F ast-tracking materials 
discovery
Ilika plc Annual report 2012 Chairman’s 
review
p.08
Chief Executive’s 
review  
p.10
Business review
01 Overview
02 Ilika at a glance
04 Our investment proposition
06 Commercialising our technology
08  Chairman’s review
10  Chief Executive’s review
13 Financial review
Corporate governance
14 Board of Directors
16 Directors’ report 
18  Corporate governance statement
20  Corporate social responsibility 
22  Independent auditor’s report
Financial statements
23  Consolidated statement of comprehensive income
24  Consolidated balance sheet
25  Consolidated cash flow statement
26  Consolidated statement of changes in equity
27  Notes to the consolidated financial statements
43  Company balance sheet
44  Company cash flow statement
45  Company statement of changes in equity
46  Notes to the consolidated financial statements
48  Corporate directory
Commercialising  
our technology
p.06
Ilika at  
a glance
p.02
Our investment 
proposition
p.04
Financial  
review
p.13 Annual report 2012  Ilika plc  01
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
Business review
 Ov ervie w
Ilika invents, tests and selects 
materials in the laboratory 
that can be selected for 
scale-up and everyday 
commercial use.
Ilika focuses on three sectors:
>  Energy where Ilika assesses materials for 
their greater capacity for energy storage  
and conversion efficiency, for example  
in batteries
>  Electronics where materials created by 
Ilika rapidly improve the performance 
and efficiency of a range of electronic 
components, such as digital memory  
devices and sensors
>  Biomedical devices where Ilika’s 
subsidiary Altrika has already successfully 
commercialised innovative products for  
the treatment of burns
for more details p.11
for more details p.12
for more details p.12
For more information, visit us at:
www.ilika.com 
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information on our 
business Generating growth  
through...
Ilika’s unique process is far 
quicker and more efficient 
than traditional materials 
discovery processes.
Ilika uses high throughput, 
or combinatorial, techniques 
which involve the rapid 
synthesis of a large number 
of different structurally 
related materials in a few 
automated steps.
High throughput materials 
discovery
What we do
High throughput materials discovery:
•  10–100x faster and more reliable than 
traditional discovery methods
•  Creates output equivalent to 100s  
of individual materials
• Unique patent-protected platform
•  Rapid identiﬁcation of materials  
suitable for industrial scale-up
Combinatorial synthesis
Ilika’s High Throughput Physical Vapour Deposition 
facility (‘HT -PVD’) can deposit large numbers of 
films of different composition in one automated 
experimental run. The deposition of all elements 
occurs simultaneously and the composition profile 
can be carefully varied across the substrate in a 
controlled manner. 
Characterisation/screening
Large numbers of samples are screened and 
characterised using automated, high throughput 
techniques. Unique sample arrays allow the many 
different compositions synthesised to be analysed 
in a rapid manner for specific, sought-after, 
behaviours.
Infomatics
A range of specialised, in-house software 
controls the instrumentation associated with 
our workflows and also enables the rapid, 
simultaneous collection of large datasets which 
are then processed, analysed and presented 
so that meaningful conclusions about material 
properties can be drawn.
Business review
02  Ilika plc  Annual report 2012
 Ilika at a glance Ilika can cover a wide range of different 
market applications within the energy 
sector to help customers advance their 
materials discovery programmes. The 
great breadth and large numbers of 
samples that can be synthesised and 
screened with respect to an identified 
capability means that Ilika can optimise 
materials in a much shorter timeframe. 
For hydrogen storage applications, 
different compositions can be 
characterised with respect to their 
hydrogen adsorption and desorption 
behaviours including their hydrogen 
storage capacity and cyclability.  
For fuel cell and battery applications, 
the candidate materials can be 
measured for catalytic activity. For 
the photovoltaic market it is possible 
to screen materials for greater energy 
conversion efficiency.
Energy
We are developing innovative new materials for lithium-
ion batteries, developing high capacity hydrogen storage 
materials, developing cheaper alternatives to platinum 
electrodes for use in fuel cells, and carrying out in-house 
research on film photovoltaic solar cells.
We cover a wide range of different 
market applications within the 
electronics sector to help customers 
advance their materials discovery 
programmes. The fast throughput 
approach to materials synthesis 
coupled with high throughput 
characterisation and screening means 
that Ilika can optimise materials with 
respect to a desired property in a 
much shorter timeframe. For phase 
change memory applications, we can 
monitor the phase change behaviour 
of different alloys such as GeSbTe as 
a function of temperature. The optical 
and electrical behaviours of interesting 
compositions can then be studied in 
more detail.
Electronics
We are developing lead-free piezoelectric materials 
and phase change memory materials for high capacity 
memory chips.
Ilika has developed an extensive library 
of bio-functional materials specifically 
designed to promote or deter cell 
binding, enrich specific cell types from 
diverse populations and promote cell 
growth on tailored surfaces. We are 
working together with medical device 
companies to create valuable products 
through the application of cell-specific 
functional coatings optimised using 
our high throughput techniques. 
Application areas include:
•  Skin Wound Care
•   Cell Replacement for Organ 
Regeneration
•  Implants 
•  Diagnostic Devices 
•  Cell Purification
Biomedical
We are developing polymers to enable the filtering of 
somatic stem cells from blood, have been selling our 
Cryoskin
®
 and Myskin
®
 products for the treatment of 
burns and wounds in the UK and intend to commence 
clinical trials of our corneal bandage candidate.
Increased market demand
Annual report 2012  Ilika plc  03 www.ilika.com
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS GOVER Enhancing value 
through...
Key revenue streams
A pipeline of significant opportunities
Energy
Ilika’s materials are key  
to enabling the efﬁcient 
conversion and storage of 
different forms of portable 
energy. For example, Ilika has 
developed two materials 
which facilitate the use of 
hydrogen as a fuel. The ﬁrst 
material stores hydrogen as 
a solid compound from which 
hydrogen can be released. 
Scaled-up powder samples of 
this material show promising 
hydrogen capacity and 
reversibility. The second 
material is a lower-cost 
catalyst for use in fuel cells. 
Ilika’s catalyst material 
achieves the same power 
output for a third of the cost 
of conventional platinum-
based materials. 
Launch schedule 2010 2011 2012 2013 2014
Fuel Cells
Cell Growth Surface
Hydrogen Storage
Li-ion Batteries
Piezoelectrics
Cryoskin
®
/Myskin
®
Launched
Joint  
development  
programmes 
Contract  
work
Product
sales
Grant-  
funded  
work
Significant progress 
has been made in the 
development of products 
building on previous  
work undertaken with  
our partners.
We have collaborated with 
many blue chip partners 
including T oyota, Energizer 
and T oshiba.
Our investment proposition
Business review
04  Ilika plc  Annual report 2012 Successful partnerships
Expertise and experience
Joint development 
programmes (‘JDPs’)
Ilika prefers to develop 
materials in collaboration 
with large multinational 
companies which have 
the expertise to bring new 
end products to market.  
Collaborations typically 
involve joint ownership of 
intellectual property which 
enables Ilika to retain a  
share in end product sales.
Contract work
Ilika does undertake high 
margin, contract research 
projects. Typically, these 
demonstrate its capabilities 
and often lead to follow on 
collaborative programmes.
Product sales
Products for the treatment 
of acute burns which have 
been developed using Ilika’s 
high throughput polymer 
technology are commercially 
available in the UK and these 
are being rolled out to new 
territories.
Grant-funded work
Grant funding from the 
Technology Strategy 
Board and the Carbon 
Trust support a variety of 
innovative programmes 
in biomedical and energy 
sector focused research.
2012 is expected to see  
Ilika providing samples of 
these materials to original 
equipment manufacturers 
(‘OEMs’) for inclusion in  
their ongoing technology 
development programmes. 
On the other hand, Ilika is 
developing materials for 
batteries with an increased 
energy density, faster charge 
and discharge times as well 
as improved safety. Ilika will 
be working with its partners 
to develop its materials 
technology to the point of a 
prototype solid-state battery.
Electronics 
Ilika is working on a number 
of programmes with materials 
that satisfy the need for 
increased energy efﬁciency of 
electronic systems and a 
diversiﬁcation of materials 
used in electronic devices. 
Lead-free materials for 
sensors (piezoelectrics) and 
higher information storage 
density materials (Phase 
Change Memory) are the 
closest to commercialisation. 
Biomedical
Ilika launched the wound 
care products Myskin
®
  
and Cryoskin
®
 in 2010. 
Signiﬁcant progress has  
also been achieved in the 
development of a material  
to enable the cultivation of 
stem cells for the cell therapy 
market. Prototype products 
are currently being 
independently evaluated.
Partnering with companies committed  
to developing and commercialising  
jointly developed products.
Our core competence is in the innovation of novel 
materials which includes the identification of demand for 
new materials and the rapid execution of experimental 
programmes to develop materials to meet that demand. 
We operate at the beginning of the product supply 
chain, and understand that successful commercialisation 
requires manufacturing capabilities, know-how in the 
integration of materials into consumer products and 
retailing to the mass market.
Once we have identified potential demand for a new 
material, we shortlist the leading industrial companies 
in the sector and seek to attract them into mutually-
beneficial joint development programmes.
Ilika employs a dedicated team of specialist scientists to 
undertake its world-leading research and development 
programmes. We actively recruit and retain top scientists 
from around the world to join our multi-disciplined team, 
thereby ensuring our expertise and experience is 
unrivalled in this area.
Annual report 2012  Ilika plc  05 www.ilika.com
BUSINESS
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STATEMENTS Solid-state Li-ion battery performance
Power Density (W/L)
10,000
8,000
6,000
4,000
2,000
1,000
10 100 1,000 10,000
Energy Density (Wh/L)
Ni-MH battery
Lithium-ion batteries
w/liquid electrolyte
(NEDO target)
All-solid-state 
lithium batteries
Metal-air 
battery
Limit of conventional  
lithium-ion battery
A battery is a number of 
electrochemical cells connected to 
provide the required voltage and 
current. In a conventional cell, the 
electrodes are prevented from 
shorting by a permeable separator, 
soaked in liquid electrolyte.  
Solid-state batteries differ from 
conventional batteries in that the 
liquid electrolyte is replaced by  
a solid electrolyte, which confers 
some important beneﬁts on  
the battery.
Thermal stability
Since all the materials in the battery 
are solid, heating and cooling the 
battery causes less expansion and 
contraction and creates less stress 
on the packaging. The batteries  
can be stored and operated at  
high temperature.
Simple construction
The critical components of the 
battery can be deposited in one 
process, without the need for 
different assembly stations in the 
production line. A separator is not 
required and there is no need for a 
binder in the electrodes. While air 
must still be excluded from the 
packages cells, there is no volatile 
electrolyte to contend with.
Non-ﬂammable electrolyte
The solid electrolyte is non-
ﬂammable, in contrast with liquid 
electrolytes which present a ﬁre  
and explosion hazard in the event 
that the battery is punctured. 
Hence, solid-state batteries are 
intrinsically safer.
Increased energy densities
Solid-state batteries are made from 
thin, highly dense electrodes. The 
solid electrolyte layer is very thin. 
These characteristics, together  
with the elimination of parasitic 
components such as the separator, 
binders and conducting additives, 
result in an overall increase in 
energy density of the battery.
