Fast-tracking materials  
discovery
Ilika plc Annual report 2011
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 Annual report 2011 Ilika plc Annual report 2011 Fast-tracking materials discovery
Ilika invents, tests and  
selects materials in  
the laboratory that can  
be selected for scale- 
up and everyday 
commercial use
Ilika focuses on three sectors:
Energy > where Ilika assesses 
materials for their greater capacity 
for energy storage and conversion 
efficiency, for example in batteries
Electronics > where materials 
created by Ilika rapidly improve the 
performance and efficiency of a 
range of electronic components, 
such as digital memory devices 
and sensors
Bio-medical > devices where Ilika’s 
subsidiary Altrika has already 
successfully commercialised 
innovative products for the 
treatment of burns Overview
Business 
review Governance
Financial 
statements
01  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
Highlights
Overview
01 Highlights
02 Ilika at a glance
04 Our strategy
06  Product development
08 Product sales
Business review
10  Chairman’s statement
12  Chief Executive’s review
16 Board of Directors
18 Financial review
Governance
19 Directors’ report 
21  Corporate governance statement
23 Corporate social responsibility statement
25  Independent auditor’s report
Financial statements
26  Consolidated statement of  
comprehensive income
27  Consolidated balance sheet
28  Consolidated cash flow statement
29  Consolidated statement of  
changes in equity
30  Notes to the consolidated  
financial statements
47  Company balance sheet of IIika plc
48  Company cash flow statement
49  Company statement of changes  
in equity
50  Notes to the consolidated  
financial statements
52  Corporate directory
Financial highlights:
Successful AIM IPO on 14 May  >
2010 raising £5.2 million 
Gross revenues £1.5 million  >
supplemented by £0.4 million of 
grant income (2010: £1.1 million 
and £0.2 million respectively)
Loss Per Share £0.08   >
(2010: £25.81)
Investment in high throughput  >
equipment £0.7 million  
(2010: £0.1 million) 
 
Operational highlights:
3 new significant new customer  >
relationships
Broadening and deepening of  >
existing customer relationships
Increase in business  >
development resources  
and activities
Carbon Trust grant to undertake  >
further research on high 
performing catalysts for use  
in fuel cell vehicles
Post balance sheet events:
Altrika participates in  >
development of new Stem Cell 
Collection Service, Oristem
®
Hydrogen Storage Collaboration  >
with Sigma-Aldrich Materials 
Science 02  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
Ilika at a glance
Ilika’s unique process is far quicker 
and more efficient than traditional 
materials discovery processes.
Fast-tracking    materials discovery
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.
Energy
We are developing innovative new materials  
for lithium-ion batteries, developing high capacity 
hydrogen storage materials, developing cheaper 
alternatives to platinum electrodes for use in fuel 
cells, and carrying out in-house research on film 
photovoltaic solar cells.
Ilika can cover a wide range of different market 
applications within the energy sector to help customers 
advance their materials discovery programmes. The 
great breadth and large numbers of samples that 
can be synthesised and screened with respect to an 
identified capability means that Ilika can optimise 
materials in a much shorter timeframe. For hydrogen 
storage applications, different compositions can be 
characterised with respect to their hydrogen adsorption 
and desorption behaviours including their hydrogen 
storage capacity and cyclability.
For fuel cell and battery applications, the candidate 
materials can be measured for catalytic activity. For the 
photovoltaic market, for example, it is possible to screen 
materials for greater energy conversion efficiency. Overview
Business 
review Governance
Financial 
statements
03  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
Fast-tracking    materials discovery
Electronics
We are developing lead-free piezoelectric 
materials through a joint development 
programme with CeramTec; and developing 
phase change memory materials for high 
capacity memory chips.
We cover a wide range of different market 
applications within the electronics sector to help 
customers advance their materials discovery 
programmes. The fast throughput approach to 
materials synthesis coupled with high throughput 
characterisation and screening means that Ilika can 
optimise materials with respect to a desired property 
in a much shorter timeframe. For phase change 
memory applications, for example, we can monitor 
the phase change behaviour of different alloys such 
as GeSbTe as a function of temperature. The optical 
and electrical behaviours of interesting compositions 
can then be studied in more detail.
Biomedical
We are developing polymers to enable the 
filtering of somatic stem cells from blood,  
have been selling our Cryoskin and Myskin 
products for the treatment of burns and wounds 
in the UK and intend to commence clinical trials 
of our corneal bandage candidate.
Ilika has developed an extensive library of bio-
functional materials specifically designed to promote 
or deter cell binding, enrich specific cell types from 
diverse populations and promote cell growth on 
tailored surfaces. We are working together with 
medical device companies to create valuable 
products through the application of cell-specific 
functional coatings optimised using our high 
throughput techniques. The application areas  
in which we are active include:
Skin Wound care >
Cell Replacement for Organ Regeneration >
Implants  >
Diagnostic Devices  >
Cell Purification > 04  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
_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
1. Developing leading-edge high throughput 
development processes 
We have an established record in successfully 
developing and applying leading-edge research 
and development technology for the creation 
of novel materials. The Group has continued to 
build expertise on this foundation, and intends 
to continue innovation in this area generating 
substantial know-how and trade secrets. 
This unique selling point has attracted large 
multinational partners to the Group and created 
a barrier to entry for potential competitors.
2. Partnering with companies committed 
to developing and commercialising jointly 
developed products
Our core competence is in the innovation of 
novel materials which includes the identification 
of demand for new materials and the rapid 
execution of experimental programmes to 
develop materials to meet that demand. 
We operate at the beginning of the product 
supply chain and understand that successful 
commercialisation requires manufacturing 
capabilities, know-how in the integration of 
materials into consumer products and retailing 
to the mass market. Once we have identified 
potential demand for a new material we shortlist 
the leading industrial companies in the sector 
and seek to attract them into mutually beneficial 
joint development programmes.
3. Using high throughput processes to invent  
patentable functional materials
We aim to use our HTT process to invent 
patentable functional materials. We also use 
specialist software to analyse the existing 
intellectual property landscape and, in 
addition, exchange information with our 
commercialisation partners in order to draw up 
a project scope that is thought likely to yield a 
material or family of materials with a defensible 
patent position. The Group has filed a series of 
patents covering materials which are potentially 
of significant value to target markets, a number 
of which are currently being scaled up by its 
commercialisation partners. Overview
Business 
review Governance
Financial 
statements
05  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
Overview
Business 
review Governance
Financial 
statements 06  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
_Product development
We understand that successful 
commercialisation requires 
not only materials innovation, 
which is our speciality, but  
also manufacturing know-how 
and marketing expertise
Once we have identified market demand for 
a new material we engage with the leading 
industrial companies in the sector to construct 
mutually beneficial product development 
programmes. Our preferred engagement 
framework is one in which Ilika and its partners 
collaborate on a shared-risk, shared-reward basis. 
This framework usually involves a 
commercialisation partner making a financial 
contribution towards Ilika’s direct costs and 
sharing the potential financial rewards through a 
licencing agreement when the resulting product 
is commercialised. 
At the early stages of a new customer relationship 
we may also carry out work on a contract basis, 
whereby Ilika receives greater up-front payments 
in return for assigning intellectual property rights 
to the customer. Most contract relationships 
mature into joint development relationships over 
the course of time.
Case study
A typical joint development programme is the 
one we are running with Ceramtec, a world-
leading manufacturer of technical ceramics. Ilika 
and Ceramtec are working together to develop 
lead-free piezoelectric materials for use in 
sensor and actuator applications, such as those 
required to trigger air bags in automobiles. Overview
Business 
review Governance
Financial 
statements
07  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
Overview
Business 
review Governance
Financial 
statements 08  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
_Product sales
For the healthcare market we 
have developed breakthrough 
biomedical products relying 
on expertise which operates  
at the boundary between  
the established disciplines 
of materials science and  
cell biology
This expertise is currently not widely found with 
larger potential commercialisation partners.  
Hence, in order to establish and service the 
market, we operate a facility in Sheffield to 
manufacture and package cell growth surfaces 
as well as to handle the relevant cell lines. 
To complement our manufacturing capability, we 
have chosen distribution partners with specialist 
knowledge of our target markets to bring the 
products to market.
Case study
We manufacture our cell therapy products for 
burns treatment, MySkin
®
 and CryoSkin
®
, at our 
Sheffield facility. In line with our strategy, we 
have appointed a specialist distributor, Sinclair 
Pharma, to sell these products on our behalf in 
the UK. We have adopted this policy because 
Sinclair Pharma can market our products cost-
effectively within their wound-care portfolio. Overview
Business 
review Governance
Financial 
statements
09  Overview
Ilika plc Annual report 2011 Fast-tracking materials discovery
Overview
Business 
review Governance
Financial 
statements Ilika plc Annual report 2011 Fast-tracking materials discovery
10  Business review
Chairman’s
statement
Over the last 12 months we 
have successfully demonstrated 
our capabilities to a number 
of world leading multinational 
corporations, and have seen 
substantial growth in joint 
development and contract 
research revenues.
Jack Boyer
Chairman
Expanding into growth    markets
Introduction
I am pleased to announce Ilika’s results for the financial 
year ended 30 April 2011 after its first year as a listed AIM 
company, and to provide an update on the progress we 
have made in that time. At the time of the IPO, we set 
ourselves a number of objectives and it is gratifying to 
report that these have been achieved. Over the course 
of the year we have enjoyed considerable success, 
particularly in the energy and biomedical sectors, with 
both contract renewals with existing customers and new 
agreements entered into. Our focus has also been on 
Asia and the United States, where we have significantly 
increased our business initiatives. 
Ilika’s technology 
Ilika’s unique high throughput technology (‘HTT’) 
accelerates the discovery of new and patentable 
materials for identified end uses. This process enables 
hundreds of materials to be made in a single, 
automated, operation and subsequently tested for the 
necessary properties.
The production of a new material has traditionally 
been a slow and arduous process, taking between 7 
and 10 years to move from an initial discovery through to 
the first commercial prototype. Experiments carried out 
by Ilika can be executed 10 to 100 times faster than by 
using conventional techniques. 
The Group’s primary strategy is to enter into joint 
development or licensing agreements with large 
multinational companies seeking to commercialise 
products developed using the intellectual property 
created through jointly funded programmes. Current 
commercialisation partners include Toyota, Shell, 
Johnson Matthey and CeramTec.
Financial results
I am pleased to report Ilika has delivered a good set of 
financial results. Total revenues for the year ending 30 
April 2011, increased to approximately £1.5 million, 46 
percent ahead of last year and there has also been 
a substantial increase in the level of grant funding for 
in-house R&D, shown as other operating income, which 
increased to approximately £0.4 million, 66 percent 
ahead of last year. Loss before tax for the year improved 
slightly and is in line with expectations. Our cash 
balances remain strong, totalling £2.8 million at 30 April 
2011. At the year end, committed revenues including 
other operating income for the first half of 2011/2012 
exceeded £0.7 million. This compares to a figure of  
£0.15 million for the first half of 2010/2011.
Review of the year
Over the last 12 months we have successfully 
demonstrated our capabilities to a number of world 
leading multinational corporations, and have seen 
substantial growth in joint development and contract 
research revenues. We have embarked on commercial  Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
11  Business review
Business 
review Governance Overview
Expanding into growth    markets
stem cells taken from umbilical cords, or more invasive 
sources such as fat tissue or bone marrow. It also offers 
a collection system that enables adults to be visited at 
home for blood samples to be taken.
People
We have an extremely strong and highly experienced 
Executive Board at Ilika, including Professor Brian 
Hayden, our Chief Scientific Officer and a founder of 
the Company. Alongside Brian sit Dr. Werner Braun 
and Professor Sir William Wakeham, whose wealth of 
experience will be fundamental in helping Ilika expand 
both in the UK and overseas. Clare Spottiswoode, who 
joined the Board at the time of the IPO, is also a great 
asset to the Company particularly in the energy sector as 
we continue to develop material solutions for this market.
I would like to take this opportunity to thank all of 
the team at Ilika for their continued energy and hard 
work and for their commitment to making it a world 
class company. I would also like to thank our strategic 
partners, distributors and advisers for their contribution to 
the development of the Company during the course of 
the financial year.
 
