REG - EnSilica PLC - Audited Results for the Year Ended 31 May 2025
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RNS Number : 0101G EnSilica PLC 04 November 2025
The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation.
4 November 2025
EnSilica plc
("EnSilica", the "Company" or the "Group")
Audited Results for the Year Ended 31 May 2025
Robust New Contract Conversion and Strong Supply Growth
EnSilica delivers some of the most complex semiconductor engineering projects
in the industry
EnSilica (AIM: ENSI), a leading chip maker of mixed-signal ASICs (Application
Specific Integrated Circuits), announces its audited results for the year
ended 31 May 2025 ("FY 25","FY 2025" or the "Year").
Financial Highlights
· Full year revenues of £18.2 million (FY 24: £25.3 million) were
lower than prior year but chip supply revenues doubled to £5.7 million
· Gross profit margin improved from 36% to 40% reflecting the change in
business mix
· Customer expected credit loss allowance of £1.8 million required
· Breakeven EBITDA* achieved (excluding the allowance for credit
losses, an EBITDA profit of £1.8 million was achieved) (FY 24: £1.7 million
profit)
· Improving operating cash generation profile with net operating cash
flow of £2.1 million generated (FY 24: £4.3 million) of which £3.7 million
was generated in the second half of 2025 ("H2 FY 25") after an initial outflow
in H1 FY 25
· Cash and cash equivalents of £2.0 million (FY 24: £5.2 million post
fundraise)
· Further investment of £5.8 million in intellectual property assets
* The EBITDA outturn for FY 25 of £nil million is £1.3 million better than
the EBITDA loss announced in our trading update on 16 October 2025 after a
subsequent technical consultation resulted in the research and development
("RDEC") tax credit from the new HMRC merged scheme being required to be
reclassified as Other income in line with technical accounting guidance.
STRONG CONTRACT MOMENTUM IN THE PERIOD
· New supply-only contract awarded valued at $7 million for Edge
Artificial Intelligence (AI) processing Chip with further potential supply
revenue of more than $50 million over the first five years of production.
· Major Telecommunications ASIC and Supply contract awarded with a
leading European telecommunications equipment provider introducing key
differentiating features for the client's next-generation telecommunication
infrastructure products valued over $30 million over a ten-year period.
· First Production order for Industrial ASIC awarded by a leading
European Industrial Original Equipment Manufacturer (OEM), a key component in
their factory automation controller systems. Production revenues of $30
million are expected over a seven-year period.
· Design & Supply contract awarded for a controller ASIC for
automotive and industrial motorised actuators for a leading supplier to most
automotive and industrial original equipment manufacturers (OEMs). Value is
projected to exceed $31 million over 7 years.
· New Design & Supply contract awarded for a precision Timing
Controller ASIC to be used in high-value industrial test equipment, total
value projected to exceed $30 million over 10 years.
· Awarded £10.38 million UK Space Agency funding over the next 3 years
for a development project under its Connectivity in Low Earth Orbit (C-Leo)
programme.
· Awarded a $18 million Design & Supply contract by a leading
European based supplier of electromechanical products for an Arm-based mixed
signal sensor interface ASIC. Total contract value is estimated to exceed $18
million over 7 years.
POST YEAR-END CONTRACTS
· June 25 - First royalty payments triggered, and an extended royalty
agreement signed with an existing satellite service provider. The total value
of the expanded agreement is estimated to be worth c. $28 million over the
next 10 years (previously estimated to be $15 million over 5 years).
· August 25 - New EU Mixed signal design centre established in
Budapest, Hungary
OUTLOOK
· EnSilica continues to build a strong pipeline and order book, which
underpins our ongoing confidence in the business, and we entered FY 26 with
strong orders for chip supply and NRE and commercial momentum
· The Company continues to invest in R&D initiatives, such as post
quantum cryptography ("PQC") and satellite communication technology, with
continued support from organisations such as the UK Space Agency and Innovate
UK
· Despite reporting an operating loss in FY 25, the Board remains
confident in the Company's ability to return to profitability, citing its
success in winning new customers, including six new development and supply
agreements and two design agreements with a lifetime value exceeding $100
million, coupled with its ability to control capital expenditure and
operational spending
· The Group remains well progressed in its mission of being Europe's
premier application specific chip supplier, and its core focus on innovation,
quality, and reliability will enable this goal
· The Group is approaching the phase where supply revenues support
future investment & overhead before non-cash charges, and we are targeting
to become cash flow positive during 2026
· Our ambitions for the medium term (3 to 5 years) are for annual
revenues in excess of £60m and longer term (6 to 10 years), our order book
and opportunities give us extended aspirations of £100m of revenues
Ian Lankshear, Chief Executive Officer of EnSilica, commented:
"The last 12 months have been a critically important period in our strategic
development as we continue to expand our supply-generated income streams, an
important benchmark to our long-term success. In addition, we continue to make
strong operational progress across our key end markets of industrial,
automotive, and space sectors, with several chip developments now advancing
through the design phase as planned.
Our pipeline continues to strengthen, with the timing controller ASIC, as
announced on 6 December 2024, successfully completing the test-chip tape-out
in August 2025. A further five tape-outs are scheduled for completion before
the end of FY 26, relating to other customer products currently in design,
reflecting very strong execution across EnSilica's development pipeline.
I remain confident in our ability to further capitalise on this growing market
opportunity, supported by an ongoing need for a resilient, trusted European
supply chain, alongside our expanding IP portfolio and strong market
reputation."
Investor Presentation
An online presentation of the annual results will be held on Wednesday, 5
November 2025 at 2.00 p.m. GMT. The presentation will be hosted on the
Investor Meet Company ("IMC") platform. Questions can be submitted pre-event
via the IMC dashboard up until 9.00 a.m. GMT the day before the meeting or at
any time during the live presentation.
Investors can sign up to IMC for free and add EnSilica to attend the webcast
via:
https://www.investormeetcompany.com/ensilica-plc/register-investor
(https://www.investormeetcompany.com/ensilica-plc/register-investor)
Annual Report and AGM
The Company's annual report and accounts together with notice of the annual
general meeting ("AGM") will be posted to shareholders this week and will be
made available on the Company's website.
The Annual General Meeting will be held on 27 November 2025 at 10.00 a.m. GMT
at Courtyard by Marriott Oxford South, 6 Milton Gate, Milton, Abingdon,
Oxfordshire OX14 4FP.
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:visum@vigoconsulting.com)
The person responsible for arranging release of this announcement on behalf of
the Company is Kristoff Rademan, Chief Financial 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 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 and Campinas,
Brazil.
Chair's statement
I am delighted to present EnSilica's full year results for the financial year
ended 31 May 2025.