Challenges
>   Electrolytes with ionic 
conductivities ca. 10
-3
 S cm
-1
>   Ionic and electronic  
conduction networks
>   Mechanical stress caused by 
electrode materials ‘breathing’
>   Deposition of target materials 
using UHV process
>   Sequential deposition of defect-
free component layers
Meeting market  
requirements...
Solid-state batteries
Business review
06  Ilika plc  Annual report 2012
 Commercialising our technology Hydrogen storage materials
Fuel cell materials development
Ilika’s solid-state hydrogen materials 
are lightweight metal powders that 
react with hydrogen to form a stable, 
solid hydride. This allows hydrogen, 
which is a light, volatile gas at normal 
temperature and pressure, to be  
stored in a dense state without the 
need for expensive and potentially 
hazardous compression to high 
pressures. The hydrogen can be 
released from the hydride by gentle 
heating, which causes the hydride  
to reversibly decompose. 
Fuel cell materials development
With ﬁnancial support from the Carbon Trust, Ilika has 
developed a lower-cost catalyst which allows fuel cells to 
deliver the same electrical power output at a third of the 
cost of conventional catalysts. The catalysts developed  
in Ilika’s laboratory are currently being tested by an 
independent fuel cell technology testing body before  
being made available to automotive OEMs for inclusion  
in their development programmes.
Right: Gravimetric capacity 
measured up to 850
o
K, 
as determined from 
temperature programmed 
desorption experiments.  
The capacity is low across 
the ternary space but a  
hot spot is observed for  
a specific composition
Hydrogen molecules (red) reacting with material.
Schematic cut-through of a 
proton exchange membrane 
fuel cell (‘PEM’), image from 
www.wpafb.af.mil
At. % A
At. % C
At. % B
Spec. Cur. Dens./mA cm
-2
Above: Addressable  
screening chip
35mm
Novel catalysts for low temperature fuel cells
Ternary plot of the activity 
of a thin film alloy catalyst 
towards the oxygen 
reduction reaction
Annual report 2012  Ilika plc  07 www.ilika.com
BUSINESS
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CORPORATE
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FINANCIAL
STATEMENTS I am delighted to announce our second 
strong set of full year results as a public 
company. The ﬁnancial year ended  
30 April 2012 saw another year of 
substantial growth in joint development 
and contract research revenues, and  
we are well positioned to broaden our 
commercial pipeline and deliver full 
commercial success for our portfolio.
Financial results 
Revenue from operations for the year 
ended 30 April 2012 rose 30 percent to 
£2.01 million (2011: £1.54 million), and 
were supplemented by £0.29 million of 
grant income (2011: £0.36 million). As a 
result total revenue rose 21 percent to 
£2.30 million (2011: £1.90 million).
Revenue from operations relate to the 
payments made by Ilika’s partners for 
research and development activities. 
The majority of these payments are 
associated with the development of 
materials for applications in energy 
storage and conversion, but projects  
in the electronics sector have increased 
signiﬁcantly in the year. The Group  
also has a subsidiary that handles all 
biomedical products and development 
programmes. The revenue breakdown  
of the segmental performance is  
given opposite:
‘ As we move into the new 
ﬁnancial year we are 
conﬁdent that we’ve ﬁrmly 
established a strong base  
to continue to grow the 
business. We have a strong IP 
portfolio and a number  
of joint development 
agreements with major 
partners that continue  
to make good progress.’
Jack Boyer, Chairman
A clear route to 
commercialisation...
Business review
08  Ilika plc  Annual report 2012
 C h airma n ’ s r e vie w Highlights
Financial highlights
 > Revenues up 30 percent to  
£2.01 million (2011: £1.54 million) 
 > Total revenue including other 
operating income up 21 percent to 
£2.30 million (2011: £1.90 million)
 > Gross proﬁt up 35 percent to 
£0.82 million (2011: £0.61 million)
 > Loss before tax reduced to  
£2.84 million (2011: £3.15 million)
 > Loss per share reduced to  
0.07p (2011: 0.08p)
 > Cash, cash equivalents and  
bank deposits of £5.3 million  
(as at 30 April 2011: £2.8 million) 
Operational highlights
 > Development of thin ﬁlm battery 
technology for man-portable 
batteries
 > Sigma-Aldrich partner has 
manufactured promising samples 
of hydrogen storage materials
 > Full-scale testing on lower-cost 
catalysts for fuel cells under way, 
with batches to be provided to 
automotive OEMs later in 2012
 > Strong growth in electronics 
sector driven by need for 
increased efﬁciency and 
diversiﬁcation of materials
 > Increased business development 
activity in Asia, US and Europe 
continues to extend sales pipeline
 > Grant of a patent in the US, 
Japan and Canada covering  
core technology 
 > Strong sales of Altrika’s Myskin
®
 
and Cryoskin
®
 for the treatment 
of burns patients in the UK – 
progress made towards 
international roll-out
 > Placing which raised £4.6 million 
after expenses in April 2012
Materials being visualised using a scanning  
electron microscope
Year ended  
30 April  
2012  
£
Year ended  
30 April  
2011  
£
Movement  
percent
Energy 1,005,823 1,101,448 –9
Electronics 656,738 291,546 +125
Biomedical 348,683 151,772 +130
Total 2,011,244 1,544,766 +30
During the period grant funding was 
received from the Carbon Trust and the 
Technology Strategy Board (‘TSB’) to 
support a number of the Group’s 
programmes for energy conversion and 
biomedical applications.
Gross proﬁt increased by 35 percent to 
£0.82 million (2011: £0.61 million). 
Administration expenses in the year 
decreased by around £0.195 million in 
comparison to the prior year.
We recorded a reduced loss before tax 
of £2.84 million (2011: £3.15 million), 
resulting in a reduced loss per share of 
0.07p (2011: Loss of 0.08p).
Cash
As at 30 April 2012, the Group’s cash 
position was £5.3 million (2011: £2.8 
million). In early April 2012 we raised 
£4.6 million, after expenses through  
a Placing at 55p to, amongst other 
things, enable the Group to fund the 
development of thin ﬁlm battery 
technology for man-portable batteries. 
Investment in equipment in the year  
was £0.2 million (2011: £0.67 million) 
which has increased the Group’s 
high-throughput capacity enabling  
the expected revenue growth to  
be achieved. 
Outlook
As we move into the new ﬁnancial year 
we are conﬁdent that we’ve ﬁrmly 
established a strong base to continue  
to grow the business. We have a strong 
IP portfolio and a number of joint 
development agreements with major 
partners that continue to make  
good progress.
We have strengthened the international 
reach of our business development 
activities and with early successes in the 
US and the appointment of a business 
development resource in Germany, our 
sales pipeline for 2013 is growing and 
provides us with signiﬁcant conﬁdence 
for the future.
Finally I would like to thank the staff  
and Board for their hard work over  
the last year and their undoubted 
contribution to the growth of the 
business. I look forward to reporting  
on the continuing success of the Group 
over the coming year.
Jack Boyer
Chairman
18 July 2012
Annual report 2012  Ilika plc  09 www.ilika.com
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS ‘ This year has seen great 
progress in both operational 
and ﬁnancial aspects of the 
business. This progress will 
provide a springboard for 
further commercialisation  
of our product portfolio.’
Graeme Purdy, Chief Executive
A compelling  
enterprise...
Over the last 12 months Ilika has 
continued to build its business of 
developing innovative new materials  
for clean tech applications, particularly 
in the energy and electronics sectors. 
Ilika’s proprietary high throughput 
platform for the rapid development  
of materials is a proven method for  
the rapid innovation of new materials  
and continues to strongly differentiate 
Ilika’s approach from slower,  
traditional methods. 
Although the past year has witnessed 
substantial disruption in some of the 
world’s major economies, Ilika has 
continued to build its business, 
delivering 30 percent turnover growth 
relative to last year. The geographical 
revenue split shows that 79 percent  
of our turnover in the year came from 
Asia, up from 67 percent last year  
and therefore it has been particularly 
important for Ilika to work closely with 
its Japanese customers to understand 
the consequences of the natural 
disasters that affected the region  
in 2011. Due to the strength of its 
relationships in the region, Ilika was able 
to identify areas where it could support 
its partners’ businesses, delivering 
substantial added value and growing  
its own business. 
As economic pressures from stiffening 
global competition continue to mount on 
large multinationals, the market pull for 
improved functional materials to be 
integrated into new product lines is 
stronger than ever. Consumer demand 
for innovative branded products 
developed by our partners remains 
robust, so Ilika’s business strategy of 
collaborating with large multinational 
customers, who are recognised  
as market leaders in their sectors, 
continues to be successful. Ilika  
has a portfolio of about 20 blue-chip 
customers including Asahi Kasei, 
CeramTec, DSTL, Energizer, NXP, Shell, 
Sigma Aldrich, Toshiba and Toyota. 
In addition to increased ﬁnancial 
momentum, Ilika’s second full year  
as a public company has witnessed an 
increase in the Company’s corporate 
proﬁle, a broadening of its client base 
Business review
10  Ilika plc  Annual report 2012
 Chief Executive’s review Our strategy
The Company’s business 
strategy is to use our 
HTT process to discover 
and commercialise novel 
materials for integration 
into products with high 
value end-markets.
>   Developing leading-
edge high throughput 
development processes 
>   Partnering with 
companies committed 
to developing and 
commercialising jointly 
developed products
>   Using high throughput 
processes to invent  
patentable functional 
materials
An array of materials being placed in  
an x-ray diffractometer
and a maturing of its portfolio of 
intellectual property. In April, Ilika was 
recognised by a New Energy Award at an 
event hosted at the Science Museum in 
London. The grant of a patent covering 
Ilika’s core technology platform in the 
US, Japan and Canada was conﬁrmed  
in May.
Energy
The demand for improved batteries, 
particularly for hybrid and electric 
vehicles, has been a major driver of 
growth at Ilika in 2011. In November,  
Ilika announced that it had delivered  
a presentation to the 52nd Battery 
Symposium in Tokyo on work that it  
had been carrying out with Toyota since 
February 2008 on the development  
of solid-state electrolytes, one of the 
most important components of an all 
solid battery. Toyota is interested in 
developing improved batteries for its 
electric and hybrid vehicles. The next 
generation of batteries is targeting 
increased energy density, faster charge 
and recharge times as well as improved 
safety. With their increased thermal 
stability, simple construction, non-
ﬂammable electrolyte and increased 
energy density, solid-state batteries 
meet many of these requirements. 
However, until now, making solid-state 
batteries has posed technical  
challenges including identifying solid 
electrolytes with sufﬁciently high 
ionic conductivities, low electronic 
conductivity, low mechanical stress 
resulting from electrochemical  
cycling and reproducible high yield 
production methods. 
To date, Toyota has invested £2.5 million 
on battery development through Ilika. 
As a result of their joint efforts in  
this ﬁeld, in 2011 Toyota ﬁled patent 
applications jointly-held by Toyota and 
Ilika. Under the terms of their IP sharing 
agreement with Toyota, each party  
has the right to commercialise the  
IP independently, subject to the other 
party’s consent. Toyota and the 
Company have presented summaries  
of this technology at international 
technology symposia in Europe, Japan 
and the US. In the course of these 
presentations, the Company has met 
with representatives from the UK and  
US military who have shown speciﬁc 
interest in applying Ilika’s battery 
technology for their purposes. 
Furthermore, these representatives of 
the UK and US military have conﬁrmed 
that the expected performance of  
Ilika’s battery technology meets the 
development requirements for man-
portable batteries deﬁned by the UK  
and US defence forces.
