Ilika warns of lower revenue and wider loss as investment continues

Solid-state batteries developer Ilika warned that its interim revenue is likely to be lower because of the investment it has made on its development programme.

The London-listed company said it was focusing on producing micro-battery prototypes designed to power wireless sensors for applications in the Internet of Things market, adding it would continue to invest in the project.

However, the investment is expected to have an impact on revenue and pre-tax loss for the first half of the year, with the former forecast to halve to £300,000, while the latter is expected to widen from £1.6m to £1.8m.

Meanwhile, the resources allocated towards the development programme meant the group’s cash and cash equivalents at the end of October declined from £7.2m to £4.5m.

"The hard work invested by our operational team in manufacturing and characterising prototype batteries this year has been reinforced by positive feedback from potential commercial partners.

“The feedback from those partners builds confidence that our technology will be in a strong position to address significant commercial opportunities going forward.”

Ilika shares were down 4.55% to 70.63p at 1057 GMT on Friday.