TIDMIKA
RNS Number : 5228A
Ilika plc
23 January 2024
23 January 2024
Ilika plc
('Ilika,' the 'Company,' or the 'Group')
Half-year Report
Further milestones achieved for Stereax & Goliath, on the
pathway towards commercialisation
Ilika (AIM: IKA), a pioneer in solid-state battery technology,
announces its unaudited half-year report for the six months ended
31 October 2023.
Operating Highlights:
During the period, significant progress has been made with both
Ilika's thin-film Stereax (Ò) miniature solid-state batteries
(SSBs) for powering medical devices and industrial wireless sensors
in specialist environments, and its large-format Goliath cells for
electric vehicles (EV) and cordless appliances.
Stereax
-- Completed first customer shipments of stacked M300 batteries
from UK pilot manufacturing facility.
-- Entered into technology transfer and ten-year licensing
agreement with US-headquartered Cirtec.
-- Dispatched key equipment required to manufacture Stereax
cells at Cirtec to its US facility; cathode manufacturing will
initially remain at Ilika in the UK as a sub-contract service to
Cirtec.
-- Continued collaboration with Cirtec to support the
development plans and launch schedules of the portfolio of 20
Stereax customers.
Goliath
-- Significant development milestones achieved on technology roadmap.
-- Production scale-up progressing.
-- Continued execution of the Faraday Battery Challenge
24-month, GBP8.2m grant-funded HISTORY project, steered with input
from BMW and Fortescue WAE.
-- Production-intent equipment trialled at vendor sites and at its pilot facility.
-- Secured the Automotive Transformation Fund 16-month, GBP2.7m
grant-supported SiSTEM project, in which Ilika is collaborating
with Mpac plc and UK Battery Industrialisation Centre (UKBIC).
-- Continued interaction with a portfolio of automotive and
consumer appliance original equipment manufacturers (OEMs)
globally, resulting in a pipeline of evaluation agreements with 17
companies.
Financial Summary:
-- Total revenue for the period of GBP1.3m (H1 2023: GBP0.2m)
-- Grant funding of GBP1.3m (H1 2023: GBP0.2m)
-- EBITDA loss, excluding share-based payments, of GBP1.9m (H1 2023: GBP4.1m loss)
-- Cash & Cash equivalents at period end of GBP13.2m (H1 2023: GBP18.6m)
Post Period End:
-- Completed key design-freeze D4 development milestone, the
precursor to P1, the first prototype for customer release of the
Goliath battery.
-- Achieved lithium-ion energy density parity in its Goliath programme.
Outlook:
-- Signed contract with Cirtec represents most immediate
commercialisation opportunity, allowing fulfilment of order book
and creating further opportunities for commercial engagement.
-- Well-developed plans to move Ilika's Goliath roadmap to the
next stage, MVP, aiming to reach the D8 development milestone by
the end of the HISTORY programme grant in Q1 2025, underpinning
licencing opportunities.
-- First half of this calendar year Ilika will manufacture and
test batches of pouch cells based on the D4 development point prior
to delivering fully characterised P1 cells to customers.
-- Plans to increase the capacity of the Company's existing
pre-pilot production facility using automation and larger scale
items of equipment.
-- Targets to reach an installed capacity of 1.5 MWh/a to allow
Ilika to scale production volumes and mature its technology to the
level required to respond to automotive requests for quotation
('RFQ') by the end of 2025.
-- Commercial interest and government grant support expected to
intensify as the Goliath product continues to mature.
Commenting on the results Graeme Purdy, CEO of Ilika, said: "The
first half of this year was important for Ilika on both sides of
the business. We were delighted to successfully convert our
memorandum of understanding with Cirtec into a ten-year licensing
arrangement. Both companies are now working hard to implement
Stereax manufacturing at Cirtec's facility in the US. This has the
potential to open up many more business opportunities in miniature
medical devices, given Cirtec's position as an industry leader as a
strategic outsourcing partner of complex medical devices.
"Regarding Goliath, we have successfully delivered against our
technology roadmap, with two key milestones achieved at the end of
2023. Having reached lithium-ion energy density parity, and
continuing to work towards further energy and power density
milestones, we have proved that our batteries stand to deliver the
clear benefits of solid-state architecture, and from here we will
continue to pursue further energy and power density milestones.