Estimates of market sizes for 
rechargeable batteries vary quite 
signiﬁcantly (some estimates for the 
market size in 2010 range from $6 billion 
to $36 billion), but indicate that the 
addressable market is far in excess of 
the $1 billion threshold criterion that the 
Company typically seeks in its selected 
target markets. The Company estimates 
the market size for rechargeable batteries 
in the defence sector in 2015 to be 
approximately $2.5 billion. 
Over the next 24 months, Ilika will  
be working closely together with  
its partners to develop its materials 
technology further to the point of a 
prototype battery. This development will 
be accomplished in 3 key phases. During 
Phase I the cell design for the battery 
will be optimised using the Company’s 
existing laboratory facilities. In parallel, 
in cooperation with an equipment 
fabricator, the Company will design the 
device prototyping equipment. In Phase 
II the Company will build the device 
prototyping system and also build a 
multilayer cell architecture (a simple 
battery). Phase III involves the 
production of a limited number of 
prototype batteries using its prototyping 
equipment and conﬁrmation with 
end-customers that the batteries meet 
their requirements. At this point, the 
Company intends to partner with a 
suitable manufacturer to integrate the 
materials into a ﬁnal product and fully 
commercialise the technology. 
In order to support its solid state-battery 
technology programme, Ilika announced 
that it had successfully completed an 
equity placing of £4.9 million in April 
2012, with 60 percent of the funds raised 
coming from new shareholders. 
Annual report 2012  Ilika plc  11 www.ilika.com
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STATEMENTS An Ilika scientist setting up the control system for 
one of Ilika’s high throughput platforms
Battery technology is currently an 
exciting high growth opportunity, but 
Ilika has continued to progress other 
energy technologies which are expected 
to have a substantial commercial impact. 
In particular, hydrogen is a fuel which 
many analysts continue to support  
inter alia because of the higher energy 
density that can be achieved using 
hydrogen as an energy carrier.  
Ilika has a proprietary position with 2 
technologies that are key to enabling  
the use of hydrogen as a fuel. 
The ﬁrst hydrogen-related technology  
is a material for storing hydrogen as a 
solid compound from which hydrogen 
can be released under controlled 
conditions. In June 2011, Ilika announced 
that it had entered into a collaboration 
with the US speciality chemicals 
company, Sigma Aldrich, to scale-up  
and commercialise Ilika’s material.  
This scale-up collaboration has made 
good progress during 2011, with powder 
samples being prepared that show 
promising hydrogen capacity and 
reversibility. This work is expected  
to continue in 2012.
The second hydrogen-related technology 
is a lower-cost catalyst for use in fuel 
cells. Hydrogen can either be used in  
an internal combustion engine, or in a 
fuel cell. The former option has the 
advantage that existing combustion 
engines can be converted to run on 
hydrogen and therefore there is less of  
a hurdle for technology adoption. The 
latter option achieves a more efﬁcient 
conversion of energy, but is currently 
too expensive for mass market adoption. 
Substantial cost reductions can be 
achieved by reducing fuel cell 
technology’s dependence on platinum  
as a catalyst. Ilika’s fuel cell catalyst 
technology has been shown to achieve 
the same power output for a third of the 
cost of platinum-based technology. 
Ilika’s work in this area has been 
supported to date by the Carbon Trust. 
Full-scale catalyst testing is currently 
under way with an independent fuel cell 
testing organisation in the US and 2012 
is expected to see Ilika providing batches 
of the catalyst to automotive OEMs for 
inclusion in their ongoing technology 
development programmes.
Electronics
From Ilika’s perspective, the electronics 
sector has become increasingly attractive 
over the last year. Projects in the 
electronics sector now account for around 
33 percent of the total turnover (2011: 19 
percent). There are a number of signiﬁcant 
drivers for this trend. The ﬁrst is the  
need for increased energy efﬁciency  
of electronic systems. This efﬁciency is 
requiring improved capacitors, which are 
devices for storing electronic charge in 
many different industrial and consumer 
electronics applications. Ilika’s technology 
is particularly well suited to the 
manufacture of the complex oxide 
materials which are ubiquitously used in 
these devices. The second driver is the 
gradual diversiﬁcation of materials used  
in electronic devices. Traditionally, most 
electronic components were made using 
silicon, but miniaturisation, increased data 
storage density and improved processing 
speeds can be achieved by incorporating 
other elements into system architecture. 
In September 2011 Ilika announced its 
ﬁrst major US electronics collaboration, 
which was the start of a commercial 
effort to replicate the growth story  
Ilika has achieved in Japan with a similar 
strategy in the US. However, Japan 
remains Ilika’s major source of revenue 
in this sector, which is also a result of  
the fact that many of the world’s leading 
electronics companies are based  
there. The addition of Toshiba to Ilika’s 
customer portfolio in January 2012 was 
the latest success in Ilika’s business 
development efforts in Asia.
Biomedical
Ilika operates a wholly-owned subsidiary, 
Altrika Ltd, which commercialises 
technology for biologically-functional 
medical (biomedical) devices. 
At its facilities, located in Shefﬁeld, UK, 
Altrika operates a high throughput 
laboratory for the rapid development  
of novel, biologically active materials.  
It also operates a Human Tissue 
Authority (‘HTA’) approved clean room 
suite for the production of its wound 
care products, Myskin
®
 and Cryoskin
®
.  
The clean room suite is validated to 
meet Good Manufacturing Practice 
(‘GMP’) requirements.
Altrika is fully licensed by the HTA for 
the procurement, testing, processing, 
distribution and storage of human cells. 
In addition, Cryoskin
®
 is licensed as  
a cell therapy by the Medicines and 
Healthcare products Regulatory Agency 
(‘MHRA’). Over the past year, Myskin
®
 
and Cryoskin
®
 have been used to 
successfully treat burns patients at  
most of the major burns units in the UK. 
Progress has been made in working with 
clinicians, distributors and regulatory 
authorities to support the roll-out of 
these products in new jurisdictions.
Business development strategy
In the US the appointment of a full time 
business development resource based  
in California has started to yield results, 
with two substantive commercial 
relationships being established there  
in the last 12 months. Ilika has also 
continued to work with the JGW Group 
to represent its interests in acquiring 
business in the US defence industry. In 
addition, Ilika has reinforced its business 
development efforts in Europe with the 
appointment of a business development 
resource in Germany. Hence, Ilika now 
has direct business development 
professionals, reinforced by specialist 
agencies where appropriate, deployed  
in the 3 most signiﬁcant geographies for 
its business: Japan, US and Germany. 
These initiatives have broadened  
Ilika’s commercial pipeline, supporting 
sustained growth for the coming period.
Graeme Purdy
Chief Executive
18 July 2012
Business review
12  Ilika plc  Annual report 2012
 Chief Executive’s review continued ‘ The AIM Placing in  
April 2012 raised  
£4.6 million, to enable 
the Group to develop its 
thin-ﬁlm battery 
technology.’
Stephen Boydell, Finance Director
Revenue for the year ended 30 April 
2012 was £2.01 million (2011: £1.54 
million ), supplemented by £0.29 million 
of grant income (2011: £0.36 million). 
Revenues relate to the payments made 
by Ilika’s partners for research and 
development activities. The majority  
of these payments are associated  
with the development of materials for 
applications in energy storage and 
conversion, but projects in the 
electronics sector have increased 
signiﬁcantly in the year and now account 
for around 33 percent of the total 
turnover (2011: 19 percent). Asian based 
customers continue to fund the majority 
of the Group’s projects and growth  
in revenues of around 54 percent has 
been achieved from these customers. 
US-based customer funded projects 
have increased signiﬁcantly in the year, 
by more than tenfold, which have been 
generated by the US business 
development resource who was 
appointed halfway through the last 
ﬁnancial year. Revenue generated  
from European-based customers has 
decreased by around 63 percent in  
the year and a German-based business 
development resource was appointed  
at the end of this ﬁnancial year to 
address this. 
Gross margin on revenues has improved 
from around 39 percent last year to 
around 41 percent this year. This is 
primarily due to the doubling of 
biomedical product sales in the year. 
Grant funding was received from the 
TSB to support a number of the Group’s 
programmes for biomedical applications 
and the Carbon Trust funding supported 
an energy conversion project. 
Administration expenses in the year 
decreased by around £0.19 million in 
comparison to the prior year. This 
decrease is due to a reduction in the 
share-based payment charge in the year 
of around £0.4 million, which has been 
partially offset by an increase of around 
£0.21 million in the Group’s spend on 
research and development activities.
The Placing on 23 April 2012, raised  
£4.6 million, after expenses, to enable 
the Group to continue to develop its 
thin ﬁlm battery technology. It was 
achieved at a share price of 55p, only 
slightly below the prevailing market 
price, with the majority of the funds 
coming from new investors. There was 
also strong participation from the 
Board of Directors. 
Investment in equipment in the year  
was £0.2 million (2011: £0.67 million) 
which has increased the Group’s 
high-throughput capacity enabling the 
expected revenue growth to be 
achieved. As at 30 April 2012, the 
Group’s cash position was £5.3 million.
Steve Boydell
Finance Director and  
Company Secretary
18 July 2012
Strengthening our 
position...
Annual report 2012  Ilika plc  13 www.ilika.com
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
Financial review 1
3
2
4
6
5
7
14  Ilika plc  Annual report 2012
Corporate governance
 Board of Directors 1   Jack Boyer
Chairman
Mr. Boyer joined Ilika as Chairman in 
2004 and chairs subsidiary Altrika 
Ltd. He previously founded and was 
the CEO of pan-European engineering 
group TCG, an Executive Director at 
Goldman Sachs and a management 
consultant at Bain & Co.
Mr. Boyer was educated at Stanford 
University (B.A. Hons), the London 
School of Economics (M.Sc.) and INSEAD 
(MBA). He currently leads the University 
of Southampton’s corporate spin-out 
and intellectual property exploitation 
activities as Chair of Southampton Asset 
Management and is Chairman of two 
biotechnology companies.
Mr. Boyer is a Council member of 
the UK Engineering and Physical 
Sciences Research Council (‘EPSRC’), 
the Higher Education Funding Council 
for England’s Research Excellence 
Framework main panel for physical 
sciences, a Trustee of sustainable 
development charity Forum for the 
Future and deputy Chairman of 
Godolphin & Latymer school  
in London.
2   Graeme Purdy
Chief Executive 
Graeme was appointed to head-up the 
Company from the beginning of May 
2004, just before completion of the 
Company’s seed round of funding. He 
led the Company through 2 successful 
rounds of venture funding before 
floating the Company on AIM in 2010.
Prior to joining Ilika, Graeme was Chief 
Operating Officer of a high-technology 
company in the Netherlands and before 
that worked internationally in a variety 
of technical and commercial roles 
for Shell. Graeme holds a master’s 
degree in Chemical Engineering from 
Cambridge and an MBA from INSEAD 
business school in France. Graeme is 
a Chartered Engineer and a Sainsbury 
Management Fellow. In addition to 
his executive role at Ilika, Graeme is a 
Non-Executive Director of Southampton 
Asset Management.
3   Prof. Brian Hayden
Chief Scientific Officer
Brian is currently on secondment  
to Ilika from the University of 
Southampton, where he is Professor  
of Physical Chemistry. He is a pioneer  
of surface science and has a strong  
track record in running successful 
industrial collaborations.
