Ilika shares plunge on profit warning

Shares in Ilika, the AIM-listed cleantech company, plunged on Tuesday after warning that revenue for the year ended April 30th will be just over half of that generated the previous year.

Shares in Ilika, the AIM-listed cleantech company, plunged on Tuesday after warning that revenue for the year ended April 30th will be just over half of that generated the previous year.

This is as a direct result of delays experience with three unrelated contracts, two of which are from new customers in the US and the third is from a new customer in Europe, all in the area of battery technology and structural materials.

As such, revenue is expected to be in the region of £1.1m, compared to £2.0m the previous year.

Expectations are that earnings before interest, tax, depreciation, amortisation and share based payments will be a loss of around £3.2m (2012: £1.8m). The loss before tax is expected to be around £4.0m (2012: £2.8m).

Cash at the year-end will total around £1.8m compared to £5.3m a year earlier, following the expansion of facilities and infrastructure.

Looking ahead the group said budgeting for the next financial year "will reflect the more conservative deal conversion rates and longer timelines experienced in this financial year". As a result, it has forecast lower sales relative to previous expectations, but are underpinned by mature sales prospects.

Graeme Purdy, Ilika's Chief Executive, said: "We are disappointed with the delays in acquiring new customers that are impacting this year's financial performance.

"However, we are encouraged by the significant progress made in the development of our solid state battery technology and the initial reception given by the international automotive industry to our low cost fuel cell catalyst. Feedback from our customers is indicating sustained demand for innovation in both battery and fuel cell technologies to reduce the cost point for energy storage and motive power.

"This year has provided a strong springboard for further commercialisation milestones and revenue growth going forward. Further guidance will be given with our annual results in July."

The share price plunged 38.85% to 24p by 09:05 on Tuesday.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Leasehold reforms promise the end of a nightmare for many homeowners
Property

Leasehold reforms promise the end of a nightmare for many homeowners

Horror stories about unscrupulous landlords profiting from a legal relic of the feudal era are about to get a happy ending, says Simon Wilson.
16 Jan 2021
Free 6 issue trial then continue to