Against a backdrop of continually growing recognition of the
importance of the EV sector, from both business and government, we
look forward to building on this momentum and developing closer
commercial relationships in 2024."
Analyst Briefing
The management team will be hosting a hybrid analyst briefing
today 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.
Investor Presentation
An investor presentation will be held this afternoon 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 meet Ilika plc via the following link:
https://www.investormeetcompany.com/ilika-plc/register-investor .
For more information, please contact Walbrook PR at
ilika@walbrookpr.com .
For more information contact:
Ilika plc www.ilika.com
Graeme Purdy, Chief Executive Officer Via Walbrook PR
Jason Stewart, Chief Financial Officer
Liberum Capital Limited (Nomad Tel: 020 3100 2000
and Joint Broker)
Andrew Godber,
Nikhil Varghese
Joh. Berenberg, Gossler & Co. KG Tel: 020 3207 8700
(Joint Broker)
Matthew Armitt, Mark Whitmore, Detlir
Elezi,
Mara Grasso
Walbrook PR Ltd Tel: 020 7933 8780 / Ilika@walbrookpr.com
Nick Rome, Charlotte Edgar, Joe
Walker
About Ilika plc - https://www.ilika.com
Ilika specialises in the developing and commercialisation of
solid state batteries. The Company's mission is to rapidly develop
leading-edge IP, manufacture and license solid state batteries for
markets that cannot be addressed with conventional batteries due to
their safety, charge rates, energy density and life limits. The
Company achieves this by using ceramic-based lithium-ion technology
that is inherently safe in manufacture and usage, higher thermal
tolerance and easier to recycle which differentiates our products
from existing batteries.
The Company has two product lines. Its Stereax batteries which
are designed for powering miniature medical implants, industrial
wireless sensors and specialist internet of Things (IoT)
applications and the Goliath large format batteries designed for EV
cars and cordless appliances.
Joint Chairman's and CEO's Statement
Review of Period
Principal Activities
Ilika continues to pursue its mission to rapidly develop
leading-edge intellectual property (IP), manufacture at pilot scale
and license SSBs for high performance markets. We will achieve this
using ceramic-based lithium-ion technology , which differentiates
our products from existing batteries by offering competitive energy
density and charge times, while being inherently safe in
manufacture and usage and easier to recycle.
Ilika has two product lines: miniature Stereax(R) SSBs for
powering medical devices and industrial wireless sensors in
specialist environments, and large format Goliath SSBs for EVs and
cordless appliances.
Stereax SSBs
Ilika's miniature Stereax cells are differentiated from other
solid-state technology through its choice of materials and its use
of an efficient, low temperature evaporation process that is
capable of higher manufacturing rates than other existing miniature
solid-state routes. This results in the following benefits relative
to previous solid-state battery designs:
-- Lower cost of manufacture, avoiding the use of expensive sputtering targets.
-- Can be charged and discharged more times through use of a silicon anode.
-- Less packaging required.
-- High temperature resilience.
The unique benefits of Stereax batteries make them particularly
useful for medical implants and industrial applications. Miniature
Stereax batteries can enable solutions in a form factor not
currently achievable with conventional lithium-ion batteries. Their
compact, high energy-density, high power characteristics make them
useful for a range of medical implant applications covering blood
pressure monitoring to neuro-stimulation. Industrial automation, or
Industrial Internet of Things (IIoT), requires low maintenance
batteries with a long lifetime, sometimes in situations that
require them to operate at elevated temperatures above those for
which standard lithium-ion batteries are rated (typically 60
degrees Celsius).
Stereax Manufacturing and Commercialisation
Ilika successfully made initial batches of Stereax M300
batteries and shipped them to customers from its UK pilot
manufacturing facility in May 2023. By August 2023, Ilika had
progressed the MOU signed in January 2023 with Cirtec, to a full
commercial agreement. Cirtec is an industry-leading strategic
outsourcing partner of complex medical devices including minimally
invasive and active implantable devices. Ilika and Cirtec have
signed a ten-year manufacturing licence for the production of the
Stereax range of mm-scale batteries at Cirtec's facility in Lowell,
Massachusetts, US.
Contract headlines include:
-- Exclusivity for Cirtec in the field of medical devices
designed to drive full utilisation of Cirtec's installed
capacity.
