Contract Renewals and Trading Update

RNS Number : 2084Z

Ilika plc

13 March 2012

 



Ilika plc

("Ilika" or the "Company")

 

Contract Renewals and Trading Update

Ilika plc (AIM: IKA), the advanced cleantech materials discovery company, announces that it has renewed two contracts with a major existing customer for the development of novel battery materials.

Together with other secured orders, these contracts bring the current level of committed revenues (including grants) to around £2.3 million for the current financial year ending 30 April 2012. This represents 20% growth in revenues over the previous full year. While the Company anticipates further contracts which could result in potential additional revenues for the year of up to £0.35 million, there remains some uncertainty surrounding the timing and outcome of these contracts. However, due to the flexible cost model within the business, the Company expects EBITDA, operating results and net cash for the year ending 30 April 2012 to be in-line with market expectations.

Commenting, Graeme Purdy, CEO of Ilika, said:

 "I am delighted that we have been able to deepen this long standing customer relationship. These contract renewals, together with the recently announced new customer relationships, ensure that the company remains on target for meeting market expectations in terms of our operating result and cash, further demonstrating the flexible cost model and operational efficiency of the business."  

 

For more information contact:

Ilika plc	www.ilika.com
Graeme Purdy, Chief Executive	Tel: [phone]
Steve Boydell, Finance Director
Nomura Code Securities Limited (NOMAD)	Tel: [phone]
Phil Walker / Christopher Golden
Walbrook PR Ltd	Tel: [phone]
Paul McManus	Mob: [phone] or [e-mail]
Paul Cornelius	Mob: [phone] or [e-mail]

 

 

ABOUT ILIKA

 

Ilika is an advanced materials company which accelerates the discovery of new and patentable materials using its unique high throughput technologies (''HTT'') process for identified end uses in the energy, electronics and biomedical sectors. This process enables hundreds of scalable materials to be made in a single, automated operation and subsequently tested for key properties.

 

Traditionally, materials development has been a slow and arduous task, with manual, sequential methods used to make samples of material that are then tested for suitability. On average, it takes between 7 and 10 years to move from an initial discovery through to the first commercial prototype. Experiments carried out by the Company can be executed 10 to 100 times faster than using traditional techniques.

 

The Company focuses on three principal sectors and has a number of active development programmes addressing markets within each sector:

 

Energy - developing innovative new materials for Lithium-ion batteries for vehicles for Toyota; developing high capacity hydrogen storage materials with Shell Hydrogen and Johnson Matthey through joint development programmes; developing cheaper alternatives to Platinum electrodes for use in fuel cells through a grant-funded project with the Carbon Trust; developing new materials for use in fuel cells for the transport sector for a major vehicle manufacturer; and carrying out in-house research on film photovoltaic solar cells.

 

Electronics - developing lead-free piezoelectric materials through a joint development programme with CeramTec; developing phase change memory materials for high capacity memory chips and high-performing electronic materials for a multi-national manufacturer.

 

Biomedical - developing polymers to enable the filtering of somatic stem cells from blood with a major global supplier of filters; it has been selling its Cryoskin and Myskin products for the treatment of burns and wounds in the UK through a specialist distributor and intends to commence clinical trials of its corneal bandage candidate.

 

The Group's commercialisation strategy is to enter into joint development or licensing agreements with large multinational companies which are seeking to commercialise products developed using the intellectual property created through jointly-funded programmes. Current commercialisation partners include large multinational companies such as Toyota, Shell, Johnson Matthey and CeramTec. The Company generates revenues from three sources: licensing and milestone payments from joint development programmes; fee for service from contract research projects; and from sales of Cryoskin and Myskin.

 

 

 

END

 

 

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