Outlook
Over the course of the last year, we have set the way for 
fully executing our IPO plan set out in 2010, and are on 
track to deliver future growth. Progress has been made 
across all 3 areas of Ilika’s activities (energy, electronics 
and biomedical) and our expansion of business 
development activities has ensured that there is a broad 
pipeline of new opportunities ahead.
Our performance to date has met expectations, and 
we remain on track to deliver our predicted milestones. 
Ilika is committed to expanding its European and Asian 
activities and anticipates further business development 
opportunities in Asia on the back of the region’s 
manufacturing-led recovery. The North American market 
also offers considerable opportunities for materials 
discovery and development, and we continue to pursue 
new opportunities there.
In summary, we look forward to continuing to 
achieve the goals set out at our IPO and to maintaining 
the growth that we have achieved thus far in this 
financial year. I look forward to reporting progress during 
the coming year and beyond.
Jack Boyer
Chairman
13 July 2011
projects with three new customers, whilst continuing 
to build on our longer standing relationships.
In the energy sector, we renewed and extended 
the scope of our existing relationship with a major 
automotive corporation for the development of 
battery materials. The collaboration reinforces 
Ilika’s position as a globally leading provider of 
materials expertise for the rapid development of 
next generation battery materials. We also entered 
into a contract with the Ministry of Defence for the 
identification and optimisation of next generation 
thermoelectric materials. These materials have the 
potential to increase significantly the efficiency of 
conventional engines and generators through the 
harvesting of waste heat. 
We have also made progress in developing 
materials and have recently collaborated with 
Sigma Aldrich to work on the scale-up and 
commercialisation of next generation hydrogen 
storage materials. We firmly believe that this 
enterprise will become a vital component of the 
energy industry’s efforts to develop consumer-friendly 
hydrogen storage materials for fuel cell and clean 
combustion technology.
Good progress has also been made in the 
electronics sector, when we signed an initial contract 
with a global electronics manufacturer in February 
2011. The contract is to develop high throughput, 
screening technologies for the identification and 
optimisation of next generation electronic materials, 
in return for stage payments. In April 2011, we 
entered into a similar contract with another leading 
electronics manufacturer, this time to help develop its 
next generation of battery materials.
Our technical capabilities have received public 
sector recognition, in the form of grants awarded for 
the development of a range of materials. In July 2010, 
a consortium led by Altrika, our healthcare focused 
subsidiary, was awarded a £153,000 grant for the 
development of a treatment for full thickness skin 
wounds. In October 2010, Ilika was awarded an initial 
research and development grant by the Carbon Trust 
to undertake the scale up, synthesis and testing of 
high performing palladium alloy compositions for use 
in fuel cell vehicles. Palladium alloy electrocatalysts 
have the potential to be 70 percent cheaper than 
platinum catalysts on a cost/performance basis. A 
further grant of £173,000 towards this initiative was 
awarded in April 2011.
Since the financial year end, Ilika’s wholly 
owned subsidiary Altrika made a significant medical 
breakthrough involving the collection and storage 
of adult stem cells. The Oristem
®
 service offers a 
new, patented method of harvesting, isolating and 
storing stem cells from adult blood. It is a welcome 
move forwards from current forms of stem cell 
extraction which have been confined to neo-natal  Ilika plc Annual report 2011 Fast-tracking materials discovery
12  Business review
Chief Executive’s 
review
Graeme Purdy
Chief Executive
Addressing key unmet    needs
Introduction
In this first full year since Ilika was admitted to the London 
Stock Exchange, the Company has pursued its strategy 
of being a partner of choice for the development of new 
materials designed to solve some of the world’s most 
important needs, particularly in the cleantech sector.
The Company has continued to work with blue-chip 
partners, which are active in the energy, electronics and 
biomedical market sectors. The sector-split of revenue 
generated in the past year has consisted broadly of 
70 percent in energy, 20 percent in electronics and 10 
percent in biomedical. 
Ilika stands out as a compelling enterprise in 
these markets because of the unique nature of the 
high throughput techniques which Ilika uses in order 
to make and test new materials. The high throughput 
technology platform, originally developed at the University 
of Southampton, has proven itself to be a versatile and 
effective method for developing new materials with 
reproducible and scalable properties. This capability has 
been further developed over the last year, strengthening 
the Company’s global profile. The Company has continued 
to attract an international customer base resulting in 83 
percent of its revenues coming from outside the UK. 
Energy
Most analysts agree that the sources and carriers of 
energy for transport, domestic and industrial uses are 
set to become increasingly diverse. For example, in 
the transport sector, the ubiquitous use of petrol and 
diesel is being supplemented with compressed natural 
gas (‘CNG’), liquefied petroleum gas (‘LPG’), biofuel, 
electricity (stored in batteries) and hydrogen. For these 
new fuels to be attractive to the customer there are a 
number of basic conditions that have to be fulfilled: the 
fuels need to be cheap enough to compete with petrol 
and diesel; they need to contain sufficient energy within 
a manageable volume and weight; the conversion of 
energy from its stored form into vehicle motive power 
needs to be done easily and economically and finally, 
replenishing fuel on-board the vehicle needs to be a 
straightforward matter. Meeting the requirements of 
these basic conditions involves optimising the ability of 
materials to store and convert energy from one form 
to another and this is Ilika’s focus in the energy market. 
In particular, Ilika has globally-recognised expertise in 
developing battery materials and materials for use in 
both storing hydrogen and converting it into electricity.
Batteries
Electric and hybrid vehicles have gained market share 
over the past 12 months. For instance, since 1 March 
201 1 the much-heralded Nissan LEAF has been on sale in 
the UK, with the first year’s production allocation already 
sold out. Toyota has been broadening the roll-out of its 
hybrid drive-train concept, building on the success of its 
Prius and Auris ranges. These mass production vehicles 
The forthcoming year will allow 
the Company to demonstrate 
the industrial robustness of some 
of its key products for energy 
conversion and storage, leading 
to commercial roll-out. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
13  Business review
Business 
review Governance Overview
Addressing key unmet    needs
have done much to persuade the motoring public that 
electric and hybrid vehicles are here to stay and they 
have created an appetite for sustained performance 
improvements. For instance, the Nissan LEAF has a range 
of 175km on the New European Driving Cycle and can be 
recharged from empty within 8 hours using the on-board 
charger. This is a good starting point, but clearly this range 
and recharge time will not satisfy the majority of road 
users. The best way to improve battery performance is 
to change the materials from which the battery is made 
and Ilika’s technology can provide unique insights into 
how this can be achieved. Toyota and Ilika have been 
working together since 2008 to improve battery materials 
and current indications are that this effort is set to intensify 
in the coming period. In April 201 1 Ilika announced that it 
had been successful in attracting a second collaboration 
partner for next generation battery development. Ilika has 
every confidence that it will be successful in maintaining 
its commercial momentum in this rapidly moving field.
Hydrogen
Hydrogen has an intrinsic advantage over batteries as 
an energy carrier because hydrogen can be processed 
to yield a higher energy density than is achievable with 
a battery. In other words, hydrogen can contain more 
energy than a battery of the same volume. In addition, 
hydrogen represents an attractive carrier of energy as 
its combustion or direct conversion to electricity via a 
fuel cell does not lead to the emission of carbon dioxide. 
However, hydrogen has not, to date, been as broadly 
adopted as batteries for energy storage. The main 
reasons for this are the difficulty in storing hydrogen, 
which is a light gas under atmospheric conditions, and 
the expense of methods for converting it to electricity.
The main criteria for hydrogen storage for transport 
purposes, as outlined by the US Freedom Car Initiative, 
are to supply enough hydrogen to enable a driving 
range of approximately 500km, charge and recharge at 
near room temperature and provide hydrogen at rates 
fast enough for operation in automobiles.
 Current prototype applications use either very high 
pressure compressed hydrogen (approx. 700 bar) or 
cryogenically cooled liquid hydrogen. These methods 
consume a significant percentage of the energy content 
in their compression and conversion (15 percent and 30 
percent respectively) and both raise safety concerns. 
By contrast, Ilika’s storage solution is a solid metal 
hydride, which exists as a powder stored in a cylinder 
at moderate pressure (10 bar) and is stable at room 
temperature. When warmed to moderate temperatures, 
hydrogen is released for use as fuel. 
The target weight percentage of hydrogen stored in 
such a material for it to be economically viable has been 
set at 6 percent by the US Department of Energy. Current 
commercially-available hydride materials can achieve 
up to 2.3 weight percent of hydrogen. In May 2011 Ilika 
announced a collaboration with Sigma Aldrich to verify 
and scale-up hydride materials that can potentially 
store up to 10 weight percent of hydrogen, reversibly. 
The work with Sigma Aldrich is designed to yield a robust 
and economically viable industrial process for the 
mass production of Ilika’s material. Sigma Aldrich has 
negotiated a licence for commercialising the material, 
driving its initial market adoption. Ilika plc Annual report 2011 Fast-tracking materials discovery
14  Business review
Chief Executive’s 
review continued
Once the challenge of overcoming hydrogen storage is 
met, it can be used directly in a combustion engine to 
provide automotive power. Alternatively, hydrogen lends 
itself to being used as a fuel in fuel cells, which electro-
catalytically convert hydrogen and oxygen to water 
and electricity. The current fuel cells used in automotive 
prototypes use a significant amount of platinum, 
which is a scarce precious metal. In June 2010 Ilika 
announced a collaboration with ITRI in order to further 
develop the cheaper catalyst formulations previously 
patented by Ilika. This product development project 
is being supported by the £173,000 grant awarded 
to Ilika by the Carbon Trust in April 2011. Samples of 
materials are currently being performance tested by an 
independent body, with a view to making them available 
to automotive companies for their assessment within this 
current financial year.
Thermoelectrics
Thermoelectric materials can be used to generate an 
electric current from a thermal gradient. As a result, 
they can be used to convert waste heat into electricity. 
Potential applications include energy recovery from 
the exhaust of a vehicle, perhaps feeding into the 
electrical storage system of a hybrid propulsion system, 
and also waste heat recovery from a generator set, 
increasing its efficiency. In October 2010 Ilika announced 
the award of a thermoelectric project by DSTL, the 
research arm of the UK’s Ministry of Defence (‘MOD’). 
This project is supporting the Company’s endeavours 
in the development of efficient testing methods for 
screening thermoelectric materials and ultimately in the 
development of more efficient materials. After initial early 
adoption for MOD applications, the technology will be 
made available for a broader commercial roll-out.
Electronics
Piezoelectrics
Since November 2009 Ilika has been working together in 
a Joint Development Project with Ceramtec, one of the 
world’s leading manufacturers of functional ceramics. 
Ceramtec’s current product line includes piezoelectric 
devices, which are used for a broad range of sensor and 
actuator applications in the automotive and aerospace 
industries. The most commonly used piezoelectric material 
contains lead in its formulation, which has been banned 
under the EU’s Restriction of Hazardous Substances 
(‘RoHS’) regulations. Those ceramic manufacturers selling 
lead-containing ceramics in the EU are doing so under 
an exemption, pending development of a replacement 
technology. The objective of the collaboration is to 
develop a lead-free piezoelectric. The expectation is that 
adoption of the developed material will be rapid, given 
the regulatory drivers in place.
Capacitors
One of the unique aspects of the technology platform 
used by Ilika is its ability to make a broad range of complex 
oxide structures. These materials are commonly used 
for a wide range of electronic components, including in 
capacitors, which are devices for storing an electronic 
charge in many different industrial and consumer 
electronics applications. This is an expanding area of 
business for Ilika and is expected to be a significant 
contributor to revenue in the current financial year.
The Company has continued to 
attract an international customer 
base resulting in 83 percent of its 
revenues coming from outside 
the UK. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
15  Business review
Business 
review Governance Overview
Biomedical
Ilika operates a wholly-owned subsidiary, Altrika Ltd, which 
commercialises technology for biologically-functional 
medical (biomedical) devices. 
At its facilities, located in Sheffield, UK, Altrika operates 
a high throughput lab for the rapid development of 
biologically active materials as well as a Human Tissue 
Authority (‘HTA’) approved clean room suite for the 
production of its Myskin
®
 and Cryoskin
®
 products. The 
clean room suite is validated to meet Good Manufacturing 
Practice (‘GMP’) requirements. Altrika is fully licenced 
by the HTA for the procurement, testing, processing, 
distribution and storage of human cells. In addition, 
Cryoskin
®
 is licenced as a cell therapy by the Medicines 
and Healthcare products Regulatory Agency (‘MHRA’).
Over the past year, Myskin
®
 and Cryoskin
®
 have been 
used to successfully treat burns patients at most of the 
major burns units in the UK. Progress has been made in 
identifying key opinion leaders and distributors to support 
the roll out of these products into new jurisdictions, starting 
in the current financial year.
The $750 million acquisition of Advanced Bio-
healing (‘ABH’) by Shire Pharmaceuticals in May 201 1 
demonstrated the intrinsic appeal of cell therapy in the 
chronic wounds sector.