Brian has published in excess of 
100 papers in the fields of surface 
science, surface electrochemistry and 
fundamental aspects of heterogeneous 
catalysis and electrocatalysis. He is a 
Fellow of the Royal Society of Chemistry 
and regular speaker at conferences.
4   Stephen Boydell
Finance Director
Having qualified with Deloittes in 1996, 
Stephen held a number of acquisition, 
treasury and group reporting roles at 
both Hays plc and then AGI Media before 
becoming Finance Director of Healthy 
Direct, a successful Guernsey-based 
group of companies. He was instrumental 
in the restructuring of that group and its 
subsequent trade sale to a competitor.  
He joined Ilika in 2009 as Finance 
Director and Company Secretary.
Stephen studied Economics at 
Nottingham University and is a Fellow of 
the Institute of Chartered Accountants.
5   Dr. Werner Braun
Non-Executive Director
Having received a PhD in plasma 
and laser physics from the Technical 
University in Munich for research work 
performed at the Max Planck Institute for 
Plasma Physics, Dr. Braun initially worked 
for Messer Griesheim before joining 
Biotronik as VP of Marketing and Sales.
Over a period of 14 years, Dr. Braun 
played a key role in growing Biotronik 
from an early stage company to a global 
provider of medical devices for use in 
cardiology and cardiosurgery.
Following spells as General Manager of 
Chiron Adatomed and VP of Marketing and 
Sales for Medtronic Europe, Middle East 
and Africa, Dr . Braun returned to Biotronik 
in 2001 to become Managing Director , 
further developing the Company’s market 
expansion to become Europe’s largest 
privately-held medical device company  
in the cardiovascular arena.
6   Clare Spottiswoode CBE
Non-Executive Director 
Ms. Spottiswoode’s career started as 
an economist with the Treasury before 
establishing her own software company.
She is perhaps best known as Director 
General of Ofgas where she oversaw the 
transformation of the gas industry from a 
monopoly into a deregulated, competitive 
industry. In November 2006 she was 
appointed as the Policyholder Advocate 
for Aviva, responsible for ensuring that 
around 1 million with-profits policyholders 
received a fair share of the £5–6 billion 
inherited estate. Policyholders received 
more than double the only previous 
reattribution settlement.
Ms. Spottiswoode currently chairs Gas 
Strategies Limited and is a Non-Executive 
Director of Energy Solutions and Tullow 
Oil. Awarded a CBE for services to 
industry in 1999, she holds degrees from 
Cambridge and Yale Universities and an 
honorary doctorate from Brunel.
7   Prof. Sir William Wakeham  
Non-Executive Director 
Prof. Sir William Wakeham retired as 
Vice-Chancellor of the University of 
Southampton in September 2009. He 
studied Physics at Exeter University at 
both undergraduate and doctoral level. 
In 1971 he took up a lectureship in the 
Chemical Engineering Department at 
Imperial College London becoming  
Head of Department in 1988.
By 1999 he was Pro-Rector (Research), 
Deputy Rector and Pro-Rector 
(Resources) at Imperial College. He 
oversaw the College’s merger with a 
series of medical schools and stimulated 
its entrepreneurial activities.
A Fellow and International Secretary 
of the Royal Academy of Engineering, 
a Fellow of the Institution of Chemical 
Engineers, the Institution of Engineering 
and Technology, and the Institute of 
Physics. He holds a higher doctorate 
from Exeter University, honorary degrees 
from Lisbon University, Exeter and 
Southampton Solent University and is 
a Fellow of Imperial College London. He 
is a Council Member of the Engineering 
and Physical Sciences Research Council 
and Chair of its Audit Committee. He was 
knighted in 2009 for services to Chemical 
Engineering and Higher Education.
Annual report 2012  Ilika plc  15 www.ilika.com
FINANCIAL
STATEMENTS
BUSINESS
REVIEW
CORPORATE
GOVERNANCE ‘ The Directors present 
their report and the 
audited ﬁnancial 
statements for Ilika plc 
and its subsidiaries  
for the year ended  
30 April 2012.’
Graeme Purdy, Chief Executive
16  Ilika plc  Annual report 2012
Corporate governance
 D i re c t o r s’ re p o rt
The Directors present their report and 
the audited ﬁnancial statements for Ilika 
plc (‘Ilika’) and its subsidiaries (‘the 
Group’) for the year ended 30 April 2012.
Principal activities
The principal activity of Ilika and the 
Group is the discovery and development 
of novel materials for the energy, 
electronics and biomedical sectors.
Business review
A detailed review of the business, its 
results and future direction, together 
with the key performance indicators of 
turnover by business sector and 
geographical market, is included in the 
Chairman’s and Chief Executive’s review.
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 (Financial Director  
and Company Secretary) 
• Prof. B.E. Hayden (Chief Scientiﬁc 
Ofﬁcer) 
• Mr. G. Purdy (Chief Executive) 
Non-Executive
• Mr. J.B. Boyer (Chairman) 
• Dr. W. Braun 
• Ms. C. Spottiswoode CBE 
• Prof. Sir W. Wakeham 
Details of the Directors’ remuneration 
and share options are shown in note 4  
of these accounts.
The Group maintained directors’ and 
ofﬁcers’ liability insurance cover 
throughout the period.
Principal risks and uncertainties
Commercial risk
The Group 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 Group 
is largely dependent on its partners to 
commercialise the end-products 
containing the Group’s materials.
Financial risk
The Group is reliant on a small number 
of signiﬁcant customers and partners. 
Termination of these agreements could 
have a material adverse affect on the 
Group’s results or operations or ﬁnancial 
condition. The Group expects to incur 
further operating losses as progress  
on development programmes continue. 
There can be no assurance that the 
Group will ever achieve signiﬁcant 
revenues or proﬁtability.
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.
Regulatory risk
The Group’s materials and products are 
subject to various European and other 
legislative and regulatory requirements. 
Regulatory issues could lead to delays  
in development which take time and 
investment to resolve.
Post balance sheet events
On the 22 May 2012, 60,000 Convertible 
Preference Shares were converted to 
Ordinary Shares.
Supplier payment policy
It is the Group’s policy to settle debts 
with its creditors on a timely basis, 
taking best advantage of the terms and 
conditions offered by each supplier. As 
at 30 April 2012, the number of creditor 
days outstanding for the Group was  
27 days (2011: 21 days). 
Financial instruments
The Group’s principal ﬁnancial 
instrument comprises cash and this is 
used to ﬁnance the Group’s operations. 
The Group has various other ﬁnancial 
instruments such as trade credit 
facilities that arise directly from its 
operations. The Group places deposits 
surplus to short-term working 
requirements with a range of reputable 
UK based banks and building societies.  Annual report 2012  Ilika plc  17 www.ilika.com
FINANCIAL
STATEMENTS
CORPORATE
GOVERNANCE
BUSINESS
REVIEW
These balances are placed at ﬁxed rates of 
deposit with maturities between 1 and 9 
months. See note 17 for IFRS 7 disclosure 
regarding ﬁnancial instruments. 
Results and dividends
The Consolidated Statement of 
Comprehensive Income for the year is 
set out on page 23. The Group’s loss for 
the ﬁnancial year after taxation was  
£2.7 million (2011: £3.0 million).
The Directors do not recommend the 
payment of a dividend.
Charitable and political donations
The Group made no charitable or 
political donations during the year  
(2011: Nil).
Research and development costs
In accordance with the policy outlined in 
note 1, the Group incurred research and 
development expenditure of £1,377,000 
in the year (2011: £1,167,000). 
Commentary on the major activities  
is given in the Chairman’s review and 
Chief Executive’s review. 
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 reappoint BDO LLP  
will be proposed at the next Annual 
General Meeting. 
Substantial shareholdings
On 30 June 2012 the Company had been 
notiﬁed of the holdings of 3 percent or 
more of the issued share capital of the 
Company, as shown in the above table.
Directors’ responsibilities
The Directors are responsible for 
preparing the annual report and the 
ﬁnancial statements in accordance with 
applicable law and regulations. 
Shareholder
Number of 
Ordinary 
Shares
% 
shareholding
IP Group 8,161,487 17.9
St Peter Port Capital 6,018,924 13.2
Nomura International 6,018,924 13.2
Ruffer LLP 4,545,454 10.0
Mackin Holdings Inc 4,117,647 9.1
Southampton Asset Management 3,799,900 8.4
Artemis 2,670,7415.9
Southern Fox 2,424,093 5.3
Nortrust Nominees 1,830,991 4.0
Legal and General 1,720,677 3.8
Wyvern 1,598,039 3.5
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.
By order of the Board
Graeme Purdy
Chief Executive
18 July 2012 Jack Boyer, Chairman
‘ 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.’
18  Ilika plc  Annual report 2012
Corporate governance
 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 May 2010 
(‘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,  
3 Executive Directors and 3 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 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 bimonthly. 
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 and Jack Boyer.  Annual report 2012  Ilika plc  19 www.ilika.com
FINANCIAL
STATEMENTS
CORPORATE
GOVERNANCE
BUSINESS
REVIEW
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  
currently comprises Dr. Werner Braun 
(Chairman), Clare Spottiswoode CBE  
and Jack Boyer. It 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 currently 
comprises Jack Boyer (Chairman), 
Professor Sir William Wakeham and  
Dr. Werner Braun. 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 7 /7 – – –
Mr. J.B. Boyer 7 /7 2/2 1/1 2/2
Dr. W. Braun 7 /7 – 1/1 2/2
Prof. B.E. Hayden 7 /7 – – –
Mr. G. Purdy 7 /7 – – –
Ms. C. Spottiswoode 7 /7 2/2 – 2/2
Prof. Sir W. Wakeham 6/7 2/2 1/1 –
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
18 July 2012 Graeme Purdy, Chief Executive
Recognising our  
responsibility ...
‘ Ilika recognises the 
importance of 
approaching its 
responsibilities to 
corporate social 
responsibility in a 
coordinated and 
committed fashion.  
It is our ambition to 
include CSR in all  
parts of our business.’
20  Ilika plc  Annual report 2012
Corporate governance
 Corporate social responsibility
Ilika recognises the importance of 
approaching its responsibilities to 
corporate social responsibility (‘CSR’)  
in a coordinated and committed fashion 
and we aim to ensure our approach  
to creating business growth manages 
environmental and social issues whilst 
delivering value for the Company and its 
shareholders and continued beneﬁt for 
society. This statement acknowledges 
our ambition to include CSR in all parts  
of our business.
Overall responsibility for developing  
and implementing our CSR policies  
on social, ethical and environmental 
matters and for reviewing their 
effectiveness lies ultimately with the Ilika 
Board. The Board will regularly review 
the scope of the Company strategy and 
report to stakeholders to ensure we 
remain focused on the material issues 
for the business.
Ilika’s policies and procedures, including 
those relating to social, environmental, 
health and safety, employment and ethical 
matters, are reviewed by the management 
team regularly and are communicated to 
all employees through the staff handbook, 
email communications and regular 
Company meetings. The management 
team report to the Board to ensure the 
members are fully apprised of the status 
of the Company’s efforts in this area.
The main areas of CSR at Ilika are:
•  health and safety;
•  environment and sustainability;
•  employee rights;
•  values and ethics; and
•  contribution to society.
