Ilika plc Annual Report and Accounts 2013
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
Ilika plc
Fast-tracking materials
discovery
Ilika plc
Annual Report and  
Accounts 2013 49
Ilika plc
Annual Report and Accounts 2013
Corporate directory
Company number 7187804
Directors
Executive Graeme Purdy
Stephen Boydell
Brian Hayden
Non-Executive Jack Boyer (Chairman)
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 invents, tests and selects 
materials in the laboratory that 
can be selected for scale-up and 
everyday commercial use.
Our strengths
>
  Validated technology platform protected 
by globally granted patents
>
   Proven ability to attract blue-chip 
multinational commercialisation partners 
from high growth markets
>
   Innovative business model that combines 
low-risk product development revenue 
with substantial upside from licensing
Business Review
1 Overview
2 Ilika at a glance
4 Meeting market requirements
6 Commercial engagement
8  Chairman’s statement
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
44  Company balance sheet
45  Company cash flow statement
46  Company statement of changes in equity
47  Notes to the financial information
49  Corporate directory 01
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Ilika focuses on two key 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
For	 more	 information,	
visit	our	website	at:
www.ilika.com 
Scan here for more 
information on our 
business 02
Ilika plc
Annual Report and Accounts 2013
Ilika at a glance
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.
How we generate growth
Early	 engagement	 	
of	 large	 multinational	
partners	 which	 	
co-	 fund	 the	 route	 to	
commercialisation
Rapid	 discovery	 of	 	
new	 materials
Existing	 commercial	
agreements	 underpin	
revenue,	 strong	
pipeline	 in	 place,	 IP	
value	 amplification	
opportunities
Our key differentiators
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 (‘HT-PVD’) facility 
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.
Informatics
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. 03
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Key products
Shipments	of	fuel	cells	continue	to 	
be	 dominated	 by	 proton	 exchange	
membrane	('PEM')	technology, 	
which	grew	87	percent 	in 	
2011	compared	to	2010.	 The	
technology	is	dependent 	on 	
platinum	containing	electrodes, 	
which	are	the	most 	expensive 	
components	in	the	fuel	cells.
It	is	widely	recognised	that	cost	reduction 	
of	these	electrodes	is	necessary	to	enable 	
widespread	commercialisation	of	PEM 	
technology.
Ilika’s	proprietary	low	cost	catalysts	have 	
been	tested	by	an	independent	fuel	cell 	
testing	company	and	material	transfer 	
agreements	are	now	in	place	with	the 	
global	top	three	automotive	manufacturers. 	
Fuel cell catalysts
The	market 	for	lithium-ion 	
batteries	is	being	driven	today 	
by	demand	for	consumer 	
electronics,	but 	the	car 	
makers	are	also	adopting	the 	
technology	for	hybrid	electric 	
vehicles.
In	order	to	deliver	the	fuel	economy 	
benefits	of	hybrid	and	electric	vehicles, 	
batteries	are	required	which	can	store 	
energy	in	a	small	volume,	but	can	also 	
charge	and	discharge	rapidly	while 	
remaining	 safe.
Ilika	has	worked	with	Toyota	since	2008 	
on	the	development	of	novel	battery 	
chemistries	that	can	fulfill 	 	
these	 objectives.
Solid-state  
batteries Meeting market requirements
04
Ilika plc
Annual Report and Accounts 2013
 > In most developed countries, 1/3 
of total domestic energy demand 
is required for transport 
applications
 > Hydrocarbons used for transport 
fuel have an attractive energy 
density, making them difficult to 
replace with low-carbon 
alternatives
 > Battery technology is the most 
widely used method of storing 
low-carbon portable energy, 
currently mainly in consumer 
electronics, but also to an 
increasing extent for hybrid and 
electric vehicles.
QUESTION
How much energy can a battery hold?
The most widely sold batteries are the 
lead-acid batteries used to power 
start-motors in motor cars. These hold 
60–75 Wh/L (watt-hours per litre, or 
energy per standard volume), which is 
about 1/100th of the energy contained 
in a similar volume of petrol or diesel. 
Lithium-ion batteries can pack more 
energy into the same volume and hold 
about four times the amount of energy 
stored in the same volume of lead acid 
battery, but this is still only about 
1/25th of the energy stored in the 
same volume of hydrocarbon. 
QUESTION
Are batteries safe to use in a car?
There have been incidents of batteries 
catching fire in consumer electronics, 
electric vehicles and, in the full glare of 
publicity, in high profile new aircraft. 
Although these incidents are rare, they 
are very costly for manufacturers 
because of the damage to corporate 
reputation, the cost of product recall 
and the loss of market share. There are 
many more vehicle fires due to petrol 
tanks exploding during accidents  
and engines catching fire, but car 
manufacturers are keen to go to 
extreme lengths to ensure the safety 
of batteries in hybrid and electric 
vehicles. This is one of the principal 
reasons for Toyota’s interest in solid-
state battery technology.
QUESTION
How can the capacity of a battery  
be improved?
The amount of energy that can be 
contained in a battery can only  
be significantly improved by changing 
the materials from which the battery  
is made. A battery is a package of cells 
controlled by a battery management 
system. Each cell is a sealed unit 
containing two electrodes in a 
common electrolyte, usually separated 
by a polymer separator. Much of the 
development work related to batteries 
is concerned with the improvement of 
the ability of the electrode materials to 
hold charge, which defines the capacity 
of the battery. Solid-state batteries can 
also result in higher energy densities  
by replacing the separator and liquid 
electrolyte with a thin solid electrolyte. 
QUESTION
What will batteries look like in  
the future?
Substantial progress has been made in 
recent years in the miniaturisation of 
batteries since the commercialisation 
of lithium-ion batteries. However, the 
term 'lithium-ion' is an umbrella term 
covering many different material types. 
Work is still ongoing to refine and 
improve lithium-ion technology. Ilika is 
working on these improvements with 
some of the world’s leading materials 
suppliers and battery manufacturers. 
However, orders of magnitude 
improvements in battery capacity will 
only be achieved by radical new 
concepts such as lithium-air designs, 
which are currently in their infancy. 05
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Why energy 
storage is 
important... Commercial engagement
06
Ilika plc
Annual Report and Accounts 2013
Market for lithium-ion batteries
The 2012 market size for lithium-ion 
batteries was $11 billion, with growth 
largely driven by portable consumer 
electronics. In 2012, many of the  
hybrid electric vehicle manufacturers 
switched from nickel metal hydride 
technology to lithium-ion batteries. 
This switch has given new impetus  
to the market growth because even  
a small market for hybrid and electric 
vehicles will be a very large market  
for batteries.
Lithium-ion supply chain
Japan’s dominance of the lithium-ion 
battery market peaked in 2000, when 
85 percent of lithium-ion batteries 
were produced there. Since then China 
and, more rapidly, Korea, have been 
gaining market share. In 2012, Korean 
companies held about 40 percent of 
the market while Japanese companies 
held 36 percent, with China holding 
the rest. The growth of the market has 
attracted large chemical companies 
from around the world, including the 
US and Europe, to the supply chain. 
Customer relationships
Ilika now has customer relationships 
with materials manufacturing 
companies, battery manufacturers and 
automotive original equipment 
manufacturers ('OEMs'). Toyota has 
sold by far the most hybrid vehicles 
through the success of its Prius model, 
and is regarded by the industry as the 
leader in this sector. Ilika has had a very 
productive commercial relationship 
with Toyota since 2008 and holds joint 
patents on some of the novel materials 
and production methods that have 
been jointly invented.
IP commercialisation
In 2012 Ilika secured a £4.6 million 
placing to commercialise the jointly-
held IP in solid-state batteries. Since 
then, Ilika has made strong progress 
with the selection and testing of 
optimum material combinations, the 
deposition of active electrochemical 
cell structures and testing of cell 
performance. Grant funding for the 
scale-up facility has been secured, 
creating a clear pathway for 
prototyping and technology transfer  
to a manufacturing partner.