In June 201 1 Altrika announced the launch of a 
new service (Oristem
®
) with its partners Pharmacells 
and Vindon for the processing of adult blood in order to 
harvest and store adult stem cells. This new service offering 
leverages the existing facilities and licences which Altrika 
has in place for handling human cells. Extensive coverage 
of the launch of the service was published in the Financial 
Times, Mail on Sunday and Sunday Telegraph. Further 
extensions of Altrika’s cell processing activities are planned 
in the forthcoming period.
Growth strategy
In line with the strategy stated this time last year, Ilika has 
deployed additional business development resources in 
the US and Asia. In the US, Ilika appointed the JGW Group 
to represent its interests in acquiring business in the US 
defence industry. In addition, the Company appointed a 
full time business development director based in California. 
In Japan, Ilika has appointed an additional business 
development resource focused on Altrika’s offerings. These 
initiatives have broadened Ilika’s commercial pipeline, 
supporting analyst’s growth forecasts for the coming period.
Summary
Ilika has delivered strong revenue growth in the past  
year and expects this trend to continue in the current 
financial year. Altrika has proven itself to be a dynamic, 
innovative business in the rapidly-moving sector of cell 
therapy. Some recent high profile M&A deals have 
confirmed the intrinsic value of this sector.
Some important milestones have been achieved in 
the scale-up of materials protected by the Company’s IP 
portfolio. The forthcoming year will allow the Company to 
demonstrate the industrial robustness of some of its key 
products for energy conversion and storage, leading to 
commercial roll-out.
Graeme Purdy
Chief Executive
13 July 2011 Ilika plc Annual report 2011 Fast-tracking materials discovery
16  Business review
Board of Directors
1. Jack Boyer
Chairman
Mr. Boyer joined Ilika as Chairman in 2004. He previously 
founded and was the CEO of Trident Components 
Group, a £280 million revenue pan-European 
engineering group. He has worked in investment banking 
at Goldman Sachs, management consulting at Bain & 
Co and been the CEO of manufacturing companies. 
Mr. Boyer was educated at Stanford University 
(B.A. Hons), the London School of Economics (M.Sc.) 
and INSEAD (MBA). He currently leads the University 
of Southampton’s corporate spin-out and intellectual 
property exploitation activities as Chair of Southampton 
Asset Management and is Chairman of early-stage 
companies involved in emerging technologies. 
Mr. Boyer is a Board member of the User Panel of  
the Engineering and Physical Sciences Research 
Council (‘EPSRC’) and a Trustee of environmental and 
educational non-profit organisations.
2. Graeme Purdy
Chief Executive Officer 
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. 
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.
3. Professor 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
Stephen qualified as a Chartered Accountant with 
Deloittes in 1996, he held a number of positions at Hays 
plc and then AGI Media before becoming Finance 
Director of a successful Guernsey based group of 
companies. He was instrumental in the restructuring  
of that group and the subsequent successful sale  
to a competitor. Stephen studied Economics at 
Nottingham University.
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. 
1
2
3 Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
17  Business review
Business 
review Governance Overview
Over a period of 14 years, Dr. Braun played a key  
role in growing Biotronik from an early stage company  
to a global provider of medical devices for use in 
cardiology and cardiosurgery. Following spells as 
General Manager of Chiron Adatomed and VP of 
Marketing and Sales for Medtronic Europe, Middle East 
and Africa, Dr. Braun returned to Biotronik in 2001 to 
become Managing Director, further developing the 
company’s market expansion to become Europe’s 
largest privately-held medical device company in 
the cardiovascular arena.
6. Clare Spottiswoode CBE
Non-Executive Director 
Ms. Spottiswoode’s career started as an economist  
with the Treasury before establishing her own software 
company. She is perhaps best known for her role  
as Director General of Ofgas between 1993 and 1998 
where she oversaw the transformation of the gas industry 
from a monopoly, which controlled the whole gas supply 
chain, into a deregulated, competitive industry. 
In November 2006 she was appointed as the 
Policyholder Advocate for Aviva, and is responsible 
for ensuring that around 1 million With-Profits 
policyholders receive a fair share of the £5-6 billion 
inherited estate. The deal has now been completed 
and policyholders received around 70 percent of the 
estate, which was more than double the only previous 
reattribution settlement. Ms. Spottiswoode currently 
chairs Gas Strategies Limited which has done a recent 
management buy-out from Standard and Poors, and is a 
Non-Executive Director of Energy Solutions, a US Nuclear 
waste company and Tullow Oil, a FTSE50 Company. 
Awarded a CBE for services to industry in 1999, she 
holds degrees from Cambridge and Yale Universities in 
Maths and Economics and has an honorary doctorate 
from Brunel.
7. Professor Sir William Wakeham  
Non-Executive Director 
Professor Sir William Wakeham retired as Vice-Chancellor 
of the University of Southampton in September 2009 
after 8 years in that position. 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 
and became 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.
He is a Fellow of the Royal Academy of Engineering 
and its International Secretary, a Fellow of the Institution  
of Chemical Engineers, the Institution of Engineering 
and Technology, and the Institute of Physics. He holds 
a higher doctorate from Exeter University, and honorary 
degrees from Lisbon University, Exeter and Southampton 
Solent University and is a Fellow of Imperial College 
London. He is a Council Member of the Engineering 
and Physical Sciences Research Council and Chair of 
Its Audit Committee. He was knighted in the Queen’s 
Birthday Honours 2009 for services to Chemical 
Engineering and Higher Education.
4
5
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7 Ilika plc Annual report 2011 Fast-tracking materials discovery
18  Business review
Financial
review
The AIM listing on 14 May 
2010, raised £4.4 million, after 
expenses, to enable the Group 
to follow through its strategy of 
portfolio scale-up in preparation 
for a systematic roll-out of 
products incorporating Ilika’s 
materials over the medium  
and long term.
Stephen Boydell
Finance Director
Ilika plc was incorporated on 12 March 2010 with a view 
to the acquisition of Ilika Technologies Limited and its 
subsidiary, Altrika Limited, (‘the Limited Group’) and 
subsequent AIM listing. The acquisition and subsequent 
AIM listing occurred on 14 May 2010. The comparative 
financial information set out in these statements does 
not constitute the Company’s statutory accounts for the 
period ended 30 April 2010. The accounting policies  
and the IFRS conversion details are set out in the non-
statutory accounts of Ilika Technologies Limited for the 
year ended 30 April 2010, which is available on the 
Company’s website.
Revenue for the year ended 30 April 2011 was  
£1.54 million (£1.06 million for 2009/10), supplemented by 
£0.36 million of grant income (£0.22 million for 2009/10). 
Revenues relate to the payments made by Ilika’s 
partners for research and development activities. The 
majority of these payments are associated with the 
development of materials for applications in energy 
storage and conversion, but projects in the electronics 
sector have increased significantly in the year. 
Grant funding was received from the Carbon Trust 
and the Technology Strategy Board (‘TSB’) to support 
a number of the Group’s programmes for energy 
conversion, energy storage and biomedical applications.
Administration expenses in the year increased  
by around £0.25 million in comparison to the year to  
30 April 2010. This increase is primarily due to the 
expenses incurred in preparation for listing and the 
ongoing costs of being a publicly listed company, with 
amongst other new costs, stock exchange listing and 
regulatory fees and the appointments of nominated 
advisors and company registrars.
The AIM listing on 14 May 2010, raised £4.4 million, 
after expenses, to enable the Group to follow through 
its strategy of portfolio scale-up in preparation for a 
systematic roll-out of products incorporating Ilika’s 
materials over the medium and long term. Investment 
in equipment in the year was £0.67 million (£0.12 million 
for 2009/10) which has increased the Group’s high-
throughput capacity enabling the expected revenue 
growth to be achieved. As at 30 April 2011, the Group’s 
cash position was £2.8 million. 
Steve Boydell
Finance Director and Company Secretary
13 July 2011 Overview
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19  Governance
Ilika plc Annual report 2011 Fast-tracking materials discovery
Directors’ report
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 2011.
Principal activities
The principal activity of Ilika and the Group is the 
discovery and development of novel materials for the 
energy, electronics and biomedical sectors.
Business review
A detailed review of the business, its results and future 
direction is included in the Chairman and Chief 
Executive’s Statement.
Directors 
The Directors who served on the Board of Ilika during 
the year and to the date of this report were as follows:
Executive
Mr. S. Boydell (FD and Company Secretary)  
appointed 6 May 2010.
Prof. B.E. Hayden (CSO) appointed 6 May 2010.
Mr. G. Purdy (CEO) appointed 6 May 2010.
Non-Executive
Mr. J.B. Boyer (Chairman) appointed 6 May 2010. 
Dr. W. Braun appointed 6 May 2010.
Ms. C. Spottiswoode CBE appointed 6 May 2010.
Prof. Sir W. Wakeham appointed 6 May 2010.
Details of the Directors’ remuneration and share 
options are shown in note 4 of these accounts.
The Group maintained Directors’ and officers’ liability 
insurance cover throughout the period.
Principal risks and uncertainties
Commercial risk
The Group is subject to competition from competitors 
who may develop more advanced and less expensive 
alternative technology platforms, both for existing 
materials and for those materials currently under 
development. The Group is largely dependent on 
its partners to commercialise the end-products 
containing the Group’s materials.
Financial risk
The Group is reliant on a small number of significant 
customers and partners. Termination of these 
agreements could have a material adverse affect on 
the Group’s results or operations or financial condition. 
The Group expects to incur further operating losses 
as progress on development programmes continue. 
There can be no assurance that the Group will ever 
achieve significant revenues or profitability.
Intellectual property risk
The Group faces the risk that intellectual property 
rights necessary to exploit research and development 
efforts may not be adequately secured or defended. 
The Group’s intellectual property may also become 
obsolete before the products and services can be  
fully commercialised.
Regulatory risk
The Group’s materials and products are subject to 
various European and other legislative and regulatory 
requirements. Regulatory issues could lead to delays  
in development which take time and investment  
to resolve.
Post balance sheet events
There were no significant events of note which have 
occurred after the year ended 30 April 2011, to the 
date of this report.
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 
2011, the number of creditor days outstanding for the 
Group was 21 (2010: 41 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 17 for IFRS7 
disclosure regarding financial instruments. 
Results and dividends
The Consolidated Statement of Comprehensive 
Income for the year is set out on page 26. The Group’s 
loss for the financial year after taxation was £3,047,000 
(2010: £3,132,000).
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 (2010: Nil).
Research and development costs
In accordance with the policy outlined in note 1, 
the Group incurred research and development 
expenditure of £1,167,000 in the year (2010: £1,145,000). 
Commentary on the major activities is given in the 
Chairman’s Report and Chief Executive Report. 
Auditors
All the current Directors have taken all the steps that 
they ought to have taken to make themselves aware 
of any information needed by the Company’s Auditors 
for the purposes of their audit and to establish that the 
Auditors are aware of that information. The Directors 
are not aware of any relevant audit information of 
which the Auditors are unaware. 20  Governance
Ilika plc Annual report 2011 Fast-tracking materials discovery
Directors’ report
A resolution to reappoint BDO LLP will be proposed at 
the next Annual General Meeting. 
Substantial shareholdings
On 30 June 2011 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
 Percent 
shareholding
IP Group 6,637,86 1 18.2
St Peter Port Capital 6,018,924 16.5
Nomura International 6,018,924 16.5
Mackin Holdings Inc 4, 11 7,647 11 .3
Southampton Asset 
Management 3,799,900 10.4
Artemis 2,670,741 7.3
Nortrust Nominees 1,830,991 5.0
Wyvern 1,598,039 4.4
Southern Fox 1,533,186 4.2
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
13 July 2011 Overview
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Ilika plc Annual report 2011 Fast-tracking materials discovery
Corporate governance statement 
The Board is accountable to the Company’s 
shareholders for good corporate governance 
and it is the objective of the Board to attain a high 
standard of corporate governance. As an AIM-quoted 
company full compliance with The Principles of Good 
Governance and Code of Best Practice (2006) (‘the 
Combined Code’) is not a formal obligation. The 
Company has not sought to comply with the full 
provisions of the Combined 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
On 6 May 2010 the Board of Directors (‘the Board’) was 
appointed and consists of a Non-Executive Chairman, 
3 Executive Directors and 3 Non-Executive Directors.
The responsibilities of the Non-Executive Chairman  
and the Chief Executive Officer are clearly divided.  
The Chairman is responsible for overseeing the  
running of the Board, ensuring that no individual or 
group dominates the Board’s decision making and 
ensuring that the Non-Executive Directors are properly 
briefed on matters. Prior to each Board meeting, 
Directors are sent an agenda and Board papers 
for each agenda item to be discussed. Additional 
information is provided when requested by the Board 
or individual Directors.
The Chief Executive Officer has the responsibility 
for implementing the strategy of the Board and 
managing the day to day business activities of the 
Group through his chairmanship of the Executive 
Committee.
The Non-Executive Directors bring relevant experience 
from different backgrounds and receive a fixed fee 
for their services and reimbursement of reasonable 
expenses incurred in attending meetings. 
The Board retains full and effective control of the 
Group. This includes responsibility for determining 
the Group’s strategy and for approving budgets and 
business plans to fulfil this strategy. The full Board 
ordinarily meets 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.
 
