We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Ilika Plc | LSE:IKA | London | Ordinary Share | GB00B608Z994 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.50 | -1.67% | 29.50 | 29.00 | 30.00 | 29.50 | 29.50 | 29.50 | 23,504 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Coml Physical, Biologcl Resh | 702k | -7.3M | -0.0459 | -6.43 | 46.9M |
From May 2019 to May 2024
TIDMIKA
RNS Number : 6801S
Ilika plc
10 July 2015
ILIKA plc
(The "Company" or the "Group")
Final Results
Financial Statements for year ended 30 April 2015
Ilika (AIM: IKA), the accelerated materials innovation company, announce its audited full-year results for the year ended 30 April 2015.
Operational highlights:
-- Grant of two patents covering methods for producing solid-state batteries -- Twenty-five fold increase in solid-state battery size achieved -- Official opening of pilot line by Rt. Hon Greg Clark MP, in Southampton -- Proof of concept contract win with European partner for development of batteries for WSN -- Commencement of solid-state battery pilot production leading to:
o 20 x larger deposition area of key battery materials
o 5 x increase in materials deposition rate
-- Case study information released relating to aerospace alloy development work carried out with Rolls Royce and Boeing
-- Board strengthened with the appointment of Keith Jackson, CTO of Meggitt plc, as NED
Financial highlights:
-- Revenues up 4% to GBP1.09m (2014: GBP1.05m) -- Loss for the year reduced to GBP2.7m (2014: GBP2.8m) -- Loss per share reduced to 4.10p (2014: 5.37p) -- Cash, cash equivalents and bank deposits of GBP6.0m (2014: GBP7.1m)
Commenting on the results Ilika's Chairman, Jack Boyer, said: "The Company has made substantial progress this year in scaling up its proprietary solid-state battery technology. This operational progress has gone hand-in-hand with commercial discussions with OEM's and supply chain partners interested in integrating Ilika's battery technology into Internet of Things (IoT) devices."
For more information contact:
Ilika plc www.ilika.com Graeme Purdy, Chief Executive Tel: 023 8011 1400 Steve Boydell, Finance Director Numis Securities Limited Tel: 020 7260 1000 Oliver Cardigan/ Adrian Trimmings / James Black Walbrook PR Ltd Tel: 020 7933 8780 / ilika@walbrookpr.com Lianne Cawthorne (Media Enquiries) Mob: 07584 391 303 Paul Cornelius (Investor Enquiries) Mob: 07827 879 460
STRATEGIC REPORT
The Directors present their Strategic Report for the year ended 30 April 2015.
Principal activities
Ilika plc is the holding company for Ilika Technologies Limited, the advanced materials innovation company. Ilika accelerates the discovery of new and patentable materials using its unique, patent protected, high throughput process for identified end uses in the energy and electronics sectors. This process enables hundreds of scalable materials to be made in a single, automated operation and subsequently tested for key properties. The process can be applied to many market sectors, but Ilika's recent focus has been in the field of solid-state batteries.
Business Strategy
The Company's strategy is to use its processes to discover and commercialise novel materials for integration into products with high value end-markets. In order to ensure a high probability of commercial success, the Company prefers to develop these materials in collaboration with large multinational companies, which have the expertise to bring new end-products to market to address unmet needs in their sectors. On occasion, the Company has joint development programmes, which contribute to competing technologies (for instance, battery versus fuel cell technology). Thereby, the Company aims to create intellectual property such that it will benefit from commercialisation rewards associated with the ultimate generally adopted technology (or technologies). The Company's objective is to have its materials integrated into market-leading products sold by leading commercialisation partners around the world. The Company generally expects these end-products to fit into or create end-markets worth in excess of $1 billion per year, in which the Directors believe a number of the Company's commercialisation partners are positioned to have a leading share.
The Company is pursuing its objectives through the following strategies:
-- Developing leading-edge high throughput development processes;
-- Partnering with companies committed to developing and globally commercialising jointly developed products;
-- Using high throughput processes to invent patentable functional materials; and -- Applying improved functional materials to the development of valuable products.
Operating Review
The Company undertook a number of commercial and grant funded programmes in the year, but a significant part of the research and development effort in the year was focussed on its lead programme, the development of a solid-state battery.
Solid-state batteries
The mass-market commercialisation of solid-state batteries will be a step change in the evolution of battery technology; enabling lighter, non-flammable batteries which contain the same energy in half the volume, while charging up to 6x faster than the highest performance lithium ion incumbents.
The Company has been developing a proprietary solid-state battery chemistry and fabrication process, facilitating the scale-up manufacture of the next generation of solid-state lithium ion batteries. It has used its unique processing abilities to successfully turn a set of optimised high-performance materials into solid-state batteries with the following key advantages:
-- A simple fabrication process -- Mechanical stability -- Stackable cells (necessary for building larger capacity batteries)
Battery production progress
In July 2014 the Company announced that it had succeeded in increasing the cross-sectional area and the energy capacity of the cells by more than 25 times the energy capacity of the cells it had previously manufactured on its development workflow. These new cells have similar characteristics, albeit on a larger scale, to the smaller devices. These cells have now been deposited over an area of 64 mm(2) , which is a footprint suitable for wireless sensor network ('WSN') and wearable applications.
The pilot line for the production of prototype batteries successfully completed its factory acceptance test in September 2014 and was then shipped from the fabricators in Finland to Southampton where it was officially opened by The Rt. Hon Greg Clark MP, Minister for Universities, Science and Cities in November 2014. In March 2015, the Company announced commencement of pilot production of solid-state batteries. At this point, the Company was able to confirm that the rate of deposition of materials, which is a key factor in establishing the price point of the resulting batteries, had been increased 10 fold relative to the rate of deposition of materials previously achieved on the Company's development workflow over an area 20 times larger, therefore delivering a 200 fold productivity increase. Deposition rates of 2 microns/hour, which compare favourably to commercially available solid-state micro-batteries, have already been achieved.
Significant increases in deposition rates are anticipated as the pilot line's capabilities are tested further. Operational parameters of the pilot line are currently being optimised to maximise the yield and performance of the batteries.
Battery patent application progress
In May 2014 Ilika announced that two of its patent applications, filed jointly with Toyota, had been granted in the UK. The patents cover the vapour deposition processes used to produce solid-state batteries directly from the elements. These represent a key part of the family of patents and patent applications covering the complete methodology for producing solid-state batteries.
In March 2015, Communication of Intention to Grant in Europe for one of these patent applications and a Notice of Allowance in the United States for the other, was received.
Other materials development programmes
Superalloys
Another significant area of activity in the year for Ilika has been the development of aerospace alloys.
Gas-turbine engine development for the aerospace industry continues to strive for improved fuel efficiency, reduced emissions and a reduction in noise at take-off. This development effort demands materials, which can tolerate increasingly high operating temperatures while retaining their mechanical strength. Nickel-based superalloys are widely used in gas turbines, however, the scope for further developing them is diminishing and therefore the rate of improvement of aeroengine technology is decreasing. Ilika, the University of Cambridge and Rolls Royce are investigating alternative lightweight alloy systems, which may also be able to operate under high temperatures, handle greater stresses and remain in service for longer.
Key performance indicators ('KPIs')
The board considers that the most important KPIs are technical and operational and relate to the progress of the technical development programmes outlined above leading to the engagement of commercialisation partners.
The most important financial KPIs are the cash position and the operating loss of the Group, which remain under constant focus and which are considered in the financial review.
FINANCIAL REVIEW
The Financial Review should be read in conjunction with the consolidated financial statements of the Company and Ilika Technologies Limited (together the 'Group') and the notes. The consolidated financial statements are presented under International Financial Reporting Standards as adopted by the European Union. The financial statements of the Company continue to be prepared in accordance with International Financial Reporting Standards as adopted by the EU.
Statement of Comprehensive Income
Revenues
Revenue, all from continuing activities, for the year ended 30 April 2015 was up by 4% to GBP1.09m (2014: GBP1.05m). This includes GBP384k of grant income recognised from Innovate UK (2014: GBP94k), the majority of which relates to work together with the University of Cambridge, Diamond Light Source and Rolls Royce to develop new superalloy compositions for gas turbine engines.
Payments made by the Company's European-based partners for research and development activities increased from 33% of total revenues in 2014 to 40% in 2015 whilst those for US-based and Asian-based partners reduced from 19% and 38% to 13% and 12% respectively.
Administrative expenses and losses for the period
Total administrative costs for the year were slightly increased at GBP3.59m in 2015 relative to GBP3.57m in 2014. An accounting adjustment for a share based payment calculation is included within administration expenses. In 2015, because of the granting of a number of new options, there was an increase in the share based payment charge of GBP0.02m.
Depreciation and amortisation charges reduced by 42% to GBP325k (2014: GBP557k). This reduction was offset with some one-off costs associated with the recruitment of a new Non-Executive Director to the board and a new business development director for Japan.
