Ilika (LON: IKA) shares plunged Thursday after the company posted a trading update in which it said it expects to report a lower than forecast revenue in FY24 and FY25.
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The company anticipates an EBITDA loss of £4.5 million compared to £2.7 million during the same period last year due to a rise in operational costs associated with the commissioning of its Stereax manufacturing facility and an intensification of the Goliath development programme. Ilika expects revenue to be flat at £0.2 million, the same as H1 2022.
In addition, for the full year to April 30, 2023, Ilika sees its EBITDA loss at approximately £9 million, while its revised expectations for the speed of its Stereax ramp-up means it believes revenue in FY24 and FY25 will be “materially lower than in previous forecasts.”
Ilika shares have plummeted 39.5% on the update, adding to its losses so far this year.
Ilika set out new timelines for Stereax and Goliath in its update. The company told investors that for Stereax, M300 product qualification is now expected to complete in the second quarter of the 2023 calendar year for use in the miniature medical device industry. The company added that it has initial orders from 18 customers.
In addition, they explained that revenue from initial Stereax contracts is ramping up commensurate with the product commercialisation timelines seen in the sector, and it is now expected to take five years to reach capacity of the UK manufacturing facility.
For its Goliath Programme, Ilika explained it has continued to progress in improving the performance of its large format solid-state batteries for electric vehicles and consumer appliances, with an approximately 80% increase in the energy density of its prototype cells since the start of the financial year. It has also progressed with a series of scale-up studies.
The company is now targeting lithium-ion energy density parity towards the end of the 2023 calendar year rather than the previously advised early 2023 calendar year.
Elsewhere, Ilika also announced the appointment of Jason Stewart as its new Chief Financial Officer.