REG - EnSilica PLC - Trading Update

EnSilicaAnnouncement

14/05/2024 07:00

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RNS Number : 2568O  EnSilica PLC  14 May 2024

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulations

 

14 May 2024

 

EnSilica plc

("EnSilica", the "Company", or the "Group")

 

Trading Update

 

EnSilica (AIM: ENSI), a leading chip maker of mixed signal ASICs (Application
Specific Integrated Circuits), today provides a pre-close trading update for
the year ended 31 May 2024 ("FY24"). The figures set out in this statement for
FY24 are subject to audit.

 

The Board is pleased to confirm that EnSilica has delivered a strong
performance in the year, buoyed by continued new business momentum, the
execution of significant contracts with key customers and a maturing of the
supply business model. This included the recent €3.8m Arm based technology
win with a prominent European automotive and industrial semiconductor supplier
as well as the US$20 million supply win for a new US customer.

 

The Board expects to report record revenues of approximately £25 million for
the year ended 31 May 2024 (2023 £20.5 million) and profit after tax of
approximately £1.9 million (2023: £1.8 million). EBITDA for the year is
expected to be approximately £1.8 million (2023: £1.6 million).

 

During H2 the mix of business changed reflecting the slower economy and the
impact that had on the start of new supply contracts which are now expected to
begin in Q1 of FY25. Conversely, the Company successfully taped out three
customer chips including devices for communications, Edge Artificial
Intelligence (AI) processing and the industrial Arm controller; all of which
will lead to long-term supply related revenues anticipated to commence during
the next 9 to 18 months. This change in sales mix led to a reduced margin
overall though management are confident that this will not persist into FY25.

 

EnSilica continues to experience high rates of activity and strong demand for
its services, though the Company has seen a longer gestation period for
investment decisions from customers in H2 FY24. The Board are pleased to
announce a continuation of a strong combined orders and sales opportunity
pipeline, which currently stands in excess of $500 million.

 

At the end of April cash balances were £1.3 million and net debt was £2.1
million. During FY 24 £0.9 million of debt will have been repaid in line with
debt repayment schedules.

 

Management continues to position the Company for continued growth in revenues
with improving margins as the supply revenues stream begins to mature, and
enhanced relationships with strategic suppliers, as noted at the half year,
begin to have an impact.

 

The new subsidiary in the United States is progressing well and is
increasingly delivering opportunities that will benefit from the enhanced
relationship with foundries both in the USA, but also Europe.

 

Looking ahead to FY25, the Board is confident that the Company will continue
to improve on its opportunities to capitalise on the significant growth
opportunity that exists within the communications, industrial, automotive and
healthcare sector. This growth is led by increased use of complex mixed signal
semiconductors in products, continually enhancing intelligence through the use
of machine learning (ML), improved cybersecurity and ubiquitous connectivity
to the cloud.

 

Accordingly, the Board is confident of delivering revenues in excess of £30
million and EBITDA in excess of £5.0 million for FY25.

 

For further information please contact:

 

 EnSilica plc                                                        Via Vigo Consulting

 Ian Lankshear, Chief Executive Officer                              +44 (0)20 7390 0233

 www.ensilica.com (http://www.ensilica.com/)

 Allenby Capital Limited, Nominated Adviser & Joint Broker           +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)                  info@allenbycapital.com (mailto:info@allenbycapital.com)

 Joscelin Pinnington / Tony Quirke (Sales & Corporate Broking)

 Singer Capital Markets, Joint Broker

 Rick Thompson / Asha Chotai                                         +44 (0)20 7496 3000

 Vigo Consulting (Investor & Financial Public Relations)             +44 (0)20 7390 0233 ensilica@vigoconsulting.com

                                                                   (mailto:visum@vigoconsulting.com)
 Jeremy Garcia / Kendall Hill

About EnSilica

 

EnSilica is a leading fabless design house focused on custom ASIC design and
supply for OEMs and system houses, as well as IC design services for companies
with their own design teams. The company has world-class expertise in
supplying custom RF, mmWave, mixed signal and digital ICs to its international
customers in the automotive, industrial, healthcare and communications
markets. The company also offers a broad portfolio of core IP covering
cryptography, radar, and communications systems. EnSilica has a track record
in delivering high quality solutions to demanding industry standards. The
company is headquartered near Oxford, UK and has design centres across the UK
and in Bangalore, India and Porto Alegre, Brazil.

 

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