The business has continued to execute on its stated growth strategy, as
highlighted in the substantial growth of our chip supply revenues alongside
the Company's ongoing success in securing a significant number of new orders
for chip supply in the medium term.
Pleasingly, we continue to have good visibility on significant supply revenues
in the next three to four years and are now rapidly approaching the
culmination of our strategy to reposition EnSilica as Europe's premier
application specific chip maker, a journey we began in 2016.
Our strategic progress aside, our financial progress was slowed by customer
driven delays across a number of sizable projects, however we continue to
benefit from the positive impact of additional new secured contracts, which
ultimately benefitted the Group in H2 2025 and also gradually improved our
cash position. This positive impact has continued into financial year 2026.
Our contract momentum accelerated during the Period, with this progress
reflecting positively on the strategy which we have adopted, recognising the
efforts of all our team members globally.
The demand for our services continues to expand as our operational footprint
and broader market reputation grows globally. This is particularly true in the
satellite communications market space where we have made significant progress,
driven by our own inhouse expertise and intellectual property stack, which is
attracting interest from a range of customers. In addition, the recent shift
from policy makers in the US has created an opportunity to develop our
business across our European locations. This shift has further helped the
business in becoming a leading European based basic fabless manufacturer.
Our growth in new projects secured and the initial success in developing the
satellite opportunity has required us to seek out an ever more geographically
diverse labour force, resulting in a c.67% increase in headcount to over 200
employees across our business at the time of IPO. The search for talented
staff remains a key focus as does the recruitment and development of talented
graduates.
Inevitably, our ever-expanding order book and the concomitant increase in
engineering staff and support staff makes the management of working capital a
key focus at all times. During the Period, we had the benefit of our new CFO,
Kristoff Rademan, who commenced in May 2024. This has been a key hire for
the business.
There is a real sense now that we are beginning to realise our potential
across EnSilica's chosen key growth markets and I would like to thank our
shareholders for their patience during this part of our development cycle.
During FY 2026, we are looking forward to maintaining our strong new business
momentum, which further supports our journey to cash flow maturity, as our
supply revenues grow further and feed through into an ever-improving cash
position.
Mark Hodgkins
Executive Chair
4 November 2025
Chief Executive's Review
We have witnessed a substantial evolution in our operational approach with an
enhanced rate of securing new contracts and a robust expansion in our
supply-generated income. The continued trend for a resilient trusted
European supply chain remains a key driving factor, along with the expansion
of our IP portfolio, with a strong market reputation.
Across the last 12 months, we have delivered ongoing momentum across our
business model, generating significant new contract conversions and more
importantly strong growth in our chip supply revenues. While our overall
revenue growth frustratingly reduced in the Period, due to delays in NRE
revenue recognition relating to two sizable contracts, the business continues
to strengthen.
The Group delivered revenues of £18.2 million across FY 25 (FY 2024: £25.3
million), primarily due to the non-recurrence of a large space communications
tape-out in the prior year and lower ASIC development revenues as older
agreements moved towards completion. However, supply revenues increased by a
staggering 97% to £5.7 million, demonstrating significant progress towards
our vision of becoming a highly profitable 'fabless' semiconductor business.
EBITDA decreased to £nil million (FY 2024: profit of £1.7 million),
primarily reflecting the £1.8 million non-cash expected credit loss allowance
relating to the delayed SIAE project, a risk that has previously been flagged,
and the required reclassification of the RDEC tax credit to Other income.
Excluding the SIAE one-off item, EnSilica would have reported a positive
EBITDA of approximately £1.8 million for the year, consistent with earlier
expectations. The business generated £2.1 million of net cash from
operations, supported by a £1.2 million equity raise, £1.0 million from
refinancing existing loans, and £1.2 million received from HMRC as a Research
and Development Expenditure Credit ("RDEC").
FY 25 has also seen the business accelerate its evolution to becoming a key
international "fabless" semiconductor supplier of ASICs across the industrial,
automotive, communications and healthcare verticals.
Our strong IP, design re-use strategy, and increasing reputation across our
key markets continues to position the Company for strong future growth.
Ensilica's Business Model and Strategic Evolution
EnSilica operates a fabless semiconductor model, providing an end-to-end
solution encompassing the development, manufacturing and supply of Integrated
Circuits (ICs). This model allows the business to focus on the value-add of
customising chips for our customers while outsourcing the capital-intensive
fabrication process.
EnSilica typically secures upfront payment for Non-Recurring Engineering (NRE)
costs, and will often co-invest in chip development, anticipating high-margin
supply or royalty revenues once ASICs reach the production stage.
This strategy embeds EnSilica deeper into the electronics value chain and has
historically proven successful for leading fabless companies globally.
In FY 2024, we introduced a "supply only" model, leveraging our strengthened
relationships with key foundries and outsourcing partners.
Under this model, EnSilica manages foundry interfaces, including the critical
tape-out process, supplying wafers or packaged chips back to customers who
primarily handle the chip design. This initiative is designed to enhance
production margins through increased wafer volumes and solidify our position
within the semiconductor supply chain, and more importantly validate our model
by securing revenue and profit growth in the medium term.
Our core growth strategy remains steadfast:
· Leveraging our strong Intellectual Property (IP) and know-how within
automotive, industrial, healthcare, and satellite connectivity applications
for mixed signal ASICs. Our post quantum cryptography (PQC) accelerator IP
addresses all of these markets.
· Scaling our Fabless ASIC Model to fully exploit revenue opportunities
from design and supply engagements.
· Capitalising on the growing requirement for custom Edge AI and
enhanced Cyber Security, leading to the re-design of many industrial,
automotive, and communication chips. We have proactively incorporated PQC
accelerators into our eSi-Crypto range of hardware IP to address future
quantum computing threats.
· Developing Applications Specific Standard Parts (ASSPs) driven by
customer demand and leveraging funding sources, with five significant
platforms already at the device evaluation stage, four of which have been
funded by the European Space Agency, the UK Space Agency and Innovate UK.
Market Opportunities and our Strategic Focus
The global semiconductor market continues its rapid expansion, with
projections indicating significant growth, reaching potentially $1 trillion in
sales by 2030.
EnSilica remains strategically focused on four principal high-growth markets
where our expertise and IP are in high demand high demand. The ASIC market is
approximately 5% of the total market and is concentrated on emerging markets
or ones undergoing key technology changes.