Loss on continuing activities before tax is consistent at GBP3.0m in 2015 (2014: GBP3.1m) and loss and total comprehensive income and expense for the period has remained at GBP2.7m for 2015 (2014:GBP2.8m).
Statement of financial position and cash flows
At 30 April 2015, net assets amounted to GBP6.5m (2014: GBP7.8m), including net funds of GBP6.0m (2014: GBP7.1m).
The principal elements of the GBP1.1m decrease over the year ended 30 April 2015 in net funds were:
-- Share proceeds (net of costs) of GBP1.4m (2014: GBP7.4m) -- Cash used in operations of GBP2.8m (2014: GBP2.5m); -- Research and development tax credits received of GBP0.3m (2014: GBP0.3m)
Subscription warrants were issued in 2010 with an exercise price of 51p per warrant. During the year 2,617,647 warrants were converted to ordinary shares with proceeds to the Company of GBP1.3m. The remaining unconverted 15,686 warrants expired on 28 May 2014.
Treasury policy and financial risk management
Credit risk
The Group follows a risk-averse policy of treasury management. Sterling deposits are held with one or more approved UK based financial institutions. The Group's primary treasury objective is to minimise exposure to potential capital losses whilst at the same time securing prevailing market rates.
Interest rate risk
The Group's cash held in current bank accounts is subject to the risk of fluctuating base rates. An element of the Group's financial assets is placed on fixed-term interest deposits.
Currency risk
During the year under review, the Group was exposed to Euro, Japanese Yen and US dollar currency movement as it engages business development staff in each of those territories. Additionally, a small element of expense and capital spend is denominated in these currencies. The Group has arranged for some of its programs, with customers based in these territories, to be denominated in these currencies to hedge against this exposure.
PRINCIPAL RISKS AND UNCERTAINTIES
Commercial risk
The Company is subject to competition from competitors who may develop more advanced and less expensive alternative technology platforms, both for existing materials and for those materials currently under development. The Company is largely dependent on its partners to commercialise the end-products containing the Company's materials.
The Company seeks to reduce this risk by continually assessing competitive technologies and competitors. The Company seeks to commercialise materials through multiple channels to reduce overreliance on individual partners and, in agreements with partners, it ensures that there are commercialisation milestones which must be met for the partner to retain the rights to commercialise the materials.
Financial risk
The Company is reliant on a small number of significant customers and partners. Termination of these agreements could have a material adverse effect on the Group's results or operations or financial condition. The Company expects to incur further operating losses as progress on development programmes continue. There can be no assurance that the Company will ever achieve significant revenues or profitability.
The Company seeks to reduce this risk by broadening the number of customers and partners and thereby reduce reliance on individual significant companies. The Company has reduced the level of its operating loss and has significantly reinforced the balance sheet with a substantial capital raise in the year along with additional funding shortly after the year-end.
Intellectual property risk
The Group faces the risk that intellectual property rights necessary to exploit research and development efforts may not be adequately secured or defended. The Group's intellectual property may also become obsolete before the products and services can be fully commercialised.
The Company seeks to reduce this risk by employing in-house staff with extensive global experience of patenting and licensing using commercially available patent searching and landscaping software. External patent agents and attorneys are used to advise on the drafting and filing of patent applications.
Dependence on senior management and key staff
Certain members of staff are considered vital to the successful development of the business. Failure to continue to attract and retain such highly skilled individuals could adversely affect operational results.
The Group seeks to reduce this risk by offering appropriate incentives to staff through competitive salary packages and participation in long-term share option schemes.
By order of the Board
Jack Boyer Graeme Purdy Chairman CEO 9(th) July 2015
DIRECTORS' REPORT
The Directors present their report and the audited financial statements for Ilika plc ('Ilika') and its subsidiary (the 'Group') for the year ended 30 April 2015.
Details of directors' remuneration and share options are given in the Directors' Remuneration Report.
Directors
The Directors who served on the board of Ilika during the year and to the date of this report were as follows:
Executive
Mr S Boydell (FD and Company Secretary)
Prof. B. E. Hayden (CSO)
Mr G. Purdy (CEO)
Non-Executive
Mr J. B. Boyer (Chairman)
Ms. C Spottiswoode CBE
Prof. Sir W Wakeham
Prof. K Jackson (appointed 1(st) November 2014)
Research and development costs
In accordance with the policy outlined in note 1, the Group incurred research and development expenditure of GBP1,740,173 in the year (2014: GBP1,642,152). Commentary on the major activities is given in the Strategic Report.
Financial instruments
The use of financial instruments and financial risk management policies is covered in the Strategic Report and also in note 17 of the financial statements.
Dividends
The Directors do not recommend the payment of a dividend.
Political donations
The Group made no political donations during the year (2014: Nil).
Directors' interests in ordinary shares
The directors, who held office at 30 April 2015, had the following interests in the ordinary shares of the Company:
Hot Features
Premium
Number of shares
1st May 2014 30th April 2015
G Purdy 477,427 589,427
J Boyer 394,009 394,009
C Spottiswoode 45,454 45,454
S Boydell 9,090 9,090
W Wakeham - -
B Hayden* - -
K Jackson - -
* B Hayden had an interest in preference shares of the Company amounting to 426,300 at 1(st) May 2014 and at 30(th) April 2015.
Between 30(th) April 2015 and the date of this report, there has been no change in the interests of directors in shares as disclosed in this report.
Substantial shareholdings
On 6(th) July 2015 the Company had been notified of the following holdings of more than 3% or more of the issued share capital of the Company.
Shareholder No. of ordinary % shareholding
shares
----------------------------- --------------- --------------
Henderson Global 9,500,000 14.5
----------------------------- --------------- --------------
Charles Stanley Group plc 8,734,198 13.3
----------------------------- --------------- --------------
IP Group plc 6,458,779 9.8
----------------------------- --------------- --------------
Ruffer LLP 6,105,454 9.3
----------------------------- --------------- --------------
Baillie Gifford & Co. 4,956,616 7.5
----------------------------- --------------- --------------
Richard Griffiths 3,936,069 6.0
----------------------------- --------------- --------------
Southampton Asset Management 2,349,900 3.6
----------------------------- --------------- --------------
Herald Investment Management 2,250,000 3.4
----------------------------- --------------- --------------
Hargreave Hale 2,063,045 3.1
----------------------------- --------------- --------------
Mackin Holdings 2,017,647 3.1
----------------------------- --------------- --------------
Post balance sheet events
There are no significant post balance sheet events from the 30(th) April 2015 to the signing of this report.
Auditors
All the current directors have taken all the steps that they ought to have taken to make themselves aware of any information needed by the Company's Auditors for the purposes of their audit and to establish that the Auditors are aware of that information. The Directors are not aware of any relevant audit information of which the Auditors are unaware.
A resolution to re-appoint BDO LLP will be proposed at the next Annual General Meeting.
By order of the board
Steve Boydell
Company Secretary
DIRECTORS' REMUNERATION REPORT
This report is non-mandatory for AIM-quoted companies and has been produced on a voluntary basis. It includes and complies with the disclosure obligations of the AIM Rules.
Remuneration Committee
The Company's remuneration policy is the responsibility of the Remuneration Committee (the 'Committee'), which was established in May 2004. The terms of reference of the Committee are outlined in the Corporate Governance Statement on page 15. The members of the Committee are Jack Boyer (Chairman), Clare Spottiswoode, Prof Keith Jackson and Prof Sir William Wakeham.
The Committee met four times during the year ended 30 April 2015. The Chief Executive Officer and certain executives may be invited to attend meetings of the Committee to assist it with its deliberations, but no executive is present when his or her own remuneration is discussed.
Remuneration policy
(i) Executive remuneration
The Committee has a duty to establish a remuneration policy which will enable it to attract and retain individuals of the highest calibre to run the Group. Its policy is to ensure that the executive remuneration packages of executive directors and the fee of the Chairman are appropriate given performance, scale of responsibility, experience, and consideration of the remuneration packages for similar executive positions in companies it considers to be comparable. Packages are structured to motivate executives to achieve the highest level of performance in line with the best interests of shareholders. A significant element of the total remuneration package, in the form of bonus and share options, is performance driven.
Executive remuneration currently comprises a base salary, an annual performance-related bonus, a pension contribution to the executive director's individual money purchase scheme (at between 8% and 10% of base salary) and critical illness cover. Salaries and benefits were last reviewed in January 2015 with increases taking effect from 1(st) January 2015, taking into account Group and individual performance, external benchmark information and internal relativities. The Company operates a discretionary bonus scheme for executive directors for delivery of exceptional performance against a series of financial, commercial and technology objectives. The maximum bonus payable for the year to 30(th) April 2015 was restricted to 50% of CEO base salary, 30% of CSO base salary and 20% of CFO base salary.