-- Profit sharing during the initial period followed by
royalty-bearing manufacturing aligned with industry norms,
calculated on individual battery volumes.
-- Retention of the cathode deposition process and back-end
battery formation at Ilika's UK pilot facility as a sub-contract
service to Cirtec.
-- Transfer of machine sets to the US for Cirtec to operate on
loan, to enable a quicker technology transfer and qualification
process.
Ilika has now dispatched the Stereax machine sets and Cirtec is
in the process of installing them in its Lowell facility. The
Company continues to work with Cirtec to support a portfolio of 20
current Stereax customers. Demand from applications such as smart
orthopaedics, orthodontics, neurostimulation and smart contact
lenses has created opportunities in the medical device sector,
which is the sector generating the strongest demand and accordingly
we are increasing our commercial collaboration alongside Cirtec in
the year ahead. Commercial ramp up in this space usually takes
three to five years, depending on the regulatory classification of
the device.
Large Format Goliath SSBs
Ilika's Goliath cells are differentiated from other solid-state
prototype cells through the Company's choice of materials, cell
architecture and manufacturing process. The key materials choices
to be made by SSB developers relate to the selection of cathode,
electrolyte and anodes. Different developers have selected distinct
combinations of these materials to achieve an outcome suitable for
their target markets. Ilika has chosen materials that have the
potential to enable longer range vehicles with battery packs that
last longer and can be recycled more easily.
Ilika's initial target market for Goliath in automotive is the
luxury performance market, which is less cost-sensitive than higher
volume segments and is willing to pay a premium for the enhanced
vehicle range. To address this market, Ilika is driving forward its
Goliath development programme. In November 2023, Ilika reached a
point of maturity it refers to as its D4 development point, which
is a design-freeze milestone in the Goliath roadmap upon which
Ilika's first prototype for customer release, P1, is based. The P1
prototype is an intermediate milestone on Ilika's roadmap to its
minimum viable product (MVP) in 2025. The P1 Goliath prototype is a
solid-state pouch cell made from readily available materials
including a lithium-nickel-manganese-cobalt oxide (NMC) cathode and
a silicon anode.
Reaching the D4 development point is an important milestone for
the Company, effectively marking the start of Goliath's
productisation journey; it means that a number of key data sets,
including energy density and power density, have been met while
showing that the Company is on track to achieve further
improvements. Given the data sets that are now achievable, the
Company will be able to create P1 samples, which comprise
multilayer stacks, for sale to OEMs for testing.
Over the first six months of calendar year 2024, Ilika will
manufacture and test batches of pouch cells based on the D4
development point prior to delivering fully characterised P1 cells
to customers in H2 2024.
In parallel, Ilika has continued to progress its roadmap, and in
December 2023 it was able to announce it had reached its 2023
stated intermediate technology development target of lithium-ion
energy density.
Ilika is currently in discussions with its customer base for
Goliath batteries, which is primarily automotive OEMs, but also
includes Tier 1 automotive suppliers and consumer appliance
companies.
Work is continuing on Ilika's roadmap through to MVP, for which
the corresponding D8 development point will be achieved by the end
of the HISTORY project in Q1 2025. The MVP, or P2 prototypes, will
be cells meeting customer-agreed specifications for EVs,
underpinning licensing opportunities.
Ilika is currently implementing a plan to increase the capacity
of its existing pre-pilot production facility using automation and
larger scale items of equipment, such as a roll-to-roll coater, to
provide larger volumes of evaluation cells to customers. Ilika is
targeting an installed capacity of 1.5 MWh/a to allow it to scale
production volumes and mature its technology to the level required
to respond to automotive requests for quotation (RFQ) by the end of
2025. Ilika's experience working with automotive partners has shown
that the industry expects suppliers to have reached what it defines
as A-Sample readiness to respond to RFQs. Beyond 1.5 MWh/a, at B-
and C-Sample readiness and volumes, Ilika intends to work with
manufacturing partners such as UKBIC to scale to higher levels of
production capacity on production-intent equipment i.e., equipment
that could be used for mass production.
Goliath Funding
Ilika has financed its Goliath technology development programme
with equity funding supplemented by grant funding from the Faraday
Battery Challenge (FBC) and the Advanced Propulsion Centre (APC).
