Ilika ready to charge – MoneyWeek

Lossbeforetaxnarrowedto£2。

84mfrom£3。

15mtheyearbeforeandthelosspersharecontractedto0。

07pfrom0。

08p。

Aftertappingthemarketfor£4。

6minApril,cash,cashequivalentsandbankdepositsattheendofAprilstoodat£5。

3m,upfrom£2。

8mayearearlier。

Wehaveenoughcashtoseeusthroughtoprofitability,FinanceDirectorSteveBoydelltoldSharecast。

Theelectronicssectorisdrivingrevenuegrowth,ChiefExecutiveOfficerGraemePurdysaid。

WevebeenverysuccessfulingeneratingbusinessinJapan,andnowweareworkingongettingthingsmovinginUS,andalsoGermany,headded。

Some18monthsaftertakingonaUSsalesperson,theordershavestartedtotricklein。

Thatmightsoundlikealongleadtime,butPurdyexplainedthatthehighlytechnicalnatureofIlikasbusinessmeansthereisasteeplearningcurveforsalespeople。

RevenuefromcustomersintheEnergysectoreased9%to£1。

01mintheperiodfrom£1。

10mpartlyduetophasingofcontractsbuttheotherpartsofthebusinessmorethancompensated,withElectronicsrevenueup125%to£0。

66mfrom£0。

29mtheyearbeforeandBiomedicalrevenueup130%to£0。

35mfrom£0。

15mthepreviousyear。

Ilikahasalotofblue-chipcustomersorpartners,asitpreferstocallthemincludingToyota,Toshiba,ShellandthebatterycompanyEnergizer。

Thereasonitpreferstothinkofcustomersaspartnersisbecauseofthecollaborativenatureoftheirrelationships;essentially,companiesuseIlikaaspartoftheirresearchanddevelopmentprocess,callinguponIlikasexpertiseandpatentedprocessestofast-trackthedevelopmentprocess。

Inmanycaseshavingdevelopedasolutionforacompany(e。

g。

athinnerbatterywhichretainsachargeforlonger),theintellectualpropertycanthenbelicensedtootherparties。

Werechoosyinwhatprojectswetakeon,Purdyexplained。

Theruleofthumbisthemarkethastobeworth$1bndollarsbeforeweconsiderworkingonit。

Ilikawillalsolookatthecustomersmarketsharebeforetakingonaproject。

Youmightaskwhywedontjustcomeupwiththesecleversolutionsoffourownbatandmarketthemourselves,butpartneringwithcommercialcompaniesisgoodbecausetheyknowwhatthemarketwants。

Thatway,wedontendupcreatingmaterialsforwhichthereisnocommercialuse。

Theyalsopayupfront,whichhelpsthecashflow,Purdyexplained。

Thecompanyhasanumberofprojectsinthepipelineandsaysthatrevenuesusuallypeakwithinthreetofiveyearsafterlaunch。

WehaveastrongIP[intellectualproperty]portfolioandanumberofjointdevelopmentagreementswithmajorpartnersthatcontinuetomakegoodprogress,saidcompanyChairmanJackBoyer。

WehavestrengthenedtheinternationalreachofourbusinessdevelopmentactivitiesandwithearlysuccessesintheUSandtheappointmentofabusinessdevelopmentdirectorinGermany,oursalespipelinefor2013isgrowingandprovidesuswithsignificantconfidenceforthefuture,headded。

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