· Satellite Communication Sector: This sector, particularly internet
broadband using Low Earth Orbit (LEO) satellites and 5G Non-Terrestrial
Networks (NTN), is undergoing transformative changes. EnSilica's key IP and
expertise in mmWave RF and beamforming technologies, coupled with funded
projects for next-generation user terminals, ideally positions EnSilica to
capitalise on this opportunity. This was endorsed by the UK Space Agency award
of £10 million of funding to accelerate this development. In 2021, we
were selected by AST SpaceMobile to develop next-generation ASICs for their
space-based cellular broadband network, highlighting our expertise in
state-of-the-art performance and power efficiency with one of the emerging LEO
constellation providers.
· Industrial Sector: Valued at $78.57 billion in 2023 and projected to
reach $208.13 billion by 2031, this sector increasingly demands advanced
semiconductor solutions for automation, efficiency, and connectivity. Our
collaboration with Siemens, the leading European industrial OEM, underscores
our position as a leading ASIC supplier for high-quality, high-integrity
digital and mixed-signal ASICs.
· Automotive Sector: Driven by innovation, the shift to electric
vehicles (EVs), and advancements in Advanced Driver Assistance Systems and
autonomous driving, this market is expected to reach $130 billion by 2030. A
standard hybrid electric car contains approximately 3,500 semiconductor chips.
Our mixed signal and digital expertise design flow meets the sector's
stringent quality and functional safety requirements.
· Healthcare Wearables Sector: This market is experiencing substantial
growth, with advancements in AI enabling medical condition detection through
various monitoring devices. The market for semiconductors in healthcare is
projected to reach $161.3 billion by 2031. EnSilica has developed key IP,
including a vital sign sensors IC with accurate sensor interfaces and very low
power consumption. Due to the longer time to market on these, often certified
products, management has focused on the other markets more recently. Our aim
however is to increase focus by leveraging grant funding in collaboration with
a lead customer.
Key Achievements and Contract Wins Since 31 May 2024
FY 2025 was a strong year for new contract conversions and supply growth. We
successfully secured six new ASIC development and supply agreements through
competitive tendering processes. This achievement is a clear indication that
we are establishing our position in our markets, through the quality of our
customers and the reliability of our delivery. Our enhanced status is
securing both revenue and profit growth in the medium-term.
Notable contract wins and milestones include:
· A second industrial automation ASIC design and supply contract with
Siemens.
· Awarded a £4.3 million security controller chip development under a
UK Contract for Innovation from the Department for Science, Innovation and
Technology targeting Critical National Infrastructure (CNI) application.
· A timing control ASIC design and supply contract valued at over $30
million.
· A Photonics Controller ASIC design and supply contract with Oriole
Networks.
· An automotive and industrial ASIC design and supply contract worth
over $31 million over seven years.
· A design and supply contract for an Arm based automotive and
industrial controller worth $18 million over seven years.
· Awarded a significant supply-only contract for an edge AI processing
chip, valued at $7 million NRE, with potential supply revenue exceeding $50
million over the first five years of production.
· Awarded substantial funding of £10.38 million from the UK Space
Agency for a development project focused on creating next-generation
semiconductor chips for mass-market satellite broadband user terminals.
· Secured our first royalty payment and an extended royalty agreement
with an existing satellite service provider customer, now estimated to be
worth approximately $28 million over the next 10 years (previously $15
million over 5 years).
· Awarded a European Space Agency (ESA) contract to design a crucial
silicon component for advanced, jamming resilient multi-band Global Navigation
Satellite System (GNSS) capabilities, bolstering security for critical
infrastructure.
· Introduced two new Ku-band beamformer integrated circuits, enhancing
the satcoms user terminal portfolio with low power consumption and high
performance for next-generation electronically steered antennas.
Operational Developments and our People
· Our team increased by 168 to 179 average employees, primarily driven
by the recruitment of qualified engineering professionals to support the six
new ASIC design and supply contracts won in the year. Our team continues to
deliver some of the most complex semiconductor engineering projects in the
industry.
· We opened a new design centre in the Cambridge Science Park focusing
on mmWave design which further strengthens our presence in the UK's
semiconductor industry and aims to attract top engineering talent, leveraging
the vibrant ecosystem of world-class universities and research institutions in
Cambridge.
· Two further design centres have been opened to further exploit the
highly skilled and experience talent from Campinas in Brazil and Budapest in
Hungary. Both locations have a strong semiconductor eco-system allowing us to
cost effectively scale our engineering teams.
Outlook
EnSilica continues to make strong operational progress across its key end
markets of industrial, automotive, and space.
The Company's chip developments targeting the industrial and automotive
sectors are advancing through the design phase as planned. The timing
controller ASIC, announced on 5 December 2024, successfully completed the
test-chip tape-out in August 2025. A further five tape-outs are scheduled for
completion before the end of FY2026, relating to other customer products
currently in design, reflecting very strong execution across EnSilica's
development pipeline.
The Company continues to see encouraging demand from both existing and new
customers in these markets and expects a number of new feasibility and
development contracts to be signed before the end of the calendar year.
In the space sector, market activity continues to accelerate, underpinned by
increased government and private investment in secure and sovereign satellite
broadband capabilities. EnSilica's position in the payload (space segment)
domain continues to strengthen following being selected in December 2021 by
AST SpaceMobile, Inc. (NASDAQ: ASTS) to develop its next-generation payload
ASIC, together with the recent acquisition of SatixFy Communications Ltd.
(NYSE: SATX) by MDA Space Ltd. (TSX: MDA). These developments position
EnSilica as the key independent European supplier of satellite payload
communications ASICs. The Company has secured a number of funded feasibility
studies in this payload domain, some of which are expected to progress into
full ASIC development programmes during FY2026, further strengthening
EnSilica's position within the satellite-payload supply chain.
In parallel, EnSilica continues to advance its activities in the user-terminal
(ground segment) domain. Building upon previously announced contracts and
funding awards with the European Space Agency (ESA) and the UK Space Agency
(UKSA)-announced on 17 February 2023 and 3 February 2025, respectively. These
programmes have supported the development of low-power, mass market chipsets
addressing next-generation user-terminal products.
EnSilica has now entered into further customer funded engagements covering
feasibility studies and chip-evaluation support activities. These engagements
are expected to lead to EnSilica chipsets being designed into next-generation
user terminals by leading global satellite-service providers.
Future Vision
EnSilica continues to build a strong pipeline and order book, which underpins
our ongoing confidence in the business, and entered FY 2026 with strong orders
for chip supply and NRE and commercial momentum.
We aim to win two new customer design and supply contracts each year, or more,
to ensure sustained growth in chip supply revenues. Our consultancy division
remains an integral part of our business model, supporting our path to revenue
growth.
The growth and convergence of terrestrial and non-terrestrial markets for
space defence in a drive for a resilient communications infrastructure
continues to provide the Group with long-term structural growth and our
expanded pipeline across key markets leaves the business in a strong position
to meet market expectations for FY 2026.