(ii) Chairman and non-executive Director remuneration
The Chairman, Mr Boyer receives a fixed fee of GBP61,200 per annum and declined any increase in this fee for the year to 31(st) December 2015. Clare Spottiswoode, Prof Sir William Wakeham and Prof Keith Jackson received a fixed fee of GBP31,312 per annum for the year to 31st December 2014 and will receive GBP32,500 per annum for the year to 31st December 2015. The fixed fee covers preparation for and attendance at meetings of the full Board and committees thereof. The Chairman and the executive directors are responsible for setting the level of non-executive remuneration. The non-executive directors are also reimbursed for all reasonable expenses incurred in attending meetings.
All remuneration policies will be reviewed regularly to maintain adherence with best market practice as appropriate.
Directors' remuneration
The aggregate remuneration received by directors who served during the year ended 30(th) April 2015 and 2014 was as follows:
Bonus Total
Basic Benefits Short term
salary Fees in kind benefits Pension Total
GBP GBP GBP GBP GBP GBP GBP
Year to 30(th) April
2015
G Purdy 176,667 - 543 24,000 201,210 29,833 231,043
S Boydell 115,000 - 356 12,000 127,356 17,450 144,806
B Hayden* 60,270 - - 12,000 72,270 - 72,270
J Boyer 61,200 - - - 61,200 - 61,200
K Jackson 16,035 - - - 16,035 - 16,035
W Wakeham 31,641 - - - 31,641 - 31,641
C Spottiswoode 31,641 - - - 31,641 - 31,641
------ ------ ------ ------ ------ ------ ------
492,454 - 899 48,000 541,353 47,283 588,636
------ ------ ------ ------ ------ ------ ------
Year to 30(th) April
2014
G Purdy 158,800 - 444 25,320 184,564 28,260 212,824
S Boydell 102,788 - 292 11,140 114,220 18,244 132,464
B Hayden* 53,468 - - 5,347 58,815 - 58,815
J Boyer 61,200 - - - 61,200 - 61,200
W Braun - 5,200 - - 5,200 - 5,200
W Wakeham 30,804 - - - 30,804 - 30,804
C Spottiswoode 30,804 - - - 30,804 - 30,804
------ ------ ------ ------ ------ ------ ------
437,864 5,200 736 41,807 485,607 46,504 532,111
------ ------ ------ ------ ------ ------ ------
*B Hayden is employed by the University of Southampton. The amounts disclosed in the table above relate to payments made directly to B Hayden. The University of Southampton recharged employment costs of GBP55,873 to the company in the year in respect of B Hayden. (2014: GBP54,327)
Share based payment charge attributable to directors in the year was GBP7,080 (2014: GBPnil).
Benefits in kind include critical illness cover.
Share options
The share options of the directors are set out below:
Unapproved 2014 Granted 2015
Number Number Exercise Price Expiry date
G Purdy 1,050,000 - 1,050,000 51p May 2020
J Boyer 1,050,000 - 1,050,000 51p May 2020
B Hayden 525,000 - 525,000 51p May 2020
B Hayden - 177,900 177,900 81.5p February 2025
S Boydell 117,600 - 117,600 51p May 2020
W Wakeham 65,100 - 65,100 51p May 2020
C Spottiswoode 50,100 - 50,100 51p May 2020
Approved
G Purdy - 245,300 245,300 81.5p February 2025
S Boydell - 154,600 154,600 81.5p February 2025
The share options of the directors in Ilika plc exchanged from share options in Ilika Technologies Limited.
Approved 2014 2015
Number Exercised Number Exercise price Expiry date
G Purdy 139,500 139,500 - 10p 9 June 2015
G Purdy 26,500 - 26,500 80p 14 May 2017
S Boydell 90,000 - 90,000 80p 1 December 2019
Unapproved 2014 2015
Number Lapsed Number Exercise price Expiry date
G Purdy 136,200 - 136,200 80p 11 July 2017
J Boyer 540,200 540,200 - 10p 29 June 2014
B Hayden 59,300 - 59,300 80p 11 July 2017
Mr Purdy exercised 139,500 options in the year (2014 - 594,700).
Jack Boyer
Chairman of the remuneration committee
Statement of Directors' responsibilities in respect of the Annual Report and the Financial Statements
The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group and Company financial statements in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group and Company for that period. The Directors are also required to prepare financial statements in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market ('AIM').
In preparing these financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject to any material departures disclosed and explained in the financial statements; and
-- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Website publication
The directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published on the Group's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Group's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.
Going concern
The directors have prepared and reviewed financial forecasts. After due consideration of these forecasts and current cash resources, the directors consider that the Company and the Group have adequate financial resources to continue in operational existence for the foreseeable future (being a period of at least twelve months from the date of this report), and for this reason the financial statements have been prepared on a going concern basis.
By order of the Board
Graeme Purdy
Chief Executive
9(th) July 2015
CORPORATE GOVERNANCE STATEMENT
The Board is accountable to the Company's shareholders for good corporate governance and it is the objective of the Board to attain a high standard of corporate governance. As an AIM listed company full compliance with the provisions of the UK Corporate Governance Code published in September 2012 (the 'Code') is not a formal obligation. The Company has not sought to comply with the full provisions of the Code, however it has sought to adopt the provisions that are appropriate to its size and organisation and establish frameworks for the achievement of this objective. This statement sets out the corporate governance procedures that are in place.
Board of directors
The Board of directors (the 'Board') consists of a Non-Executive Chairman, three Executive Directors and three Non-Executive Directors.
The responsibilities of the Non-Executive Chairman and the Chief Executive Officer are clearly divided. The Chairman is responsible for overseeing the formulation of the overall strategy of the company, the running of the board, ensuring that no individual or group dominates the Board's decision making and ensuring that the non-executive directors are properly briefed on matters. Prior to each Board meeting, directors are sent an agenda and Board papers for each agenda item to be discussed. Additional information is provided when requested by the Board or individual directors.
The Chief Executive Officer has the responsibility for implementing the strategy of the Board and managing the day to day business activities of the Group through his chairmanship of the executive committee.
The Non-Executive Directors bring relevant experience from different backgrounds and receive a fixed fee for their services and reimbursement of reasonable expenses incurred in attending meetings.
The Board retains full and effective control of the Group. This includes responsibility for determining the Group's strategy and for approving budgets and business plans to fulfil this strategy. The full Board ordinarily meets bi-monthly.
The Company Secretary is responsible to the Board for ensuring that Board procedures are followed and that the applicable rules and regulations are complied with. All directors have access to the advice and services of the Company Secretary, and independent professional advice, if required, at the Company's expense. Removal of the Company Secretary would be a matter for the Board.
Performance evaluation
The Board has a process for evaluation of its own performance which is carried out annually.
Board Committees
As appropriate, the Board has delegated certain responsibilities to Board Committees as follows:
i) Audit Committee
The Audit Committee currently comprises Clare Spottiswoode CBE (Chairman), Professor Sir William Wakeham, Professor Keith Jackson and Jack Boyer.
The Committee monitors the integrity of the Group's financial statements and the effectiveness of the audit process. The Committee reviews accounting policies and material accounting judgements. The Committee also reviews, and reports on, reports from the Group's auditors relating to the Group's accounting controls. It makes recommendations to the Board on the appointment of auditors and the audit fee. It has unrestricted access to the Group's auditors. The Committee keeps under review the nature and extent of non-audit services provided by the external auditors in order to ensure that objectivity and independence are maintained.
ii) Remuneration Committee
The Remuneration Committee comprised Jack Boyer (Chairman), Clare Spottiswoode CBE Professor Keith Jackson and Professor Sir William Wakeham.
The committee is responsible for making recommendations to the Board on remuneration policy for Executive Directors and the terms of their service contracts, with the aim of ensuring that their remuneration, including any share options and other awards, is based on their own performance and that of the Group generally.
iii) Nomination Committee
The Nomination Committee comprised Jack Boyer (Chairman), Professor Sir William Wakeham, Professor Keith Jackson and Clare Spottiswoode CBE.
It is responsible for providing a formal, rigorous and transparent procedure for the appointment of new directors to the board and reviewing the performance of the board each year.
Attendance at Board meetings and committees
The Directors attended the following Board and committees meetings during the year:
Attendance Board Audit Nomination Remuneration Mr S. Boydell 6/6 - - - Mr J. B. Boyer 6/6 2/2 3/3 4/4 Prof. B. E. Hayden 6/6 - - - Mr G. Purdy 6/6 - - - Ms. C Spottiswoode 6/6 2/2 3/3 4/4 Prof. Sir W Wakeham 6/6 2/2 3/3 4/4 Prof K Jackson 2/2 1/1 1/1 2/2
Risk management and internal control
The Board is responsible for the systems of internal control and for reviewing their effectiveness. The internal controls are designed to manage rather than eliminate risk and provide reasonable but not absolute assurance against material misstatement or loss. The Audit Committee reviews the effectiveness of these systems primarily by discussion with the external auditor and by considering the risks potentially affecting the Group.
