Ilika Full-Year Results: Stereax Reaches Revenue as Losses and Cash Burn Rise

Ilika plc has reported meaningful commercial progress across both of its solid-state battery product lines, but the financial numbers underline how early-stage the business remains.

Stereax, its miniature battery platform, has started generating revenue following production work with manufacturing partner Cirtec Medical. Meanwhile, larger-format Goliath prototypes have attracted interest from automotive, defence and e-bike customers.

The trade-off is clear. Total income was flat, costs increased and cash declined during the year. A £5 million gross fundraising completed after the period end provides additional funding, but investors will now want to see technical progress turn into a more substantial revenue contribution.

The full figures are available in the original company announcement.

Ilika's full-year results at a glance

Key figure	FY2026	FY2025
Total income	£1.1 million	£1.1 million
Non-grant revenue	£0.1 million	£0.1 million
Adjusted EBITDA loss	£6.2 million	£5.2 million
Loss for the year	£7.2 million	£5.9 million
Loss per share	4.02p	3.54p
Administrative costs	£8.8 million	£7.6 million
Direct research and development spending	£4.5 million	£3.3 million
Year-end cash and bank deposits	£5.3 million	£8.0 million
Post-period gross fundraising	£5.0 million	Not applicable

Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and share-based payments. For Ilika, it offers a view of the underlying operating loss before those accounting items.

The adjusted EBITDA loss increased by £1.0 million to £6.2 million. Administrative costs rose as Ilika produced more Stereax and Goliath samples for testing, while direct research and development expenditure increased to £4.5 million.

Stereax has crossed an important commercial threshold

The strongest part of the update is the transition of Stereax from development towards a revenue-generating commercial operation.

Ilika and Cirtec completed manufacturing process qualification at Cirtec's facility in Massachusetts during August 2025. Prototype M300 batteries were dispatched to customers in December, followed by Ilika's first revenue-generating purchase order from Cirtec in January 2026.

Ilika then delivered its first batch of commercial-grade electrodes to Cirtec in March. Cathode production initially remains at Ilika's UK facility as a subcontracted service, while Cirtec completes the remaining manufacturing process.

The company is supporting a portfolio of 16 Stereax customers across applications including neurostimulation, smart orthopaedics, orthodontics and biometric sensors. This is significant because delivery of commercial product allows customers to begin formal regulatory approval work.

However, the revenue contribution is still modest. Non-grant revenue was just £0.1 million and also included small sales of Goliath cells. Ilika says commercial ramp-up in medical devices usually takes three to five years, depending on the regulatory classification of the application.

The Stereax story has therefore moved forward, but the speed at which customer testing becomes licensing and royalty income remains crucial.

Goliath gains validation beyond electric vehicles

Ilika also made progress with Goliath, its larger battery technology for electric vehicles, defence and consumer applications.

Customer testing of its first-generation 2Ah P1 prototypes confirmed that they performed to specification and placed them among the leading cohort of solid-state batteries, according to the announcement.

The company completed commissioning of its automated 1.5 MWh per year pilot line and shipped 10Ah cells to customers. These cells offer five times the capacity of the P1 prototypes released in summer 2024.

Ilika estimates the technology could save £2,500 per electric vehicle and reduce battery weight by 20%. These are potentially attractive benefits, although commercial proof and production at scale are still required.

One encouraging development is the widening range of possible applications. Ilika's pipeline of evaluation agreements grew by 19%, from 27 to 33 companies, covering vehicle manufacturers, Tier 1 suppliers, defence businesses and consumer appliance companies.

A UK defence agency also provided positive feedback following safety testing under battlefield conditions. Among the findings, low state-of-charge Goliath cells did not experience a thermal event, while other tests indicated a delayed reaction and lower thermal runaway temperature than conventional cells used in the trial.

Ilika has also started the £214,000 SELECT programme with Brompton Bicycles. The 12-month project will integrate 10Ah Goliath prototypes into battery packs for next-generation folding e-bikes, with pack production and on-bike trials targeted by mid-2027, subject to technical milestones.

These non-EV markets could offer lower-volume, higher-margin routes to early commercialisation while the automotive development cycle continues.

Funding remains the central financial consideration

Ilika ended April 2026 with £5.3 million of cash, cash equivalents and longer-term bank deposits, down from £8.0 million a year earlier. Operating cash outflow was £6.2 million, while capital expenditure on development costs and equipment totalled £1.5 million.

After the year end, Ilika raised £5 million before costs through an institutional placing and retail offer. Net proceeds were £4.7 million.

The directors believe current resources and the fundraising provide adequate funding for at least 12 months from the date of the report. That supports the going-concern assessment, but it does not remove the longer-term funding risk.

Ilika expects to keep recording operating losses as development continues. Its own risk statement acknowledges that the group has historically relied on new equity, alongside grants and tax credits, to fund commercialisation.

This means revenue growth and spending discipline matter alongside technical milestones. There is no dividend, which is unsurprising for a loss-making development business.

What Ilika is targeting in FY2027

Management has set out four priorities for the new financial year:

• Increase recognised Stereax product revenue under the Cirtec licensing agreement.
• Receive initial Stereax royalty payments as M300 batteries enter customer testing programmes.
• Validate the 10Ah Goliath minimum viable product for higher-margin non-EV markets.
• Generate early revenue from non-EV battery sales.

Ilika also has £1.25 million of grant funding from the UK Government's DRIVE35 programme. The PRIMED project is expected to support 10Ah cell development, safety testing and work towards Goliath A-Samples. These are more commercially advanced prototypes that automotive customers expect before issuing requests for quotations.

The milestones that now matter most

There are genuine positives in these results. Stereax has entered commercial production, Goliath's evaluation pipeline is expanding and defence and e-bike applications provide additional routes to market. Ilika's intellectual property position has also strengthened to 88 granted patents, including 17 new grants during the year.

The negatives are equally visible. Total income did not grow, the adjusted EBITDA loss widened and year-end cash fell by £2.7 million. The post-period fundraising strengthens the balance sheet, but it also highlights the company's continuing dependence on external capital.

FY2027 needs to demonstrate that the commercial milestones can produce measurable financial progress. Initial Stereax royalties, growing product revenue and paid Goliath activity would provide the clearest evidence that Ilika is moving beyond technical validation and towards a more sustainable commercial model.