We will continue to invest in our R&D initiatives, such as PQC and
satellite communication technology, with continued support from agencies such
as the UK Space Agency and Innovate UK.
Despite the disappointing operating loss in FY 2025, the Board remains
confident in the Company's ability to return to profitability, citing our
success in winning new customers, including six new development and supply
agreements and two design agreements with a lifetime value exceeding $100
million, coupled with our ability to control capital expenditure and
operational spending.
We are well progressed in our mission of being Europe's premier application
specific chip supplier, and our core focus on innovation, quality, and
reliability will enable this goal.
Ian Lankshear
Chief Executive Officer
4 November 2025
Finance Review
FY 2025 has been a positive year for the Group with six new ASIC development
and supply agreements won by the Group in competitive tendering processes, as
well as a 97% increase in supply revenues taking those revenues up to £5.7
million.
The Group's revenues for FY 2025 were £18.2 million, lower than the previous
year as a result of the non-recurrence of a large space communication tape-out
which occurred in FY 25 as well as lower ASIC development revenues.
Contract wins during FY 2025 included a second industrial automation ASIC
design and supply contract secured with Siemens, a timing control ASIC design
and supply contract secured with a lifetime project value expected to exceed
$30 million, a Photonics Controller ASIC design and supply contract secured
with Oriole Networks, an automotive and industrial controller ASIC design and
supply contract secured with a lifetime value in excess of $31 million over a
seven-year period, a telecommunications ASIC design and supply contract
secured with SIAE Microelettronica worth in excess of $30 million over a
ten-year period and an $18 million design and supply automotive and industrial
contract.
Through new contract wins and growing supply revenues the Group has been able
to demonstrate this year that it is continuing to successfully execute on its
stated aim of becoming the European 'fabless' semi-conductor company of choice
for the development and supply of ASICs in satellite communications,
industrial and automotive applications. As a result of the lower total
revenues, but helped by the requirement to include the RDEC tax credit of
£1.3 million within Other Income, Gross Profit and EBITDA have been lower
at £7.3 million and £nil million respectively.
The Group generated £0.9 million of cash from operations, which was supported
by an equity raise of £1.2 million and new funds from the refinancing of its
existing loans of £1.0 million. The Group also received £1.2 million from
HMRC as a research and development tax credit (RDEC). Cash consumption for
the full year was £5.3 million, with consumption slowing to £0.2 million in
H1 FY 25. In conjunction with its customers, the Group continues to co-invest
in the development of customer ASICs as well as its own IP and know-how.
As such, the Group has invested a further £5.8 million in ASIC design and
supply contracts and IP assets with the expectation of achieving future supply
or royalty revenues as a result of this investment. During FY 2025, £5.7
million of revenues from chip supply and royalties were achieved with further
future growth expected from existing chips in supply as well as contracted
chips in development.
Financial Results
FY 2025 FY 2024
£'m £'m
Revenue 18.2 25.3
Cost of goods (10.9) (16.3)
Gross profit 7.3 9.0
Gross margin 40% 36%
Other income 1.6 -
Expected credit loss allowance (1.8) -
Operating expenses (7.1) (7.3)
EBITDA - 1.7
Depreciation & amortisation (1.7) (0.8)
Impairment of assets (0.9) -
Operating (loss)/profit (2.6) 0.9
Interest (0.9) (0.9)
Loss before tax (3.5) (0.1)
Tax - (0.1)
(Loss)/profit for the year (2.7) (0.2)
Revenues
The Group's revenues for FY 2025 were £18.2 million.
Revenues from the six new ASIC development and supply agreements only started
taking off in the second half of the year and were unable to replace revenues
from existing ASIC development and supply agreements moving towards completion
of the development phase in H1 FY 2025.
The Company signed six new ASIC development and supply agreements in FY 2025
and the almost doubling of chip supply revenues has ensured that the Group has
made significant progress towards its vision of becoming a profitable
'fabless' semiconductor business.
The Group will continue to target entering into three to four new customer
design and supply contracts each year in order to ensure continued growth of
chip supply revenues in future years. The Company's consultancy division
remains an integral part of the business model, with the business relying on
this income stream to achieve profitability.
Chip supply revenue evolution
The Group was pleased to announce that chip supply revenue in the period grew
by 97% to £5.7 million with further growth expected in FY 2026 and beyond as
new chip revenues from existing ASIC development and supply agreements come
onstream. With the Siemens industrial controller chip supply now commenced,
the Company now has four ASICs which have been released for supply with this
chip contributing significantly to chip supply revenues from FY2026 onwards.
Gross Margin
Gross margins in FY 2025 have increased by 4% from 36% to 40% due to a large
low margin tape-out in FY 2024 not recurring in FY 2025 which led to margins
moving towards their long term expected level of 40%. Margins are expected
to increase again in FY 2026 with the higher utilisation of employees on the
six new ASIC design and supply contracts signed in FY 2025.
Other Income
Other income includes income received from government grants as well as the
RDEC tax credit of £1.3 million.
Expected credit loss allowance
The expected credit loss allowance of £1.8 million consisted almost entirely
of the allowance for credit losses raised against the outstanding SIAE
customer receivable assessed to be at risk of non payment.
Operating Expenses
Operating expenses were 3% lower, decreasing from £7.3 million in FY 2024 to
£7.1 million in FY 2025 due to operational cost savings made alongside the
investment in engineering staff required to develop customer ASICs.
EBITDA
As a result of the lower level of revenues, not fully offset by the increase
in other income, a corresponding decrease in cost of goods and operating
expenses, as well as the expected credit loss expense incurred, EBITDA
decreased by £1.7 million from a profit of £1.7 million in FY 2024 to £nil
million in FY 2025.
Profit after tax
Interest expense remained stable at £0.9 million whilst taxation increased to
a credit of £0.8 million due to deferred tax credits as a result of tax
losses incurred, as well as the requirement to include the RDEC tax credit
under Other income.
The net impact of the above is a loss after tax of £2.7 million, £2.5
million lower than the prior year.
Headcount
31 May 2025 31 May 2024 31 May 2023
FTE FTE FTE
Administration 17 16 17
Sales & Marketing 6 6 6
Research, Development & Technical 157 146 145
Average number of employees 179 168 168
Average Group headcount increased by 11 heads, mainly as a result of the
recruitment of qualified engineering staff to support the six new ASIC design
and supply contracts won in FY 2025.