Market requirement:
> > >
Higher energy density
> > >
Faster charge and  
discharge times
 
Solution:
 > Advanced electrode and 
electrolyte materials for  
lithium-ion batteries
 
Status:
> > >
Partnered with Toyota 
since 2008
 > Seven contract renewals
 > Potential for licensing into 
different markets and to 
additional partners
“ Ilika’s high-throughput
techniques are essential
to overcome some of the
technological barriers we
face in the development
of leading edge
technologies.”
Mr Okajima, Project Manager at
T oyota’s Frontier & Advanced 
Engineering Strategy Dept 07
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Developing 
leading-edge 
technologies 08
Ilika plc
Annual Report and Accounts 2013
A compelling  enterprise
“ As we move into the new  
financial year we are confident  
that we have 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
Chairman’s  
statement
These are our third set of full year results as a public company. 
During the year we have seen significant operational progress 
with our IP development programmes and this is outlined in 
the Chief Executive’s review. We also experienced a number of 
challenges during the period, including delays with a number of 
potential contracts and the decision by Energizer to close one of 
its business units, which impacted on our development 
collaboration. This has been reflected in the reduced revenues 
for the Company and has, no doubt, had a significant impact on 
our share price.
Notwithstanding the above, we believe that the Company’s 
strong relationships with existing development partners should 
mean that contracts which were delayed in 2013 will be 
converted or replaced in 2014. Furthermore, the Company 
generated a significant number of new leads with major 
companies during the period. This should allow us to continue 
to broaden our commercial pipeline, further diversify our global 
customer base and deliver significant financial growth over the 
coming years. 09
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
A compelling  enterprise
Operational highlights
 > Grant of patents protecting core 
high throughput technology 
platform in US, Japan and Canada
 > Progression of proprietary low-cost 
fuel cell catalyst development, 
including:
 –  Investment of £150,000 by Carbon 
Trust to support 
commercialisation activities
 – Grant of patents in US and Japan
 –  Delivery of kg-scale quantity for 
OEM trials
 > Completion of initial phase of 
solid-state battery development, 
including:
 –  Selection and testing of optimum 
material combinations
 –  Deposition of active 
electrochemical cell structures
 – Testing of cell performance
 > Streamlining operations through 
disposal of wound-care business 
and consolidation of activities to 
one base in Southampton
 > Focusing business development 
activities and implementing 
operational cost reductions to yield 
renewed growth in the coming 
financial year.
Financial highlights
 > Revenues down 46 percent to 
£1.00 million (2012: £1.85 million) 
 > Gross profit margin up to  
44.1 percent (2012: 43.9 percent)
 > Loss before tax increased  
£3.5 million (2012: £2.4 million)
 > Loss per share unchanged at 0.07p 
(2012: 0.07p)
 > Cash, cash equivalents and bank 
deposits of £1.9 million (as at  
30 April 2012: £5.3 million) 
Turnover percentage by geographical market: (%)
2013 2012
Asia 78 86
Europe 13 1
US 9 13
Disposal of non-core wound care 
business
In December 2012 we disposed of our 
wound care operations allowing us to 
focus on our core activities of developing 
energy conversion and storage materials. 
This resulted in a reduction in overheads 
and the discontinued revenues in the  
7 months to 30 December 2012  
of £0.10 million (2012: £0.16 million) 
which are not included in the reported 
figures below. I would also like to thank  
Dr. Werner Braun, who has been a 
Director of Ilika since May 2007 , for his 
contribution to the Company over the 
years. Dr. Braun, who has extensive 
experience in the medical device sector, 
has stepped down at the end of his fixed 
term in office following the disposal  
of Altrika.
Financial results 
In line with the guidance provided in our 
statement from 16 April 2013, revenues 
from continuing operations for the year 
ended 30 April 2013 fell to £1.00 million 
(2012: £1.85 million), for the reasons 
explained above. Revenue in the year 
does not include any grant income  
(2012: £0.17 million) as the Carbon Trust 
funding was provided as a direct equity 
investment of £0.15 million rather than 
as a grant. 
Gross profit reduced to £0.44 million 
(2012: £0.81 million) and with 
administrative expenses increasing  
to £4.0 million (2012: £3.4 million) as  
a result of increased research and 
development activities, and zero grant 
income (2012: £0.17 million), we 
recorded an increased loss before tax on 
continuing operations of £3.5 million 
(2012: £2.4 million), resulting in a loss per 
share of 0.07p (2012: Loss of 0.07p).
Cash
As at 30 April 2013, the Group’s cash 
position was £1.9 million (2012: £5.3 
million). Post period end, we raised an 
additional £709,000 through a share 
placing which, coupled with securing and 
commencing a number of contracts with 
customers presently being finalised will 
provide sufficient cash to fund our 
requirements for the foreseeable future. 
Additionally, this placing has improved 
our shareholder register with new 
investors whose investment horizons are 
better aligned with our long-term 
corporate objectives.
Outlook
Although last year’s financial results did 
not meet market expectations, the new 
financial year has already seen the 
conversion of one of the delayed 
contracts and we hope to see other 
opportunities convert throughout the 
year. Whilst development work in Japan 
remains the largest contributor to 
revenues and we are encouraged by a 
strong pipeline of opportunities through 
our recently appointed business 
development director based in Frankfurt, 
Germany, as well as further 
opportunities in the US.
The development of our solid-state 
battery technology, co-developed with 
Toyota, for man-portable applications 
has progressed through the first phase  
of the programme in-line with our 
expectations and we have submitted a 
proposal to the US army for the funding 
of technology to full development  
and whilst this assessment process is 
ongoing we are also exploring additional 
commercial support for the technology 
in the consumer electronics and 
automotive sectors.
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 developments of the 
Group over the coming year.
Jack Boyer
Chairman
12 July 2013 10
Ilika plc
Annual Report and Accounts 2013
Focusing on     delivery
“ This year has been one in which 
Ilika’s portfolio of technology  
and intellectual property has 
matured in a number of key 
markets around the globe.”
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.
Graeme Purdy
Chief Executive 11
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Focusing on     delivery
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
This year has been one in which Ilika’s 
portfolio of technology and intellectual 
property ('IP') has matured in a number 
of key markets around the globe.  
The company’s IP can be divided into  
2 broad categories: 1) its platform 
technology for high throughput 
materials development and 2) the  
IP defining the materials, which have 
been developed using that platform.  
At the start of our last financial year,  
in May 2012, the Company received 
confirmation that its patent 
applications covering its core PVD 
patents had been granted in the US, 
Canada and Japan. The PVD technology 
was originally developed at the 
University of Southampton prior to the 
spin out of the Company in 2004. This 
technology has underpinned much of 
the materials innovation which the 
Company has undertaken since its 
formation and still provides the means 
by which the majority of the new 
materials being developed are initially 
made. Hence, in securing granted 
patents for this technology, the 
Company has secured the foundations 
for continued future growth.
The Company considers its core 
technology in high-throughput 
techniques to be a key differentiator 
from other providers of materials 
innovation. Ilika monetises this core 
technology through the development 
of the materials developed using that 
platform. Hence, continued progress 
made in securing IP, which defines  
the materials generated using the 
platform, and commercialising those 
materials is important to the Company. 
This past year has seen important 
milestones achieved across the 
Company’s portfolio, but particularly  
in the key area of energy storage  
and conversion.
The energy conversion materials, which 
are the most mature in Ilika’s portfolio, 
include the low-cost fuel cell electrode 
materials. Reducing the cost of fuel cell 
technology is widely acknowledged as 
a key priority for enabling its adoption 
for both transport and stationary 
applications. Ilika’s materials are 
suitable for use in so-called PEM fuel 
cells, which are of primary interest to 
transport applications. PEM fuel cell 
technology is also being used for 
stationary power applications, 
particularly for domestic power in 
Japan. 40 percent of the cost of a PEM 
fuel cell stack is currently associated 
with the use of platinum as the 
electrocatalyst. Platinum is a scarce 
precious metal and therefore its price 
is sensitive to supply and demand 
pressures. In 2012, the price of 
platinum varied between £28 and 
£35/g. At a typical loading of 11 g/kW, 
this means that an 80 kW fuel cell, 
which might be suitable for a small car, 
requires £2,500–£3,000 of platinum.  