ii) Remuneration Committee
The Remuneration Committee currently comprises 
Dr. Werner Braun (Chairman), Clare Spottiswoode 
CBE and Jack Boyer. It is responsible for making 
recommendations to the Board on remuneration 
policy for executive directors and the terms of their 
service contracts, with the aim of ensuring that their 
remuneration, including any share options and other 
awards, is based on their own performance and that 
of the Group generally. 
iii) Nomination Committee
The Nomination Committee currently comprises Jack 
Boyer (Chairman), Professor Sir William Wakeham 
and Dr. Werner Braun. It is responsible for providing 
a formal, rigorous and transparent procedure for 
the appointment of new Directors to the Board and 
reviewing the performance of the Board each year.
Attendance at Board meetings and committees
The Directors attended the following Board and 
committees meetings during the year:
Attendance Board Audit Remuneration
Mr. S. Boydell 6/6 – –
Mr. J.B. Boyer 6/6 2/2 1/1
Dr. W. Braun 6/6 – 1/1
Prof. B.E. Hayden 5/6 – –
Mr. G. Purdy 6/6 – –
Ms. C. Spottiswoode 6/6 2/2 1/1
Prof. Sir W. Wakeham 6/6 1/2 –
All of the members of the Board were appointed on 6 
May 2010, at which time the Nomination Committee 
was appointed. No further appointments of Directors 
have been made since that date and therefore no 
Nomination Committee meetings were held in the 
year. The Nomination Committee will convene its first 
meeting on 13 July 2011 to review the performance of 
the Board since flotation. 22  Governance
Ilika plc Annual report 2011 Fast-tracking materials discovery
Corporate governance statement 
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.
 
