REG - EnSilica PLC - Trading Update

EnSilicaAnnouncement

Thu 07:00

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RNS Number : 5671D  EnSilica PLC  16 October 2025

THIS ANNOUNCMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE
OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR") AND IS DISCLOSED IN
ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

 

 

16 October 2025

EnSilica plc

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

 

Trading Update

 

 

EnSilica plc (AIM: ENSI), a leading chip maker of mixed signal ASICs
(Application Specific Integrated Circuits), announces the following update on
current trading and for the financial year ended 31 May 2025 ("FY 2025").

 

FY 2025 Update

 

The Company generated solid new business momentum in FY 2025 alongside
producing strong levels of Non-Recurring Engineering ("NRE") and recurring
supply revenue from existing contracts.

 

Key highlights include:

 

·      Secured six new design and supply contract wins (ahead of annual
target of 3-4 wins).

·      Recurring revenue base also expanding as chip designs move to
long-term supply, with annual chip supply revenues increasing to £5.7 million
(FY 2024 £2.9m).

·      Following this strong run of contract wins, booked NRE revenue
now stands at over US$40 million for the next two financial years, with a
healthy pipeline of opportunities expected to drive further growth.

·      Good visibility on additional multi-million-pound design and
manufacturing contracts, expected to further boost revenues for the financial
year ending 31 May 2026 ("FY 2026") onwards.

·    Total lifetime revenue from supply contracts is expected to deliver
over US$250 million in chip supply revenues.

 

The project with our customer, SIAE MICROELETTRONICA ("SIAE"), a leading
European specialist in wireless communication technology, highlighted in our
April 2025 trading statement, remains on hold due to SIAE's cash
constraints.  SIAE has been awarded €149 million in grant funding under the
European Union's IPCEI programme (Important Project of Common European
Interest) for a product in which EnSilica's ASIC plays a critical role. SIAE
expects these funds to start being released in 2026 and remains fully
committed to the project, which is central to its commercial strategy and is
expected to resume in 2026.

 

However, in light of the extended delay relative to the original timetable
with SIAE, the Board has decided it is prudent to make a bad debt provision of
£1.6 million in FY 2025 for the outstanding amounts owed by SIAE for work
undertaken in FY 2025, and to prudently remove projected SIAE-related income
from future forecasts.  The Company continues to maintain a close dialogue
with SIAE and remains hopeful that work on the project will resume.

 

Separately, a recent cybersecurity issue within an automotive customer's
supply chain has occurred and while it is too early to fully assess the
impact, the Company has considered it prudent to be conservative and revise
expectations for chip supply volumes required for this customer in FY 2026.

 

As a result of the bad debt provision, the Company now expects to announce
revenues of approximately £18.2 million and an EBITDA loss of approximately
£1.3 million for FY 2025*. Excluding the bad debt provision a positive EBITDA
of approximately £0.3 million was expected for FY 2025*, in line with the
Company's trading update announcement of 7 April 2025.

 

Outlook

 

Added to the excellent run of new business wins in FY 2025, EnSilica has made
a strong start in FY 2026 with year-to-date revenues significantly exceeding
those achieved in the prior year.  The Company has five chips in supply
generating recurring revenues and thirteen chips currently in the design stage
generating NRE revenues and moving towards supply.  This represents a solid
base upon which to continue to scale the business.

 

While still targeting a substantial increase in revenues and profitability in
the current year, the decision on SIAE and the cybersecurity issues for our
automotive customer's supply chain, means the Company now expects to deliver
revenues of between £28 million and £30 million for the 12 months ending 31
May 2026*, with approximately 80% of revenue already covered by existing
customer contracts.  EBITDA is now expected to be between £3.5 million and
£4.5 million for FY 2026*.

 

Importantly, the strong NRE order book, coupled with increasing profits from
chip supply, means the Board is seeing decreased cash consumption and the
Company should reach positive monthly cash generation in due course.

 

Ian Lankshear, CEO of EnSilica, commented:

 

"We are targeting an increase of more than 50% in revenues in the current
financial year after having absorbed the impact from the challenges SIAE and
our automotive client are facing, and it may well turn out that we have been
too conservative. Frustrating as the impact of these two events are, they
reflect the current stage of the development of the business. As the business
continues to scale up the individual impact of specific projects will mitigate
through the growth in the breadth of our chip supply contracts.

 

The opportunity remains substantial. We maintain our forecast for total
lifetime revenue from supply contracts of over US$250 million in chip supply
revenues as the reduction from SIAE has been made up by increased demand from
other clients.

 

Our overall position has strengthened during FY2025 as we have increased our
customer base and further progressed projects towards supply with the
associated long term revenue opportunity and we anticipate further customer
wins in the current year."

 

EnSilica will announce final results for the 12 months ended 31 May 2025 on 4
November 2025.

 

* Immediately prior to this announcement, the Company believes that market
expectations for the year ended 31 May 2025 were for revenues of £19.6
million and EBITDA of £0.4 million, and for the year ended 31 May 2026 were
for revenues of £33 million and EBITDA of £5.1million.

 

 

For further information please contact:

 

 EnSilica plc

 Ian Lankshear, Chief Executive Officer                                 via Vigo Consulting

 Kristoff Rademan, Chief Financial Officer                              +44 (0)20 7390 0233

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

 Allenby Capital Limited (Nominated Adviser & Joint Broker)

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)                     +44 (0)20 3328 5656

 Joscelin Pinnington / Tony Quirke (Sales & Corporate Broking)          info@allenbycapital.com (mailto:info@allenbycapital.com)

 Panmure Liberum Limited (Joint Broker)

 Edward Mansfield / Will King                                           +44 (0)20 3100 2000

 Vigo Consulting (Investor & Financial Public Relations)                +44 (0)20 7390 0233

 Jeremy Garcia / Anna Stacey                                            ensilica@vigoconsulting.com (mailto:ensilica@vigoconsulting.com)

 

 

The person responsible for arranging release of this announcement on behalf of
the Company is Ian Lankshear, Chief Executive Officer.

 

About EnSilica plc

 

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 is international
customers in the automotive, industrial, healthcare and communications
markets.  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, India, Brazil and Hungary.

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