In comparison, the total cost of buying 
an internal combustion engine lies  
in the range £500–£1,000. Ilika’s 
electrocatalysts cost 1/3 of the price, 
on a $/kW basis, of platinum-based 
equivalents. In September 2012,  
Ilika received a ca. £150,000 equity 
investment from the Carbon Trust  
to allow Ilika to complete the 
commercialisation of this technology. 
Since then, Ilika’s patents covering its 
technology have been granted in the 
US and Japan. In addition, Ilika’s 
development partner, ITRI of Taiwan, 
has delivered the first 1 kg of the 
catalyst for testing, primarily with 
OEMs in US and Japan, where Ilika has 
strong patent coverage. Materials 
transfer agreements have been put in 
place and initial samples have been 
made available for confirmatory 
testing at the OEMs. Initial feedback is 
encouraging and further testing is 
expected in this financial year.
In April 2012 Ilika announced that it 
had completed an equity round to fund 
the co-development of its solid-state 
battery technology, which it had 
co-developed with Toyota. Technical 
progress through Phase I of its 
development programme has been  
as expected, with optimisation of 
cell-based data continuing. An open 
channel of communication has been 
maintained with the US army, who 
expressed a strong interest in 
accessing this technology for man-
portable applications. Ilika is also 
pursuing commercial support for the 
technology from the consumer 
electronics and automotive sector.  12
Ilika plc
Annual Report and Accounts 2013
Chief Executive’s 
review continued
Toyota is actively supporting Ilika 
within the automotive sector by 
co-presenting in June 2013 at a 
technology summit, the Advanced 
Automotive Battery Conference  
in Strasbourg.
An important streamlining of the 
business was completed in the last 
financial year. In December 2012, Ilika’s 
wholly-owned biomedical subsidiary, 
Altrika, was disposed of. The transaction 
involved the transfer of the cell-based 
burns treatment products Myskin®  
and Cryoskin® as well as the staff  
and facilities in Sheffield. The high-
throughput polymer platform was 
retained and operations were 
consolidated in Southampton. The 
transaction had a net positive effect 
on Ilika’s balance sheet and allowed 
Ilika to focus on its activities in the 
energy and electronics sector. At the 
end of his term as Non-Executive 
Director, Dr. Werner Braun, stepped 
down from Ilika’s Board in June 2013. 
Dr. Braun has particular expertise in 
the marketing of medical devices 
through his executive role at Biotronik.
The split of Ilika’s revenues across the 
globe continues to have an emphasis  
in Japan, with 78 percent coming from 
Japan, 9 percent from US and 13 
percent from Europe. In 2012, deal 
timelines and conversion rates 
deteriorated, causing the drop in 
reported revenues initially flagged in 
Ilika’s trading update in April 2013. 
Since then, the policy of quantitative 
easing pursued in Japan appears to 
have renewed corporate confidence, 
leading to an improved robustness in 
commercial outlook. Ilika’s core 
customer base has continued to renew 
relationships, as demonstrated by the 
contract renewals announced in 
December 2012 and February 2013. 
Further renewals of these relationships 
are expected in 2013. The Company 
has expectations of growth of the 
contribution of revenues from both  
the USA and Europe. The front end of 
the emerging opportunities in Europe 
was shown by the announcement of  
a new customer in the field of battery 
materials optimisation in April 2013. 
The need for improved energy storage 
and conversion continues to be  
a strong business driver for Ilika,  
which fits well with the Company’s 
core capabilities in being able to  
deliver optimised materials within  
accelerated timelines.
Graeme Purdy
Chief Executive
12th July 2013
May 2012
Patent protection of core 
technology platform in US
May 2012 – April 2013
Progression of low-cost fuel cell 
catalyst commercialisation
December 2012
Streamlining of operations
January 2013
Expansion of facilities
April 2013
Completion of initial phase of solid-
state battery development
May 2013
Reinforcement and broadening of 
shareholder base
May 2013
Patent protection of core 
technology platform in Japan
A year of progress 13
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Financial review
“  Revenue generated 
from European based 
customers increased 
to 13 percent from  
1 percent in 2012.”
Stephen Boydell
Finance Director
Revenue from continuing activities for 
the year ended 30 April 2013 was  
£1.04 million (2012: £1.85 million). 
Discontinued revenues generated in 
the wound care business of Altrika in 
the seven months to December 2012 
were £0.10 million (2012: £0.16 million). 
There was no grant income recognised 
in the period for continuing operations 
as the Carbon Trust supported the 
company’s fuel cell catalyst programme 
by way of a direct equity investment  
of £0.15 million (2012: grant income 
£0.17 million).
Revenues relate to the payments made 
by Ilika’s partners for research and 
development activities. Japan-based 
customers continue to fund the 
majority of the Group’s projects, but 
the appointment of a German-based 
business development resource at the 
end of last financial year helped to 
increase the revenue generated  
from European based customers to  
13 percent of the total from 1 percent 
in 2012. 
Gross margin on customer funded 
programmes has remained at around 
44 percent for the year. Administration 
expenses have increased from  
£3.37 million in 2012 to £4.02 million  
in 2013. An accounting adjustment  
for a share-based payment calculation 
is included within administration 
expenses. In 2012 there was a share-
based payment charge of £0.2 million, 
whilst in 2013, because a number of 
options lapsed in the year, there was a 
credit of £0.25 million. The underlying 
increase in administration expenses in 
the year, after taking into account for 
this accounting adjustment, is 
therefore £1.1 million.
The vast majority of this increase 
relates to the company’s increased 
research and development 
expenditure, primarily on its own 
funded solid-state battery project,  
but also on the grant body supported 
projects like the low-cost fuel cell 
catalyst material and the company’s 
contribution to shared development 
programmes with customers. Total 
spend on research and development 
projects, including depreciation on 
assets attributable to these projects, 
was £2.4 million in 2013, up from  
£1.7 million in 2012. The balance of  
the administrative expenses increase 
relates to expanded business 
development activity and the one-off 
costs associated with the company’s 
laboratory expansion to increase 
capacity and accommodate staff and 
equipment transferred from the  
Altrika business. 
 
The increase in internally funded 
research and development activity, 
coupled with the support from the 
Carbon Trust by way of equity 
investment rather than by grant, has 
resulted in a significantly increased 
Research and Development tax credit 
up from £0.1 million in 2012 to  
£0.24 million in 2013.
Investment in facilities expansion in 
the year was £0.2 million and spend  
on laboratory and IT equipment was 
£0.4 million (2012: total spend on fixed 
assets £0.2 million).  Fixed assets with a 
net book value of £20,000 were disposed 
of with the sale of the Altrika business.
The year end cash position was £1.9 
million (2012: £5.3 million). With the 
group restructuring and investment  
in facilities now complete, this cash 
balance, together with the contracts 
currently being finalised and the post 
year end placing, is sufficient to fund 
the company’s cash requirement for 
the foreseeable future. 
Steve Boydell
Finance Director and Company 
Secretary
12 July 2013 14
Ilika plc
Annual Report and Accounts 2013
Board of Directors
1
3
2
4
6
5
7 15
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
1 Jack Boyer
Chairman
Mr. Boyer joined Ilika as Chairman in 
2004. He is also chairman of iQur Ltd and 
a non-executive director of FTSE 250 
companies Mitie plc and Laird plc and 
chairs the Remuneration Committee of 
the latter. 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). 
Mr. Boyer is a Council member of the 
Engineering and Physical Sciences 
Research Council, the Higher Education 
Funding Council for England’s Research 
Excellence Framework main panel for 
physical sciences 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.
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. On 30 June 2013, 
Dr. Braun stepped down at the end of 
his fixed term of office.
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 
withprofits 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 Flowgroup and is 
a Non-Executive Director of G4S, the 
Payments Council and Enquest 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, 
Senior Vice-President and International 
Secretary of the Royal Academy of 
Engineering, a Fellow of the Institution 
of Chemical Engineers, the Institution 
of Engineering and Technology, the 
Institute of Physics and the Portuguese 
Academy of Engineering. He holds 
honorary degrees from Universidade 
Nova Lisboa and the Universities of 
Lisbon,  Exeter, Southampton, 
Southampton Solent, Loughborough 
and Portsmouth. He is a Fellow  
of Imperial College London and  
was knighted in 2009 for services  
to Chemical Engineering and  
Higher Education. 16
Ilika plc
Annual Report and Accounts 2013
Directors' report
“  T h e p r i n c i p a l a c t i v i t y 
of Ilika and the Group 
is the discovery and 
development of novel 
materials for mass 
market applications.”