Balance sheet
A summary of the balance sheet is set out in the table below:
31 May 2025 31 May 2024
£'m £'m
Cash & Equivalents 2.0 5.2
Intangible Assets 22.8 18.6
Fixed Assets 3.4 3.0
Trade & other receivables 10.1 8.4
Trade & other payables (10.5) (7.1)
Lease liabilities (2.7) (2.1)
Loans (5.3) (4.0)
The most notable items on the balance sheet as at 31 May 2025 are:
· Cash and cash equivalents have decreased from £5.2 million to £2.0
million as a result of the movements as described in the cash flow section
below.
· Fixed assets have increased mainly as a result of an investment in
leased equipment required to meet our disaster recovery obligations and
capitalised under IFRS16, offset by depreciation charge incurred of £0.5
million.
· Intangible assets have increased from £18.6 million to £22.8
million at the end of FY 2025 mainly as a result of additions of £5.8 million
as the Group continues to co-invest in the development of customer ASICs as
well as its own IP and know-how, offset by amortisation of £0.9 million and
an impairment of £0.6 million.
· Lease liabilities have increased as a result of entering into a lease
for equipment required to meet our disaster recovery obligations, offset by
capital repayments made during the year.
· Existing bank loans of £4.0 million at 31 May 2024 were refinanced
in November 2024 by way of a Term Loan for £3.0 million and a Revolving
Credit Facility Revolving Credit Facility (RCF) of £3.0 million. The loan
liability balance of £5.3 million is disclosed net of unamortised loan issue
costs and monthly capital repayments at 31 May 2025.
Cash flow
A year of two halves:
Although the first half of the year was very cash consumptive with Cash
outflows from operations and Cash consumption being £1.6 million and £5.1
million respectively, the second half of the year was cash generative from an
operational cashflow perspective with £3.7 million being generated and cash
consumption decreasing to only £0.2 million.
FY2025 FY 2024
£'m £'m
EBITDA - 1.7
Working capital 0.9 0.7
Tax received 1.2 1.8
Net cash flow from operations 2.1 4.3
Investment in intangibles (5.8) (6.4)
Capital expenditure (0.7) (0.9)
Interest paid (0.9) (0.9)
Cash consumption (5.3) (4.0)
Loans received 5.7 0.7
Share issues 1.2 6.5
Loan and lease payments (4.7) (1.0)
Movement in the year (3.1) 2.1
The Company generated an EBITDA of £nil million and after positive working
capital movements driven by customer contractual upfront receipts and an
R&D tax receipt of £1.2 million, generated net cash flow from operations
of £2.1 million. £5.8 million was co-invested by the Company in the
development of customer ASICs, as well as its own IP and know-how. The
Company incurred capital expenditure of £0.7 million on IT equipment.
Interest paid on loans and leasehold property liabilities amounted to £0.9
million, as lower interest on the Bank of Scotland loan did not quite offset
one-off refinancing interest charges. Cash consumption was £5.3 million, a
£1.3 million increase on the prior year.
Loans received on the refinancing with Bank of Scotland Group of £5.7 million
was offset by loans and lease liabilities repaid during the year of £4.7
million, leading to net proceeds of £1.0 million. Equity of £1.2 million
was raised as part of the equity fundraise in May 2024.
The above movements resulted in a negative movement in the year of £3.1
million (£2.1 million positive in FY 2024).
Financial Outlook
The Group expects FY 2026 revenues of approximately £28 million to £30
million with revenues for the year being second-half weighted.
The Group currently has good visibility of FY 2026 revenues with approximately
80% of revenues being from contracted customers or contracts in negotiation,
and the remainder to be earned from new contract wins with identified
customers.
EnSilica also expects to achieve an EBITDA of between £3.5 million and £4.5
million in FY 2026. Gross margins are expected to improve alongside increased
revenues with margins of approximately 40% expected. Limited increases in
operating expenses are expected, mainly inflationary growth but with some
limited strategic and small investments.
Kristoff Rademan
CFO
EnSilica plc
4 November
Financial Statements
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2025
Twelve months ended Twelve months ended
31 May 2025 31 May 2024
Audited Audited
Note £'000 £'000
Revenue 2 18,183 25,266
Cost of sales (10,850) (16,267)
Gross profit 7,333 8,999
Other operating income 1,623 38
Impairment of assets 6,7 (910) -
Expected credit loss allowance (1,783) -
Administrative expenses (8,893) (8,165)
Operating (loss)/ profit (2,630) 872
Interest income - 1
Interest expense (907) (925)
(3,537) (52)
Loss before taxation
Taxation 4 811 (130)
Loss for the period (2,726) (182)
Other comprehensive (expense)/ income for the period
Currency translation differences 49 (68)
Total comprehensive loss for the period (2,677) (250)
Loss for the period attributable to:
Owners of the company (2,726) (182)
Non-controlling interests - -
(2,726) (182)
Other comprehensive income/(expense for the period attributable to:
Owners of the company 49 (68)
Non-controlling interests - -
49 (68)
Total comprehensive expense for the period attributable to:
Owners of the company (2,677) (250)
Non-controlling interests - -
(2,677) (250)
Financial Statements
Earnings per Share Attributable to the Owners of the Parent During the Period
(expressed in pence per share)
Twelve months ended Twelve months ended
31 May 2025 31 May 2024
Audited Audited
Note pence pence
Basic earnings per share (pence) 5 (3.26) (0.23)
Diluted earnings per share (pence) 5 (3.26) (0.23)
Financial Statements
Consolidated Statement of Financial Position
As at 31 May 2025
31 May 2025 31 May 2024
Audited Audited
Note £'000 £'000
Assets
Non-current assets
Property, plant and equipment 6 3,373 2,997
Intangible assets 7 22,828 18,565
Total non-current assets 26,201 21,562
Current assets
Inventories 439 753
Trade and other receivables 8 10,107 8,390
Corporation tax recoverable 1,363 1,349
Cash and cash equivalents 1,963 5,156
Total current assets 13,872 15,648
Total assets 40,073 37,210
Current liabilities
Borrowings 9 (3,862) (1,717)
Lease liabilities (571) (199)
Trade and other payables 10 (10,492) (7,118)
Total current liabilities (14,925) (9,034)
Non current liabilities
Borrowings 9 (1,422) (2,298)
Lease liabilities (2,126) (1,904)
Provisions (235) (206)
Deferred tax (466) (1,365)
Total non current liabilities (4,248) (5,773)
Total liabilities (19,174) (14,807)
Net assets 20,900 22,403
Equity
Issued share capital 11 156 153
Share premium account 16,181 14,957
Currency differences reserve (107) (117)
Retained earnings 4,670 7,410
Equity attributable to owners of the Company 20,900 22,403
Non-controlling interests - - -
Total equity 20,900 22,403
The notes are an integral part of these condensed financial statements.