Corporate social responsibility
The Board recognises the growing awareness of social, 
environmental and ethical matters and it endeavours 
to take into account the interest of the Group’s 
stakeholders, including its investors, employees, 
suppliers and business partners, when operating  
the business.
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
Steve Boydell
Finance Director and Company Secretary
13 July 2011 Overview
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23  Governance
Ilika plc Annual report 2011 Fast-tracking materials discovery
Corporate social responsibility statement
Ilika 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 will regularly 
review the scope of the Company strategy and report 
regularly to stakeholders to ensure we remain focused 
on the material issues for the business.
Ilika’s policies and procedures, including those 
relating to social, environmental, health and safety, 
employment and ethical matters, are reviewed by the 
management team regularly and are communicated 
to all employees through the staff handbook, email 
communications and regular company meetings. The 
management team will report to the Board every 6 
months to ensure that the Board are fully apprised of 
the status of the Company’s efforts in this area.
The Main areas of CSR at Ilika are:
Health and Safety. >
Environment and sustainability. >
Employee rights. >
Values and ethics. >
Contribution to society. >
Health and Safety
We recognise our responsibility to ensure the well-
being, safety and welfare of our employees and to 
maintain a safe and healthy working environment 
for all of our employees and visitors. We understand 
that health and safety has positive benefits for the 
Company and that a commitment to a high level 
of safety makes good business sense. As a business 
function, health and safety must continually progress 
and adapt to change.
Health and safety is considered at the highest level  
in the Company with the ultimate responsibility resting 
with the Board. Update reports are presented to  
the Board at each Board meeting and a full report  
is presented annually. Policies and procedures  
are independently reviewed to ensure compliance 
with best practice and with the relevant health and 
safety legislation. 
Environment and sustainability
Ilika is committed to achieving a real and sustainable 
positive impact on the broader community by 
adopting environmentally responsible policies. We 
believe that it is essential that both as a Company and 
as individuals we should operate in an environmentally 
conscious manner. Our objective is to minimise the 
impact of our business activity on the environment 
wherever possible. This includes ensuring that 
our suppliers do likewise and that we proactively 
encourage others with whom we interact to consider 
environmental matters.
We recognise our impact on the environment  
comes from:
Electricity to heat, cool and power laboratory and  >
office equipment.
Gas for heating. >
Business travel by air, road and rail. >
Water in laboratories and offices used for a variety  >
of purposes.
Resources such as paper. >
Waste including paper, plastic, chemicals and other  >
laboratory waste and consumable IT equipment.
Our 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.
Avoid unnecessary travel on business by the use of  >
video conferencing and telephone communication 
where possible.
Use the most environmentally friendly mode of  >
transport, where necessary, consistent with  
business needs.
Encourage use of bicycles by offering our  >
employees access to the HMRC Workcycle scheme
Reduce overall the resources we use. >
Promoting waste minimisation by recycling or   >
finding other uses of by-products whenever 
economically viable.
Reduce our letters and correspondence by using  >
alternative electronic mechanisms.
Using either recycled or FSC paper for all hard copy  >
correspondence, wherever possible.
Consider environmental criteria when choosing  >
services and goods.
Develop relationships with suppliers and contractors  >
so that we all recognise our environmental 
responsibilities.
Fundamentally Ilika will reduce its impact on the  >
environment and ask that its employees, suppliers 
and customers do likewise.
  24  Governance
Ilika plc Annual report 2011 Fast-tracking materials discovery
Corporate social responsibility statement
Employee rights
Ilika adheres to all legislation relating to employment 
rights and equal opportunities, with particular 
reference to non-discrimination on the basis of ethnic 
origin, religion, gender, age, marital status, disability 
or sexual orientation. However, Ilika’s policies go 
beyond the legal requirements and the Company 
acknowledges its moral rights to provide a safe and 
dignified working environment.
We ensure that we maintain the highest level of 
integrity with regard to employees, customers and all 
others with whom we interact. We recognise the value 
that our employees create for the business and our 
commitment to training and personal development, 
together with remuneration policies, are designed to 
reward achievement and emphasise the importance 
of retaining staff.
Ilika will not tolerate discrimination, bullying or 
any other kind of harassment within our business 
community. The concept of ’mutual respect’ will be 
one of our guiding principles. Employees are expected 
to abide by Company rules and to be honest and 
considerate in their various roles. 
Internal procedures have been established to report 
grievances or suspected inappropriate behaviour to 
other individuals or organisations. Equally the Company 
will treat dishonest actions and accusations seriously; 
this may result in disciplinary action in accordance with 
company rules and disciplinary procedures.
Ethics and values
Ilika supports the principles of the Universal Declaration 
of Human Rights through its business practices 
This means that it supports freedom from torture, 
unjustified imprisonment without fair trial and any 
other oppression. In addition, Ilika supports the right 
of any individual to have freedom of expression and 
religion, political representation or in respect of any 
other matter. Accordingly, Ilika will not support or work 
with organisations which fail to uphold basic human 
rights within their influence, which are involved in the 
manufacture or transfer to an oppressive regime, or 
are involved in the manufacture of equipment used 
in the violation of human rights. Neither will Ilika work 
with organisations which are involved in the funding or 
carrying out of terrorist activities.
Ilika will not provide support or work with organisations 
which do not conform to the most widely accepted 
standards for minimum labour rights or which do not 
cover the use of under-age or forced labour.
Ilika does not give or receive any bribes, extra 
contractual gratuities, inducements, facilitation fees 
or similar payments. Any gifts, whether in cash or kind, 
received by employees or the Company in the course 
of normally accepted business entertainment are 
accepted subject to the prior written approval of  
the management.
Ilika does not donate (including sponsorship, 
subscriptions or provision of employee time or facilities) 
to any political party or similar organisation.
Contribution to society
Ilika accepts and acknowledges that we have a 
corporate responsibility towards society not only by 
paying taxes and creating and maintaining jobs but 
also by using our unique research skills to develop 
knowledge, skills and products which will ultimately 
benefit society.
Ilika actively supports and encourages the study of 
science at all levels from pre GCSE through to degree 
level. We do this by sponsoring posters, hosting annual 
visits by groups of A level students and offering 6 
month and 12 month placements to Masters students. Overview
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25  Governance
Ilika plc Annual report 2011 Fast-tracking materials discovery
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 2011 which comprise 
the consolidated statement of comprehensive 
income, the consolidated balance sheet, the parent 
company balance sheet, the consolidated cash 
flow statement, the parent company cash flow 
statement, the consolidated statement of changes in 
equity, the parent company statement of changes in 
equity and the related notes. The financial reporting 
framework that has been applied in their preparation 
is applicable law and International Financial Reporting 
Standards (‘IFRSs’) as adopted by the European 
Union and, as regards the parent company financial 
statements, as applied in accordance with the 
provisions of the Companies Act 2006. 
This report is made solely to the Company’s members, 
as a body, in accordance with Chapter 3 of Part 16 
of the Companies Act 2006. Our audit work has been 
undertaken so that we might state to the company’s 
members those matters we are required to state to 
them in an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other 
than the Company and the Company’s members 
as a body, for our audit work, for this report, or for the 
opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the statement of Directors’ 
responsibilities, the Directors are responsible for 
the preparation of the financial statements and for 
being satisfied that they give a true and fair view. Our 
responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable 
law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the 
Auditing Practices Board’s (‘APB’s’) Ethical Standards 
for Auditors. 
Scope of the audit of the financial statements
A description of the scope of an audit of financial 
statements is provided on the APB’s website at  
www.frc.org.uk/apb/scope/private.cfm. 
Opinion on financial statements
In our opinion: 
the financial statements give a true and fair view of  >
the state of the Group’s and the parent company’s 
affairs as at 30 April 2011 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
13 July 2011
BDO LLP is a limited liability partnership registered in England and Wales  
(with registered number OC305127). Ilika plc Annual report 2011 Fast-tracking materials discovery
26  Financial statements
Consolidated statement of 
comprehensive income 
Year ended 30 April
Notes
2011 
£
2010 
£
Revenue 2 1,544,766 1,060,872
Cost of sales (936,511 ) (644,384)
Gross profit 608,255 416,488
Administrative expenses (4,148,002) (3,899,100)
Other operating income 5 357,014 215,000
Operating loss 3 (3,182,733) (3,267,6 1 2)
Financial income 6 38,239 9,686
Financial expense 7 (9,458) (6,448)
Loss before tax (3,153,952) (3,264,374)
Taxation 8 106,468 132,823
Loss for period/total comprehensive income attributable to  
owners of parent (3,047,484) (3,131,551 )
Loss per share 9
Basic (0.08) (25.81)
Diluted (0.08) (25.81) Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
27  Financial statements
Business 
review Governance Overview
Consolidated balance sheet
As at 30 April
Notes
2011 
£
2010 
£
ASSETS
Non-current assets
Intangible assets 10 61,794 66,738
Property, plant and equipment 11 2,006,479 2,068,129
Total non-current assets 2,068,273 2,134,867
Current assets
Inventory 12 34,135 –
Trade and other receivables 13 748,081 6 1 4, 110
Current tax receivable 8 122,733 132,823
Other financial assets – bank deposits 14 1,500,000 – 
Cash and cash equivalents 15 1,303,924 792,418
Total current assets 3,708,873 1,539,351
Total assets 5,777,146 3,674,218
Issued capital and reserves attributable to owners of parent
Issued share capital 18 383,548 121,339
Share premium 4,169,909 –
Capital restructuring reserve 6,486,077 6,479,728
Retained earnings (6,418,196) (3,945,196)
Total equity 4,621,338 2,655,871
LIABILITIES
Current liabilities
Trade and other payables 16 1,125,631 1,000,157
Non current liabilities
Other payables 16 30, 177 18,190
Total liabilities 1,155,808 1,018,347
Total equity and liabilities 5,777,146 3,674,218
These financial statements were approved and authorised for issue by the Board of Directors on 13 July 2011. 
Mr. J.B. Boyer
Chairman Ilika plc Annual report 2011 Fast-tracking materials discovery
28  Financial statements
Consolidated cash flow statement
Year ended 30 April
2011 
£
2010 
£
Cash flows from operating activities
Loss before tax (3,153,952) (3,264,374)
Adjustments for:
Amortisation 11,7 42 21,594
Depreciation 731,599 764,327
Equity-settled share-based payments 601,622 816, 179
Loss/(profit) on disposal of property, plant and equipment 605 (183)
Loss on disposal of intangible assets 298 –
Net financial income (28,782) (3,238)
Operating cash flow before changes in working capital, interest and taxes (1,836,868) (1,665,695)
Increase in trade and other receivables (128,770) (297 ,152)
Increase in inventory (34,135) – 
Increase in trade and other payables 103,712 151,673
Cash utilised by operations (1,896,061) (1,81 1, 1 74)
Tax received 116,558 150,078
Net cash flow from operating activities (1,779,503) (1,661,096)
Cash flows from investing activities
Interest received 33,038 9,686
Purchase of intangible assets (7,298) (11 ,078)
Sale of property, plant and equipment 1,013 1,141
Purchase of property, plant and equipment (603,466) (121,368)
Increase in other financial assets (1,500,000) –
Net cash used in investing activities (2,076,713) (121,619)
Cash flows from financing activities
Proceeds from issuance of Ordinary Share capital 5,175,611 –
Share issue costs (764,282) –
Capital element of finance leases (34,149) (19,060)
Interest element of finance leases (9,458) (6,448)
Net cash from financing activities 4,367,722 (25,508)
Net increase/(decrease) in cash and cash equivalents 511,506 (1,808,223)
Cash and cash equivalents at the start of the period 792,418 2,600,641
Cash and cash equivalents at the end of the period 1,303,924 792,418 Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
29  Financial statements
Business 
review Governance Overview
Consolidated statement of  
changes in equity
Share 
capital 
£
Share 
premium 
account 
£
Capital 
restructuring 
reserve 
£
Profit 
and loss 
account 
£
Total 
attributable to 
equity holders 
of parent 
£
As at 30 April 2009 121,339 – 5,663,549 (813,645) 4,971,243 
Share-based payment – – 816,179 – 816,179 
Loss and total comprehensive income – – – (3,131,551 ) (3,131,551 )
As at 30 April 2010 121,339 – 6,479,728 (3,945,196) 2,655,871 
Share option exercise 21,039 360 (20,789) – 610 
Share-based payment – – 27, 1 38 574,484 601,622 
Issue of shares 241, 170 4,933,831 – – 5,175,001 
Expenses of share issue – (764,282) – – (764,282)
Loss and total comprehensive income – – – (3,047,484) (3,047,484)
As at 30 April 2011 383,548 4,169,909 6,486,077 (6,418,196) 4,621,338 
Share 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. 
Profit and loss account
The retained earnings reserve records the accumulated profits and losses of the Group since inception of  
the business.  Ilika plc Annual report 2011 Fast-tracking materials discovery
30  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 2011 and in accordance with the recognition and measurement criteria of IFRS 
adopted by the European Union.
Ilika plc was incorporated on 12 March 2010 and so the comparative financial information set out in these 
statements does not constitute the Company’s statutory accounts for the period ended 30 April 2010 as 
explained under the capital restructuring section below. The accounting policies and the IFRS conversion details 
are set out in the non-statutory accounts of Ilika Technologies Limited for the year ended 30 April 2010, which is 
available on the Company’s website.
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 2011, amounted to £2,803,924. The Directors have prepared projected cash flow information 
for the period ending 12 months from the date of their approval of these financial statements. On the basis 
of this cash flow information the Directors believe that the Group will be able to continue to trade for the 
foreseeable future. 
Capital restructuring
Ilika plc was incorporated as a vehicle for flotation on AIM in order to acquire, in a share for share exchange, 
Ilika Technologies Limited. These financial statements consolidate the results and financial position of Ilika 
Technologies Limited and its subsidiaries, through capital restructuring accounting as required by IFRS 3 Revised 
‘Business Combinations’. This means that the Group financial statements account for the share for share 
exchange as if Ilika Technologies Limited was the acquirer and Ilika plc the acquired entity. As a result of this, the 
comparative financial information and the financial information up to 30 April 2010 relates to the consolidated 
financial information of Ilika Technologies Limited. 
On 6 May 2010, Ilika plc acquired, in a share for share exchange, Ilika Technologies Limited. As part of the share 
for share exchange agreement, the share options and warrants in Ilika Technologies Limited were transferred to 
Ilika plc on the same terms as previously held. There was no change in the fair value of the share options on the 
date of transfer because the terms of the new share option agreements were the same as the old share options. 
The warrant reserve in Ilika Technologies Limited was eliminated as a result of the exchange agreement as the 
warrants had a nil fair value at the date of transfer.
Southampton Asset Management Limited (‘SAM’) exercised 2,099,900 options immediately prior to admission at 
an exercise price of £0.01 per share. This amount was in excess of the amount payable under the terms of the 
original option agreement held in Ilika Technologies Limited and therefore a compensating payment of £20,789, 
reflecting the additional amount paid by SAM, was made to SAM and charged to the capital restructuring reserve. 
Ilika plc was admitted to AIM on 14 May 2010. 10,147,059 Ordinary Shares were issued for a total consideration 
of £5,175,001. The premium arising on the issue of these shares was £4,933,831. Total issue costs incurred were 
£764,282. These costs have been written off against the share premium account.
4,000 options were exercised by option holders after admission at an exercise price of £0.10 per share. 
(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 1 First-time adoption of International Financial Reporting Standards (amendment) 1 July 2010
IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters 
(amendments) 1 July 2011
IFRS 7 Disclosures – Transfers of Financial Assets (amendments) 1 July 2011
IFRS 9 Financial Instruments 1 January 2013
IAS 12 Deferred tax: Recovery of Underlying Assets (amendments) 1 January 2012
IAS 24 Related Party Disclosure (revised) 1 January 2011 Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
31  Financial statements
Business 
review Governance Overview
1 Accounting policies (continued)
International Financial Reporting Interpretations (IFRIC)
Effective date for 
periods commencing
IFRIC 14 The limit on a defined benefit asset, minimum funding requirements and  
their interaction 1 January 2011
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1 April 2010
No other new standards or amendments are expected to have an effect on the Group.
The following principal accounting policies have been applied consistently in dealing with items which are 
considered material in relation to the financial information.
Revenue
Revenue comprises the fair value for the sale of goods and services, net of value added tax and is recognised 
as follows:
Sales of goods
Sales of equipment and skin based products are recognised when products are delivered to a customer, the 
customer has accepted the products and collectability of the related receivables is reasonably assured.
Sales of services 
Sales of research and development services are recognised in the accounting period in which the services are 
rendered, by reference to completion of the specific transaction assessed on the basis of the actual service 
provided as a proportion of the total services to be provided.
Leases 
Where a Group Company enters into a lease which entails taking substantially all the risks and rewards of 
ownership of an asset, the lease is treated as a ‘finance lease’. The asset is recorded in the balance sheet 
as property, plant and equipment and is depreciated over its estimated useful life or the term of the lease, 
whichever is shorter. Future instalments under such leases, net of finance charges, are included within creditors. 
Rentals payable are apportioned between the finance element, which is charged to the consolidated income 
statement, and the capital element which reduces the outstanding obligation for future instalments. All other 
leases are accounted for as “operating leases” and the rental charges are charged to the consolidated 
income statement on a straight line basis over the life of the lease.
Financial income and financial expense
Financial income and financial expense is recognised in the income statement as it accrues, using the effective 
interest method.
Pension and other post retirement benefits 
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Share-based payment transactions
The Group issues equity-settled share-based payments to all employees. Equity-settled share-based payments 
are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled 
share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s 
estimate of shares that will eventually vest and adjusted for the effect of market-based and non-market based 
vesting conditions. 
The fair value of market-based options granted by the Group is measured by use of the stochastic valuation 
model taking into account the following inputs: the exercise price of the option; the life of the option; the market 
price on the date of grant of the option; the expected volatility of the share price; the dividends expected on the 
shares; and the risk free interest rate for the life of the option. 
The fair value of non market-based options granted by the Group is measured by use of the Black-Scholes 
pricing model taking into account the following inputs: the exercise price of the option; the life of the option; 
the market price on the date of grant of the option; the expected volatility of the share price; the dividends 
expected on the shares; and the risk free interest rate for the life of the option. The expected life used in the 
model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise 
restrictions, and behavioural considerations.
  Ilika plc Annual report 2011 Fast-tracking materials discovery
32  Financial statements
Notes to the consolidated  
financial statements
1 Accounting policies (continued)
Research and development expenditure
Expenditure on the research phase is charged to the income statement in the period in which it is incurred. 
Development expenditure on new products is capitalised only once the criteria specified under IAS 38, 
Intangible Assets, have been met. Prior to and during the year ended 30 April 2011, no development expenditure 
satisfied the necessary conditions of IAS 38.
Taxation
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for 
financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided 
is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, 
using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available 
against which the asset can be utilised.
Foreign currency
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the 
transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are 
translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation 
are recognised in the income statement. 
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as 
separate items of property, plant and equipment.
Depreciation is charged to the profit and loss statement on a straight-line basis over the estimated useful lives of 
each part of an item of property, plant and equipment. The estimated useful lives are as follows:
Leasehold improvements  lease term
Plant, machinery and equipment 3–5 years
Fixtures & fittings   3–5 years
Inventory
Inventory comprises the Group’s cell bank from which the Cryoskin
®
 product is derived. Inventory is valued at  
the lower of cost and net realisable value. Consumable stock items have been written off as an expense in the 
year incurred.
Impairment
The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether 
there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. 
Impairment losses are recognised in the income statement.
Intangible assets
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to 
use the specific software. These costs are amortised to administrative expenses using the straight line method 
over their estimated useful lives (1–3 years).
Intellectual property
Acquired intellectual property is included at cost and is amortised to administrative expenses on a straight-line 
basis over its useful economic life of 15 years. 
Financial instruments 
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group  
becomes a party to the contractual provisions of the instrument. The Group’s financial assets are all classified  
as loans and receivables and carried at amortised cost. The Group’s financial liabilities are all classified as 
‘other’ liabilities which are carried at amortised cost. Cash and cash equivalents comprise cash balances  
and call deposits. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
33  Financial statements
Business 
review Governance Overview
1 Accounting policies (continued)
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.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held on call with the bank.
Key sources of estimation uncertainty
The preparation of the Group’s financial statements, in accordance with IAS 1, Presentation of Financial 
Statements, requires management to make estimates and assumptions that affect the reported amounts of 
assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the 
date of the Group’s financial statements. The Group’s estimates and judgements are continually evaluated and 
are based on historical experience and other factors, including expectations of future events that are believed 
to be reasonable under the circumstances.
Depreciation of property, plant and equipment  > 
Depreciation is provided in the consolidated financial statements so as to write-down the respective assets 
to their residual values over their estimated useful lives and as such, the selection of the estimated useful lives 
and the expected residual values of the assets requires the use of estimates and judgements. Details of the 
estimated useful lives are as shown above in the policy note for depreciation.
Amortisation lives > 
Intangible assets are recorded at their fair value at acquisition date and are amortised on a straight-line 
basis over their estimated useful economic lives from the time they are available for use. Any change in the 
estimated useful economic lives could affect the future results of the Group; however, no changes were 
made in the year.
Revenue recognition > 
The Group’s revenue substantially comprised revenues from the provision of research and development 
services. The 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 22.
Taxation > 
The current tax receivable is the expected tax receivable on the expenditure for the period using the tax rates 
and laws that have been enacted or substantially enacted at the balance sheet date, and any adjustments 
to tax payable in respect of previous years. The ultimate receivable may vary from the amounts provided and 
is dependent upon negotiations with the relevant tax authorities.
2 Segment reporting
IFRS 8 requires the Group to report on operating segments on the same basis as that used by the chief 
operating decision maker to assess the performance of the business segments and to allocate resources 
accordingly. For management purposes, the Group is organised by market category and operational 
information is presented to the chief operating decision maker in the following market categories; Energy, 
Electronics, Biomedical and Products and recharges.
The Group’s activities originate from the production, design and development of high throughput methods of 
material synthesis, characterisation and screening. The Group has commercialised skin-based products, details 
of which are given below.
Energy
The Group has materials development programmes in the battery, fuel cell and hydrogen storage sectors.
Electronics
The Group’s technology can be applied to a wide range of electronic materials. The Group is initially focusing 
on piezoelectric and memory materials.
Biomedical
In 2009, the Group incorporated a subsidiary to handle all of its biomedical products and development 
programmes. The biomedical business is built on the Group’s biopolymer technology.
 