Graeme Purdy
Chief Executive
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 2013.
Principal activities
The principal activity of Ilika and  
the Group is the discovery and 
development of novel materials for 
mass market applications.
Business review
A detailed review of the business, its 
results and future direction, together 
with the key performance indicators  
of turnover by 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 – resigned 30 June 2013
Ms. C. Spottiswoode CBE 
Prof. Sir W. Wakeham 
Details of the Directors’ remuneration 
and share options are shown in note 5 
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 22 May 2013, 100,000 Convertible 
Preference Shares were converted to 
Ordinary Shares and 2,375,000 Ordinary 
Shares were issued for a total 
consideration of £712,500 with total 
issue costs incurred of £3,500.
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 2013, the number of 
creditor days outstanding for the 
Group was 16 days (2012: 27 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. 
These balances are placed at fixed 
rates of deposit with maturities 
between 1 and 9 months. See  
note 18 for IFRS7 disclosure regarding 
financial instruments.  17
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
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 
£3.5 million (2012: £2.7 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 
(2012: Nil).
Research and development costs
In accordance with the policy outlined 
in note 1, the Group incurred research 
and development expenditure of 
£1,773,000 in the year (2012: 
£1,377,000). Commentary on the major 
activities is given in the Chairman’s 
statement 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 2013 the Company had 
been notified of the following holdings 
of more than 3 percent or more of the 
issued share capital of the Company.
Shareholder No. of Ordinary Shares % shareholding
IP Group 7,778,387 16.1
St Peter Port Capital 6,018,924 12.4
Henderson Global 5,000,000 10.3
Ruffer LLP 4,545,454 9.4
Mackin Holdings Inc 3,967,647 8.2
Southampton Asset Management 3,799,900 7.9
Charles Stanley Group plc 3,000,750 6.2
Legal and General 2,720,677 5.6
Artemis 2,640,741 5.5
Southern Fox 2,424,093 5.3
Wyvern 1,547,039 3.1
Directors’ responsibilities
The Directors are responsible for 
preparing the Annual Report and the 
financial statements in accordance 
with applicable law and regulations. 
Company law requires the Directors to 
prepare financial statements for each 
financial year. Under that law the 
Directors have elected to prepare the 
Group and Company financial 
statements in accordance with 
International Financial Reporting 
Standards (‘IFRSs’) as adopted by the 
European Union. Under company law 
the Directors must not approve the 
financial statements unless they are 
satisfied that they give a true and fair 
view of the state of affairs of the 
Group and Company and of the profit 
or loss of the Group and Company for 
that period. The Directors are also 
required to prepare financial 
statements in accordance with the 
rules of the London Stock Exchange for 
companies trading securities on the 
Alternative Investment Market (‘AIM’).
In preparing these financial statements, 
the Directors are required to:
• select suitable accounting policies 
and then apply them consistently;
• make judgements and accounting 
estimates that are reasonable and 
prudent;
• state whether they have been 
prepared in accordance with IFRSs as 
adopted by the European Union, 
subject to any material departures 
disclosed and explained in the 
financial statements; and
• prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
Company will continue in business.
The Directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the 
Company’s transactions and disclose 
with reasonable accuracy at any time  
the financial position of the Company 
and enable them to ensure that the 
financial statements comply with the 
requirements of the Companies Act 
2006. They are also responsible for 
safeguarding the assets of the Company 
and hence for taking reasonable steps for 
the prevention and detection of fraud 
and other irregularities.
Website publication
The Directors are responsible for 
ensuring the Annual Report and the 
financial statements are made 
available on a website. Financial 
statements are published on the 
Group's website in accordance with 
legislation in the United Kingdom 
governing the preparation and 
dissemination of financial statements, 
which may vary from legislation in 
other jurisdictions. The maintenance 
and integrity of the Group's website is 
the responsibility of the Directors. The 
Directors' responsibility also extends to 
the ongoing integrity of the financial 
statements contained therein.
By order of the Board
Graeme Purdy
Chief Executive
12 July 2013 18
Ilika plc
Annual Report and Accounts 2013
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.”
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. 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 for the year to 
30 April 2013, 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 bi-monthly. 
The Company Secretary is responsible 
to the Board for ensuring that Board 
procedures are followed and that the 
applicable rules and regulations are 
complied with. All Directors have 
access to the advice and services of the 
Company Secretary, and independent 
professional advice, if required, at the 
Company’s expense. Removal of the 
Company Secretary would be a matter 
for the Board. 
Performance evaluation
The Board has a process for evaluation 
of its own performance which is 
carried out annually.
Board Committees
As appropriate, the Board has 
delegated certain responsibilities  
to Board Committees as follows:
i) Audit Committee
The Audit Committee currently 
comprises Clare Spottiswoode CBE 
(Chairman), Professor Sir William 
Wakeham and Jack Boyer. 
The Committee monitors the integrity 
of the Group’s financial statements and 
the effectiveness of the audit process. 
The Committee reviews accounting 
policies and material accounting 
judgements. The Committee also 
reviews, and reports on, reports from 
the Group’s auditors relating to the 
Group’s accounting controls. It makes 
recommendations to the Board on the 
appointment of auditors and the audit 
fee. It has unrestricted access to the 
Group’s auditors. The Committee keeps 
under review the nature and extent  
of non-audit services provided by the 
external auditors in order to ensure 
that objectivity and independence  
are maintained. 19
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
ii) Remuneration Committee
Until 30 June 2013, the Remuneration 
Committee comprised Dr. Werner Braun 
(Chairman), Clare Spottiswoode CBE and 
Jack Boyer. With the departure of Dr. 
Werner Braun, Professor Sir William 
Wakeham has joined the Committee 
and Jack Boyer has become Chairman. 
The Committee is responsible for 
making recommendations to the Board 
on remuneration policy for Executive 
Directors and the terms of their service 
contracts, with the aim of ensuring 
that their remuneration, including any 
share options and other awards, is 
based on their own performance and 
that of the Group generally. 
iii) Nomination Committee
Until 30 June 2013, the Nomination 
Committee comprised Jack Boyer 
(Chairman), Professor Sir William 
Wakeham and Dr. Werner Braun.  
Dr. Werner Braun has been  
replaced on the Committee by  
Clare Spottiswoode CBE.
It is responsible for providing a formal, 
rigorous and transparent procedure for 
the appointment of new Directors to 
the Board and reviewing the 
performance of the Board each year.
Attendance at Board meetings  
and committees
The Directors attended the following 
Board and committee meetings  
during the year:
Attendance Board Audit Nomination Remuneration
Mr. S. Boydell 7/7 – – –
Mr. J. B. Boyer 6/7 2/2 1/1 2/2
Dr. W. Braun 6/7 – 1/1 2/2
Prof. B. E. Hayden 7/7 – – –
Mr. G. Purdy 7/7 – – –
Ms. C. Spottiswoode 6/7 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
12 July 2013 20
Ilika plc
Annual Report and Accounts 2013
Corporate social  
responsibility
“  We have formed an 
Outreach Department 
and have been working 
collaboratively with 
local schools and 
colleges.”
Ilika continues to recognises the 
importance of approaching its 
responsibilities to corporate social 
responsibility ('CSR') in a co-ordinated 
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 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 regularly reviews 
the scope of the Company strategy and 
reports to stakeholders to ensure we 
remain focused on the material issues 
for the business.
Ilika’s policies and procedures, which 
includes those related to CSR aspects are 
well researched, clearly thought out and 
communicated to all employees and 
those connected with our activities to 
ensure commitment and understanding 
throughout the Company.
The Main areas of CSR at Ilika are:
• Values and ethics
• Health and safety 
• Employee rights
• Contribution to society
• Environment and sustainability
Values and ethics
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. We 
will not work with organisations which 
are involved in the funding or carrying 
out of terrorist activities or 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.