Ian Lankshear Kristoff Rademan
CEO CFO
EnSilica plc EnSilica plc
Financial Statements
Condensed Consolidated Statement of Changes in Equity
Share Capital Share premium account Currency translation reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000
At 1 June 2023 137 8,752 (49) 7,123 15,963
Profit for the period - - - 515 515
Other comprehensive expense - - (78) - (78)
Total comprehensive (expense)/income for the period - - (78) 515 437
Share based payment - - - 114 114
At 30 November 2023 137 8,752 (126) 7,752 16,515
Share Capital Share premium account Currency translation reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000
At 1 Dec 2023 137 8,752 (126) 7,752 16,515
Loss for the period - - - (696) (696)
Other comprehensive expense - - 9 - 9
Total comprehensive (expense)/income for the period - - 9 (696) (687)
Share based payment - (217) - 354 137
Issue of share capital 16 6,893 - - 6,909
Cost of share issue - (471) - - (471)
At 31 May 2024 153 14,957 (117) 7,410 22,403
Loss for the period - - - (2,725) - (2,725)
Other comprehensive expense - - 10 (275) - (265)
Total comprehensive expense for the period - - 10 (3,000) - (2,990)
Share based payment - - - 260 - 260
Issue of share capital 3 1,408 - - - 1,411
Cost of share issue - (184) - - - (184)
At 31 May 2025 156 16,181 (107) 4,670 - 20,900
Financial Statements
Consolidated Statement of Cash Flows
for the year ended 31 May 2025
Note Twelve months ended Twelve months ended
31 May 2025 31 May 2024
Audited Audited
£'000 £'000
Cash flows from operating activities
Cash generated from operations A 933 2,482
Tax received 1,177 1,788
Net cash generated from operating activities 2,110 4,270
Cash flows from investing activities
Purchase of property, plant and equipment (681) (927)
Additions to intangible assets (5,797) (6,425)
Interest received - 1
Net cash used in investing activities (6,478) (7,351)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 1,228 6,480
Interest paid (908) (925)
Lease liability payments (309) (172)
Loans and borrowings received 5,710 713
Loans and borrowing repaid (4,436) (865)
Net cash generated from financing activities 1,285 5,231
Net (decrease)/increase in cash and cash equivalents (3,083) 2,150
Cash and cash equivalents at beginning of year 5,156 3,095
Foreign exchange losses (110) (89)
Cash and cash equivalents at end of period B 1,963 5,156
Financial Statements
Notes to the Consolidated Statement of Cash Flows
for the year ended 31 May 2025
A. Cash generated from operations
The reconciliation of profit for the year to cash generated from operations is
set out below:
Twelve months ended Twelve months ended
31 May 2025 31 May 2024
£'000 £'000
Loss for the year (2,726) (182)
Adjustments for:
Depreciation 633 495
Amortisation of intangible assets 1,038 322
Impairment of assets 910 -
Share based payments 261 248
Net interest costs 908 924
Research and development expenditure credit (Other income) (1,278) -
Tax (credit)/charge (811) 130
(1,065) 1,937
Changes in working capital
Decrease/ (increase) in inventories 313 (448)
Increase in trade and other receivables (1,718) (997)
Increase in trade and other payables 3,373 1,983
Increase in provisions 29 7
Cash (used in) /generated from operations 933 2,482
B. Analysis of net debt
At Cash flow Non-cash changes At
1 June 2023 31 May 2024
£'000 £'000 £'000 £'000
Loans (4,167) 152 - (4,015)
Lease liabilities (2,275) 172 - (2,103)
Liabilities arising from financing activities (6,442) 324 - (6,118)
Cash and cash equivalents 3,095 2,150 (89) 5,156
Net debt (3,347) 2,474 (89) (962)
At Cash flow Non-cash changes At
1 June 2024 31 May 2025
£'000 £'000 £'000 £'000
Loans (4,015) (1,274) 5 (5,284)
Lease liabilities (2,103) 309 (902) (2,696)
Liabilities arising from financing activities (6,118) (965) (897) (7,980)
Cash and cash equivalents 5,156 (3,083) (110) 1,963
Net debt (962) (4,048) (1,007 (6,017)
Financial Statements
Notes to the Condensed Consolidated Financial Statements
For the Year ended 31 May 2025
1. General information
EnSilica plc is a public limited company incorporated in the United Kingdom,
listed on the Alternative Investment Market (AIM) of the London Stock
Exchange. The Company is domiciled in the United Kingdom, and its registered
office is 100 Park Drive, Milton Park, Abingdon, OX14 4RY. The consolidated
financial statements comprise the Company and its subsidiaries (together
referred to as the 'Group'). The Company 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, India, Brazil and a sales office in Germany
Basis of preparation
The consolidated financial statements of the Company have been prepared in
accordance with UK-adopted International Accounting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB) and the Companies Act
2006.
The financial information has been prepared under the historical cost
convention unless otherwise specified within these accounting policies. The
financial information and the notes to the financial information are presented
in thousands of pounds sterling (£'000), the functional and presentation
currency of the Group, except where otherwise indicated.
The principal accounting policies adopted in preparation of the financial
information are set out below. The policies have been consistently applied to
all periods presented, unless otherwise stated.
Judgements made by the Directors in the application of the accounting policies
that have a significant effect on the financial information and estimates
with significant risk of material adjustment in the next year are discussed
below.
Going concern
For the year ending 31 May 2025, the Group generated revenues of £18.2
million and an operating loss of £2.6 million; and generated cash flow from
operations of £2.1 million. As at 31 May 2025 the Group held cash balances of
£2.0 million and the Group's financing arrangements consisted of a loan of
£5.3 million from Bank of Scotland.
In considering the basis of preparation of the financial statements, the
Directors have prepared a cash flow forecast for a period of at least 12
months from the date of approval of these financial statements based on the
2026 Board approved budget and forecasts for the financial year 2027. The
Directors have undertaken a rigorous assessment of the 2026 budget and 2027
forecast and assessed identified downside risks and mitigating actions. The
assumptions around project sales, staffing and purchases are based on
management's expectations over the forecast period.
Under both the base case and mitigated downside scenario, the Company have
sufficient cash resources to continue in operation for a period of at least 12
months from the date of approval of these financial statements. In the event
of the downside scenario crystallising, with resulting delays to key revenue
generating project milestones or new contracts not being secured in time, the
Company could be at risk of breaching its financial loan covenants if an
accommodation with Bank of Scotland could not be reached. Whilst the Company
maintains a very good relationship with Bank of Scotland and is confident of
securing its support, if the Company is unable to secure a waiver or amendment
to its financial covenants, this would cause the outstanding loan to become
immediately repayable which would give rise to a material uncertainty, as
defined in auditing and accounting standards, related to events or conditions
that may cast significant doubt on the entity's ability to continue as a going
concern and in such circumstances it may therefore be unable to realise its
assets and discharge its liabilities in the normal course of business.
