Ilika (IKA) H2 2024 earnings summary

Executive summary

• Asset-light business model focused on licensing solid-state battery technology for medical and automotive applications, avoiding large-scale manufacturing investments.

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

• Significant progress on Goliath large-format battery development, reaching D4 design freeze, achieving lithium-ion energy density parity, and delivering P1 prototype batches for customer testing.

• Portfolio expanded to 62 granted patents, with 10 new grants and four additional international filings, covering Europe, Asia, and the U.S.

• Two main product lines: Stereax (miniature batteries for medical/IoT) and Goliath (large-format batteries for EVs and appliances).

Financial highlights

• Turnover increased to £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 the prior year, reflecting cost optimization; loss per share improved to 3.03p (2023: 4.61p).

• Year-end cash balance just under £12 million, supplemented by a post-year-end capital raise of £2.3 million.

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

• Other income of £0.5 million from R&D tax credits.

Outlook and guidance

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

• Goliath licensing and royalty revenue anticipated to begin after MVP product release, with licensing discussions starting as early as next year; roadmap aims for D8 milestone by 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 expected to support R&D and scale-up activities, with intensified commercial interest as Goliath matures.