In the first half of the current financial year, Ilika's
development efforts have been supported specifically by the FBC
24-month, GBP8.2m grant-funded HISTORY project, steered with input
from BMW and Fortescue WAE, 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, GBP2.7m
grant-supported SiSTEM project, in which Ilika is collaborating
with Mpac plc and UKBIC.
Furthermore, Ilika continues to interact with a portfolio of 17
automotive and consumer appliance OEMs globally, with a view to
intensifying interactions through both grant-supported and
commercially funded collaborations as the Goliath technology
matures.
Graeme Purdy, CEO
Keith Jackson, Chairman
Ilika plc
Consolidated statement of comprehensive income for the six
months ended 31 October 2023 (unaudited)
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 31 Oct 30 Apr
2023 2022 2023
Notes GBP 000's GBP 000's GBP 000's
---------------------------- ------ ------------ ------------ ------------
Turnover 1,335.0 203.7 702.0
---------------------------- ------ ------------ ------------ ------------
Revenue 6.5 - 33.8
UK grants 1,328.6 203.7 668.2
---------------------------- ------ ------------ ------------ ------------
Cost of sales (924.8) (120.5) (404.0)
Gross profit 410.3 83.3 298.0
Other Operating Income 77.4 44.2 79.0
---------------------------- ------ ------------ ------------ ------------
Administrative expenses
---------------------------- ------ ------------ ------------ ------------
Administrative expenses (3,280,2) (4,940.3) (8,932.6)
Share-based payment charge (292.0) (212.7) (441.8)
---------------------------- ------ ------------ ------------ ------------
(3,572.2) (5,153.0) (9,374.4)
------------ ------------
Operating loss (3,084.4) (5,069.7) (8,997.5)
Financial income 180.6 6.3 105.7
Financial expense (20.4) (18.3) (36.6)
------------ ------------ ------------
Loss before tax (2,924.3) (5,037.5) (8,928.4)
Taxation 337.6 958.2 1,632.5
Loss for period/total
comprehensive income
attributable to owners
of parent (2,586.7) (4,079.3) (7,296.0)
GBP GBP GBP
Loss per share
Basic and diluted 2 (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 2022 (unaudited)
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 31 Oct 30 Apr 2023
2023 2022
Notes GBP 000's GBP 000's GBP 000's
------------------------------------ ------- ------------ ------------ -------------
ASSETS
Non-current assets
Intangible assets 3,358.0 2,426.9 2,943.5
Property, plant and equipment 3,932.3 4,831.6 4,263.6
Right-of-use assets 367.1 761.1 631.0
------------ ------------ -------------
Total non-current assets 7,657.5 8,019.6 7,838.0
------------ ------------ -------------
Current assets
Trade and other receivables 1,847.2 1,661.4 1,938.6
Current tax receivable 1,676.1 2,019.3 1,261.1
Other financial assets
- bank deposits 5,000.0 772.7 772.7
Cash and cash equivalents 8,236.0 17,838.0 15,101.0
-------------
Total current assets 16,759.3 22,291.3 19,073.3
-------------
Total assets 24,416.8 30,310.9 26,911.3
------------ ------------ -------------
Issued capital and reserves attributable
to owners of parent
Issued share capital 1,590.6 1,584.7 1,590.6
Share premium 64,935.1 64,806.9 64,936.6
Capital restructuring reserve 6,486.1 6,486.1 6,486.1
Retained earnings (50,535.8) (45,253.5) (48,241.1)
------------ ------------ -------------
Total equity 22,476.0 27,624.2 24,772.2
------------ ------------ -------------
LIABILITIES
Current liabilities
Trade and other payables 1,168.1 1,705.3 1,271.1
Lease liabilities 205.7 281.5 260.8
Total current liabilities 1,373.7 1,986.8 1,531.9
Non-current liabilities
Lease liabilities 317.5 459.6 357.6
Provisions 249.5 240.4 249.5
------------ ------------ -------------
Total non-current liabilities 567.0 699.9 607.2
Total liabilities 1,940.8 2,686.7 2,139.1
-------------
Total equity and liabilities 24,416.8 30,310.9 26,911.3
------------ ------------ -------------
Consolidated cash flow statement for the six months ended 31
October 2022 (unaudited)
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Oct 31 Oct 30 Apr 2023
2023 2022
GBP 000's GBP 000's GBP 000's
---------------------------------------- ------------ ------------ -------------
