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.

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.

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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.

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