The Group does not consider it necessary to have an internal audit function due to the small size of the administration function. Instead there is a detailed Director review and authorisation of transactions. The annual audit by the Group auditor, which tests a sample of transactions, did not highlight any significant system improvements in order to reduce risk.
The Group maintains appropriate insurance cover in respect of actions taken against the Executive Directors because of their roles, as well as against material loss or claims of the Group. The insured values and type of cover are comprehensively reviewed on a periodic basis.
Employment
The Board recognises its legal responsibility to ensure the well-being, safety and welfare of its employees and maintain a safe and healthy working environment for them and for its visitors. A Health and safety report is reviewed at each Board meeting and policies and procedures are independently reviewed to ensure compliance with best practice.
By order of the Board
Jack Boyer
Chairman
9(h) July 2015
CORPORATE AND SOCIAL RESPONSIBILITY STATEMENT
Ilika continues to approach its responsibilities to corporate social responsibility (CSR) in a co-ordinated and committed way and applies a positive and systematic approach to environmental and social issues that impact on our business whilst at the same time delivering good value for the Company and continued benefit for society. We aim to include CSR in all aspects of our business.
Overall responsibility for developing and implementing our CSR policies and for reviewing their effectiveness lies ultimately with the Ilika Board. Regular and consistent reviews of the scope of the Company strategy ensures we remain focussed on the material issues for the business. The CSR policy and procedures are reviewed by the management team regularly and are communicated to all employees. Strong communication ensures all there is both upward and downward flow of information and ideas. The management team report to the board regularly to ensure the board are fully apprised of the status of the Company's efforts in this area.
The Main areas of CSR at Ilika are:
1. Health and safety
It is of paramount importance that, as a company, we ensure the well-being, safety and welfare of our employees and those who are affected by our business and to maintain a safe and healthy working environment. Health and Safety has direct positive benefits for the company and a commitment to a high level of safety makes good business sense. As a business function, health & safety must continually progress and adapt to change.
At Ilika, Health and safety is considered at the highest level in the Company with the ultimate responsibility resting with the Board. Health and safety is an agenda item at each Board meeting and a full report is presented annually. Our Policies and procedures are independently reviewed by experts to ensure compliance with not only legislation but also best practice.
2. Environment and sustainability
Ilika is committed to achieving a real and sustainable positive impact on the broader community by adopting environmentally responsible policies. We believe it is essential that both as a Company and as individuals we operate in an environmentally conscious manner. Our objective is to minimise the impact of our business activity on the environment wherever possible. This includes ensuring our suppliers do likewise: we actively seek collaborations with those who are similarly aware of and active in this field.
Ilika has implemented many changes within the business in furtherance of our policies and continues to review and monitor progress against our own targets and to creatively consider new initiatives. Our on-going objectives are to consider environmental issues in all of our decision making processes; to evaluate future energy usage to see how we can use low energy systems and to fundamentally reduce our impact on the environment and ask our employees, suppliers and customers do likewise.
3. Employee rights
Ilika adheres to legislation relating to employment rights and equal opportunities, with particular reference to non-discrimination on the basis of ethnic origin, religion, gender, age, marital status, disability or sexual orientation. However, Ilika's policies go beyond the legal requirements and the company acknowledges its moral rights to provide a safe and dignified working environment.
We maintain the highest level of integrity with regard to employees, customers and all others with whom we interact. We recognise the value that our employees create for the business and our commitment to training and personal development, together with remuneration policies, are designed to reward achievement and emphasise the importance of retaining staff.
Ilika will not tolerate discrimination, bullying or any other kind of harassment within our business community. The concept of 'mutual respect' is one of our guiding principles. Employees are expected to abide by Company rules and to be honest and considerate in their various roles.
Internal procedures have been established to report grievances or alleged inappropriate behaviour to other individuals or organisations. We treat dishonest actions and accusations seriously; this may result in disciplinary action in accordance with company rules and disciplinary procedures.
4. Ethics and values
Ilika supports the principles of the Universal Declaration of Human Rights. This means we support freedom from torture, unjustified imprisonment without fair trial and any other oppression. In addition, we support the right of any individual to have freedom of expression and religion, political representation or in respect of any other matter. Accordingly, we will not support or work with organisations which fail to uphold basic human rights or are involved in the manufacture or transfer to an oppressive regime or are involved in the manufacture of equipment used in the violation of human rights. Neither will we work with organisations which are involved in the funding or carrying out of terrorist activities.
Ilika will not provide support or work with organisations which do not conform to the most widely accepted standards for minimum labour rights or which do not cover the use of under-age or forced labour.
Ilika does not give or receive any bribes, extra contractual gratuities, inducements, facilitation fees or similar payments. Any gifts, whether in cash or kind, received by employees or the company in the course of normally accepted business entertainment are accepted subject to the prior written approval of the management. We do not donate (including sponsorship, subscriptions or provision of employee time or facilities) to any political party or similar organisation.
5. Contribution to society
Ilika accepts and acknowledges that we have a corporate responsibility towards society not only by paying taxes and creating and maintaining jobs but also by using our unique research skills to develop knowledge, skills and products which will ultimately benefit society.
We actively support and encourage the study of science at all levels from pre-GCSE through to post-doctoral level. We have an active Outreach department and participate in many activities designed to encourage and support the study of science.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ILIKA PLC
We have audited the financial statements of Ilika plc for the year ended 30 April 2015 which comprise the consolidated balance sheet, the parent company balance sheet, the consolidated statement of comprehensive income, the consolidated cash flow statement, the parent company cash flow statement, the consolidated statement of changes in equity and parent company statement of changes in equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Financial Reporting Council's (FRC's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the FRC's website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion:
-- the financial statements give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2015 and of the group's loss for the year then ended;
-- the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
-- the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
-- the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the strategic report and directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-- the parent company financial statements are not in agreement with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or -- we have not received all the information and explanations we require for our audit.
Malcolm Thixton (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
Southampton
United Kingdom
Date
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Consolidated statement of comprehensive income
Year ended 30(th)
April
Notes 2015 2014
GBP GBP
Revenue 2 1,093,978 1,049,879
Cost of sales (591,044) (586,869)
------- -------
Gross profit 502,934 463,010
Administrative expenses (3,588,837) (3,569,696)
Other operating income 5 - 810
------- -------
Operating loss 3 (3,085,903) (3,105,876)
Financial income 6 50,557 22,131
Financial expense 7 - (1,513)
------- -------
Loss before tax (3,035,346) (3,085,258)
Taxation 8 333,647 287,171
------- -------
Loss for period / total comprehensive
income attributable to owners
of parent (2,701,699) (2,798,087)
------- -------
Loss per share from continuing
operations 9
Basic (4.10)p (5.37)p
Diluted (4.10)p (5.37)p
Consolidated balance sheet
Company number 7187804
As at 30(th) April
Notes 2015 2014
GBP GBP
ASSETS
Non-current assets
Intangible assets 10 30,119 793
Property, plant and equipment 11 560,698 607,627
------- -------
Total non-current assets 590,817 608,420
------- -------
Current assets
Trade and other receivables 12 496,985 572,304
Current tax receivable 8 304,122 248,191
Other financial assets - bank
deposits 13 528,349 1,776,767
Cash and cash equivalents 14 5,479,035 5,329,967
------- -------
Total current assets 6,808,491 7,927,229
------- -------
Total assets 7,399,308 8,535,649
------- -------
Issued capital and reserves
attributable to owners of parent
Issued share capital 18 663,748 632,660
Share premium 17,465,442 16,082,944
Capital restructuring reserve 6,486,077 6,486,077
Retained earnings (18,094,830) (15,426,779)
------- -------
Total equity 6,520,437 7,774,902
------- -------
LIABILITIES
Current liabilities
Trade and other payables 15 728,871 610,747
Provisions 16 150,000 150,000
------- -------
Total liabilities 878,871 760,747
------- -------
Total equity and liabilities 7,399,308 8,535,649
------- -------
The notes on pages 26 to 43 form part of these financial statements
These financial statements were approved and authorised for issue by the Board of Directors on 9(th) July 2015.