  Ilika plc Annual report 2011 Fast-tracking materials discovery
34  Financial statements
Notes to the consolidated  
financial statements
2 Segment reporting (continued)
Details of the revenues from external customers by operating segment are given below:
 
Year ended 30 April
Turnover
2011 
£
2010 
£
Analysis by class of business:
Energy 1,101,448 869,977
Electronics 291,546 42,000
Biomedical 151,772 148,895
1,544,766 1,060,872
Year ended 30 April
Turnover
2011 
£
2010 
£
Analysis by geographical market:
By destination
Belgium 155, 11 7 179 ,381
United Kingdom 259,184 89,435
Germany 84,015 42,000
Japan 1,028,450 689,556
North America 18,000 60,500
1,544,766 1,060,872
Analysed as:
Rendering of services 1,479,526 972,477
Sales of goods 65,240 88,395
1,544,766 1,060,872
In the period to 30 April 2011, the Biomedical class of business turnover can be analysed as £65,240 for sale 
of skin based products and £86,482 for research and development services. All revenues associated with the 
energy and electronics class of business are for research and development services. 
A number of customers individually account for more than 10 percent of the total turnover of the group. The 
revenues from these companies are indicated below on a segment basis:
Year ended 30 April
Turnover
2011 
£
2010 
£
Customer 1 820,919 689,556
Customer 2 155, 11 7 180,421
Customers less than 10 percent 125,412 –
Energy Total 1,101,448 869,977
Customer 3 174,457 –
Customers less than 10 percent 11 7 ,089 42,000
Electronics Total 291,546 42,000
Customers less than 10 percent 151,772 148,895
Biomedical total 151,772 148,895
1,544,766 1,060,872
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 20. The total assets and liabilities 
per the management accounts are the same as the consolidated balance sheet with the exception of the 
period end tax adjustment. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
35  Financial statements
Business 
review Governance Overview
3 Operating loss
Year ended 30 April
This is arrived at after charging:
2011 
£
2010 
£
Research and development expenditure in the year 1,166,761 1,145,360
Depreciation 731,599 764,327
Amortisation of intangible assets 11,7 42 21,594
Auditors remuneration:
Fees payable to the Group’s auditor for the audit of the Group’s accounts 15,000 4,750
Fees payable to the Group’s auditor for other services:
– The Audit of the Group’s subsidiaries 5,000 2,500
– Other assurance services – interim review 10,000 –
– Tax services 6,745 9,555
–  Reporting accountant fees in relation to the flotation and other  
non-recurring services 118,420 23,718
Operating lease rentals 174,000 1 7 4, 11 9
Share-based payment charge 601,622 816, 179
Foreign exchange differences 617 – 
4 Employees
The average number of employees during the year, including executive directors, was:
 
Year ended 30 April
2011 
Number
2010 
Number
Administration 9 9
Materials synthesis 21 17
30 26
Staff costs for all employees, including Executive Directors, consist of:
 
Year ended 30 April
2011 
£
2010 
£
Wages and salaries 1,577,637 1,235,823
Social security costs 138,896 129,426
Share-based payment expense 601,622 816, 179
Pension costs 94,480 76,741
2,412,635 2,258,169 Ilika plc Annual report 2011 Fast-tracking materials discovery
36  Financial statements
Notes to the consolidated  
financial statements
4 Employees (continued)
The directors costs consist of:
Basic 
salary 
£
Fees 
£
Benefits 
in kind 
£
Bonus 
£
Total 
short-term 
benefits 
£
Pension 
£
Share- 
based 
payment 
expense 
£
Total 
£
Year to 30 April 2011
G. Purdy 150,197 – 418 24,000 1 74,615 27,707 199,366 401,688
S. Boydell 92,722 – 267 10,500 103,489 20,101 29,879 153,469
B. Hayden 50,000 – – – 50,000 – 99,167 149,167
J. Boyer 59,835 – – – 59,835 – 200,633 260,468
W. Braun 27,41 7 2,500 – – 29,917 – 13,244 43,161
W. Wakeham 29,917 – – – 29,917 – 12,509 42,426
C. Spottiswoode 29,637 – – – 29,637 – 10,880 40,517
– – – – – – 2,278 2,278
– – – – – – 736 736
439,725 2,500 685 34,500 477,410 47,808 568,692 1,093,910
Year to 30 April 2010
G. Purdy 122,760 – 365 36,828 159,953 12,276 154,292 326,521
A. Marrocco 14,841 – 65 – 14,906 1,228 90,824 106,958
S. Boydell 46,836 – 71 9,373 56,280 3,832 – 60, 11 2
J. Boyer 40,920 – – – 40,920 – 199,946 240,866
W. Braun 20,460 – – – 20,460 – 26,371 46,831
K. Seifert – – – – – – 26,371 26,371
R. Penning De Vries – 24,510 – – 24,510 – – 24,510
W. Wakeham 10,230 – – – 10,230 – – 10,230
B. Hayden 2, 917 31,739 – – 34,656 – 56,698 91,354
258,964 56,249 501 46,201 361,915 1 7,336 554,502 933,753
Benefits in kind include critical illness cover.
The unapproved share options of the Directors under the ‘Ilika plc Executive Share Option Scheme 2010’ are set 
out below: 
2011
Number
G. Purdy 1,800,000
J. Boyer 1,800,000
B. Hayden 900,000
S. Boydell 205,200
W. Braun 115,200
W. Wakeham 115,200
C. Spottiswoode 100,200
The approved share options of the Directors in Ilika plc exchanged from share options in Ilika Technologies 
Limited. For further details see note 22. 
2011
Number
G. Purdy 760,700
S. Boydell 90,000 Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
37  Financial statements
Business 
review Governance Overview
4 Employees (continued)
The unapproved share options of the Directors in Ilika plc exchanged from share options in Ilika Technologies 
Limited. For further details see note 22. 
2011
Number
G. Purdy 136,200
J. Boyer 540,200
W. Braun 20,000
B. Hayden 59,300
No options have lapsed in the period. 
5 Other operating income 
Year ended 30 April
2011 
£
2010 
£
Grant income 356,867 210,457
Sundry other income 147 4,543
357,014 215,000
6 Financial income 
 
Year ended 30 April
2011 
£
2010 
£
Income from short-term deposits 38,001 9,686
7 Financial expense
Year ended 30 April
2011 
£
2010 
£
Interest on:
Finance leases 9,458 6,448
8 Taxation 
(a) Tax on profit from ordinary activities
There is no taxation charge due to the losses incurred by the Group during the year. The taxation credit 
represents R&D tax credit claims as follows:
 
Year ended 30 April
2011
 £
2010 
£
Current tax on loss for the year (122,733) (132,823)
Adjustments to prior period 16,265 –
106,468 (132,823) Ilika plc Annual report 2011 Fast-tracking materials discovery
38  Financial statements
Notes to the consolidated  
financial statements
8 Taxation (continued)
(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 28 percent. The differences are reconciled below:
2011 
£
2010 
£
Loss on ordinary activities before tax (3,153,952) (3,264,374)
Loss on ordinary activities before tax multiplied by the standard rate of corporation 
tax in the UK of 28 percent (883,107) (914,025)
Effects of:
Expenses not deductible for corporation tax 29,576 13,348
Other temporary differences not recognised 169,138 191,332
Property, plant and equipment temporary differences not recognised 32,318 228,589
R&D relief (2,619) 5,583
Origination of unrecognised tax losses 531,961 342,350
Under provision in previous years 16,265 – 
Total tax credit for the year (106,468) (132,823)
Unrecognised deferred taxation
There are tax losses available for carry forward against future trading profits of approximately £8,269,000 (2010: 
£6,228,000). A deferred tax asset in respect of these losses of approximately £1,710,000 (2010: £1,736,000) has 
not been recognised in the accounts, as the full utilisation of these losses in the foreseeable future is uncertain.
9 Earnings 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
2011 
Number
2010 
Number
Weighted average number of equity shares 38,354,759 121,339
£ £
Earnings, being profit after tax (3,047,484) (3,131,551 )
£ £
Loss per share (0.08) (25.81)
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 2011 there were 18,338,316 options 
outstanding (2010: 46,049 options outstanding) as detailed in notes 18 and 22. Following the share for share 
exchange, there is no effect on the earnings per share.
  Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
39  Financial statements
Business 
review Governance Overview
10 Intangible assets
Software 
licences 
£
Intellectual 
property 
£
Total 
£
Cost
As at 30 April 2009 22,808 75,000 97,808
Additions 11 ,078 – 11 ,078
As at 30 April 2010 33,886 75,000 108,886
Additions 7,298 – 7,298
Disposals (18,824) – (18,824)
As at 30 April 2011 22,360 75,000 97,360
Amortisation
As at 30 April 2009 6,804 8,750 24,846
Provided for the year 16,594 5,000 21,594
As at 30 April 2010 23,398 18,750 42,148
Provided for the year 6,742 5,000 11 ,7 42
Disposals (18,324) – (18,324)
As at 30 April 2011 11,816 23,750 33,566
Net book value
As at 30 April 2010 10,488 56,250 66,738
As at 30 April 2011 10,544 51,250 61,794
The amortisation charge of £11,742 (2010: £21,594) is included within administrative expenses
 
