D8 milestone targeted for Q1 2025.

• Pre-pilot production facility capacity to increase to 1.5 MWh/a, enabling scale-up for automotive RFQs by end of 2025.

• Continued grant funding and commercial partnerships expected to support technology development and scale-up.

• Large addressable markets and commercial opportunities provide a strong platform for future growth.