Health and safety
We recognise our responsibility to 
ensure the well-being, safety and welfare 
of our employees and to maintain a safe 
and healthy working environment for  
all of our employees and visitors. We 
understand that health and safety has 
positive beneﬁts for the Company and 
that a commitment to a high level of 
safety makes good business sense.  
As a business function, health and safety 
must continually progress and adapt  
to change.
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. Policies 
and procedures are independently 
reviewed by experts to ensure 
compliance with best practice and  
with the relevant health and safety 
legislation. 
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 that it is essential that both 
as a Company and as individuals we 
should 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 that our 
suppliers do likewise and we actively 
seek collaborations with those who are 
similarly aware of and active in this ﬁeld.
This past year has seen us implement 
more initiatives within the business in 
furtherance of our policies. We have 
obtained copies of our suppliers CSR 
policies to ensure there is a good  
match with our objectives; we purchase 
recycled paper, preferably in bulk to 
avoid multiple deliveries; our printers 
are set to double-sided printing; each 
work station has a recycling only bin  
and we have increased the number of 
international teleconferences, thereby 
saving on travel. Annual report 2012  Ilika plc  21 www.ilika.com
FINANCIAL
STATEMENTS
CORPORATE
GOVERNANCE
BUSINESS
REVIEW
Our ongoing objectives are to:
•   Consider environmental issues in all  
of our decision making processes. 
•   Evaluate future energy usage to see 
how we can use low energy systems.
•   Advise staff on the efﬁcient use of 
energy and other utilities.
•   Reduce travel on business by the use 
of video and telephone conferencing. 
•   Use the most environmentally friendly 
mode of transport consistent with 
business needs.
•   Encourage use of bicycles by offering 
our employees access to the HMRC 
Workcycle scheme. 
•  Reduce overall the resources we use.
•   Promote waste minimisation by recycling 
or ﬁnding other uses of by-products 
whenever economically viable.
•   Reduce our letters and 
correspondence by using alternative 
electronic mechanisms.
•   Using either recycled or FSC paper  
for all hard copy correspondence, 
wherever possible.
•   Consider environmental criteria when 
choosing services and goods.
•   Develop relationships with suppliers 
and contractors so that we all 
recognise our environmental 
responsibilities.
•   Fundamentally Ilika will reduce its 
impact on the environment and ask 
that its employees, suppliers and 
customers do likewise.
Employee rights
Ilika adheres to all 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, our policies  
go beyond the legal requirements and 
we acknowledge our moral right to 
provide a safe and digniﬁed working 
environment. We ensure that 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 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 
suspected inappropriate behaviour to 
other individuals or organisations. 
Equally the Company will treat dishonest 
actions and accusations seriously; this 
may result in disciplinary action in 
accordance with Company rules and 
disciplinary procedures.
Ethics and values
Ilika supports the principles of the 
Universal Declaration of Human Rights 
through its business practices. This 
means that 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 within  
their inﬂuence, which 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. We do 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.
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 degree level.  
We do this by sponsoring posters, 
hosting group visits of A level students 
and offering 6 and 12 month placements 
to Masters students. We have accepted 
an invitation to sit on an employability 
panel for a local sixth form college to 
give guidance to students and teaching 
staff on improved employability for 
students and internally we have formed 
an ‘outreach group’ consisting of 
representatives from both the scientiﬁc 
and management teams in which we 
consider and implement initiatives to 
support those studying the sciences.
Graeme Purdy
Chief Executive
18 July 2012 22  Ilika plc  Annual report 2012
Financial statements
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 2012 which comprise the consolidated 
statement of comprehensive income, the consolidated balance 
sheet, the parent company balance sheet, the consolidated 
cash ﬂow statement, the parent company cash ﬂow statement, 
the consolidated statement of changes in equity, the 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 Auditing Practices Board’s (‘APB’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 APB’s website at  
www.frc.org.uk/apb/scope/private.cfm. 
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 
2012 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 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.
Kim Hayward (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
Southampton
United Kingdom
18 July 2012
BDO LLP is a limited liability partnership registered in England and Wales  
(with registered number OC305127). Annual report 2012  Ilika plc  23 www.ilika.com
Financial statements
Consolidated statement of  
comprehensive income 
BUSINESS
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CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
 Year ended 30 April 
Notes
2012
£
2011
£
Revenue 2 2,011,244 1,544,766
Cost of sales (1,187,769) (936,511)
Gross proﬁt 823,475 608,255
Administrative expenses (3,958,050) (4,148,002)
Other operating income 5 293,253 357,014
Operating loss 3 (2,841,322) (3,182,733)
Financial income 6 16,251 38,239
Financial expense 7 (10,684) (9,458)
Loss before tax (2,835,755) (3,153,952)
Taxation 8 125,470 106,468
Loss for period/total comprehensive income attributable to owners of parent (2,710,285) (3,047,484)
Loss per share 9
Basic (0.07) (0.08)
Diluted (0.07) (0.08) 24  Ilika plc  Annual report 2012
Financial statements
Consolidated balance sheet
As at 30 April
Notes
2012
£
2011
£
ASSETS
Non-current assets
Intangible assets 10 61,863 61,794
Property, plant and equipment 11 1,380,257 2,006,479
Total non-current assets 1,442,120 2,068,273
Current assets
Inventory 12 34,135 34,135
Trade and other receivables 13 660,943 7 48,081
Current tax receivable 8 125,470 122,733
Other ﬁnancial assets – bank deposits 14 4,000,000 1,500,000
Cash and cash equivalents 15 1,299,072 1,303,924
Total current assets 6,119,620 3,708,873
Total assets 7,561,740 5,777 ,146
Issued capital and reserves attributable to owners of parent
Issued share capital 18 472,638 383,548
Share premium 8,677,106 4,169,909
Capital restructuring reserve 6,486,077 6,486,077
Retained earnings (8,916,868) (6,418,196)
Total equity 6,718,953 4,621,338
LIABILITIES
Current liabilities
Trade and other payables 16 835,243 1,125,631
Non-current liabilities
Other payables 16 7,544 30,177
Total liabilities 842,787 1,155,808
Total equity and liabilities 7,561,740 5,777 ,146
These ﬁnancial statements were approved and authorised for issue by the Board of Directors on 18 July 2012.
Mr. J.B. Boyer
Chairman
  Annual report 2012  Ilika plc  25 www.ilika.com
Financial statements
Consolidated cash ﬂow statement
BUSINESS
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CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
Year ended 30 April
2012
£
2011
£
Cash ﬂows from operating activities
Loss before tax (2,835,755) (3,153,952)
Adjustments for:
Amortisation 14,196      11,7 42
Depreciation 819,101 731,599
Equity-settled share-based payments 211,613 601,622
Loss/(proﬁt) on disposal of plant, property and equipment 69 605
Loss on disposal of intangible assets 3,852 298
Net ﬁnancial income (5,567) (28,782)
Operating cash ﬂow before changes in working capital, interest and taxes (1,792,491) (1,836,868)
Decrease/(increase) in trade and other receivables 87 ,138 (128,770)
Increase in inventory – (34,135)
(Decrease/increase in trade and other payables (272,198) 103,712
Cash utilised by operations (1,977,551) (1,896,061)
Tax received 122,733 116,558
Net cash ﬂow from operating activities (1,854,818) (1,779,503)
Cash ﬂows from investing activities
Interest received 16,251 33,038
Purchase of intangible assets (14,265) (7,298)
Sale of property plant and equipment 25 1,013
Purchase of property, plant and equipment (196,826) (603,466)
Increase in other ﬁnancial assets (2,500,000) (1,500,000)
Net cash used in investing activities (2,694,815) (2,076,713)
Cash ﬂows from ﬁnancing activities
Proceeds from issuance of Ordinary Share capital 4,899,991 5,175,611
Share issue costs (303,703) (764,282)
Capital element of ﬁnance leases (40,823) (34,149)
Interest element of ﬁnance leases (10,684) (9,458)
Net cash from ﬁnancing activities 4,544,781 4,367 ,722
Net (decrease)/increase in cash and cash equivalents (4,852) 511,506
Cash and cash equivalents at the start of the period 1,303,924 792,418
Cash and cash equivalents at the end of the period 1,299,072 1,303,924 26  Ilika plc  Annual report 2012
Financial statements
Consolidated statement of changes in equity
Share  
capital
£
Share  
premium 
account
£
Capital 
restructuring 
reserve
£
Retained 
earnings
£
Total 
attributable to 
equity holders  
of parent
£
As at 30 April 2010 121,339 – 6,479,728 (3,945,196)2,655,871 
Share option exercise 21,039 360 (20,789) – 610 
Share-based payment – – 27,138 574,484601,622 
Issue of shares 241,1704,933,831 – – 5,175,001 
Expenses of share issue – (764,282) – – (764,282)
Loss and total comprehensive income – – – (3,047,484)(3,047,484)
As at 30 April 2011 383,548 4,169,909 6,486,077 (6,418,196) 4,621,338 
Share-based  payment – – – 211,613 211,613
Issue of shares 89,0904,810,900 – – 4,899,990
Expenses of share issue –(303,703) – – (303,703)
Loss and total comprehensive income – – – (2,710,285)(2,710,285)
As at 30 April 2012 472,638 8,677,106 6,486,077 (8,916,868) 6,718,953
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.  Annual report 2012  Ilika plc  27 www.ilika.com
Financial statements
Notes to the consolidated ﬁnancial statements
BUSINESS
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GOVERNANCE
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 April 2012 and in accordance with the recognition and measurement criteria of IFRSs adopted by the European Union.
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 April 2012, amounted  
to £5,374,072. The Directors have prepared projected cash ﬂow information for the period ending 12 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. 
Capital restructuring
Ilika plc was incorporated as a vehicle for ﬂotation on AIM in order to acquire, in a share for share exchange, Ilika Technologies 
Limited. These ﬁnancial statements consolidate the results and ﬁnancial position of Ilika Technologies Limited and its subsidiaries, 
through capital restructuring accounting as required by IFRS 3 Revised ‘Business Combinations’. This means that the Group 
ﬁnancial statements account for the share for share exchange as if Ilika Technologies Limited was the acquirer and Ilika plc the 
acquired entity. 
On 6 May 2010, Ilika plc acquired, in a share for share exchange, Ilika Technologies Limited. As part of the share for share 
exchange agreement, the share options and warrants in Ilika Technologies Limited were transferred to Ilika plc on the same terms 
as previously held. There was no change in the fair value of the share options on the date of transfer because the terms of the 
new share option agreements were the same as the old share options. 
Southampton Asset Management Limited (‘SAM’) exercised 2,099,900 options immediately prior to admission at an exercise 
price of £0.01 per share. This amount was in excess of the amount payable under the terms of the original option agreement held 
in Ilika Technologies Limited and therefore a compensating payment of £20,789, reﬂecting the additional amount paid by SAM, 
was made to SAM and charged to the capital restructuring reserve. 
Ilika plc was admitted to AIM on 14 May 2010. 10,147,059 Ordinary Shares were issued for a total consideration of £5,175,001. The 
premium arising on the issue of these shares was £4,933,831. Total issue costs incurred were £764,282. These costs have been 
written off against the share premium account.
4,000 options were exercised by option holders after admission at an exercise price of £0.10 per share. 
On 23 April 2012, 8,909,074 Ordinary Shares were issued for a total consideration of £4,899,990. The premium arising on the 
issue of these shares was £4,810,900 and total issue costs incurred were £303,703.