Health and safety
We recognise our responsibility to 
ensure the well-being, safety and 
welfare of our staff and to maintain a 
safe and healthy working environment 
for everyone who is affected by our 
activities. 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. Health and safety is 
considered at the highest level in the 
Company with the ultimate 
responsibility resting with the Board. 
Employee rights
We uphold the dignity of the individual 
by ensuring not only compliance with 
the laws relating to employment rights, 
equal opportunities and non-
discrimination but by going further to 
ensure we provide a safe, supportive 
and dignified working environment.
Graeme Purdy
Chief Executive 21
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
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 doctorate level. 
Environment and sustainability
Ilika continues to make a real and 
sustainable positive impact on the 
broader community by adopting 
environmentally responsible policies and 
operate in an environmentally conscious 
manner. Our objective is to minimise the 
impact of our business activity on the 
environment wherever possible. 
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 where 
possible 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.
• Reduce waste by recycling or finding 
other uses of by-products whenever 
viable.
• Reduce our letters and 
correspondence by using alternative 
electronic mechanisms. 
• Use 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.
Review 
Highlights of the CSR work undertaken 
in the year include:
Environment: Energy usage has been 
fully reviewed in both our offices and 
laboratories and has led to new 
laboratory procedures which require 
tighter co-ordination of the use of 
equipment to ensure cost efficient use 
of our resources. Improved equipment 
usage scheduling has resulted in longer 
periods of shut down thereby reducing 
energy usage.
In our offices we have significantly 
reduced the amount of copying and 
printing undertaken and have set all 
copying equipment to default to 
double-sided, black and white copying. 
Health and Safety: We have invested 
in equipment and training to improve 
working conditions and as a result of 
our ongoing efforts, there were no 
reportable injuries.
Values and ethics: We have requested 
our suppliers’ CSR policies and 
statements to ensure that they are 
aligned with our core business 
principles to carry out business 
honestly, ethically and with respect for 
the rights and interests of others. We 
develop relationships with our suppliers 
to improve quality and efficiency and 
we settle our bills promptly.
Contribution to society: We have 
formed an Outreach Department and 
have been working collaboratively with 
local schools and colleges to create a 
one year programme of lectures, 
competitions and laboratory visits for 
children aged 16 years to 18 years. Our 
programme will proactively support 
and encourage the study and 
enjoyment of science in general and 
Chemistry in particular. In addition our 
Outreach department provides careers 
guidance for children wishing to enter 
into the world of science and we have 
provided 6 month and 12 month 
placements to Masters students.
Outlook
For the year ahead, we have ambitious 
plans to create a system whereby we 
can monitor and quantify our energy 
savings. We will continue to build upon 
our CSR efforts and look forward to a 
mutually rewarding year for our staff, 
the company and all those affected by 
our activities. 22
Ilika plc
Annual Report and Accounts 2013
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 2013 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 sections 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 Financial Reporting Council’s website at 
www.frc.org.uk/auditscopeukprivate
Opinion on financial statements
In our opinion: 
• the financial statements give a true and fair view of the 
state of the Group’s and the parent company’s affairs as 
at 30 April 2013 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
12 July 2013
BDO LLP is a limited liability partnership registered in England and Wales (with 
registered number OC305127). 23
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Consolidated statement of  
comprehensive income 
Year ended 30 April
Notes
2013
£
2012
£
Revenue 2 1,003,943 1,851,172
Cost of sales (561,584) (1,037,908)
Gross profit 442,359 813,264 
Administrative expenses (4,020,375) (3,367,519)
Other operating income 6 17,133 172,097
Operating loss 4 (3,560,883) (2,382,158)
Financial income 7 67,437 16,251
Financial expense 8 (4,575) (10,684)
Loss before tax (3,498,021) (2,376,591)
Taxation 9 239,741 93,198
Loss for period on continuing activities (3,258,280) (2,283,393)
Loss for the period on discontinued activities 3 (216,693) (426,892)
Loss for period/total comprehensive income attributable to owners of parent (3,474,973) (2,710,285)
Loss per share 10
Basic (0.07) (0.07)
Diluted (0.07) (0.07)
Continuing operations (0.06) (0.06)
Discontinued operations (0.01) (0.01) 24
Ilika plc
Annual Report and Accounts 2013
Consolidated balance sheet
Company number 7187804
As at 30 April
Notes
2013
£
2012
£
ASSETS
Non-current assets
Intangible assets 11 9,425 61,863
Property, plant and equipment 12 1,105,706 1,380,257
Total non-current assets 1,115,131 1,442,120
Current assets
Inventory 13 – 34,135
Trade and other receivables 14 577,505 660,943
Current tax receivable 9 230,000 125,470
Other financial assets – bank deposits 15 1,455,092 4,000,000
Cash and cash equivalents 16 407,970 1,299,072
Total current assets 2,670,567 6,119,620
Total assets 3,785,698 7,561,740
Issued capital and reserves attributable to owners of parent
Issued share capital 19 475,354 472,638
Share premium 8,823,770 8,677,106
Capital restructuring reserve 6,486,077 6,486,077
Retained earnings (12,643,692) (8,916,868)
Total equity 3,141,509 6,718,953
LIABILITIES
Current liabilities
Trade and other payables 17 644,189 835,243
Non-current liabilities
Other payables 17 – 7,544
Total liabilities 644,189 842,787
Total equity and liabilities 3,785,698 7,561,740
The notes on pages 27 to 48 form part of these financial statements.
These financial statements were approved and authorised for issue by the Board of Directors on 12 July 2013.
Mr. J.B. Boyer
Chairman
12 July 2013 25
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Consolidated cash flow statement
Year ended 30 April
2013
£
2012
£
Cash flows from operating activities
Loss before taxation continuing operations (3,498,021) (2,376,591)
Loss before taxation discontinued operations (216,693) (459,164)
Adjustments for:
Amortisation 52,438 14,196
Depreciation 803,345 819,101
Equity settled share-based payments (251,851) 211,613
Loss on disposal of plant, property and equipment 155 69
Loss on disposal of intangible assets – 3,852
Net financial income (62,862) (5,567)
Operating cash flow before changes in working capital, interest and taxes (3,173,489) (1,792,491)
Decrease in trade and other receivables 74,734 87,318
Decrease in inventory 34,135 – 
Decrease in trade and other payables (175,966) (272,198)
Cash utilised by operations (3,240,586) (1,977,551)
Tax received 124,905 122,733
Net cash flow from operating activities (3,115,681) (1,854,818)
Cash flows from investing activities
Interest received 59,055 16,251
Purchase of intangible assets – (14,265)
Sale of discontinued operations 50,000 – 
Sale of property plant and equipment – 25
Purchase of property, plant and equipment (551,591) (196,826)
Decrease/(increase) in other financial assets 2,544,908 (2,500,000)
Net cash used in investing activities 2,102,372 (2,694,815)
Cash flows from financing activities
Proceeds from issuance of Ordinary Share capital 149,380 4,899,991
Share issue costs – (303,703)
Capital element of finance leases (22,633) (40,823)
Interest element of finance leases (4,540) (10,684)
Net cash from financing activities 122,207 4,544,781
Net (decrease)/increase in cash and cash equivalents (891,102) (4,852)
Cash and cash equivalents at the start of the period 1,299,072 1,303,924
Cash and cash equivalents at the end of the period 407,970 1,299,072 26
Ilika plc
Annual Report and Accounts 2013
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 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 89,090 4,810,900 – – 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-based payment – – – (251,851) (251,851)
Issue of shares 2,716 146,664 – – 149,380
Loss and total comprehensive income – – – (3,474,973) (3,474,973)
As at 30 April 2013 475,354 8,823,770 6,486,077 (12,643,692) 3,141,509
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.  27
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Notes to the consolidated financial statements
1 Accounting policies
Basis of preparation
The financial statements have been prepared on the basis of the accounting policies which apply for the financial year to 30 
April 2013 and in accordance with the recognition and measurement criteria of International Financial Reporting Standards 
('IFRSs') adopted by the European Union.
The individual financial statements of Ilika plc are shown on page 44 to 48.
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 2013, amounted 
to £1,863,062. 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. 