Mr. J.B. Boyer
Chairman
Consolidated cash flow statement
Year ended 30(th)
April
2015 2014
GBP GBP
Cash flows from operating activities
Loss before taxation continuing
operations (3,035,346) (3,085,258)
Adjustments for:
Amortisation 12,736 8,632
Depreciation 324,556 556,795
Equity settled share-based payments 33,648 15,000
Loss on disposal of plant, property
and equipment - (145)
Net financial income (50,557) (20,618)
------- -------
Operating cash flow before changes
in working capital, interest and
taxes (2,714,963) (2,525,594)
Decrease in trade and other receivables 79,918 5,200
Increase in trade and other payables 118,124 116,560
------- -------
Cash utilised by operations (2,516,921) (2,403,834)
Tax received 277,716 269,266
------- -------
Net cash flow from operating
activities (2,239,205) (2,134,568)
Cash flows from investing activities
Interest received 45,958 29,390
Sale of property plant and equipment 1,640 2,450
Purchase of property, plant and equipment (279,267) (61,021)
Purchase of intangible assets (42,062) -
Decrease / (Increase) in other financial
assets 1,248,418 (321,675)
------- -------
Net cash from / (used in) investing
activities 974,687 (350,856)
Cash flows from financing activities
Proceeds from issuance of ordinary
share capital 1,413,586 7,716,912
Share issue costs - (300,434)
Capital element of finance leases - (7,544)
Interest element of finance leases - (1,513)
------- -------
Net cash from financing activities 1,413,586 7,407,421
------- -------
Net increase in cash and cash equivalents 149,068 4,921,997
Cash and cash equivalents at the
start of the period 5,329,967 407,970
------- -------
Cash and cash equivalents at the
end of the period 5,479,035 5,329,967
------- -------
Consolidated statement of changes in equity
Share Total
capital attributable
Share Capital to equity
premium restructuring Retained holders of
account reserve earnings parent
GBP GBP GBP GBP GBP
As at 30(th) April 2013 475,354 8,823,770 6,486,077 (12,643,692) 3,141,509
Share-based payment - - - 15,000 15,000
Issue of shares 157,306 7,559,607 - - 7,716,913
Expenses of share issue - (300,433) - - (300,433)
Loss and total comprehensive
income - - - (2,798,087) (2,798,087)
------ ------- -------- -------- --------
As at 30th April 2014 632,660 16,082,944 6,486,077 (15,426,779) 7,774,902
Share-based payment - - - 33,648 33,648
Issue of shares 31,088 1,382,498 - - 1,413,586
Loss and total comprehensive
income - - - (2,701,699) (2,701,699)
------ ------- -------- -------- --------
As at 30th April 2015 663,748 17,465,442 6,486,077 (18,094,830) 6,520,437
Share capital
The share capital represents the nominal value of the equity shares in issue.
Share premium account
When shares are issued, any premium paid above the nominal value is credited to the share premium reserve.
Capital restructuring reserve
The capital restructuring reserve arises on the accounting for the share for share exchange. It represents the difference between the value of the issued equity instruments of Ilika Technologies Limited immediately before the share for share exchange and the equity instruments of Ilika plc along with the shares issued to effect the share for share exchange.
Retained earnings
The retained earnings reserve records the accumulated profits and losses of the Group since inception of the business.
Notes to the consolidated financial statements
1 Accounting policies
Basis of preparation
The financial statements have been prepared on the basis of the accounting policies which apply for the financial year to 30(th) April 2015 and in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRSs") adopted by the European Union.
The individual financial statements of Ilika plc are shown on page 44 to 49.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company made up to the reporting date. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Going concern
The financial statements are prepared on a going concern basis which the directors believe continues to be appropriate. The Group meets its day to day working capital requirements through existing cash resources which, at 30(th) April 2015, amounted to GBP6,007,383. The directors have prepared projected cash flow information for the period ending twelve months from the date of their approval of these financial statements. On the basis of this cash flow information the directors believe that the Group will be able to continue to trade for the foreseeable future.
(a) New standards, amendments to standards or interpretations adopted early
During the period ended 30(th) April 2015, there were no new or revised standards, amendments to standards or interpretations that have been adopted and affected the amounts reported in the financial statements.
(b) New standards, amendments to standards or interpretations not yet applied
The following standards, interpretations and amendments, which have not been applied in these financial statements, will or may have an effect on the Group's future financial statements:
Effective date
International Accounting Standards (IAS/IFRS) for
periods commencing
IFRS Financial Instruments 1 January 2018
9
IFRS Consolidated Financial Statements 1 January 2016
10
IFRS Joint Arrangements 1 January 2016
11
IFRS Disclosure of Interests in Other Entities 1 January 2016
12
IFRS Regulatory Deferral Accounts 1 January 2016
14
IFRS Revenue from Contracts with Customers 1 January 2017
15
IFRIC Levies 17 June 2014
21
IAS 16 Property, Plant and Equipment 1 January 2016
IAS 19 Employee Benefits 1 July 2014
IAS 27 Consolidated and Separate Financial 1 January 2016
Statements
IAS 28 Investments in Associates and Joint 1 January 2016
Ventures
IAS 38 Intangible Assets 1 January 2016
No other new standards or amendments are expected to have an effect on the Group.
The following principal accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial information.
Revenue
Revenue comprises the fair value for the sale of goods and services, net of value added tax and is recognised as follows:
Sales of services
Sales of research and development services are recognised in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.
Government grants
Grants that compensate the Group for expenses incurred are recognised in the income statement on a systematic basis in the same periods in which the expenses are recognised.
Leases
Where a Group company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a "finance lease". The asset is recorded in the balance sheet as property, plant and equipment and is depreciated over its estimated useful life or the term of the lease, whichever is shorter. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the consolidated income statement, and the capital element which reduces the outstanding obligation for future instalments. All other leases are accounted for as "operating leases" and the rental charges are charged to the consolidated income statement on a straight line basis over the life of the lease.
Financial income and financial expense
Financial income and financial expense is recognised in the income statement as it accrues, using the effective interest method.
Pension and other post retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Share-based payment transactions
The Group issues equity-settled share-based payments to all employees. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effect of market-based and non-market based vesting conditions.
The fair value of market-based options granted by the Group is measured by use of the stochastic valuation model taking into account the following inputs: the exercise price of the option; the life of the option; the market price on the date of grant of the option; the expected volatility of the share price; the dividends expected on the shares; and the risk free interest rate for the life of the option.
The fair value of non market-based options granted by the Group is measured by use of the Black-Scholes pricing model taking into account the following inputs: the exercise price of the option; the life of the option; the market price on the date of grant of the option; the expected volatility of the share price; the dividends expected on the shares; and the risk free interest rate for the life of the option. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
Research and development expenditure
Expenditure on the research phase is charged to the income statement in the period in which it is incurred. Development expenditure on new products is capitalised only once the criteria specified under IAS 38, Intangible Assets, have been met. Prior to and during the year ended 30(th) April 2015, no development expenditure satisfied the necessary conditions of IAS 38.
Taxation
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.
Foreign currency
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.
Depreciation is charged to the profit and loss statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment less their estimated residual value. The estimated useful lives are as follows:
Leasehold improvements lease term Plant, machinery and 3 - 5 years equipment Fixtures & fittings 3 - 5 years
Impairment
The carrying amounts of the Group's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated at the present value of the future expected cashflows associated with the impaired asset.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income statement.
Intangible assets
Computer software
Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised to administrative expenses using the straight line method over their estimated useful lives (1-3 years).
Intellectual property
Acquired intellectual property is included at cost and is amortised to administrative expenses on a straight-line basis over its useful economic life of 15 years.
Financial instruments
Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. The Group's financial assets are all classified as loans and receivables and carried at amortised cost. The Group's financial liabilities are all classified as 'other' liabilities which are carried at amortised cost. Cash and cash equivalents comprise cash balances and call deposits.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held on call with the bank.
Key sources of estimation uncertainty
The preparation of the Group's financial statements, in accordance with IAS 1, Presentation of Financial Statements, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the Group's financial statements. The Group's estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
-- Revenue recognition
The Group's revenue substantially comprised revenues from the provision of research and development services. The contracts set out defined deliverables the achievement of which trigger milestone payments. Judgement is used to determine the stage of completion and the point at which revenue is recognised.
-- Share-based payments
The critical accounting estimates, assumptions and judgements underpinning the valuation of the option awards are disclosed in note 22.
-- Taxation
The current tax receivable is the expected tax receivable on the research and development qualifying expenditure for the period using the tax rates and laws that have been enacted or substantially enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years. The ultimate receivable may vary from the amounts provided and is dependent upon negotiations with the relevant tax authorities.
2 Segment reporting
IFRS 8 requires the Group to report on operating segments on the same basis as that used by the chief operating decision maker to assess the performance of the business segments and to allocate resources accordingly. For management purposes, the Group is analysed by the geographical location of its customer base and business development directors have been appointed to cover the group's three territories of focus, Asia, North America and Europe. Previously, segmentation analysis was provided by the market categories, Energy, Electronics and Biomedical. The disposal of the wound care business and the subsequent reorganisation meant that this segmentation basis was no longer appropriate.
The Group's activities originate from the production, design and development of high throughput methods of material synthesis, characterisation and screening. The Group has materials development programmes for a wide range of applications including in the battery, fuel cell and hydrogen storage sectors.
Year ended 30(th) April
Turnover 2015 2014
GBP GBP
Analysis by geographical market:
By destination
Asia 125,875 406,585
Europe 441,219 347,751
North America 142,351 201,764
UK Grants 384,533 93,779
------- -------
1,093,978 1,049,879
------- -------
A number of customers individually account for more than 10% of the total turnover of the Group. The revenues from these companies are indicated below:
Year ended 30(th) April
Turnover 2015 2014
GBP GBP
Customer 1 384,533 332,218
Customer 2 247,200 108,597
Customer 3 189,052 107,900
Customers less than 10% 273,193 501,164
-------- --------
1,093,978 1,049,879
------- -------
The chief operating decision maker only reviews turnover by operating segment then reviews expenses and profit on an aggregate basis. Therefore the segmental loss before tax information, along with the segmental total assets and liabilities information has not been split out in this note.
