A TECH firm spun out of Southampton University is preparing for further growth on the back of recovering Asian manufacturing after a 37 per cent rise in turnover in half year results.

Ilika plc, which offers fast track discovery of high-tech new materials for large multinational firms, revealed gross profit was up 67 per cent and losses were cut to 17 per cent to £1.6m in the six month to October 31.

Analysts expect it to break even in the next two years. Total half year revenue and grants were £1.04m.

Ilika’s patented technology allows it to identify new materials ten to 100 times faster than conventional methods for companies such as motor giant Toyota, oil firm Shell and chip-maker NXP. Around 90 per cent of revenues come from aboard, mostly tied up with developing battery-related technology.

And company bosses are excited about the prospects of a breakthrough next generation solid state battery technology developed with Toyota which Ilika is free to cash in on outside of car industry, with strong interest expected from the military.

Ilika’s chairman Jack Boyer said: “Ilika is committed to expanding its European activities and also anticipates further business development opportunities in Asia on the back of the region’s manufacturing-led recovery. The Company also expects to build on the momentum achieved in the North American market as the scope for materials discovery and development is expected to expand Significantly.”

He said further contracts renewals and new partnerships would be announced in due course and the board looked forward to the new year with “full confidence”.

The firm’s interim results came as electronics giant Toshiba become Ilika’s 6th major Japanese multinational customer.

A Toshiba spokesperson said: “Ilika’s combinatorial chemistry techniques are able to meet our wide range of sample material requirements in a rapid period of time.”

Founded in 2004 as a spin-off from the School of Chemistry at Southampton University, Ilika was listed on the London stock market last May in a move valuing the business at £18.7m.

The university retains a 10 per cent stake in the firm, which employs 30 staff on the 45-acre university science park in Chilworth.