Taking account of the matters described above, the Board has confidence in the
Company's ability to continue as a going concern for the following reasons:
‣ the Company's ability to continue to be successful in winning new
customers and building its brand as demonstrated by the signing of 6 new
development and supply agreements and two design agreement in the last 12
months with a lifetime value greater than $100 million,
‣ the Company's history of being able to access capital markets as evidenced
by the raising of £5.2 million gross equity in May 2024 and,
‣ the Company's customer contracted order book with more than 80% of
revenues for the forecast period being contracted and,
‣ the Company's ability to control capital expenditure and lower other
operational spend, as necessary
Taking account of the matters described above, the Directors are confident
that the Company will have sufficient funds to continue to meet their
liabilities as they fall due for at least 12 months from the date of approval
of the financial statements and therefore have prepared the financial
statements on a going concern basis.
Accounting policies
Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Company and its subsidiaries as at 31 May 2025. Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with
the investee and has the ability to affect those returns through its power
over the investee. Specifically, the Group controls an investee if, and only
if, the Group has:
‣ Power over the investee (i.e. existing rights that give it the current
ability to direct the relevant activities of the investee)
‣ Exposure, or rights, to variable returns from its involvement with the
investee
‣ The ability to use its power over the investee to affect its returns
generally, there is a presumption that a majority of voting rights results in
control. To support this presumption and when the Group has less than a
majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an
investee,
including:
‣ The contractual arrangement(s) with the other vote holders of the investee
‣ Rights arising from other contractual arrangements
‣ The Group's voting rights and potential voting rights. The Group
re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of
control.
Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets,
liabilities, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated financial statements from the
date the Group gains control until the date the Group ceases to control the
subsidiary. Profit or loss and each component of OCI are attributed to the
equity holders of the parent of the Group and to the noncontrolling interests,
even if this results in the non-controlling interests having a deficit
balance. When necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies in line with the Group's
accounting policies. All intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between members of the Group
are eliminated in full on consolidation. A change in the ownership interest of
a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it derecognises the
related assets (including goodwill), liabilities, non-controlling interest and
other components of equity, while any resultant gain or loss is recognised in
profit or loss. Any investment retained is recognised at fair value.
Critical accounting estimates and judgements
The preparation of the financial information under IFRS requires the use of
certain critical accounting assumptions and requires management to exercise
its judgement and to make estimates in the process of applying the Company's
accounting policies.
Management bases its estimates on historical experience and on various other
assumptions that management believes to be reasonable in the circumstances.
The key estimates and judgements used in the preparation of this financial
information that could result in a material change in the carrying value of
assets or liabilities within the next twelve months are as follows:
Intangible assets - capitalisation, impairment and amortisation of development
expenditure
Judgement
The capitalisation of development costs is subject to a degree of judgement in
respect of the timing when the commercial viability of new technology and
know-how is reached, supported by the results of testing and customer trials,
and by forecasts for the overall value and timing of sales which may be
impacted by other future factors which could impact the assumptions made. In
making their judgements, the Directors considered the carrying values of the
intangible assets that are disclosed in note 7.
Estimation
Amortisation commences once management consider that the asset is available
for use, i.e. when it is judged to be in the location and condition necessary
for it to be capable of operating in the manner intended by management and the
cost is amortised over the estimated useful life of the asset based on
experience of and future expected customer product cycles and lives. The
useful economic lives and residual values are re-assessed annually. They are
amended when necessary to reflect current estimates, based on technological
advancement, future investments and economic utilisation.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit
exceeds its recoverable amount, which is the higher of its fair value less
costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions,
conducted at arm's length, for similar assets or observable market prices less
incremental costs of disposing of the asset. The value in use calculation is
based on a DCF model. The cash flows are derived from the budget for the next
five years and do not include restructuring activities that the Group is not
yet committed to or significant future investments that will enhance the
performance of the assets of the CGU being tested. The recoverable amount is
sensitive to the discount rate used for the DCF model as well as the expected
future cash-inflows and the growth rate used for extrapolation purposes.
These estimates are most relevant to goodwill and other intangibles with
indefinite useful lives recognised by the Group. The key assumptions used to
determine the recoverable amount for the different CGUs, including a
sensitivity analysis, are disclosed and further explained in Note 7.
Revenue
Estimation
In accordance with the policy on revenue recognition, management are required
to judge the percentage of completion of the contract in order to recognise
revenues. The overall recognition of revenue will depend upon the nature of
the project and whether it is billed on a time and materials basis, or, on a
project milestone basis where invoices can only be raised on completion of
specific, pre-agreed objectives.
The Company maintains complete and accurate records of employees' time and
expenditure on each project which is regularly assessed to determine the
percentage completion, and thereby whether it is appropriate to recognise
revenues.
As it satisfies its performance obligations, the Company recognises revenue
and the related contract asset with regards to the customer development
contracts. Revenues are recognised on a percentage of completion basis and as
such require estimation in terms of the assessment of the correct percentage
of completion for that specific contract.
Management judgement is based on a strong track record of successful
completion of projects and accurate forecasting of the time required together
with the hindsight period available to support the balance sheet date
assumptions made.
2. Segmental analysis
The Board continues to define all the Group's trading as operating in the
integrated circuit design market and considers all revenue to relate to the
same, one operating segment.
Disaggregation of revenue
Revenue in respect of the supply of products is recognised at a point in time.
Design and related services, including income for the use of IP, are
recognised over the period when services are provided.
Twelve months Twelve months ended
ended 31 May 2024
31 May 2025
£'000 £'000
Recognised at a point in time
Supply of products 5,741 2,926
Recognised over time
NRE design services 5,891 15,228
Consultancy design services 6,551 7,112
12,442 22,340
18,183 25,266
By destination:
UK 4,250 2,513
Rest of Europe 10,893 9,863
Rest of the World 3,040 12,890
Total revenue 18,183 25,266
The nature of the design services and projects is such that there can be
significant customers as a proportion of revenue in any one year but that
these may be different customers from year to year. Revenue in 2025 was less
dominated by any one customer than in 2024 where one customer contributed
£8.8m (35% of revenue). In 2025 the largest contribution made by a single
customer was £4.3m, amounting to 24% of revenue, with the next largest
contribution being £2.4m (13%).