The loss before tax per the management accounts is the same as the loss before tax on the consolidated statement of comprehensive income with the exception of the share-based payment expense which is only calculated as a year end adjustment. For details of the calculation see note 22. The total assets and liabilities per the management accounts are the same as the consolidated balance sheet with the exception of the period end tax adjustment.
3 Operating loss
Year ended 30(th) April
This is arrived at after charging: 2015 2014
GBP GBP
Research and development expenditure
in the year 1,740,173 1,642,152
Depreciation 324,556 556,795
Amortisation of intangible assets 12,736 8,632
Auditors remuneration:
Fees payable to the Group's auditor
for the audit of the Group's accounts 19,700 19,700
Fees payable to the Group's auditor
for other services:
* The Audit of the Group's subsidiaries 6,800 6,800
Operating lease rentals 202,964 201,784
Share-based payment 33,648 15,000
Foreign exchange differences 5,123 3,281
------- -------
4 Employees
The average number of employees during the year, including executive directors, was:
Year ended 30(th) April
2015 2014
Number Number
Administration 8 8
Materials synthesis 23 26
------ ------
31 34
------ ------
Staff costs for all employees, including executive directors, consist of:
Year ended 30(th) April
2015 2014
GBP GBP
Wages and salaries 1,641,465 1,603,975
Social security costs 153,801 137,254
Share-based payment expense 18,648 -
Pension costs 98,206 102,441
------- -------
1,912,120 1,843,670
-------- --------
The total remuneration of the Directors of the
Group was as follows:
Year ended 30(th) April
2015 2014
GBP GBP
Wages and salaries 541,353 485,607
Pension costs 47,283 46,504
------- -------
Directors' emoluments 588,636 532,111
Social security costs 60,858 59,688
Share-based payment expense 7,080 -
------- -------
Key management personnel 656,574 591,799
-------- --------
The Directors represent key management personnel and further details are given in the Directors' Remuneration Report on pages 11 to 13.
5 Other operating income
Year ended 30(th) April
2015 2014
GBP GBP
Sundry other income - 810
------ ------
6 Financial income
Year ended 30(th) April
2015 2014
GBP GBP
Income from short term deposits 50,558 22,131
------ ------
7 Financial expense
Year ended 30(th) April
2015 2014
GBP GBP
Interest on:
Finance leases - 1,513
------ ------
8 Taxation
(a) Tax on profit from ordinary activities
There is no taxation charge due to the losses incurred by the Group during the year. The taxation credit represents R&D tax credit claims as follows:
Year ended 30(th) April
2015 2014
GBP GBP
Current tax on loss for the year 304,122 248,191
Adjustments to prior period 29,525 38,980
------ ------
333,647 287,171
------ ------
(b) Factors affecting current tax charge
The tax assessed on the loss on ordinary activities for the period is different to the standard rate of corporation tax in the UK of 21% (2014: 23%). The differences are reconciled below:
2015 2014
GBP GBP
Loss on ordinary activities before tax (3,035,346) (3,085,258)
------ ------
Loss on ordinary activities before tax
multiplied by the standard rate of corporation
tax in the UK of 21% (2014: 23%) (637,423) (709,609)
Effects of:
Expenses not deductible for corporation
tax 956 1,426
R&D relief (304,122) (248,191)
Origination of unrecognised tax losses 629,401 704,733
Share options 7,066 3,450
Under provision in previous years (29,525) (38,980)
------ ------
Total tax credit for the year (333,647) (287,171)
------ ------
Unrecognised deferred taxation
There are tax losses available for carry forward against future trading profits of approximately GBP15,290,000 (2014: GBP13,010,000). A deferred tax asset in respect of these losses of approximately GBP3,058,000 (2014: GBP2,602,000) has not been recognised in the accounts, as the full utilisation of these losses in the foreseeable future is uncertain.
9 Loss per share
Earnings per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial periods. The weighted average number of equity shares in issue and the earnings, being loss after tax, are as follows:
Year ended 30(th) April
2015 2014
No. No.
Weighted average number of equity shares 65,895,078 52,153,675
-------- --------
GBP GBP
Earnings, being loss after tax (2,701,699) (2,798,087)
-------- --------
Pence Pence
Loss per share (4.10) (5.37)
------ ------
The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for basic earnings per share. This is because the exercise of share options would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS 33. At 30(th) April 2015 there were 5,414,848 options outstanding (2014: 6,925,766 options outstanding) as detailed in notes 18 and 22.
10 Intangible assets
Software Intellectual
licences property Total
GBP GBP GBP
Cost
As at 30(th) April 2013 and
2014 27,918 75,000 102,918
Additions 42,062 - 42,062
Disposals (15,615) - (15,615)
------ ------ ------
As at 30(th) April
2015 54,365 75,000 129,365
------ ------ ------
Amortisation
As at 30(th) April
2013 18,493 75,000 93,493
Provided for the
year 8,632 - 8,632
------ ------ ------
As at 30(th) April
2014 27,125 75,000 102,125
Provided for the
year 12,736 - 12,736
Disposals (15,615) - (15,615)
------ ------ ------
As at 30(th) April
2015 24,246 75,000 99,246
------ ------ ------
Net book value
As at 30(th) April
2013 9,425 - 9,425
------ ------ ------
As at 30(th) April
2014 793 - 793
------ ------ ------
As at 30(th) April
2015 30,119 - 30,119
------ ------ ------
The amortisation charge of GBP12,736 (2014: GBP8,632) is included within administrative expenses.
11 Property, plant and equipment
Plant,
Leasehold machinery and Fixtures and
improvements equipment fittings Total
GBP GBP GBP GBP
Cost
As at 30(th) April
2013 552,058 4,132,297 169,712 4,854,067
Additions 9,692 51,329 - 61,021
Disposals - (3,300) - (3,300)
------ ------- ------ -------
As at 30(th) April
2014 561,750 4,180,326 169,712 4,911,788
Additions 5,750 271,439 2,078 279,267
Disposals - (25,688) - (25,688)
------ ------- ------ -------
As at 30(th) April
2015 567,500 4,426,077 171,790 5,165,367
------ ------- ------ -------
Depreciation
As at 30(th) April
2013 394,102 3,212,928 141,331 3,748,361
Provided for the
year 106,936 442,289 7,570 556,795
Disposals - (995) - (995)
------ ------- ------ -------
As at 30(th) April
2014 501,038 3,654,222 148,901 4,304,161
Provided for the
year 66,462 250,981 7,113 324,556
Disposals - (24,048) - (24,048)
------ ------- ------ -------
As at 30(th) April
2015 567,500 3,881,155 156,014 4,604,669
------ ------- ------ -------
Net book value
As at 30(th) April
2013 157,956 919,369 28,381 1,105,706
------ ------- ------ -------
As at 30(th) April
2014 60,712 526,104 20,811 607,627
------ ------- ------ -------
As at 30(th) April
2015 - 544,922 15,776 560,698
------ ------- ------ -------
There are no commitments for capital expenditure contracted but not provided for (2014 - GBPnil)
12 Trade and other receivables
As at 30(th) April
2015 2014
GBP GBP
Trade receivables 5,108 30,450
Prepayments and accrued income 323,516 389,990
Other receivables 168,361 151,864
------ ------
496,985 572,304
------ ------
The ageing of trade receivables is as follows:
As at 30(th) April
2015 2014
GBP GBP
0-29 days 1,322 20,123
30-59 days 3,595 -
60-89 days 191 10,327
90+ days - -
------ ------
5,108 30,450
------ ------
13 Other financial assets - bank deposits
As at 30(th) April
2015 2014
GBP GBP
Amounts receivable within one year:
Sterling fixed rate deposits of greater
than three months' maturity at inception 528,349 1,776,767
-------- ------
14 Cash and cash equivalents
As at 30(th) April
2015 2014
GBP GBP
Current bank accounts 220,843 172,392
Short term deposits with less than three
months' maturity 5,258,192 5,157,575
-------- --------
5,479,035 5,329,967
-------- --------
15 Trade and other payables
As at 30(th) April
2015 2014
GBP GBP
Trade payables 219,567 208,135
Other payables 15,845 14,034
Other taxes and social security costs 40,079 37,824
Accruals and deferred income 453,380 350,754
-------- --------
728,871 610,747
-------- --------
The ageing of trade payables is as follows:
As at 30(th) April
2015 2014
GBP GBP
0-29 days 157,324 86,893
30-59 days 15,113 51,361
60-89 days - 5,162
90+ days 47,130 64,719
-------- --------
219,567 208,135
-------- --------
16 Provisions
Leasehold
Dilapidations
GBP
As at 1(st) May 2014 and at 30(th) April
2015 150,000
------
All provisions are due within one year.