11 Property, plant and equipment
Leasehold 
improvements 
£
Plant, 
machinery and 
equipment 
£
Fixtures and 
fittings 
£
Total 
£
Cost
As at 30 April 2009 351,667 3,071,608 158,032 3,581,307
Additions 20,000 100,235 1,133 121,368
Disposals – (1,568) – (1,568)
As at 30 April 2010 371,667 3, 170,275 159,165 3,701,107
Additions 16,232 648,16 1 6,972 671,365
Disposals – (69,251) – (69,251)
As at 30 April 2011 387,899 3,749,185 166,137 4,303,221
Depreciation
As at 30 April 2009 262,069 544,336 62,856 869,261
Provided for the year 95,310 633,303 35,714 764,627
Disposals – (610) – (610)
As at 30 April 2010 357,379 1 , 1 77,029 98,570 1,632,978
Provided for the year 16,154 683,224 32,221 731,599
Disposals – ( 67,835) – ( 67,835)
As at 30 April 2011 373,533 1,792,418 130,791 2,296,742
Net book value
As at 30 April 2010 14,288 1,993,246 60,595 2,068,129
As at 30 April 2011 14,366 1,956,767 35,346 2,006,479
The net book value of fixtures and fittings includes an amount of £7 ,187 (2010: £15,812) and plant, machinery and 
equipment includes an amount of £68,622 (2010: £20,871) in respect of assets held under finance lease contracts. Ilika plc Annual report 2011 Fast-tracking materials discovery
40  Financial statements
Notes to the consolidated  
financial statements
11 Property, plant and equipment (continued)
Commitments for capital expenditure
 
Year ended 30 April
2011 
£
2010 
£
Contracted but not provided for 43,771 – 
12 Inventory
As at 30 April
2011 
£
2010 
£
Inventory 34,135 –
Inventory comprises the Group’s cell bank from which the Cryoskin
®
 product is derived. 
13 Trade and other receivables
As at 30 April
2011 
£
2010 
£
Trade receivables 68,052 87 ,891
Prepayments and accrued income 445,642 368,888
Other receivables 234,387 157,33 1
748,081 6 1 4, 110
14 Other financial assets – bank deposits
As at 30 April
2011 
£
2010 
£
Amounts receivable within one year:
Sterling fixed rate deposits of greater than three months’ maturity at inception 1,500,000 –
15 Cash and cash equivalents
As at 30 April
2011 
£
2010 
£
Current bank accounts 184,201 492,418
Short-term deposits 1, 119,723 300,000
1,303,924 792,418
16 Trade and other payables
Current
As at 30 April
2011 
£
2010 
£
Trade payables 21 7,672 328,281
Other payables 19,700 3,584
Other taxes and social security costs 42,205 33,143
Lease purchase agreements 40,823 19,060
Accruals and deferred income 805,231 616,089
1,125,631 1,000,157
  Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
41  Financial statements
Business 
review Governance Overview
16 Trade and other payables (continued)
Non current
As at 30 April
2011 
£
2010
£
Lease purchase agreements 30, 177 18,190
Lease purchase agreements 
As at 30 April
2011 
£
2010 
£
Amounts payable
Within one year 40,823 19,060
In 1 year to 2 years 22,633 18,190
In 2 years to 5 years 7,544 –
71,000 37,250
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 2011 was £87,738 (2010: £50,982) 
17 Financial instruments 
The Group’s principal financial instruments comprise, lease financing arrangements, cash and short-term 
deposits as well as other various items arising from its operations such as trade receivables and trade payables 
which are shown in the table below. The main purpose of these instruments is to finance the Group’s working 
capital requirements as well as funding its capital expenditure programmes. The Group does not enter into 
derivative transactions such as interest rate swaps or forward exchange contracts.
As at 30 April
2011 
£
2010 
£
Financial Assets
Loans and receivables
Trade receivables 68,052 87 ,891
Accrued income 303,405 88, 173
Other receivables 234,387 157,33 1
Current bank accounts 184,201 492,418
Bank deposits 1,500,000 – 
Short-term deposits 1, 119,723 300,000
Total loans and receivables 3,409,768 1,125,813
Financial Liabilities
Other financial liabilities
Trade payables 21 7,672 328,281
Other payables 19,700 3,582
Other taxes and social security costs 42,205 –
Lease purchase agreements 71,000 37,250
Accruals 358,258 547,3 1 2
Total other financial liabilities 708,835 916,425
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. Ilika plc Annual report 2011 Fast-tracking materials discovery
42  Financial statements
Notes to the consolidated  
financial statements
17 Financial instruments (continued)
Credit risk 
The Group’s credit risk is attributable to its trade receivables and banking deposits. The Group places its deposits 
with reputable financial institutions to minimise credit risk. The maximum exposure to credit risk for each period is 
the amount disclosed above as total loans and receivables. For the periods above there were no trade receivables 
which were past due or impaired. Risk is further mitigated through the use of credit limits, but also through the 
nature of the customers, who, for the most part, are large multinationals. There is no bad debt provision.
 
Liquidity risk 
The Group’s policy is to maintain adequate cash resources to meet liabilities as they fall due. With the exception 
of its hire purchase liabilities, which are disclosed in note 16, all other Group payable balances fall due for 
payment within one year. Cash balances are placed on deposit for varying periods with reputable banking 
institutions to ensure there is limited risk of capital loss. The Group does not maintain an overdraft facility. 
Interest rate risk 
The main risk arising from the Group’s financial instruments is interest rate risk. The Group placed deposits 
surplus to short-term working capital requirements with a variety of reputable UK-based banks and building 
societies. These balances are placed at floating rates of interest and deposits have maturities of one to nine 
months. The Group’s cash and short-term deposits are set out in note 15.
 
Fixed-rate financial liabilities comprise 3 finance leases, 2 of which expire in April 2012 and the 3rd in August 
2013. They have a weighted average interest rate of 13.5 percent. The maturity profile is detailed in note 16. 
Floating-rate financial assets comprise cash on deposit and cash at bank. Short-term deposits are placed with 
banks for periods of up to 9 months and are categorised as floating-rate financial assets. Contracts in place at 
30 April 2011 had a weighted average period to maturity of 91 days and a weighted average annualised rate of 
interest of 1.52 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 2011 by approximately £16,000 (2010: £9,000).
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 2011 by approximately £33,500 (2010: £11,000)
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.
18 Share capital
As at 30 April
2011 
£
2010 
£
Authorised
36,573,359 Ordinary Shares of £0.01 each 365,734 1,582
1,781,400 Convertible Preference Shares of £0.01 each 1 7,814 238
Allotted, called up and fully paid
36,573,359 Ordinary Shares of £0.01 each 365,734 1,035
1,781,400 Convertible Preference Shares of £0.01 each 1 7,814 178
383,548 1,213
The comparative information disclosed above is in respect of the Ilika Technologies Limited as explained in  
note 1, capital restructuring. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
43  Financial statements
Business 
review Governance Overview
18 Share capital (continued)
Share Rights
The Ordinary Share and preference shares rank pari passu in all respects other than:
The profits which the Group may determine to distribute in respect of any financial period shall be distributed  >
only among the holders of the Ordinary Shares. The preference shares shall not entitle the holders of them to 
any share in such distributions
On a return of capital or assets on a liquidation, reduction of capital or otherwise the surplus assets of the  >
Group remaining after payment of its obligations shall be applied:
First, in paying to the holders of the preference shares the amount paid thereon, being the amount equal  –
to the par value of the preference shares excluding any premium
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. 
Share options and warrants
Employee related share options are disclosed in note 22. In addition to these, there were 107,300 non-employee 
share options over Ordinary Shares of £0.01 at the year end. The Company’s brokers also have a warrant to 
subscribe to 130,100 Ordinary Shares of £0.01.
10,147,059 warrants to subscribe to Ordinary Shares of £0.01 were issued on 14 May 2010 to investors who 
subscribed to the placing as one warrant for each share subscribed and the Company’s brokers were issued 
with a warrant to subscribe to 392,157 Ordinary Shares of £0.01.
19 Operating leases
The total future minimum rent payable under non-cancellable operating leases is as follows:
As at 30 April
2011 
£
2010 
£
Property
Within 1 year 10,217 –
In 1 to 2 years – 50,753
In 2 to 5 years 366,204 471,784
376,421 522,537
20 Pensions
The Group operates a defined contribution group personal pension scheme. The pension cost charge for the 
period represents contributions payable by the Group to the scheme and amounted to £94,480. (2010: £76,741). 
21 Related party transactions
The Directors consider that no one party controls the Group.
During the year ended 30 April 2011, the Group incurred costs of £294,248 (2010: £251,529) 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 Group. At  
30 April 2011, the amount unpaid in respect of these costs was £8,488. (2010: £15,239).
During the year ended 30 April 2011, the Group incurred costs of £nil (2010: £5,000) with IP Group plc, a 
shareholder in the Group in connection with non-executive recruitment fees. At 30 April 2011, the amount 
unpaid in respect of these costs was £nil (2010: £nil).
During the year ended 30 April 2011, the Group paid consultancy fees of £nil (2010: £35,000) directly to Prof. B. 
Hayden, a Director of the Group. At 30 April 2011, the amount unpaid in respect of these costs was £nil (2010: 
£nil). The Group also incurred fees from the University of Southampton in respect of Prof. B. Hayden. These 
amounts are included in the £294,248 shown above. Ilika plc Annual report 2011 Fast-tracking materials discovery
44  Financial statements
Notes to the consolidated  
financial statements
22 Share-based payments expense and share options
Share-based payment expense
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 Group has calculated the fair market value of options with market based performance conditions using the 
stochastic valuation model. Previous options with no market based performance conditions have been valued 
using the Black-Scholes model. 
Those 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 incentivised and motivated staff through the grant of share options under the Enterprise 
Management Incentive (‘EMI’) scheme and through unapproved share option schemes.
On 14 May 2010, options in the Ilika Technologies Limited share option scheme were exchanged for options in 
Ilika plc. 1 option in Ilika Technologies Limited was exchanged for 100 options in Ilika plc with the option price in 
Ilika plc shares being one one hundredth of the price in Ilika Technologies shares. 
Black-Scholes valuation
Weighted Average Exercise Price Number
2011 
£
2010 
£ 2011 2010
Outstanding:
At start of the period 34.95 33.09 22,676 21,776
100 for 1 exchange 0.3495 – 2,244,944 – 
Exercised during the period 0.1000 – (4,000) – 
Granted during the period – 80.00 –  900 
At the end of the period 0.3499 34.95 2,263,600 22,676
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 4.9 years (2010: 5.9 years). These share options are exercisable and must 
be exercised within 10 years from the date of grant. 
At 30 April 201 1 the following share options were outstanding in respect of the approved share options exchanged:
Date of grant
Number of 
shares
Period of 
option
Exercise price 
per share
19 May 2004 375,000 10 years £0.10
29 June 2004 219,700 10 years £0.10
9 June 2005 139,500 10 years £0.10
30 March 2006 15,200 10 years £0.10
14 May 2007 156,100 10 years £0.80
15 January 2008 70,400 10 years £1.00
2 February 2009 138,000 10 years £0.80
1 December 2009 90,000 10 years £0.80
4,000 of these options were exercised in the year. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
45  Financial statements
Business 
review Governance Overview
22 Share-based payments expense and share options (continued)
At 30 April 201 1 the following share options were outstanding in respect of the unapproved share options exchanged:
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
No options were exercised in the year.
The following information is relevant in the determination of the fair value of options granted under the equity-
settled share-based remuneration schemes under the Black-Scholes method. 
Year to 
30 April 
2010
Equity-settled:
Weighted average share price at date of grant/£ 49.50
Exercise Price/£ 80
Weighted average contractual life/years 9.7
Expected volatility 30%
Expected dividend yield 0%
Risk free interest rate 0.5%
The volatility has been based on the annualised average of the standard deviations of the daily historical 
continuously compounded returns of the share price of three companies listed on the AIM which have 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
2011 
£
2010 
£ 2011 2010
Outstanding:
At start of the period – – – –
Granted during the period 0.51 – 5,365,400 –
Lapsed during the period 0.51 – (13,300) –
At the end of the period 0.51 – 5,352,100 –
The exercise price of options outstanding at the end of the period was £0.51 and their weighted average 
contractual life was 10 years. 
Ilika plc Executive Share Option Scheme 2010
At 30 April 2011 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 151,300 10 years £0.51 Ilika plc Annual report 2011 Fast-tracking materials discovery
46  Financial statements
Notes to the consolidated  
financial statements
22 Share-based payments expense and share options (continued)
Members of staff in the Group have options in respect of Ordinary Shares in Ilika plc, conditional upon the 
achievement of a 10 percent increase in the Company’s share price above that of the TechMARK All share 
price index over a three year period. 13,300 options lapsed in the year due to employees leaving the Company. 
At a meeting of the Remuneration Committee on 13 July 2011, it was agreed that the performance criteria 
applicable to these options be amended to reflect a series of financial and commercial milestones.
Ilika plc unapproved share options
At 30 April 2011 the following share options were outstanding in respect of Ilika plc unapproved share options:
Date of grant
Number of 
shares
Period of 
option
Exercise price 
per share
14 May 2010 5,200,800 10 years £0.51
Directors, Non-Executive Directors and founders of the Group were granted a total of 5,200,800 options in 
respect of Ordinary Shares in Ilika plc. These options vest in 4 tranches. The first Tranche of 825,000 options were 
granted on the 14 May 2010 with no performance conditions attached. The remaining 3 Tranches of 1,458,600 
options are conditional upon the achievement of a 10 percent increase in the Company’s share price above 
that of the TechMARK All share price index in each of the three years subsequent to the flotation. At a meeting 
of the Remuneration Committee on 13 July 2011, it was agreed that the performance criteria applicable to the 
options granted under tranche 2 should be waived. Furthermore, it was agreed that the performance criteria 
application to the options granted under tranches 3 and 4 be amended to reflect a series of financial and 
commercial milestones.
No options were exercised or lapsed in the year.
 
