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Ilika PLC (ILIKF) (H1 2025) Earnings Call Highlights: Navigating Early Revenue Stages with ...

In This Article:

  • Revenue: GBP 1 million, slightly down from the prior year, primarily from grant funding.

  • EBITDA Loss (excluding share-based payments): GBP 1.9 million, unchanged from the prior year.

  • Cash Balance: GBP 10.1 million, down from GBP 13.2 million in the prior year.

  • Stereax Revenue Projection: Initial revenue expected from Stereax product sales by the end of the financial year/start of the next financial year.

  • Goliath Revenue Projection: Cumulative income expected to grow over a 10-year period, with licensing and battery royalties as significant contributors.

  • Grant Funding: Continued support expected, with GBP 2 billion available for the UK automotive industry over the next five years.

  • Commercial Income from Goliath: Just under GBP 10,000 from commercial collaborations in the half-year to October.

Release Date: January 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Ilika PLC (ILIKF) has a strong patent portfolio with 62 patents, providing robust protection for its intellectual property.

  • The company has a diversified market approach, targeting both medical devices and automotive sectors, which reduces execution risk.

  • Ilika PLC (ILIKF) has a licensing and royalty agreement with Cirtec, validating its Stereax technology and enabling scale-up for production.

  • The company has completed the commissioning of equipment at Cirtec Medical, paving the way for product release and revenue generation.

  • Ilika PLC (ILIKF) has received positive feedback on its Goliath batteries, which have been tested by automotive customers and show promising safety and performance benefits.

Negative Points

  • The company is still in the early stages of revenue generation, with initial revenues expected to be low as products undergo lab-based trials.

  • Ilika PLC (ILIKF) faces challenges in providing forward guidance due to the nascent stage of its production and commercialization efforts.

  • The company is reliant on grant funding, which has seen a hiatus, impacting its financial planning and cash flow management.

  • There is uncertainty around the timeline for Goliath battery commercialization, as it depends on licensing discussions over the next 18 to 24 months.

  • Ilika PLC (ILIKF) has experienced a decrease in turnover, primarily due to the winding down of major grant funding projects.

Q & A Highlights

Q: In which financial year do you anticipate starting potentially profitable production of a first commercial battery product? A: Stereax production is expected to commence in 2025, with batteries being dispatched to customers by mid-year. Goliath batteries will continue development, with timelines dictated by licensing discussions over the next 18 to 24 months. - Jason Stewart, CFO