(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:    
International Accounting 
Standards (IAS/IFRS)
Effective date for  
periods commencing
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 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.
Revenue comprises the fair value for the sale of goods and services, net of value added tax and is recognised as follows:
The following principal accounting policies have been applied consistently in dealing with items which are considered 
material in relation to the financial information. 28
Ilika plc
Annual Report and Accounts 2013
1 Accounting policies continued
Revenue
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.
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 2013, 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.
Notes to the consolidated financial statements 
continued 29
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
1 Accounting policies continued
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 comprised the Group’s cell bank from which the Cryoskin® product is derived. Inventory was 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 licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific 
software. These costs are amortised to administrative expenses using the straight line method over their estimated useful 
lives (1–3 years).
Intellectual property
Acquired intellectual property is included at cost and is amortised to administrative expenses on a straight-line basis over its 
useful economic life of 15 years. 
Financial instruments 
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the 
contractual provisions of the instrument. The Group’s financial assets are all classified as loans and receivables and carried at 
amortised cost. The Group’s financial liabilities are all classified as ‘other’ liabilities which are carried at amortised cost. Cash 
and cash equivalents comprise cash balances and call deposits.
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. £16,899 
was received in government grants in the year (2012: £293,297)
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held on call with the bank. 30
Ilika plc
Annual Report and Accounts 2013
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.
• Revenue recognition
The Group’s revenue substantially comprised revenues from the provision of research and development services. The contacts 
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 23.
• 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 analysed by the geographical location of its customer base and business development directors have been 
appointed to cover the Group’s three territories of focus, Asia, North America and Europe. Previously, segmentation analysis 
was provided by the market categories, Energy, Electronics and Biomedical. The disposal of the Altrika wound care business 
and the subsequent reorganisation meant that this segmentation basis was no longer appropriate.
The Group’s activities originate from the production, design and development of high throughput methods of material 
synthesis, characterisation and screening. The Group has materials development programmes for a wide range of 
applications including in the battery, fuel cell, hydrogen storage sectors as well as in capacitors, ferroelectrics, piezoelectrics 
and memory materials. 
Year ended 30 April
Turnover
2013
£
2012
£
Analysis by geographical market:
By destination
Asia 785,989 1,581,200
Europe 131,617 22,452
North America 86,337 247,520
Continuing operations total 1,003,943 1,851,172
Discontinued operations – By destination – Europe 97,475 160,072
1,101,418 2,011,244
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
2013
£
2012
£
Customer 1 654,918 781,283
Customer 2 – 385,556
Customers less than 10% 446,500 844,405
1,101,418 2,011,244
Notes to the consolidated financial statements 
continued 31
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
2 Segment reporting continued
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 23. The total assets and liabilities per the management accounts are  
the same as the consolidated balance sheet with the exception of the period end tax adjustment.
3 Discontinued operations
The results of the discontinued wound care division which have been included in the consolidated income statement  
were as follows:
Year ended 30 April
2013
£
2012
£
Revenue 97,475 160,072
Cost of sales (97,248) (149,861)
Gross profit 227 10,211
Administrative expenses (233,819) (590,531)
Other operating income 16,899 121,156
Operating loss and loss before tax (216,693) (459,164)
Taxation – 32,272
Loss for period on discontinued activities (216,693) (426,892)
The net book value of assets sold along with the Altrika business equated to £73,000. Proceeds of disposal were £90,000 
(£50,000 on disposal and deferred consideration of £40,000) less legal costs of £17,000. 
4 Operating loss
Year ended 30 April
This is arrived at after charging:
2013
£
2012
£
Research and development expenditure in the year 1,772,605 1,377,449
Depreciation 803,345 819,101
Amortisation of intangible assets 52,438 14,196
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 6,800 8,625
– Other assurance services – interim review 10,750 10,500
– Tax services – 6,700
Operating lease rentals 234,836 180,714
Share-based payment charge (251,851) 211,613
Foreign exchange differences (2,464) 1,213 32
Ilika plc
Annual Report and Accounts 2013
5 Employees
The average number of employees during the year, including Executive Directors, was:
Year ended 30 April
2013
Number
2012
Number
Administration 9 9
Materials synthesis 30 27
39 36
Staff costs for all employees, including Executive Directors, consist of:
Year ended 30 April
2013
£
2012
£
Wages and salaries 1,716,057 1,587,516
Social security costs 163,602 160,319
Share-based payment expense (252,939) 204,681
Pension costs 112,373 111,215
1,739,093 2,063,731
The Directors’ costs consist of:
Basic 
salary
£
Fees
£
Benefits 
in kind
£
Total 
short-term 
benefits
£
Pension
£
Total
£
Year to 30 April 2013
G. Purdy 151,067 – 367 151,434 27,487 178,921 
S. Boydell 98,950 – 241 99,191 16,137 115,328 
B. Hayden 50,333 – – 50,333 – 50,333
J. Boyer 60,400 – – 60,400 – 60,400
W. Braun – 30,200 – 30,200 – 30,200
W. Wakeham 30,200 – – 30,200 – 30,200
C. Spottiswoode 30,200 – – 30,200 – 30,200
421,150 30,200 608 451,958 43,624 495,582 
Year to 30 April 2012
G. Purdy 150,000 – 413 150,413 29,312 179,725
S. Boydell 90,000 – 271 90,271 24,901 115,172
B. Hayden 50,000 – – 50,000 – 50,000
J. Boyer 60,000 – – 60,000 – 60,000
W. Braun – 30,000 – 30,000 – 30,000
W. Wakeham 30,000 – – 30,000 – 30,000
C. Spottiswoode 30,000 – – 30,000 – 30,000
410,000 30,000 684 440,684 54,213 494,897
Share-based payment credit attributable to Directors in the year was £252,939 (2012: expense of £195,281).
Benefits in kind include critical illness cover.
Notes to the consolidated financial statements 
continued 33
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
5 Employees continued
The unapproved share options of the Directors under the 'Ilika plc Executive Share Option Scheme 2010' are set out below:
2013 
Number
2012 
Number
G. Purdy 1,050,000 1,800,000
J. Boyer 1,050,000 1,800,000
B. Hayden 525,000 900,000
S. Boydell 117,600 205,200
W. Braun 65,100 115,200
W. Wakeham 65,100 115,200
C. Spottiswoode 50,100 100,200
The approved share options of the Directors in Ilika plc exchanged from share options in Ilika Technologies Limited. For 
further details see note 23. 
2013 
Number
2012 
Number
G. Purdy 760,700 760,700
S. Boydell 90,000 90,000
2013 
Number
2012 
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
2,112,900 options have lapsed in the period (2012: Nil). 
6 Other operating income
 
Year ended 30 April
2013
£
2012
£
Grant income – 172,140
Sundry other income 17,133 (43)
17,133 172,097
7 Financial income 
 
Year ended 30 April
2013
£
2012
£
Income from short-term deposits 67,437 16,251
8 Financial expense
 
Year ended 30 April
2013
£
2012
£
Interest on:
Finance leases 4,575 10,684 34
Ilika plc
Annual Report and Accounts 2013
9 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
2013
£
2012
£
Current tax on loss for the year 230,000 125,470
Adjustments to prior period 9,741 –
239,741 125,470
(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 24 percent (2012: 26 percent). The differences are reconciled below:
2013
£
2012
£
Loss on ordinary activities before tax (3,714,714) (2,835,755)
Loss on ordinary activities before tax multiplied by the standard rate of  
corporation tax in the UK of 24% (2012: 26%) (891,531) (737,296)
Effects of:
Expenses not deductible for corporation tax 89,901 25,922
Research and development relief (30,824) (51,566)
Origination of unrecognised tax losses 662,899 579,818
Share options (60,445) 57,652
Under provision in previous years (9,741) – 
Total tax credit for the year (239,741) (125,470)
Unrecognised deferred taxation
There are tax losses available for carry forward against future trading profits of approximately £11,415,000 (2012: 
£9,953,000). A deferred tax asset in respect of these losses of approximately £2,740,000 (2012: £2,389,000) has not been 
recognised in the accounts, as the full utilisation of these losses in the foreseeable future is uncertain.