(a) New standards, amendments to standards or interpretations adopted early
In the current year, there were no new or revised 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:     Financial statements
28  Ilika plc  Annual report 2012
Notes to the consolidated ﬁnancial statements
continued
1 Accounting policies continued
International Accounting 
Standards (IAS/IFRS)
Effective date  
for periods 
commencing
IFRS 1 Severe Hyperinﬂation and Removal of Fixed Dates for First-time Adopters (amendments) 1 July 2011
IFRS 7 Disclosures – Transfers of Financial Assets (amendments) 1 January 2013
IFRS 9 Financial Instruments 1 January 2015
IFRS 10 Consolidated Financial Statements 1 January 2013
IFRS 11 Joint Arrangements 1 January 2013
IFRS 12 Disclosure of Interests in Other Entities 1 January 2013
IFRS 13 Fair Value Measurement 1 January 2013
IAS 1 Presentation of Items of Other Comprehensive Income (amendments) 1 July 2012
IAS 12 Deferred tax: Recovery of Underlying Assets (amendments) 1 January 2012
IAS 19 Employee Beneﬁts 1 January 2013
IAS 27 Separate Financial Statements 1 January 2013
IAS 28 Investments in Associates and Joint Ventures 1 January 2013
IAS 32 Disclosures – Offsetting Financial Assets and Financial Liabilities 1 January 2014
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 goods
Sales of equipment and skin-based products are recognised when products are delivered to a customer, the customer has 
accepted the products and collectability of the related receivables is reasonably assured.
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.
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. Annual report 2012  Ilika plc  29 www.ilika.com
BUSINESS
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FINANCIAL
STATEMENTS
1 Accounting policies continued
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 April 2012, 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. The estimated useful lives are as follows:
Leasehold improvements  lease term
Plant, machinery and equipment 3-5 years
Fixtures and ﬁttings  3-5 years
Inventory
Inventory comprises the Group’s cell bank from which the Cryoskin
®
 product is derived. Inventory is valued at the lower of cost 
and net realisable value. Consumable stock items have been written off as an expense in the year incurred.
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.
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 licences 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.
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. Grant revenue is disclosed within other operating income. £293,297 was 
received in government grants in the year (2011: £356,887).
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held on call with the bank. Financial statements
30  Ilika plc  Annual report 2012
Notes to the consolidated ﬁnancial statements
continued
1 Accounting policies continued
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 judgements 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.
• Depreciation of property, plant and equipment 
Depreciation is provided in the consolidated ﬁnancial statements so as to write-down the respective assets to their residual 
values over their estimated useful lives and as such, the selection of the estimated useful lives and the expected residual values 
of the assets requires the use of estimates and judgements. Details of the estimated useful lives are as shown above in the policy 
note for depreciation.
• Amortisation lives
Intangible assets are recorded at their fair value at acquisition date and are amortised on a straight-line basis over their 
estimated useful economic lives from the time they are available for use. Any change in the estimated useful economic lives 
could affect the future results of the Group; however, no changes were made in the year.
• 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 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 organised by market category and operational information is presented to the chief operating decision maker in the following 
market categories; Energy, Electronics, Biomedical (wound care products and high throughput services).
The Group’s activities originate from the production, design and development of high throughput methods of material synthesis, 
characterisation and screening. The Group has commercialised skin wound care based products, details of which are given below.
Energy
The Group has materials development programmes in the battery, fuel cell and hydrogen storage sectors.
Electronics
The Group’s technology can be applied to a wide range of electronic materials, including capacitor, ferroelectric, piezoelectric and 
memory materials.
Biomedical
The biomedical business is built on the Group’s biopolymer technology. The business consists of joint development projects for a 
range of biomedical products as well as the sale of wound care products and services. Annual report 2012  Ilika plc  31 www.ilika.com
BUSINESS
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2 Segment reporting continued
Details of the revenues from external customers by operating segment are given below:
 
Year ended 30 April
Turnover
2012
£
2011
£
Analysis by class of business:
Energy 1,005,823 1,101,448
Electronics 656,738 291,546
Biomedical – high throughput services 188,611 18,000
Biomedical – wound care products and services 160,072 133,772
2,011,244 1,544,766
Year ended 30 April
Turnover
2012
£
2011
£
Analysis by geographical market:
By destination
Belgium – 155,117
United Kingdom 182,524 259,184
Germany – 84,015
Taiwan 30,000 – 
Japan 1,551,200 1,028,450
North America 247 ,520 18,000
2,011,244 1,544,766
Analysed as:
Rendering of services 1,880,514 1,479,526
Sales of goods 130,730 65,240
2,011,244 1,544,766
In the period to 30 April 2012, the Biomedical class of business turnover can be analysed as £130,730 (2011: £65,240) for sale  
of skin-based products and £217,953 (2011: £86,482) for research and development services. All revenues associated with the 
energy and electronics class of business are for research and development services. 
A number of customers individually account for more than 10 percent of the total turnover of the Group. The revenues from these 
companies are indicated below on a segment basis:
Year ended 30 April
Turnover
2012
£
2011
£
Customer 1 781,283 820,919
Customer 2 – 155,117
Customers less than 10 percent 224,540 125,412
Energy total 1,005,823 1,101,448
Customer 3 385,556 17 4,457
Customers less than 10 percent 271,182 117 ,089
Electronics total 656,738 291,546
Customers less than 10 percent 348,683 151,772
Biomedical total 348,683 151,772
2,011,244 1,544,766
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. Financial statements
32  Ilika plc  Annual report 2012
Notes to the consolidated ﬁnancial statements
continued
3 Operating loss
Year ended 30 April
This is arrived at after charging
2012
£
2011
£
Research and development expenditure in the year 1,377,449 1,166,761
Depreciation 819,101 731,599
Amortisation of intangible assets 14,196 11,7 42
Auditors remuneration:
Fees payable to the Group’s auditor for the audit of the Group’s accounts 15,000 15,000
Fees payable to the Group’s auditor for other services:
– The audit of the Group’s subsidiaries 8,625 5,000
– Other assurance services – interim review 10,500 10,000
– Tax services 6,700 6,7 45
– Reporting accountant fees in relation to the ﬂotation and other non-recurring services – 118,420
Operating lease rentals 180,714 17 4,000
Share-based payment charge 211,613 601,622
Foreign exchange differences 1,213 617
4 Employees
The average number of employees during the year, including Executive Directors, was:
 
Year ended 30 April
2012
Number
2011
Number
Administration 9 9
Materials synthesis 27 21
36 30
Staff costs for all employees, including Executive Directors, consist of:
 
Year ended 30 April
2012
£
2011
£
Wages and salaries 1,587,516 1,577,637
Social security costs 160,319 138,896
Share-based payment expense 204,681 601,622
Pension costs 111,215 94,480
2,063,731 2,412,635 Annual report 2012  Ilika plc  33 www.ilika.com
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4 Employees continued
The Directors’ costs consist of:
Basic  
salary
£
Fees
£
Beneﬁts  
in kind
£
Bonus
£
Total  
short-term 
beneﬁts
£
Pension
£
Share-based 
payment 
expense
£
Total
£
Year to 30 April 2012
G. Purdy 150,000 – 413 – 150,413 29,312 69,318 249,043
S. Boydell 90,500 – 271 – 90,271 24,901 8,096 123,268
B. Hayden 50,000 – – – 50,000 – 34,659 84,659
J. Boyer 60,000 – – – 60,000 – 69,318 129,318
W. Braun – 30,000 – – 30,000 – 4,630 34,630
W. Wakeham 30,000 – – – 30,000 – 4,630 34,630
C. Spottiswoode 30,000 – – – 30,000 – 4,630 34,630
410,500 30,000 684 – 440,684 54,213 195,281 690,178
Year to 30 April 2011
G. Purdy 150,197 – 418 24,000 17 4,615 27,707 199,366 401,688
S. Boydell 92,722 – 267 10,500 103,489 20,101 29,879 153,469
B. Hayden 50,000 – – – 50,000 – 99,167 149,167
J. Boyer 59,835 – – – 59,835 – 200,633 260,468
W. Braun 27,417 2,500 – – 29,917 – 13,244 43,161
W. Wakeham 29,917 – – – 29,917 – 12,509 42,426
C. Spottiswoode 29,637 – – – 29,637 – 10,880 40,517
A. Marrocco – – – – – – 2,278 2,278
K. Seifert –––––– 736 736
439,725 2,500 685 34,500 477,410 47,808 568,692 1,093,910
Beneﬁts in kind include critical illness cover.
The unapproved share options of the Directors under the ‘Ilika plc Executive Share Option Scheme 2010’ are set out below:
2012  
Number
2011  
Number
G. Purdy 1,800,000 1,800,000
J. Boyer 1,800,000 1,800,000
B. Hayden 900,000 900,000
S. Boydell 205,200 205,200
W. Braun 115,200 115,200
W. Wakeham 115,200 115,200
C. Spottiswoode 100,200 100,200
The approved share options of the Directors in Ilika plc exchanged from share options in Ilika Technologies Limited. For further 
details see note 22. 
2012  
Number
2011  
Number
G. Purdy 760,700 760,700
S. Boydell 90,000 90,000
The unapproved share options of the Directors in Ilika plc exchanged from share options in Ilika Technologies Limited. For further 
details see note 22. 
2012  
Number
2011  
Number
G. Purdy 136,200 136,200
J. Boyer 540,200 540,200
W. Braun 20,000 20,000
B. Hayden 59,300 59,300
No options have lapsed in the period.  Notes to the consolidated ﬁnancial statements
continued
Financial statements
34  Ilika plc  Annual report 2012
5 Other operating income
Year ended 30 April
2012
£
2011
£
Grant income 293,297 356,867
Sundry other income (43) 147
293,254 357,014
6 Financial income 
Year ended 30 April
2012
£
2011
£
Income from short-term deposits 16,251 38,239
7 Financial expense
Year ended 30 April
2012
£
2011
£
Interest on:
Finance leases 10,684 9,458
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 research and 
development tax credit claims as follows:
 
Year ended 30 April
2012
£
2011
£
Current tax on loss for the year 125,470 122,733
Adjustments to prior period – (16,265)
125,470 106,468
(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 
26 percent (2011: 28 percent). The differences are reconciled below:
2012
£
2011
£
Loss on ordinary activities before tax (2,835,755) (3,153,952)
Loss on ordinary activities before tax multiplied by the standard rate of  
corporation tax in the UK of 26 percent (2011: 28 percent) (737,296) (883,107)
Effects of:
Expenses not deductible for corporation tax 25,922 29,576
Other temporary differences not recognised – 169,138
Plant, property and equipment temporary differences not recognised – 32,318
Research and development relief (51,566) (2,619)
Origination of unrecognised tax losses 579,818 531,961
Share options 57,652 –
Under provision in previous years – 16,265
Total tax credit for the year (125,470) (106,468)
Unrecognised deferred taxation
There are tax losses available for carry forward against future trading proﬁts of approximately £9,953,000 (2011: £8,269,000).  
A deferred tax asset in respect of these losses of approximately £2,389,000 (2011: £2,150,000) has not been recognised in the 
accounts, as the full utilisation of these losses in the foreseeable future is uncertain. Annual report 2012  Ilika plc  35 www.ilika.com
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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 proﬁt after tax, are as follows:
 
Year ended 30 April
2012
number
2011
number
Weighted average number of equity shares 38,525,718 38,354,759
£ £
Earnings, being proﬁt after tax (2,710,285) (3,047,484)
£ £
Loss per share (0.07) (0.08)
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 April 2012 there were 18,514,186 options outstanding (2011: 18,388,316 options outstanding) as detailed in notes 18 and 22.