Cash flows from operating activities
Loss before taxation (2,924.3) (5,037.5) (8,928.4)
Adjustments for:
Amortisation 20.8 21.7 42.2
Depreciation 919.5 767.6 1,552.8
Equity settled share-based payments 292.0 212.7 441.8
Loss on disposal of plant, property
and equipment - (0.8) (0.8)
Net financial expense/ (income) (160.2) (32.2) (69.1)
------------ ------------ -------------
Operating cash flow before changes
in working capital, interest
and taxes (1,852.2) (4,068.5) (6,961.5)
Decrease/(increase) in trade
and other
receivables 91.3 (67.1) (454.0)
Increase /(decrease) in trade
and other payables (103.0) 297.9 (136.3)
Decrease in provisions - - 9.2
------------ ------------ -------------
Cash utilised by operations (1,863.8) (3,837.7) (7,542.7)
Tax received (77.4) - 1,388.2
------------ ------------ -------------
Net cash flow from operating
activities (1.941.2) (3,837.7) (6,154.5)
Cash flows from investing activities
Interest received 180.6 6.3 106.0
Purchase of intangible assets (435.4) (490.5) (1,027.5)
Purchase of property, plant and (324.4) (396.7) (374.0)
equipment
Sale of Property, Plant and equipment - 0.8 0.8
Increase in other financial assets (4,227.3) - -
------------ ------------ -------------
Net cash used in investing activities (4,806.5) (880.2) (1,295.0)
Cash flows from financing activities
Proceeds from issuance of ordinary
share capital (1.5) 54.4 189.9
Cost of share issue - - -
Capital element of finance leases
repaid (95.3) (106.5) (229.1)
Lease Payments interest (20.4) (18.3) (36.6)
Net cash from financing activities (117.2) (70.4) (75.8)
------------ ------------ -------------
Net (decrease)/ increase in
cash and cash equivalents (6,864.9) (4,788.3) (7,525.3)
Cash and cash equivalents at
the start of the period 15,101.0 22,626.3 22,626.3
Cash and cash equivalents at
the end of the period 8,236.0 17,838.0 15,101.0
============ ============ =============
Consolidated statement of changes in equity (unaudited)
Share Capital
Share premium restructuring Retained
capital account reserve earnings Total
GBP GBP 000's GBP 000's GBP 000's GBP 000's
000's
----------------------- ---------- ---------- --------------- ------------ ------------
As at 30th April
2022 1,582.3 64,754.9 6,486.1 (41,386.9) 31,436.4
Share-based payment - - - 212.7 212.7
Issue of Shares 2.4 56.1 58.5
Loss and total
comprehensive income - (4,079.3) (4,079.3)
---------- ---------- --------------- ------------ ------------
As at 31 October
2022 1,584.7 64,811.0 6,486.1 (45,253.5) 27,628.3
---------- ---------- --------------- ------------ ------------
Share-based payment - - - 229.1 229.1
Issue of shares 5.9 125.6 - - 131.5
Loss and total
comprehensive income - - - (3,216.7) (3,216.7)
---------- ---------- --------------- ------------ ------------
As at 30th April
2023 1,590.6 64,936.6 6,486.1 (48,241.1) 24,772.2
---------- ---------- --------------- ------------ ------------
Share-based payment - - - 292.0 292.0
Issue of shares - (1.5) - - (1.5)
Loss and total
comprehensive income - - - (2,586.7) (2,586.7)
1,590.6 64,935.1 6,486.1 (50,535.8) 22,476.0
---------- ---------- --------------- ------------ ------------
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 2023 does
not constitute the full statutory accounts for that period. The
Annual Report and Accounts for 30 April 2023 have been filed with
the Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Accounts for 2023 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 2023, amounted to GBP13.2m,
Including cash in hand at the bank (GBP8.2m) and cash held on long
term deposit shown as a financial instrument (GBP5m). 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 2023 31 Oct 2022 30 Apr 2023
Number Number Number
---------------------------- ------------- ------------- -------------
Weighted average number of
equity shares 158,580,748 158,309,838 158,395,116
GBP 000's GBP 000's GBP 000's
---------------------------- ------------- ------------- -------------
Loss, being loss after tax (2,586.6) (4,079.3) (7,296.0)
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 -
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January 23, 2024 02:00 ET (07:00 GMT)
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