10 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
2013 2012
Weighted average number of equity shares 47,431,258 38,525,718
£ £
Earnings, being profit after tax (3,474,973) (2,710,285)
£ £
Loss per share (0.07) (0.07)
Continuing operations (0.06) (0.06)
Discontinued operations (0.01) (0.01)
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 2013 there were 16,145,039 options outstanding (2012: 18,514,186 options outstanding) as detailed in notes 19 and 23.
 
Notes to the consolidated financial statements 
continued 35
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
11 Intangible assets
Software 
licences
£
Intellectual 
property
£
Total 
£ 
Cost
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
Disposals – – – 
As at 30 April 2013 27,918 75,000 102,918
Amortisation
As at 30 April 2011 11,816 23,750 35,566
Provided for the year 9,196 5,000 14,196
Disposals (8,707) – (8,707)
As at 30 April 2012 12,305 28,750 41,055
Provided for the year 6,188 46,250 52,438
As at 30 April 2013 18,493 75,000 93,493
Net book value
As at 30 April 2011 10,544 51,250 61,794
As at 30 April 2012 15,613 46,250 61,863
As at 30 April 2013 9,425 – 9,425
The amortisation charge of £52,438 (2012: £14,196) is included within administrative expenses.
12 Property, plant and equipment
Leasehold 
improvements
£ 
Plant, 
machinery and 
equipment
£
Fixtures and 
fittings
£ 
Total
£
Cost
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
Additions 190,273 342,331 18,987 551,591
Disposals (59,557) (98,856) (22,046) (180,459)
As at 30 April 2013 552,058 4,132,297 169,712 4,854,067
Depreciation
As at 30 April 2011 373,533 1,792,418 130,791 2,296,742
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
Provided for the year 51,059 743,025 9,262 803,345
Disposals (49,716) (80,207) (27,740) (157,662) 
As at 30 April 2013 394,102 3,212,928 141,331 3,748,361
Net book value
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
As at 30 April 2013 157,956 919,369 28,381 1,105,706
The net book value of plant, machinery and equipment includes an amount of £31,114 (2012: £44,650) in respect of assets 
held under finance lease contracts.
There are no commitments for capital expenditure contracted but not provided for (2012: £Nil)
  36
Ilika plc
Annual Report and Accounts 2013
13 Inventory
As at 30 April
2013
£
2012
£
Inventory – 34,135
Inventory comprised the Group’s cell bank from which the Cryoskin® product was derived. 
14 Trade and other receivables
As at 30 April
2013
£
2012
£
Trade receivables 79,049 24,376
Prepayments and accrued income 289,066 450,964
Other receivables 209,390 185,603
577,505 660,943
15 Other financial assets – bank deposits
As at 30 April
2013
£
2012
£
Amounts receivable within one year:
Sterling fixed rate deposits of greater than 3 months’ maturity at inception 1,455,092 4,000,000
16 Cash and cash equivalents
As at 30 April
2013
£
2012
£
Current bank accounts 55,664 389,086
Short-term deposits with less than 3 months’ maturity 352,306 909,986
407,970 1,299,072
Notes to the consolidated financial statements 
continued 37
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
17 Trade and other payables
Current
As at 30 April
2013
£
2012
£
Trade payables 214,372 367,669
Other payables 17,341 15,223
Other taxes and social security costs 40,997 44,441
Lease purchase agreements 7,544 22,633
Accruals and deferred income 363,935 385,277
644,189 835,243
Non-current
As at 30 April
2013
£
2012
£
Lease purchase agreements – 7,544
Lease purchase agreements 
As at 30 April
2013
£
2012
£
Amounts payable
Within 1 year 7,544 22,633
In 1 year to 2 years – 7,544
7,544 30,177
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 2013 was £9,058 (2012: £35,853)
  38
Ilika plc
Annual Report and Accounts 2013
18 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
2013
£
2012
£
Financial Assets
Loans and receivables
Trade receivables 79,049 24,376
Accrued income 78,977 211,262
Other receivables 284,390 185,603
Current bank accounts 55,664 389,086
Bank deposits 1,455,092 4,000,000
Short-term deposits 352,306 909,986
Total loans and receivables 2,305,478 5,720,313
Financial Liabilities
Other financial liabilities
Trade payables 214,372 367,669
Other payables 17,341 15,223
Other taxes and social security costs 40,997 44,441
Lease purchase agreements 7,544 30,177
Accruals 363,935 252,760
Total other financial liabilities (see note 17) 644,189 710,270
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 17, 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 16.
 
Notes to the consolidated financial statements 
continued 39
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
18 Financial instruments continued
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 17. 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 2013 had a weighted average period to maturity of 75 days and a weighted 
average annualised rate of interest of 2.01 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 2013 by approximately £15,000 (2012: £11,000).
It is estimated that an increase in base rate by 1 percent would decrease the Group’s loss before taxation for the year to  
30 April 2013 by approximately £30,000 (2012: £15,000)
There is no difference between the book and fair value of financial assets and liabilities.
Capital management
The primary aim of the Group’s capital management is to safeguard the Group’s ability to continue as a going concern, to 
support its businesses and maximise shareholder value. The Group monitors its capital structure and makes adjustments as 
and when it is deemed necessary and appropriate to do so using such methods as the issuing of new shares. At present, other 
than finance leases, all funding is raised by equity. See note 1 for the fundraising that occurred during the year.
19 Share capital
As at 30 April
2013
£
2012
£
Authorised
45,874,033 Ordinary Shares of £0.01 each (2012: 45,482,433) 458,740 454,824
1,781,400 Convertible Preference Shares of £0.01 each 17,814 17,814
Allotted, called up and fully paid
45,874,033 Ordinary Shares of £0.01 each (2012: 45,482,433) 458,740 454,824
1,661,400 Convertible Preference Shares of £0.01 each 16,614 17,814
475,354 472,638
Share Rights
The Ordinary Shares 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 Share holders have the right, at any time, to convert the Preference Shares held to the same number of 
Ordinary Shares. 
On 22 May 2012, 5 December 2012 and 22 May 2013, 60,000, 60,000 and 100,000 respectively, £0.01 Convertible Preference 
Shares were converted to £0.01 Ordinary Shares. 
On 17 September 2012, 271,600 Ordinary Shares were issued for a total consideration of £149,380 and on 22 May 2013, 
2,375,000 Ordinary Shares were issued for a total consideration of £712,500 and total issue costs incurred were £3,500. 40
Ilika plc
Annual Report and Accounts 2013
19 Share capital continued
Share options and warrants
Employee related share options are disclosed in note 23. In addition to these, there were 107,300 non-employee share options 
over Ordinary Shares of £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.
 
Notes to the consolidated financial statements
20 Operating leases
The total future minimum rent payable under non-cancellable operating leases is as follows:
As at 30 April
2013
£
2012
£
Property
Within 1 year – – 
In 1 to 2 years 221,598 51,749
In 2 to 5 years – 370,613
221,598 422,362
21 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 £112,373 (2012: £111,215). 
22 Related party transactions
The Directors consider that no one party controls the Group.
During the year ended 30 April 2013, the Company incurred costs of £226,724 (2012: £295,109) 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 2013, the 
amount unpaid in respect of these costs was £2,066 (2012: £6,606).
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.
23 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.
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 2013, the following options, whose fair values have been fully charged to the consolidated statement of total 
comprehensive income, were outstanding:
Notes to the consolidated financial statements 
continued 41
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
23 Share-based payments expense and share options continued
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 50,400 10 years £1.00
2 February 2009 128,000 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.
Black-Scholes valuation
Weighted average exercise price Number
2013
£
2012
£ 2013 2012
Outstanding:
At start of the period 0.3612 0.3499 2,414,470 2,263,600 
Lapsed in the period 0.7500 – (108,947) – 
Granted during the period – 0.5300 – 150,870 
At the end of the period 0.3436 0.3612 2,305,523 2,414,470 
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 2.9 years (2012: 3.9 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
2013 2012
Equity-settled:
Weighted average share price at date of grant/£ – 0.53
Exercise Price/£ – 0.53
Weighted average contractual life/years – 9.7
Expected volatility – 10%
Expected dividend yield – 0%
Risk free interest rate – 0.5% 42
Ilika plc
Annual Report and Accounts 2013
23 Share-based payments expense and share options continued
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 the Alternative Investment Market 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
2013
£
2012
£ 2013 2012
Outstanding:
At start of the period 0.51 0.51 5,327,100 5,352,100
Lapsed during the period 0.51 0.51 (2,264,200) (25,000)
At the end of the period 0.51 0.51 3,062,900 5,327,100 
The exercise price of options outstanding at the end of the period was £0.51 (2012: £0.51) and their weighted average 
contractual life was 8 years (2012: 9 years). 
