Shares in Ilika lost one-quarter of their value after the materials technology developer lost a major client.
Energizer Battery Manufacturing Inc has been cutting costs and its project with Ilika has fallen foul of this. The current phase of the development project ends in January and will not be extended. This means that expected future milestone and royalty payments will not be generated. Group revenues in the year to March 2013 will be 10% lower than in the previous year‘s figure of £2m.
House broker Numis had expected 20% growth in revenues in 2012-13. The broker has also cut is cash forecast for March 2013 from £3m to £2.6m. This cash is likely to be used up over the following 12 months. It was previously expected to last into the next financial year.
Ilika is expected to continue to lose money over the coming years.
At 27.5p a share, Ilika is valued at £12.6m.
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