Ilika PLC (AIM:IKA, OTCQX:ILIKF, FRA:I8A) this week outlined continued commercial progress across its Stereax and Goliath solid-state battery businesses, with chief executive Graeme Purdy highlighting the company's transition into revenue generation alongside several commercial catalysts expected over the next 12 to 18 months.
Purdy, in an interview in the Proactive studio, said the most significant development for the Stereax business had been its move into commercial production, with Ilika now supplying commercial-grade electrodes to Cirtec for incorporation into the M300 medical device product, which is expected to reach the market later this year.
He said the company had already recognised approximately £100,000 in revenue during the previous financial year, describing it as an early indicator of future growth. Purdy added that a second revenue stream is expected to emerge through royalty payments once products incorporating Stereax batteries are sold to end customers.
Here, we take a closer look at what was said when Graeme Purdy joined the Proactive studio.
Proactive: You've described the past year as one of strong commercial progress. What do you see as the standout achievements across both the Stereax and Goliath programmes?
Graeme Purdy: The biggest achievement for Stereax is that the business has transitioned into generating product revenue by selling commercial-grade electrodes to Cirtec for incorporation into the M300 product, which is expected to launch later this year. On Goliath, shipping 10Ah prototypes to OEM and commercial customers for validation represents a major commercial milestone that is creating new opportunities.
Proactive: Stereax has now moved into commercial production and is generating revenue. How significant is that milestone?
Graeme Purdy: It is highly significant because Ilika expects that revenue stream to grow during the current financial year. Around £100,000 was recognised in the previous year's accounts as an early indicator. The company also expects product royalties to begin once products reach customers, adding to electrode sales.
Proactive: Goliath is attracting interest beyond electric vehicles, particularly from defence and e-bike markets. How does that broaden the opportunity?
Graeme Purdy: The 10Ah prototypes were originally developed for the EV roadmap, but inbound enquiries came from non-EV sectors. Customer feedback has been positive and Ilika now intends to commercialise those cells for defence and consumer applications, including e-bikes, supported by proceeds from the recent fundraising.
Proactive: Following the recent £5 million fundraising, what milestones should investors watch over the next year?
Graeme Purdy: For Stereax, investors should look for support of Cirtec's marketing activities, integration into Cirtec's medical device platforms and the commencement of royalty payments. For Goliath, milestones include delivery of commercial 10Ah products, letters of intent and commercial agreements, early revenues, ongoing validation by automotive partners, further UK grant support and progress towards the company's first licensing agreement.