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Ilika PLC (GB:IKA)
LSE:IKA

Ilika plc (IKA) AI Stock Analysis

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GB

Ilika plc

(LSE:IKA)

39Underperform
Ilika plc's overall score reflects substantial financial challenges with persistent losses and negative cash flows. Technical indicators suggest potential bearish trends, and valuation metrics highlight significant concerns. The company's strategic advancements in battery technology and partnerships offer future potential, but current financial instability limits attractiveness.

Ilika plc (IKA) vs. S&P 500 (SPY)

Ilika plc Business Overview & Revenue Model

Company DescriptionIlika plc (IKA) is a pioneer in solid-state battery technology, focusing on the development and commercialization of advanced battery solutions for a range of industries, including consumer electronics, electric vehicles, and industrial applications. The company specializes in creating high-performance, long-lasting batteries that offer superior energy density and efficiency compared to traditional lithium-ion batteries.
How the Company Makes MoneyIlika plc generates revenue primarily through the development and licensing of its proprietary solid-state battery technology. The company collaborates with various industrial partners to integrate its innovative battery solutions into consumer electronics, automotive, and industrial products. Key revenue streams include licensing agreements, joint development projects, and sales of prototypes and small-scale manufacturing. Ilika also benefits from government grants and partnerships that support its research and development initiatives, contributing to its earnings and enabling the advancement of its technology portfolio.

Ilika plc Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
20.10K33.85K30.88K230.45K367.00K
Gross Profit
-1.06M-1.97M-1.49M-1.06M-1.22M
EBIT
-6.24M-9.73M-8.58M-5.87M-5.82M
EBITDA
-4.00M-7.30M-6.81M-2.68M-2.28M
Net Income Common Stockholders
-4.81M-7.30M-7.13M-3.53M-3.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.95M15.87M23.45M9.82M14.90M
Total Assets
22.83M26.91M33.93M16.53M18.50M
Total Debt
625.30K618.48K847.60K827.72K226.10K
Net Debt
-7.14M-14.48M-21.83M-8.22M-13.91M
Total Liabilities
2.47M2.14M2.50M2.34M1.31M
Stockholders Equity
20.36M24.77M31.44M14.19M17.19M
Cash FlowFree Cash Flow
-4.13M-7.45M-10.08M-4.95M-3.31M
Operating Cash Flow
-2.46M-6.05M-5.64M-2.13M-2.05M
Investing Cash Flow
-5.06M-1.40M-4.44M-2.83M-1.65M
Financing Cash Flow
-316.70K-75.78K23.71M-32.94K14.09M

Ilika plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price36.50
Price Trends
50DMA
36.69
Negative
100DMA
32.88
Positive
200DMA
27.79
Positive
Market Momentum
MACD
0.23
Positive
RSI
49.08
Neutral
STOCH
31.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IKA, the sentiment is Neutral. The current price of 36.5 is below the 20-day moving average (MA) of 36.81, below the 50-day MA of 36.69, and above the 200-day MA of 27.79, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IKA.

Ilika plc Risk Analysis

Ilika plc disclosed 6 risk factors in its most recent earnings report. Ilika plc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ilika plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$4.38B12.035.25%249.91%4.11%-11.02%
GBCWR
54
Neutral
£144.96M-16.93%132.44%47.77%
GBLPA
53
Neutral
£6.61M7.61-2.03%1.74%8.45%-137.73%
GBAFC
50
Neutral
£93.76M-56.78%1663.00%5.93%
GBIKA
39
Underperform
£62.20M-20.56%113.89%25.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:IKA
Ilika plc
36.50
8.00
28.07%
GB:LPA
LPA Group plc
50.00
-14.00
-21.88%
GB:AFC
AFC Energy
10.58
-10.32
-49.38%
GB:CWR
Ceres Power Holdings
79.30
-105.10
-57.00%