10 Intangible assets
Software 
licences
£
Intellectual 
property
£
Total 
£ 
Cost
As at 30 April 2010 33,886 75,000 108,886
Additions 7,298 – 7,298
Disposals (18,824) – (18,824)
As at 30 April 2011 22,360 75,000 97,360
Additions 14,265 14,265
Disposals (8,707) (8,707)
As at 30 April 2012 27,918 75,000 102,918
Amortisation
As at 30 April 2010 23,398 18,750 42,148
Provided for the year 6,742 5,000 11,7 42
Disposals (18,324) – (18,324)
As at 30 April 2011 11,816 23,750 33,566
Provided for the year 9,196 5,000 14,196
Disposals (8,707) – (8,707)
As at 30 April 2012 12,305 28,750 39,055
Net book value
As at 30 April 2010 10,488 56,250 66,738
As at 30 April 2011 10,544 51,250 61,794
As at 30 April 2012 15,613 46,250 61,863
The amortisation charge of £14,196 (2011: £11,742) is included within administrative expenses. Notes to the consolidated ﬁnancial statements
continued
Financial statements
36  Ilika plc  Annual report 2012
11 Property, plant and equipment
Leasehold 
improvements
£ 
Plant,  
machinery and 
equipment
£
Fixtures  
and ﬁttings
£ 
Total
£
Cost
As at 30 April 2010 371,667 3,170,275 159,165 3,701,107
Additions 16,232 648,161 6,972 671,365
Disposals – (69,251) – (69,251)
As at 30 April 2011 387,899 3,749,185 166,137 4,303,221
Additions 33,443 156,749 6,634 196,826
Disposals – (17,112) – (17,112)
As at 30 April 2012 421,342 3,888,822 172,771 4,482,935
Depreciation
As at 30 April 2010 357,379 1,177,029 98,570 1,632,978
Provided for the year 16,154 683,224 32,221 731,599
Disposals – (67,835) – (67,835)
As at 30 April 2011 373,533 1,792,418 130,791 2,296,7 42
Provided for the year 19,226 770,857 29,018 819,101
Disposals – (13,165) – (13,165) 
As at 30 April 2012 392,759 2,550,110 159,809 3,102,678
Net book value
As at 30 April 2010 14,288 1,993,246 60,595 2,068,129
As at 30 April 2011 14,366 1,956,767 35,346 2,006,479
As at 30 April 2012 28,583 1,338,712 12,962 1,380,257
The net book value of ﬁxtures and ﬁttings includes an amount of £nil (2011: £7,187) and plant, machinery and equipment includes 
an amount of £44,650 (2011: £68,622) in respect of assets held under ﬁnance lease contracts.
Commitments for capital expenditure
 
Year ended 30 April
2012
£
2011
£
Contracted but not provided for – 43,771
12 Inventory
As at 30 April
2012
£
2011
£
Inventory 34,135 34,135
Inventory comprises the Group’s cell bank from which the Cryoskin
®
 product is derived. 
13 Trade and other receivables
As at 30 April
2012
£
2011
£
Trade receivables 24,376 68,052
Prepayments and accrued income 450,964 445,642
Other receivables 185,603 234,387
660,943 7 48,081 Annual report 2012  Ilika plc  37 www.ilika.com
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14 Other ﬁnancial assets – bank deposits
As at 30 April
2012
£
2011
£
Amounts receivable within 1 year:
Sterling ﬁxed rate deposits of greater than 3 months’ maturity at inception 4,000,000 1,500,000
15 Cash and cash equivalents
As at 30 April
2012
£
2011
£
Current bank accounts 389,086 184,201
Short-term deposits with less than 3 months’ maturity 909,986 1,119,723
1,299,072 1,303,924
16 Trade and other payables
Current
As at 30 April
2012
£
2011
£
Trade payables 367,669 217,672
Other payables 15,223 19,700
Other taxes and social security costs 44,441 42,205
Lease purchase agreements 22,633 40,823
Accruals and deferred income 385,277 805,231
835,243 1,125,631
Non-current
As at 30 April
2012
£
2011
£
Lease purchase agreements 7,544 30,177
Lease purchase agreements
As at 30 April
2012
£
2011
£
Amounts payable
Within 1 year 22,633 40,823
In 1 year to 2 years 7,544 22,633
In 2 years to 5 years – 7,544
30,177 71,000
Lease purchase agreements are secured on the related assets and carry interest at ﬁxed rates. The total amount payable under 
leases as at 30 April 2012 was £35,853 (2011: £87,738). Notes to the consolidated ﬁnancial statements
continued
Financial statements
38  Ilika plc  Annual report 2012
17 Financial instruments 
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 April
2012
£
2011
£
Financial assets
Loans and receivables
Trade receivables 24,376 68,052
Accrued income 211,262 303,405
Other receivables 185,603 234,387
Current bank accounts 389,086 184,201
Bank deposits 4,000,000 1,500,000
Short-term deposits 909,986 1,119,723
Total loans and receivables 5,720,313 3,409,768
Financial liabilities
Other ﬁnancial liabilities
Trade payables 367,669 217,672
Other payables 15,223 19,700
Other taxes and social security costs 44,441 42,205
Lease purchase agreements 30,177 71,000
Accruals 252,760 358,258
Total other ﬁnancial liabilities (see note 16) 710,270 708,835
The risks associated with these 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. With the exception of its hire 
purchase liabilities, which are disclosed in note 16, all other Group payable balances fall due for payment within 1 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 and building societies. These balances are placed at 
ﬂoating rates of interest and deposits have maturities of 1 to 12 months. The Group’s cash and short-term deposits are set out in 
note 15.
 
Fixed-rate ﬁnancial liabilities comprises of a ﬁnance lease which expires in August 2013. It has a weighted average interest rate of 
13.4 percent. The maturity proﬁle is detailed in note 16. 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 April 2012 had a weighted average period to maturity of 166 days and a weighted average annualised rate 
of interest of 1.96 percent. 
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 April 
2012 by approximately £11,000 (2011: £16,000). Annual report 2012  Ilika plc  39 www.ilika.com
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17 Financial instruments continued
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 April 
2012 by approximately £15,000 (2011: £33,500).
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.
18 Share capital
As at 30 April
2012
£
2011
£
Authorised
45,482,433 Ordinary Shares of £0.01 each (2011: 36,573,359) 454,824 365,734
1,781,400 Convertible Preference Shares of £0.01 each 17,814 17,814
Allotted, called up and fully paid
45,482,433 Ordinary Shares of £0.01 each (2011: 36,573,359) 454,824 365,734
1,781,400 Convertible Preference Shares of £0.01 each 17,814 17,814
472,638 383,548
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:
–  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
– 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 23 April 2012, 8,909,074 Ordinary Shares were issued for a total consideration of £4,899,990. The premium arising on the 
issue of these shares was £4,810,900 and total issue costs incurred were £303,703.
On 22 May 2012, 60,000 £0.01 Convertible Preference Shares were converted to £0.01 Ordinary Shares.
Share options and warrants
Employee related share options are disclosed in note 22. In addition to these, there were 107,300 non-employee share options 
over Ordinary Shares of £0.01 at the year end. The Company’s brokers also have a warrant to subscribe to 130,100 Ordinary 
Shares of £0.01.
10,147,059 warrants to subscribe to Ordinary Shares of £0.01 were issued on 14 May 2010 to investors who subscribed to the 
placing as one warrant for each share subscribed and the Company’s brokers were issued with a warrant to subscribe to 392,157 
Ordinary Shares of £0.01.
19 Operating leases
The total future minimum rent payable under non-cancellable operating leases is as follows:
As at 30 April
2012
£
2011
£
Property
Within 1 year – 10,217
In 1 to 2 years 51,7 49 –
In 2 to 5 years 370,613 366,204
422,362 376,421 Financial statements
40  Ilika plc  Annual report 2012
Notes to the consolidated ﬁnancial statements
continued
20 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 £111,215 (2011: £94,480). 
21 Related party transactions
The Directors consider that no 1 party controls the Group.
During the year ended 30 April 2012, the Company incurred costs of £295,109 (2011: £294,248) 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 April 2012, the  
amount unpaid in respect of these costs was £6,606. (2011: £8,488).
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.
22 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 option schemes.
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.
On 14 May 2010, options in the Ilika Technologies Limited share option scheme were exchanged for options in Ilika plc.  
1 option in Ilika Technologies Limited was exchanged for 100 options in Ilika plc with the option price in Ilika plc shares being  
one one hundreth of the price in Ilika Technologies shares. 
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 a meeting of the Remuneration Committee on 13 July 2011, it was agreed that the market-based performance criteria applicable 
to the options which were granted in May 2010, be amended to reﬂect a series of Company speciﬁc ﬁnancial and commercial 
milestones.
At 30 April 2012, the following options, whose fair values have been fully charged to the consolidated statement of total 
comprehensive income, were outstanding:
Approved share options:
Date of grant
Number  
of shares
Period  
of option
Exercise price 
per share
19 May 2004 375,000 10 years £0.10
29 June 2004 219,700 10 years £0.10
9 June 2005 139,500 10 years £0.10
30 March 2006 15,200 10 years £0.10
14 May 2007 156,100 10 years £0.80
15 January 2008 70,400 10 years £1.00
2 February 2009 138,000 10 years £0.80
1 December 2009 90,000 10 years £0.80
None of these options were exercised in the year.
Unapproved share options:
Date of grant
Number  
of shares
Period  
of option
Exercise price 
per share
29 June 2004 273,100 10 years £0.10
1 December 2005 280,000 10 years £0.10
8 May 2006 115,500 10 years £0.10
11 July 2007 195,500 10 years £0.80
30 August 2007 151,600 10 years £0.10
11 November 2008 40,000 10 years £2.4283
None of these options were exercised in the year. Annual report 2012  Ilika plc  41 www.ilika.com
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22 Share-based payments expense and share options continued
At 30 April 2012 the following share options were outstanding in respect of the approved share options granted in the year:
Date of grant
Number  
of shares
Period  
of option
Exercise price  
per share
1 February 2012 150,870 10 years £0.53
Black-Scholes valuation
Weighted average exercise price Number
2012
£
2011
£
2012 2011
Outstanding:
At start of the period 0.3499 34.95 2,263,600 22,676 
100 for 1 exchange – 0.3495 – 2,244,944 
Lapsed in the period – – (4,000) – 
Exercised during the period – 0.1000 – (4,000)
Granted during the period 0.5300 – 150,870 – 
At the end of the period 0.3612 0.3499 2,410,470 2,263,600 
The exercise price of options outstanding at the end of the period ranged between £0.10 and £2.4283 and their weighted average 
contractual life was 3.9 years (2011: 4.9 years). These share options are exercisable and must be exercised within 10 years from 
the date of grant. 
The following information is relevant in the determination of the fair value of options granted under the equity-settled share-based 
remuneration schemes under the Black-Scholes method. 