Ilika plc Executive Share Option Scheme 2010
At 30 April 2013 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 50,000 10 years £0.51
1 February 2012 115,923 10 years £0.53
Members of staff in the Group have options in respect of Ordinary Shares in Ilika plc, which are conditional upon the 
achievement of a series of financial and commercial milestones.
Ilika plc unapproved share options
At 30 April 2013 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 3,012,900 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 vested in 4 tranches. The first Tranche of 825,000 options were granted on 14 May 
2010 with no performance conditions attached. The remaining 3 Tranches of 1,458,600 options were conditional upon the 
achievement of a series of financial and commercial milestones. The second tranche of 1,458,000 vested in full, the third 
Tranche lapsed and half of the fourth Tranche vested. 
2,187,900 options lapsed in the year, no options were exercised. There are 5,252,500 options which were capable of being 
exercised as at 30 April 2013.
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.
Notes to the consolidated financial statements 
continued 43
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
23 Share-based payments expense and share options continued
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: as the Company does not pay, and is not currently expected to pay any dividends, the dividend yield 
has been set to zero. 
Risk-free Rate: calculated based on UK Gilts with a term commensurate with the expected term. 
2013
£
2012
£
Share-based payment expense/(credit):
Black-Scholes calculation 9,375 891
Stochastic valuation (261,226) 210,722
(251,851) 211,613 44
Ilika plc
Annual Report and Accounts 2013
As at 30 April
Notes
2013 
£
2012 
£
ASSETS
Non-current assets
Investments in subsidiary undertaking 25 121,339 121,339
Current assets
Trade and other receivables 26 9,237,447 9,083,842
Total net assets 9,358,786 9,205,181
Equity
Issued share capital 27 475,354 472,638
Share premium 27 8,802,981 8,656,317
Retained earnings 27 13,062 (14,345)
LIABILITIES 9,291,397 9,114,610
Current liabilities
Trade and other payables 67,389 90,571
Total liabilities 67,389 90,571
Total equity and liabilities 9,358,786 9,205,181
The notes on pages 47 to 48 form part of these financial statements.
These financial statements were approved and authorised for issue by the Board of Directors on 12 July 2013.
Mr. J.B. Boyer
Chairman
12 July 2013
Company Balance sheet of Ilika plc 
Company number 7187804 45
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
Year ended 30 April
2013
£
2012
£
Cash flows from operating activities
Profit/(loss) before tax 279,258 (184,948)
Adjustments for:
Equity settled share-based payments (251,851) 211,613
Operating cash flow before changes in working capital, interest and taxes 27,407 26,665
Decrease/(increase) in trade and other receivables (153,605) (4,705,325)
(Decrease)/increase in trade and other payables (23,182) 82,372
Cash utilised by operations (149,380) (4,596,288)
Cash flows from financing activities
Proceeds from issuance of Ordinary Share capital 149,380 4,899,991
Share issue costs – (303,703)
Net cash from financing activities 149,380 4,596,288
Net increase in cash and cash equivalents – –
Cash and cash equivalents at the start of the period – –
Cash and cash equivalents at the end of the period – –
Company cash flow statement  46
Ilika plc
Annual Report and Accounts 2013
Share capital
£
Share 
premium 
account
£
Retained 
earnings
£
Total 
attributable to 
equity holders 
£
As at 30 April 2011 383,548 4,149,120 (41,011) 4,491,657 
Issue of shares 89,091 4,810,900 – 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 472,639 8,656,317 (14,345) 9,114,611 
Issue of shares 2,715 146,664 – 149,379
Share-based payment – – (251,851) (251,851)
Profit and total comprehensive income – – 279,258 279,258
As at 30 April 2013 475,354 8,802,981 13,062 9,291,397
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. 
 
Company statement of changes in equity 47
Ilika plc
Annual Report and Accounts 2013
Business Review Governance Financial Statements
24 Accounting polices
Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRSs') 
adopted by the European Union.
No Directors' report has been presented and the Directors' responsibilities in respect of these financial statements are set  
out on page 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 £578,288 (2012: £563,214) and  
to Altrika Limited of £Nil (2012: £119,441). In addition the funds raised from the fundraising were transferred to Ilika 
Technologies Limited. The balance outstanding at 30 April 2013 for Ilika Technologies limited was £9,227,579 (2012: 
£9,075,927) and for Altrika Limited was £Nil (2012: £Nil).
Share-based payments
The critical accounting estimates, assumptions and judgements underpinning the valuation of the option awards are 
disclosed in note 23.
Financial instruments
The accounting policy relating to financial instruments is disclosed in note 1.
Profit of the Parent Company
Profit in the year
No profit and loss account is presented for the Company as permitted by Section 408 of the Companies Act 2006.  
The Company’s profit for the year was £279,258 (2012: £184,948).
Directors’ remuneration
The remuneration of the Directors is disclosed in note 5.
Auditors’ remuneration
Auditors’ remuneration is disclosed in note 4.
 
25 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 £5,109,602 (2012: £1,949,515) and had net liabilities as at 30 April 2013 of £6,028,679 (2012: £919,078).  
 
Shares in Group undertakings (at cost)
2013
£
2012
£
At 1 May 2012 and 30 April 2013 121,339 121,339
Notes to the Company financial statements 48
Ilika plc
Annual Report and Accounts 2013
26 Trade and other receivables
As at 30 April
2013
£
2012
£
Prepayments 5,983 7,650
Other debtors 4,016 265
Amounts due from subsidiary undertakings 9,227,448 9,075,927
9,237,447 9,083,842
27 Share capital
As at 30 April
2013 
£
2012 
£
Authorised
45,874,033 Ordinary Shares of £0.01 each (2012: 45,482,433) 458,740 454,824
1,781,400 Convertible Preference Shares of £0.01 each 17,814 17,814
Allotted, called up and fully paid
45,874,033 Ordinary Shares of £0.01 each (2012: 45,482,433) 458,740 454,824
1,661,400 Convertible Preference Shares of £0.01 each (2012: 1,781,400) 16,614 17,814
475,354 472,638
Share Rights
The Ordinary Shares 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 22 May 2012, 5 December 2012 and 22 May 2013, 60,000, 60,000 and 100,000 respectively, £0.01 Convertible Preference 
Shares were converted to £0.01 Ordinary Shares. 
On 17 September 2012, 271,600 Ordinary Shares were issued for a total consideration of £149,380 and on 22 May 2013, 
2,375,000 Ordinary Shares were issued for a total consideration of £712,500 and total issue costs incurred were £3,500.
Notes to the Company financial statements 
continued 49
Ilika plc
Annual Report and Accounts 2013
Corporate directory
Company number 7187804
Directors
Executive Graeme Purdy
Stephen Boydell
Brian Hayden
Non-Executive Jack Boyer (Chairman)
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 invents, tests and selects 
materials in the laboratory that 
can be selected for scale-up and 
everyday commercial use.
Our strengths
>
  Validated technology platform protected 
by globally granted patents
>
   Proven ability to attract blue-chip 
multinational commercialisation partners 
from high growth markets
>
   Innovative business model that combines 
low-risk product development revenue 
with substantial upside from licensing
Business Review
1 Overview
2 Ilika at a glance
4 Meeting market requirements
6 Commercial engagement
8  Chairman’s statement
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
44  Company balance sheet
45  Company cash flow statement
46  Company statement of changes in equity
47  Notes to the financial information
49  Corporate directory Ilika plc Annual Report and Accounts 2013
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
Ilika plc
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Ilika plc
Annual Report and  
Accounts 2013