Ilika plc Earnings Call Summary

Earnings Call Date:Jan 21, 2025
(Q2-2025)
|
% Change Since: 78.05%|
Next Earnings Date:Jul 10, 2025
Earnings Call Sentiment Neutral
Ilika's earnings call highlights significant progress in technology and strategic partnerships, particularly with the Stereax and Goliath products. However, financial performance and cash management remain key concerns, with major revenue streams still in development.
Q2-2025 Updates
Positive Updates
Strong Patent Portfolio
Ilika holds 62 patents protecting its solid-state battery technology, crucial for IP and know-how in the battery market.
Stereax Production Milestone
Completed commissioning of equipment at Cirtec Medical site, starting initial production runs, with revenue expected to begin in mid-2025.
Goliath Battery Advancements
Achieved lithium-ion energy density parity and began testing with automotive customers. Increased battery capacity to 10 amp hours.
Grant Funding Success
Secured substantial UK grant funding for battery development projects, with expectations for continued support.
Negative Updates
Financial Performance
Turnover decreased slightly compared to the previous year, primarily due to the timing of grant funding.
Cash Burn Concerns
Cash balance decreased from £13.2 million to £10.1 million, with ongoing careful management required.
Delayed Revenue Streams
Stereax and Goliath products are not yet generating significant revenue, with timelines extending over the next 18 to 24 months for commercialization.
Company Guidance
During the investor presentation, Ilika plc provided guidance on several key metrics and future expectations. The company highlighted its strong patent portfolio, which includes 62 patents, and emphasized its adequate cash balance to execute its plans. Ilika is progressing towards revenue generation with the Stereax product line, anticipating dispatches in mid-2025, while Goliath batteries are in development with customer testing feedback expected soon. Financial highlights included a turnover of £1,000,000 mainly from grant funding, aligning with strategic cost management to maintain an EBITDA loss of £1.9 million. The presentation stressed the anticipated revenues from licensing and royalties, with early options expected to transition into full licenses over the next 18 to 24 months. The company also outlined its engagement with 21 OEMs and Tier 1 companies to scale up Goliath battery production.

Ilika plc Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Ilika plc Announces 2025 Retail Investor Day
Neutral
May 7, 2025

Ilika plc announced it will host a Retail Investor Day on May 20, 2025, at its facilities in Southampton, UK. The event, led by the executive management team, will offer a strategic update on the business and tours of the Stereax manufacturing and Goliath development facilities. While no new material information on current trading will be disclosed, the event is an opportunity for stakeholders to gain insights into Ilika’s operations and future directions.

Spark’s Take on GB:IKA Stock

According to Spark, TipRanks’ AI Analyst, GB:IKA is a Underperform.

Ilika plc’s overall score reflects substantial financial challenges with persistent losses and negative cash flows. Technical indicators suggest potential bearish trends, and valuation metrics highlight significant concerns. The company’s strategic advancements in battery technology and partnerships offer future potential, but current financial instability limits attractiveness.

To see Spark’s full report on GB:IKA stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Ilika plc Advances Goliath Battery Production with UKBIC Collaboration
Positive
Apr 15, 2025

Ilika plc has achieved a significant milestone in the development of its Goliath solid-state batteries, confirming superior performance and higher manufacturing yield through an industrial-scale process at the UK Battery Industrialisation Centre. This advancement supports the battery’s market readiness, promising reduced costs, increased range, and faster charging times for electric vehicles. The successful completion of Project SiSTEM, in collaboration with UKBIC and other partners, demonstrates the viability of large-scale production using existing gigafactory equipment, enhancing Ilika’s position in the automotive electrification sector.

Spark’s Take on GB:IKA Stock

According to Spark, TipRanks’ AI Analyst, GB:IKA is a Neutral.

Ilika plc’s overall score reflects significant financial challenges, including persistent losses and negative cash flows, which weigh heavily on the stock’s prospects. While recent advancements in battery technology and strategic partnerships offer potential future growth, current financial instability and valuation concerns limit the stock’s attractiveness.

To see Spark’s full report on GB:IKA stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Ilika Achieves Milestone in Solid-State EV Battery Development
Positive
Mar 6, 2025

Ilika plc has achieved a significant milestone by successfully prototyping a 50Ah Goliath electric vehicle battery, marking a key outcome of the Faraday Battery Challenge HISTORY programme. This development is expected to enhance the cost efficiency, range, and charging time of electric vehicles. Following the prototype’s success, Ilika plans further optimization and testing, with a target to release the batteries for partner evaluation by the end of 2025. This progress aligns with the UK government’s funding initiative for transport electrification and highlights Ilika’s readiness for deeper engagement with automotive partners.

Business Operations and StrategyRegulatory Filings and Compliance
Ilika plc Awards Share Options and Increases Voting Rights
Neutral
Feb 27, 2025

Ilika plc has announced the award of share options to executive directors and employees under its Long Term Incentive Plan and EMI employee option scheme, aimed at aligning their incentives with the company’s performance. The issuance of 805,975 new ordinary shares, following the exercise of options, will increase the company’s total voting rights, impacting shareholder calculations under FCA rules.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.