Leasehold dilapidations relate to the estimated cost of returning a leasehold property to its original state at the end of the lease in accordance with the lease terms.
17 Financial instruments
The risks associated with financial instruments are set out below.
Foreign currency risk
The Group buys goods and services in currencies other than sterling. The Group's non sterling liabilities and cash flows can be affected by movements in exchange rates. These transactions are not significant and therefore no forward exchange contracts have been entered into. It is Group policy not to engage in any speculative trading in financial instruments. Any risk is mitigated by sales transactions being denominated in Sterling.
Credit risk
The Group's credit risk is attributable to its trade receivables and banking deposits. The Group places its deposits with reputable financial institutions to minimise credit risk. The maximum exposure to credit risk for each period is the amount disclosed above as total loans and receivables. For the periods above there were no trade receivables which were past due or impaired. Risk is further mitigated through the use of credit limits, but also through the nature of the customers, who, for the most part, are large multinationals. There is no bad debt provision.
Liquidity risk
The Group's policy is to maintain adequate cash resources to meet liabilities as they fall due. All Group payable balances fall due for payment within one year. Cash balances are placed on deposit for varying periods with reputable banking institutions to ensure there is limited risk of capital loss. The Group does not maintain an overdraft facility.
Interest rate risk
The main risk arising from the Group's financial instruments is interest rate risk. The Group placed deposits surplus to short-term working capital requirements with a variety of reputable UK-based banks. These balances are placed at floating rates of interest and deposits have maturities of one to twelve months. The Group's cash and short-term deposits are set out in note 14. Floating-rate financial assets comprise cash on deposit and cash at bank. Short-term deposits are placed with banks for periods of up to 12 months and are categorised as floating-rate financial assets. Contracts in place at 30(th) April 2015 had a weighted average period to maturity of 32 days and a weighted average annualised rate of interest of 0.81%.
Interest rate risk sensitivity analysis
It is estimated that a change in base rate to zero would have increased the Group's loss before taxation for the year to 30(th) April 2015 by approximately GBP31,000 (2014: GBP20,000).
It is estimated that an increase in base rate by 1 percent would decrease the Group's loss before taxation for the year to 30(th) April 2015 by approximately GBP62,000 (2014: GBP25,000)
There is no difference between the book and fair value of financial assets and liabilities.
Capital management
The primary aim of the Group's capital management is to safeguard the Group's ability to continue as a going concern, to support its businesses and maximise shareholder value. The Group monitors its capital structure and makes adjustments as and when it is deemed necessary and appropriate to do so using such methods as the issuing of new shares. At present, other than finance leases, all funding is raised by equity. See note 1 for the fundraising that occurred during the year.
The Group's principal financial instruments comprise, lease financing arrangements, cash and short-term deposits as well as other various items arising from its operations such as trade receivables and trade payables which are shown in the table below. The main purpose of these instruments is to finance the Group's working capital requirements as well as funding its capital expenditure programmes. The Group does not enter into derivative transactions such as interest rate swaps or forward exchange contracts.
As at 30(th) April
2015 2014
GBP GBP
Financial Assets
Loans and receivables
Trade receivables 5,108 30,450
Accrued income 107,595 185,173
Other receivables 168,361 151,864
Current bank accounts 220,843 172,392
Bank deposits 528,349 1,776,767
Short term deposits 5,258,192 5,157,575
-------- --------
Total loans and receivables 6,288,488 7,474,221
-------- --------
Financial Liabilities
Other financial liabilities
Trade payables 219,567 208,135
Other payables 15,845 14,034
Other taxes and social security costs 40,079 37,824
Accruals 453,380 350,754
Provisions 150,000 150,000
-------- --------
Total other financial liabilities (see
notes 15 and 16) 878,871 760,747
-------- --------
17 Share capital
As at 30(th) April
2015 2014
GBP GBP
Authorised
65,736,416 Ordinary Shares of GBP0.01
each (2014: 62,240,019) 657,364 622,400
1,781,400 Convertible Preference Shares
of GBP0.01 each 17,814 17,814
------ ------
Allotted, called up and fully paid
65,736,416 Ordinary Shares of GBP0.01
each (2014: 62,240,019) 657,364 622,400
638,400 Convertible Preference Shares
of GBP0.01 each (2014: 1,025,900) 6,384 10,259
------ ------
663,748 632,659
------ ------
Share Rights
The ordinary share and preference shares rank pari passu in all respects other than:
-- The profits which the Group may determine to distribute in respect of any financial period shall be distributed only among the holders of the Ordinary Shares. The Preference Shares shall not entitle the holders of them to any share in such distributions
-- On a return of capital or assets on a liquidation, reduction of capital or otherwise the surplus assets of the Group remaining after payment of its obligations shall be applied:
o First, in paying to the holders of the Preference Shares the amount paid thereon, being the amount equal to the par value of the preference shares excluding any premium; and
o Secondly, the balance of such surplus assets shall belong to and be distributed amongst the holders of the Ordinary Shares.
The Preference Share holders have the right, at any time, to convert the preference shares held to the same number of Ordinary Shares.
On 14(th) July 2014, 2(nd) January 2015 and 10(th) March 2015, 250,000, 50,000 and 87,500 respectively, GBP0.01 convertible preference shares were converted to GBP0.01 ordinary shares.
On 6(th) May 2014 and 12(th) May 2014, 450,000 and 2,167,647 respectively, subscription warrants with an exercise price of 51p per warrant, were converted into ordinary shares.
Share options and warrants
Employee related share options are disclosed in note 23. In addition to these, there were 107,300 non employee share options over ordinary shares of GBP0.01 at the year end. The Company's previous brokers also have a warrant to subscribe to 130,100 Ordinary Shares of GBP0.01.
491,250 share options were converted into 491,250 GBP0.01 ordinary shares in the year for a total consideration of GBP78,618.
10,539,216 warrants to subscribe to Ordinary Shares of GBP0.01 were issued on 14(th) May 2010 with an exercise price of GBP0.51 per warrant and an expiry date of 28(th) May 2014. During the year ended 30(th) April 2015, 2,617,647 warrants were exercised and 15,686 expired.
18 Operating leases
The total future minimum rent payable under non-cancellable operating leases is as follows:
As at 30(th) April
2015 2014
GBP GBP
Property leases which expire:
Within one year - 70,329
------ ------
- 70,329
------ ------
19 Pensions
The Group operates a defined contribution group personal pension scheme. The pension cost charge for the period represents contributions payable by the Group to the scheme and amounted to GBP98,206 (2014: GBP102,441).
20 Related party transactions
The directors consider that no one party controls the Group.
During the year ended 30(th) April 2015, the company incurred costs of GBP245,576 (2014: GBP147,371) with the University of Southampton in connection with research and development activities. The University of Southampton is the controlling shareholder of Southampton Asset Management Limited, which has an interest in the company. At 30(th) April 2015, the amount unpaid in respect of these costs was GBP2,765 (2014: GBPnil).
The company incurred fees from the University of Southampton in respect of Prof B. Hayden, a director of the company. These amounts are included in the costs shown above. Further details are given in the Directors' Remuneration Report on pages 11 to 13.
Details of key management personnel and their compensation are given in note 4 and in the Directors' Remuneration Report on pages 11 to 13.
21 Share-based payments expense and share options
Share-based payment expense
The Group has incentivised and motivated staff through the grant of share options under the Enterprise Management Incentive (EMI) scheme and through unapproved share options.
The Group has recognised an expense to the consolidated statement of comprehensive income representing the fair value of outstanding equity-settled share-based payment awards to employees. The fair values were charged to the consolidated statement of total comprehensive income over the relevant vesting periods adjusted to reflect actual and expected vesting levels.
The Group has calculated the fair market value of options which had market based performance conditions at the time of grant, using the stochastic valuation model. Options with no market based performance conditions at the time of grant, have been valued using the Black-Scholes model.
At 30(th) April 2015, the following options, whose fair values have been fully charged to the consolidated statement of total comprehensive income, were outstanding:
Approved share options:
Exercise
Date of grant Number of shares Period of option Price per share
30/03/06 15,200 10 years GBP0.10
14/05/07 156,100 10 years GBP0.80
15/01/08 46,400 10 years GBP1.00
02/02/09 78,000 10 years GBP0.80
01/12/09 90,000 10 years GBP0.80
14/05/10 41,500 10 years GBP0.51
01/02/12 45,028 10 years GBP0.53
139,500 options with an exercise price of GBP0.10 per share were exercised in the year.