The following information is relevant in the determination of the fair value of options granted under the equity-
settled share-based remuneration schemes operated by the Group under the stochastic valuation model.
Expected Term. This is the most likely estimate of the period from grant until the exercise date. For these options, 
the assumption of an expected term of part way between vesting and lapse for each option/tranche. 
Expected Volatility. The normal approach is to look at the historical volatility of the share price over the most 
recent period that is generally commensurate with the expected award term. However, this approach is not 
possible here given that the options were granted on the date of the Company’s admission to the London 
Stock Exchange. 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 2 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. 
The charge for the prior period had been calculated on the basis that the Group floated in May 2010.
2011 
£
2010 
£
Share-based payment expense:
Black-Scholes calculation 27, 138 81 3, 179
Stochastic valuation 574,484 –
601,622 81 3, 179 Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
47  Financial statements
Business 
review Governance Overview
Company balance sheet of Ilika plc 
As at 30 April
Notes
2011 
£
2010 
£
ASSETS
Non current assets
Investments in subsidiary undertaking 24 121,339 –
Current assets
Trade and other receivables 25 4,378,517 –
Cash at bank and cash equivalents – 0.01
Total net assets 4,499,856 0.01
Equity
Issued share capital 26 383,548 0.01
Share premium 26 4,149,120 –
Retained earnings 26 ( 41,011 ) –
LIABILITIES 4,491,657 0.01
Current liabilities
Trade and other payables 8,199 –
Total liabilities 8,199 –
Total equity and liabilities 4,499,856 0.01
The notes on pages 50 and 51 form part of these financial statements.
These financial statements were approved and authorised for issue by the Board of Directors on 13 July 2011.
Mr. J.B. Boyer
Chairman Ilika plc Annual report 2011 Fast-tracking materials discovery
48  Financial statements
Company cash flow statement
Year ended 30 April
2011 
£
2010 
£
Cash flows from operating activities
Loss before tax (642,633) – 
Adjustments for:
Equity settled share-based payments 601,622 – 
Operating cash flow before changes in working capital, interest and taxes ( 41,011 ) – 
Increase in trade and other receivables (4,378,517) – 
Increase in trade and other payables 8,199 – 
Cash utilised by operations ( 4,411,329) – 
Cash flows from financing activities
Proceeds from issuance of Ordinary Share capital 5,175,611 0.01 
Share issue costs (764,282) – 
Net cash from financing activities 4,411,329 0.01 
Net increase in cash and cash equivalents – 0.01 
Cash and cash equivalents at the start of the period – – 
Cash and cash equivalents at the end of the period – 0.01
  Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
49  Financial statements
Business 
review Governance Overview
Company statement of changes in equity
Share 
capital 
£
Share 
premium 
account 
£
Retained 
earnings 
£
Total 
attributable 
to equity 
holders 
£ 
As at 30 April 2010 – – – – 
Share exchange with Ilika Technologies 121,339 – – 121,339 
Share option exercise 21,039 (20,429) – 610 
Issue of shares 241, 170 4,933,831 – 5,175,001 
Expenses of share issue – (764,282) – (764,282)
Share-based payment – – 601,622 601,622 
Loss and total comprehensive income – – (642,633) (642,633)
As at 30 April 2011 383,548 4,149,120 ( 4 1 ,011 ) 4,491,657
 
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.  Ilika plc Annual report 2011 Fast-tracking materials discovery
50  Financial statements
Notes to the consolidated  
financial statements
23 Accounting polices
Basis of preparation
These financial statements have been prepared in accordance with IFRSs adopted by the European Union.
Ilika plc was incorporated on 12 March 2010.
No Directors report has been presented and the Directors responsibilities in respect of these financial statements 
are set out on page 20.
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 £551,325 and to Altrika 
Limited of £123,187 . In addition the funds raised from the flotation of the Company were transferred to Ilika 
Technologies Limited. The balances outstanding at 30 April 2011 for Ilika Technologies limited was £4,243,351 
and for Altrika Limited was £123,187 .
Share-based payments
The critical accounting estimates, assumptions and judgements underpinning the valuation of the option 
awards are disclosed in note 22.
Financial instruments
The accounting policy relating to financial instruments is disclosed in note 1.
Profit of the parent company
Loss in the year
No profit and loss account is presented for the Company as permitted by Section 408 of the Companies Act 
2006. The Company’s loss for the year was £642,633 (2010: £nil).
Directors’ remuneration
The remuneration of the Directors is disclosed in note 4.
Auditors’ remuneration
Auditors’ remuneration is disclosed in Note 3.
24 Investment in subsidiary undertaking
Investments in Group undertakings are stated at cost. 
On 6 May 2010, Ilika plc acquired, in a share for share exchange, Ilika Technologies Limited. Ilika Technologies 
Limited (Incorporated in the UK) made a loss for the year of £1,893,139 and had net assets as at 30 April 2011 of 
£1,030,437 .   
    
Shares in Group undertakings (at cost)
2011 
£
At 6 May 2010 and 30 April 2011 121,339
Ilika Technologies Limited has a wholly owned subsidiary, Altrika Limited (Incorporated in the UK) which made a 
loss for the year of £511,712 and had net liabilities as at 30 April 2011 of £779,319. Financial 
statements
Ilika plc Annual report 2011 Fast-tracking materials discovery
51  Financial statements
Business 
review Governance Overview
25 Trade and other receivables
As at 30 April
2011 
£
2010 
£
Prepayments 7,404 –
Other debtors 4,575
Amounts due from subsidiary undertakings 4,366,538 –
4,378,517 –
26 Share capital
As at 30 April
2011 
£
2010 
£
Authorised
36,573,359 Ordinary Shares of £0.01 each (2010: 1 Ordinary Share of £0.01) 365,733 0.01
1,781,400 Convertible Preference Shares of £0.01 each (2010: nil) 1 7,814 –
383,547 0.01
Allotted, called up and fully paid
36,573,359 Ordinary Shares of £0.01 each (2010: 1 Ordinary Share of £0.01) 365,733 0.01
1,781,400 Convertible Preference Shares of £0.01 each (2010: nil) 1 7,814 –
383,547 0.01
On 6 May 2010, the Company issued 10,352,500 Ordinary Shares and 1,781,400 Convertible Preference Shares in 
consideration for the entire issued share capital of Ilika Technologies on a ratio of 100:1 shares. On 6 May 2010, the 
Company issued 2,099,900 Ordinary Shares pursuant to the exercise of a number of the non-employee options.
On 14 May 2010, Ilika plc was admitted to AIM. This initial public offering comprised of the issue of 10,147,059 
Placing Shares at 51 pence per share together with 10,147,059 Placing Warrants. The net proceeds, after 
transaction costs, were approximately £4,350,000.
Share Rights
The Ordinary Share and preference shares rank pari passu in all respects other than:
The profits which the Group may determine to distribute in respect of any financial period shall be distributed  >
only among the holders of the Ordinary Shares. The preference shares shall not entitle the holders of them to 
any share in such distributions
On a return of capital or assets on a liquidation, reduction of capital or otherwise the surplus assets of the  >
Group remaining after payment of its obligations shall be applied:
First, in paying to the holders of the preference shares the amount paid thereon, being the amount equal  –
to the par value of the preference shares excluding any premium
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.  Ilika plc Annual report 2011 Fast-tracking materials discovery
52  Financial statements
Corporate directory
Company number:  7187804
Directors
Executive:  Graeme Purdy
 Stephen Boydell
 Brian Hayden
Non-Executive:  Jack Boyer (Chairman)
 Dr. Werner Braun
 Clare Spottiswoode
 Prof. William Wakeham
Secretary:  Stephen Boydell
Registered office:  Kenneth Dibben House
 Enterprise Road
 University of Southampton Science Park
 Chilworth
 Southampton
 SO16 7NS
Website:  www.ilika.com
Advisers
Independent auditors:  BDO LLP
 Arcadia House
 Maritime Walk
 Ocean Village
 Southampton
 SO14 3TL
Nominated adviser and broker:  Nomura Code Securities Limited
 1 Carey Lane
 London
 EC2V 8AE
Registrars:  Computershare Investor Services PLC
 The Pavilions
 Bridgwater Road
 Bristol
 BS13 8AE
Public relations:  Pelham Bell Pottinger
 6th Floor, Holborn Gate
 330 High Holborn
 London
 WC1V 9QD Ilika plc Annual report 2011 Fast-tracking materials discovery
Ilika invents, tests and  
selects materials in  
the laboratory that can  
be selected for scale- 
up and everyday 
commercial use
Ilika focuses on three sectors:
Energy > where Ilika assesses 
materials for their greater capacity 
for energy storage and conversion 
efficiency, for example in batteries
Electronics > where materials 
created by Ilika rapidly improve the 
performance and efficiency of a 
range of electronic components, 
such as digital memory devices 
and sensors
Bio-medical > devices where Ilika’s 
subsidiary Altrika has already 
successfully commercialised 
innovative products for the 
treatment of burns Fast-tracking materials  
discovery
Ilika plc Annual report 2011
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 Annual report 2011