LONDON (ShareCast) - Cleantech company Ilika reported a 57 per cent rise in first half revenue of 0.6m pounds as it expanded business in Europe and took on board a number of new customers.

The group narrowed its operating loss by 20% to £1.5m in the six months to October 31st as it increased business development efforts in Europe.

Gross margin rose to 39% from 24%, helping to boost revenues during the period.

The company expects growth to pick up modestly in the second half as the group makes progress in licensing out its IP portfolio.

“In summary we’ve seen really strong growth in IP protection for innovations around the globe, expansion into new sectors and an increase commercial activity which reduced overheads,” Chief Executive Graham Purdy told Sharecast/Digital Look.

The results come after the group last week announced its “world first” solid state battery which is expected to lead to significant out-licensing opportunities, especially to smartphone manufacturers.

The batteries can charge up to six times faster and last four times longer than the current highest performance lithium ion.

Purdy said given the surge in smartphone market there was a demand for longer-lasting batteries.

When asked if Apple was a potential client to secure the company’s new technology for its iPhones, he said he “can’t reveal anything at this point but one can only hope” as the smartphone has been criticised for its short battery life.

Purdy admitted the company faced tough market given that there are many players but believes the company has developed technology that was "miles ahead" of the rest of the sector.

In another significant development, the group is developing a new system for new smart homes to detect how much power is being used for controlling temperature through the use of wifi.

The firm also announced its expansion into the aerospace sector and is working on structural materials to improve the fuel efficiency of airplanes. Purdy said the company was collaborating with two undisclosed major airline firms.

“We are very pleased with progress in the last six months and we are looking forwards to releases the benefits to shareholders,” Purdy concluded.

Research and development expenditure in 2013, mainly for the solid battery technology, was at similar levels to 2012.

Net cash at the end of the period came in at £1.4m, down from £3.6m the previous year.

House broker Numis Securities said: Operational progress is positive in both the fuel cell catalyst and battery fields and license revenue is expected from both projects within the next 12-18months.

Ilika is now focusing the business around the development projects that can generate material licensing and royalty payments, de-emphasing contract development.”

Numis said it significantly reduced full year 2014 revenue estimate to £1.2m from £2.2m, but a there is a slight improvement to adjusted earnings before interest and tax (EBIT) loss and earnings per share.

Shares fell 2.82% to 34.50 at 14:00 on Wednesday.

RD

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