Year to  
30 April
2012
Year to  
30 April
2011
Equity-settled:
Weighted average share price at date of grant/£ 0.53 49.50
Exercise price/£ 0.53 80.00
Weighted average contractual life/years 9.7 9.7
Expected volatility 10% 30%
Expected dividend yield 0% 0%
Risk free interest rate 0.5% 0.5%
The volatility has been based on the average of the standard deviation of the daily historical share price of the Company since its 
listing on AIM in May 2010. The prior period volatility was based on the annualised average of the standard deviation of the daily 
historical continuously compounded returns of the share price of three companies listed on AIM which had a broadly similar 
technology risk proﬁle to the Group. The risk free rate was assumed to be the yield to maturity on a UK gilt strip with the term to 
maturity equal to the expected life of the option.
Stochastic valuation
Weighted average exercise price Number
2012
£
2011
£
2012 2011
Outstanding:
At start of the period 0.51 – 5,352,100 –
Granted during the period – 0.51 – 5,365,400 
Lapsed during the period – 0.51 (25,000) (13,300)
At the end of the period 0.51 0.51 5,327,100 5,352,100 
The exercise price of options outstanding at the end of the period was £0.51 (2011: £0.51) and their weighted average contractual 
life was 9 years (2011: 10 years).  42  Ilika plc  Annual report 2012
Notes to the consolidated ﬁnancial statements
continued
Financial statements
22 Share-based payments expense and share options continued
Ilika plc Executive Share Option Scheme 2010
At 30 April 2012 the following share options were outstanding in respect of the Ilika plc Executive Share Option Scheme 2010:
Date of grant
Number  
of shares
Period  
of option
Exercise price 
per share
14 May 2010 126,300 10 years £0.51
Members of staff in the Group have options in respect of Ordinary Shares in Ilika plc, which were conditional upon the achievement 
of a 10 percent increase in the Company’s share price above that of the FTSE TechMARK All Share Price Index over a 3–year period.  
25,000 options lapsed in the year due to employees leaving the Company. At a meeting of the Remuneration Committee on 13 July 
2011, it was agreed that the performance criteria applicable to these options be amended to reﬂect a series of ﬁnancial and 
commercial milestones.
Ilika plc unapproved share options
At 30 April 2012 the following share options were outstanding in respect of Ilika plc unapproved share options:
Date of grant
Number  
of shares
Period  
of option
Exercise price 
per share
14 May 2010 5,200,800 10 years £0.51
Directors, Non-Executive Directors and founders of the Group were granted a total of 5,200,800 options in respect of Ordinary 
Shares in Ilika plc. These options vest in 4 tranches. The 1st Tranche of 825,000 options were granted on the 14 May 2010 with no 
performance conditions attached. The remaining 3 Tranches of 1,458,600 options were conditional upon the achievement of a 10 
percent increase in the Company’s share price above that of the FTSE TechMARK All Share Price Index in each of the 3 years 
subsequent to the ﬂotation. At a meeting of the Remuneration Committee on 13 July 2011, it was agreed that the performance 
criteria applicable to the options granted under Tranche 2 should be waived. Furthermore, it was agreed that the performance 
criteria applicable to the options granted under Tranches 3 and 4 be amended to reﬂect a series of ﬁnancial and commercial 
milestones. This change in performance criteria demands that the share-based payment charge attributable to these options is 
recalculated under the Black-Scholes method. The resultant charge is considerably below the stochastic charge previously 
calculated and therefore, in accordance with IFRS 2, the higher stochastic share-based payment charge is retained. 
No options were exercised or lapsed in the year.
The following information is relevant in the determination of the fair value of options granted under the equity-settled share-
based remuneration schemes operated by the Group under the stochastic valuation model.
Expected term. This is the most likely estimate of the period from grant until the exercise date. For these options, the assumption 
of an expected term of part way between vesting and lapse for each option/tranche. 
Expected volatility. The normal approach is to look at the historical volatility of the share price over the most recent period that is 
generally commensurate with the expected award term. However, this approach was not possible here given that the options were 
granted on the date of the Company’s admission to AIM. In such cases, IFRS 2 allows the consideration of the historical volatility of 
other similar entities to determine a proxy for the Company’s volatility. Similar entities, for the purpose of calculating volatility, 
have been chosen as the constituents of the Company’s comparator Index . Volatility for each of these companies has been 
calculated over both 3 and 6 years resulting in median volatilities of 46.7 percent and 42.3 percent respectively. A proxy volatility 
of 45 percent (being midway between these two ﬁgures) has been used for valuing these options. 
Expected dividend yield. The Company does not pay, and is not currently expected to pay any dividends, so the dividend yield has 
been set to zero. 
Risk-free rate. This is calculated based on UK gilts with a term commensurate with the expected term. 
The charge for the prior period had been calculated on the basis that the Company ﬂoated in May 2010.
2012
£
2011
£
Share-based payment expense:
Black-Scholes calculation 891 27 ,138
Stochastic valuation 210,722 57 4,484
211,613 601,622 Annual report 2012  Ilika plc  43 www.ilika.com
Company balance sheet of Ilika plc 
Financial statements
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
As at 30 April
Notes
2012  
£
2011  
£
ASSETS
Non-current assets
Investments in subsidiary undertaking 23 121,339 121,339
Current assets
Trade and other receivables 24 9,083,842 4,378,517
Cash at bank and cash equivalents – –
Total net assets 9,205,181 4,499,856
Equity
Issued share capital 25 472,638 383,548
Share premium 25 8,656,317 4,149,120
Retained earnings 25 (14,345) (41,011)
LIABILITIES 9,114,610 4,491,657
Current liabilities
Trade and other payables 90,571 8,199
Total liabilities 90,571 8,199
Total equity and liabilities 9,205,181 4,499,856
The notes on pages 46 to 47 form part of these ﬁnancial statements.
These ﬁnancial statements were approved and authorised for issue by the Board of Directors on 18 July 2012. 
Mr. J.B. Boyer
Chairman 44  Ilika plc  Annual report 2012
Financial statements
Company cash ﬂow statement
Year ended 30 April
2012
£
2011
£
Cash ﬂows from operating activities
Loss before tax (184,948) (642,633)
Adjustments for:
Equity-settled share-based payments 211,613 601,622
Operating cash ﬂow before changes in working capital, interest and taxes 26,665 (41,011)
Increase in trade and other receivables (4,705,325) (4,378,517)
Increase in trade and other payables 82,372 8,199
Cash utilised by operations (4,596,288) (4,411,329)
Cash ﬂows from ﬁnancing activities
Proceeds from issuance of Ordinary Share capital 4,899,991 5,175,611
Share issue costs (303,703) (764,282)
Net cash from ﬁnancing activities 4,596,288 4,411,329
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 – – Annual report 2012  Ilika plc  45 www.ilika.com
Financial statements
Company statement of changes in equity
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
Share  
capital
£
Share  
premium 
account
£
Retained 
earnings
£
Total 
attributable  
to equity  
holders 
£
As at 30 April 2010 – – – – 
Share exchange with Ilika Technologies 121,339 – – 121,339 
Share option exercise 21,039 (20,429) – 610 
Issue of shares 241,1704,933,831 – 5,175,001 
Expenses of share issue – (764,282) – (764,282)
Share-based payment – – 601,622 601,622 
Loss and total comprehensive income – – (642,633)(642,633)
As at 30 April 2011 383,548 4,149,120 (41,011) 4,491,657 
Issue of shares 89,0914,810,900 – 4,899,991
Expenses of share issue – (303,703) – (303,703)
Share-based payment – – 211,613 211,613
Loss and total comprehensive income – – (184,947) (184,947)
As at 30 April 2012 383,548 8,656,317 (14,345) 9,114,611 
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.  Notes to the consolidated ﬁnancial statements
continued
Financial statements
46  Ilika plc  Annual report 2012
23 Accounting policies
Basis of preparation
These ﬁnancial statements have been prepared in accordance with 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 17.
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.
Related party transactions
During the year the Company made recharges of costs to Ilika Technologies Limited of £563,214 (2011: £551,325) and to Altrika 
Limited of £119,441 (2011: £123,187). In addition the funds raised from the fundraising were transferred to Ilika Technologies 
Limited. The balance outstanding at 30 April 2012 for Ilika Technologies limited was £9,075,927 (2011: £4,243,351) and for Altrika 
Limited was £nil (2011: £123,187).
Share-based payments
The critical accounting estimates, assumptions and judgements underpinning the valuation of the option awards are disclosed in 
note 22.
Financial instruments
The accounting policy relating to ﬁnancial instruments is disclosed in note 1.
Proﬁt of the parent company
Loss 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 £184,948 (2011: £642,633).
Directors’ remuneration
The remuneration of the Directors is disclosed in note 4.
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 £1,949,515 (2011: £1,893,139) and had net liabilities as at 30 April 2012 of £919,078 (2011: net assets of £1,030,437).
Shares in Group undertakings (at cost) £
At 6 May 2011 and 30 April 2012 121,339
Ilika Technologies Limited has a wholly-owned subsidiary, Altrika Limited (incorporated in the UK) which made a loss for the year 
of £575,817 (2011: £511,712) and had net liabilities as at 30 April 2012 of £1,355,138 (£2011: £779,319).
25 Trade and other receivables
As at 30 April
2012
£
2011
£
Prepayments 7,650 7,404
Other debtors 265 4,575
Amounts due from subsidiary undertakings 9,075,927 4,366,538
9,083,842 4,378,517 Annual report 2012  Ilika plc  47 www.ilika.com
BUSINESS
REVIEW
CORPORATE
GOVERNANCE
FINANCIAL
STATEMENTS
26 Share capital
As at 30 April
2012  
£
2011  
£
Authorised
45,482,433 Ordinary Shares of £0.01 each (2011: 36,573,359) 454,824 365,734
1,781,400 Convertible Preference Shares of £0.01 each 17,814 17,814
Allotted, called up and fully paid
45,482,433 Ordinary Shares of £0.01 each (2011: 36,573,359) 454,824 365,734
1,781,400 Convertible Preference Shares of £0.01 each 17,814 17,814
472,638 383,548
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:
–  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
–  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 23 April 2012, 8,909,074 Ordinary Shares were issued for a total consideration of £4,899,990. The premium arising on the 
issue of these shares was £4,810,900 and total issue costs incurred were £303,703.
On 22 May 2012, 60,000 £0.01 Convertible Preference Shares were converted to £0.01 Ordinary Shares. 48  Ilika plc  Annual report 2012
Financial statements
Corporate directory
Company number 7187804
Directors
Executive Graeme Purdy
Stephen Boydell
Brian Hayden
Non-Executive Jack Boyer (Chairman)
Dr. Werner Braun
Clare Spottiswoode
Prof. William Wakeham
Secretary Stephen Boydell
Registered ofﬁce Kenneth Dibben House
Enterprise Road
University of Southampton Science Park
Chilworth
Southampton
SO16 7NS
Website www.ilika.com
Advisers
Independent auditors BDO LLP
Arcadia House
Maritime Walk
Ocean Village
Southampton
SO14 3TL
Nominated adviser and broker Numis Securities Limited
The London Stock Exchange Building
10 Paternoster Square
London 
EC4M 7LT
Registrars Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
Public relations Walbrook PR Ltd
4 Lombard Street
London
EC3V 9HD  Ilika plc
Kenneth Dibben House
Enterprise Road
University of Southampton  
    Science Park
Chilworth
Southampton
SO16 7NS
United Kingdom
E info@ilika.com
T +44 (0)23 8011 1400 
F +44 (0)23 8011 1401
www.ilika.com