Unapproved share options:
Exercise
Date of grant Number of shares Period of option Price per share
11/07/07 195,500 10 years GBP0.80
11/11/08 40,000 10 years GBP2.4283
14/05/10 2,947,800 10 years GBP0.51
Black Scholes valuation
Weighted Average Exercise Number
Price
2015 2014 2015 2014
Outstanding: GBP GBP
At start of the
period 0.4121 0.3436 1,693,523 2,305,523
Granted in the period 0.8150 - 1,521,920 -
Exercised in the
period 0.1038 0.1000 (423,250) (594,700)
Lapsed in the period 0.1508 0.4969 (604,045) (17,300)
----- ----- -------- --------
At the end of the
period 0.8341 0.4121 2,188,148 1,693,523
----- ----- -------- --------
The exercise price of options outstanding at the end of the period ranged between GBP0.10 and GBP2.4283 and their weighted average contractual life was 7.85 years (2014: 2.2 years). These share options are exercisable and must be exercised within 10 years from the date of grant.
Stochastic valuation
Weighted Average Exercise Number
Price
2015 2014 2015 2014
Outstanding: GBP GBP
At start of the period 0.51 0.51 3,057,300 3,062,900
Exercised in the
period 0.51 0.51 (68,000) -
Lapsed during the
period 0.51 0.51 - (5,600)
---- ---- --------- ---------
At the end of the
period 0.51 0.51 2,989,300 3,057,300
---- ---- --------- ---------
The exercise price of options outstanding at the end of the period was GBP0.51 (2014: GBP0.51) and their weighted average contractual life was 6 years (2014: 7 years).
Ilika plc Executive Share Option Scheme 2010
At 30(th) April 2015 the following share options were outstanding in respect of the Ilika plc Executive Share Option Scheme 2010:
Exercise
Date of grant Number of shares Period of option Price per share
14/05/10 41,500 10 years GBP0.51
01/02/12 45,028 10 years GBP0.53
26/02/15 1,344,020 10 years GBP0.815
Members of staff in the Group have options in respect of ordinary shares in Ilika plc, which are conditional upon the achievement of a series of financial and commercial milestones.
54,845 options lapsed in the year and 6,650 options were exercised.
Ilika plc unapproved share options
At 30(th) April 2015 the following share options were outstanding in respect of Ilika plc unapproved share options:
Exercise
Date of grant Number of shares Period of option Price per share
14/05/10 2,947,800 10 years GBP0.51
26/02/15 177,900 10 years GBP0.815
65,100 options were exercised in the year. There are 3,655,528 options which were capable of being exercised as at 30(th) April 2015.
2015 2014
GBP GBP
Share-based payment expense
Black Scholes calculation 33,648 15,000
----- -----
33,648 15,000
------ ------
Company Balance sheet of Ilika plc
Company number 7187804
As at 30(th) April
Notes 2015 2014
GBP GBP
ASSETS
Non current assets
Investments in subsidiary undertaking 24 121,339 121,339
Current assets
Trade and other receivables 25 18,195,689 16,732,341
------- -------
Total net assets 18,317,028 16,853,680
------- -------
Equity
Issued share capital 26 663,748 632,660
Share premium 17,444,653 16,062,155
Retained earnings 75,276 42,515
------- -------
18,183,677 16,737,330
LIABILITIES
Current liabilities
Trade and other payables 133,351 116,350
------- -------
Total liabilities 133,351 116,350
------- -------
Total equity and liabilities 18,317,028 16,853,680
------- -------
The notes on pages 47 to 49 form part of these financial statements.
These financial statements were approved and authorised for issue by the Board of Directors on 9(th) July 2015.
Mr. J.B. Boyer
Chairman
Year ended 30(th) April
2015 2014
GBP GBP
Cash flows from operating activities
(Loss) / profit before tax (887) 14,453
Adjustments for:
Equity settled share-based payments 33,648 15,000
------ ------
Operating cash flow before changes in
working capital, interest and taxes 32,761 29,453
Increase in trade and other receivables (1,463,348) (7,495,026)
Increase in trade and other payables 17,001 49,093
------ ------
Cash utilised by operations (1,413,586) (7,416,480)
Cash flows from financing activities
Proceeds from issuance of ordinary share
capital 1,413,586 7,716,913
Share issue costs - (300,433)
------ ------
Net cash from financing activities 1,413,586 7,416,480
------ ------
Net increase in cash and cash equivalents - -
Cash and cash equivalents at the start - -
of the period
------ ------
Cash and cash equivalents at the end - -
of the period
------ ------
Company cashflow statement
Company statement of changes in equity
Total
Share Share attributable
capital premium Retained to
account earnings equity holders
GBP GBP GBP GBP
As at 30(th) April 2013 475,354 8,802,981 13,062 9,291,397
Issue of shares 157,306 7,559,607 - 7,716,913
Expenses of share issue - (300,433) - (300,433)
Share-based payment - - 15,000 15,000
Profit and total comprehensive
income - - 14,453 14,453
------ ------ ------ -------
As at 30(th) April 2014 632,660 16,062,155 42,515 16,737,330
Issue of shares 31,088 1,382,498 - 1,413,586
Share-based payment - - 33,648 33,648
Profit and total comprehensive
income - - (887) (887)
------ ------ ------ -------
As at 30(th) April 2015 663,748 17,444,653 75,276 18,183,677
------ ------ ------ ------
Share capital
The share capital represents the nominal value of the equity shares in issue.
Share premium account
When shares are issued, any premium paid above the nominal value is credited to the share premium reserve.
Retained earnings
The retained earnings reserve records the accumulated profits and losses of the Company since inception of the business.
23 Accounting polices
Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") adopted by the European Union.
No directors report has been presented and the directors responsibilities in respect of these financial statements are set out on page 14.
Taxation
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.
Share-based payments
The critical accounting estimates, assumptions and judgements underpinning the valuation of the option awards are disclosed in note 22.
Investments in subsidiary undertakings
Investments in subsidiary undertakings where the Company has control are stated at cost less any provision for impairment. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from some of its activities.
Financial instruments
The accounting policy relating to financial instruments is disclosed in note 1.
Profit of the parent company
Profit in the year
No profit and loss account is presented for the Company as permitted by Section 408 of the Companies Act 2006. The Company's loss for the year was GBP887 (2014: profit of GBP14,453).
Directors' remuneration
The remuneration of the Directors is disclosed in the Directors' remuneration report on pages 11 to 13.
Auditors' remuneration
Auditors' remuneration is disclosed in note 3.
24 Investment in subsidiary undertaking
Investments in Group undertakings are stated at cost.
Ilika plc has a wholly owned subsidiary, Ilika Technologies Limited. Ilika Technologies Limited (Incorporated in the UK) made a loss for the year of GBP2,700,812 (2014: GBP2,812,409) and had net liabilities as at 30(th) April 2015 of GBP11,541,901 (2014: GBP8,841,089).
2015 2014
Shares in Group undertakings (at cost) GBP GBP
At 1(st) May 2014 and 30(th) April 2015 121,339 121,339
------ ------
25 Trade and other receivables
As at 30(th) April
2015 2014
GBP GBP
Prepayments 6,218 594
Other debtors - -
Amounts due from subsidiary undertakings 18,189,471 16,731,747
------ ------
18,195,689 16,732,341
------ ------
26 Share capital
As at 30(th) April
2015 2014
GBP GBP
Authorised
65,736,416 Ordinary Shares of GBP0.01 each (2014:
62,240,019) 657,364 622,400
1,781,400 Convertible Preference Shares of GBP0.01
each 17,814 17,814
------ ------
Allotted, called up and fully paid
65,736,416 Ordinary Shares of GBP0.01 each (2014:
62,240,019) 657,364 622,400
638,400 Convertible Preference Shares of GBP0.01
each (2014: 1,025,900) 6,384 10,260
------ ------
663,748 632,660
------ ------
Share Rights
The ordinary share and preference shares rank pari passu in all respects other than:
-- The profits which the Group may determine to distribute in respect of any financial period shall be distributed only among the holders of the ordinary shares. The preference shares shall not entitle the holders of them to any share in such distributions
-- On a return of capital or assets on a liquidation, reduction of capital or otherwise the surplus assets of the Group remaining after payment of its obligations shall be applied:
o First, in paying to the holders of the preference shares the amount paid thereon, being the amount equal to the par value of the preference shares excluding any premium; and
o Secondly, the balance of such surplus assets shall belong to and be distributed amongst the holders of the ordinary shares
The preference shareholders have the right, at any time, to convert the preference shares held to the same number of ordinary shares.
On 14(th) July 2014, 2(nd) January 2015 and 10(th) March 2015, 250,000, 50,000 and 87,500 respectively, GBP0.01 convertible preference shares were converted to GBP0.01 ordinary shares.
On 6(th) May 2014 and 12(th) May 2014, 450,000 and 2,167,647 respectively, subscription warrants with an exercise price of 51p per warrant, were converted into ordinary shares.
491,250 share options were converted into 491,250 GBP0.01 ordinary shares in the year for a total consideration of GBP78,618.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PKCDBKBKBNOK
1 Year Ilika Chart |
1 Month Ilika Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
