Ilika PLC (AIM:IKA, OTCQX:ILIKF) said it expects to complete product qualification for its mini Stereax solid-state batteries in the second quarter of next year so they can be used in the miniature medical device sector, where it has initial orders from 18 customers.
The company also reported progress in improving the performance of its large-format Goliath solid-state batteries for electric vehicles and consumer appliances, with an 80% increase in the energy density of prototype cells since the start of the financial year, while also making progress on a series of scale-up studies and gaining grant funding to begin manufacturing equipment trials.
With both products still in development, revenue for the half-year to 31 October 2022 was flat at £0.2mln and underlying losses rose to £4.5mln from £2.7mln on an EBITDA basis.
With revenue from initial Stereax contracts ramping up at a commensurate rate to product commercialisation timelines seen in the medical sector, the company said this is now expected to take five years to reach capacity of its new UK manufacturing facility, meaning revenues in 2024 and 2025 are expected to be lower than previous forecasts.
As for Goliath, at the current rate of progress, the AIM-listed company is targeting reaching lithium-ion energy density parity towards the end of the calendar year 2023, rather than early in the calendar year 2023 as it had previously advised.
Ilika said “strong commercial pull” has been demonstrated for the product via interactions with various automotive and consumer appliance equipment manufacturers around the world.
Cash and cash equivalents at the period end were £18.6mln, compared to the £23.4mln in the bank at the year-end.
For the full-year, EBITDA losses are expected to be around £9mln, with roughly £14mln cash and cash equivalents.
The company also announced its new chief financial officer will be Jason Stewart, a CIMA-qualified accountant with finance director and commercial experience in the manufacturing sector.
Most recently, he was interim CFO at Sunseeker International, a motor yacht manufacturer, stepping up during the COVID-19 crisis after roles as director of commercial finance & IT and head of strategy & performance management.
Prior to this, he spent five years with B&Q in various finance roles after completing his professional training with Kerry Foods.