The Group's non-current assets comprising investments, tangible and intangible
fixed assets and the net assets by geographical location are:
31 May 2025 31 May 2024
Non-current assets Net assets Non-current assets Net assets
£'000 £'000 £'000 £'000
United Kingdom 25,999 20,030 21,501 21,621
India 126 1,133 3 1,304
Brazil 76 36 58 (27)
Germany - (299) - (495)
26,201 20,900 21,562 22,403
3. Alternative performance measures
These items are included in normal operating costs of the business but are
significant cash and non-cash expenses that are separately disclosed because
of their size, nature or incidence. It is the Group's view that excluding them
from operating profit gives a better representation of the underlying
performance of the business in the year.
The Group's primary results measure, which is considered by the directors of
EnSilica plc to better represent the underlying and continuing performance of
the Group, is EBITDA as set out below. EBITDA is a commonly used measure in
which earnings are stated before net finance income, amortisation and
depreciation as a proxy for cash generated from trading.
Twelve months Twelve months ended
ended 31 May 2024
31 May 2025
£'000 £'000
Operating (loss)/ profit before interest (2,630) 872
Depreciation 633 495
Amortisation of intangible assets 985 322
Other amortisation 53
Impairment of assets 910
EBITDA (49) 1,689
4. Taxation on profit
Twelve months Twelve months
ended ended
31 May 2025 31 May 2024
£'000 £'000
Current taxation
UK corporation tax credit - 1,258
Foreign tax charge (88) (183)
(88) 1,075
Deferred taxation
Origination and reversal of timing differences 899 (1,205)
Tax credit/(charge) on (loss)/profit 811 (130)
5. Earnings per share
Twelve months ended 31 May 2025 Twelve months ended
31 May 2024
Loss used in calculating EPS (£'000) (2,726) (182)
Number of shares for basic EPS ('000s) 83,512 80,747
Basic earnings per share (pence) (3.26) (0.23)
Number of shares for diluted EPS ('000s) 83,512 80,747
Diluted earnings per share (pence) (3.26) (0.23)
6. Property, plant and equipment
Right-of-use property Leasehold improvements Office equipment Right-of-use equipment Computer equipment Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 June 2024 2038 240 241 1,111 839 4,469
Additions 202 - 28 696 454 1,380
Disposals (213) - - (6) (360) (578)
At 31 May 2025 2,027 240 269 1,801 933 5,270
Depreciation
At 1 June 2024 (578) (42) (152) (183) (517) (1,472)
Charge for the year (264) (24) (42) (164) (175) (669)
On disposals 213 -- - - 36 249
Exchange adjustments - - (3) - (3) (6)
At 31 May 2025 (629) (67) (198) (347) (657) (1,898)
Net book value
At 31 May 2025 1,398 173 71 1454 276 3,372
At 31 May 2024 1,460 198 89 928 322 2,997
An impairment of £360,000 was recognised related to right of use assets
capitalised related to a major US electronics ASIC supply contract, where this
ASIC is considered highly unlikely to move forward into manufacturing for chip
supply.
7. Intangible assets
Development costs Software Total
Intellectual
property
£'000 £'000 £'000 £'000
Cost
At 1 June 2024 21,903 123 39 22,065
Additions 5,681 - 116 5,797
Impairment (550) - - (550)
At 31 May 2025 27,034 123 155 27,312
Amortisation and impairment
At 1 June 2024 (3,417) (75) (7) (3,501)
Charge for the year (955) (25) (3) (985)
At 31 May 2025 (4,372) (100) (14) (4,486)
Net book value
At 31 May 2025 22,662 23 142 22,828
At 31 May 2024 18,486 48 31 18,565
Capitalised development expenditure relates to developed intellectual property
in respect of circuit and chip design. The recoverable amount of a cash
generating unit (CGU) is assessed using a value in use model across each
individual project that forms the intellectual property that has been
capitalised. The value in use for each portion is dependent on the expected
life cycle of the CGU using a discount factor of 11.50% (2024: 11.5%), being
the cost of capital for the CGU.
An impairment of £277,000 was recognised related to intangible assets
capitalised related to a Telecommunications ASIC and impairment of £273,000
related to an ASIC to address the e-mobility market where these assets were
considered unlikely to move forward into commercialisation.
8. Trade and other receivables
31 May 2025 31 May 2024
Current £'000 £'000
Trade receivables 5,868 1,743
Other receivables 925 1,062
Prepayments 1,613 1,306
Contract assets 1,702 4,279
Total 10,107 8,390
9. Borrowings
31 May 2025 31 May 2024
Current £'000 £'000
Bank loans 3,862 1,717
Non-current
Bank loans 1,422 2,298
Total 5,284 4,015
31 May 2025 31 May 2024
Movement in Loans £'000 £'000
Opening balance June 1(st) 4,015 4,167
Loan received 6,000 713
Interest accrued 543 572
Interest paid (531) (513)
Redemption of loans (3,567) -
Capitalisation of issue costs (263) -
Loan repayments (913) (920)
Closing balance 5,284 4,015
In November 2024, existing borrowings with carrying value of £3.6 million
were redeemed by way of a new Term Loan for £3.0 million, and a Revolving
Credit Facility (RCF) of £3.0 million, which was drawn down in 2 tranches.
The loan liability is stated net of unamortised loan issue costs of £263000
at 31 May 2025 (2023: £140,000).
The bank loan of £3.0 million is secured by fixed and floating charges over
the assets of the group and bears interest at rates of 3.5% over the Bank of
England Base Rate. It is repayable in monthly instalments over the period to
November 2027.
The revolving credit facility of £3.0 million is secured by fixed and
floating charges over the assets of the group and bears interest at the Bank
of England Base Rate plus 2.5%.
Previous borrowings, which totalled £3.6 million at redemption attracted
interest as follows:
Loan 1: £1.0 million - 8% over SONIA if SONIA exceeds 10%
Loan 2: £1.9 million - 13% fixed rate; and
Loan 3: £0.7 million - 16% fixed rate.
10. Trade and other payables
31 May 2025 31 May 2024
Current £'000 £'000
Trade payables 2,745 3,496
Taxation and social security 1,092 943
Other payables 187 170
Accruals 579 1,293
Contract liabilities 5,889 1,216
Total 10,492 7,118
11. Share capital
Allotted, called up and fully paid 31 May 2025 31 May 2024
£'000 £'000
96,600,636 ordinary shares of £0.001 each 97 94
59,190 deferred shares of £1.00 each 59 59
156 153
On 17 June 2024, the Company announced that it had raised gross proceeds of
£1.1 million through the issue of 2,465,119 Ordinary Shares at 45p each, and
a further £0.3m through the issue of 666,589 shares via a wrap placement.
12. Post balance sheet events
Subsequent to the end of the period under review there have been no events
that the company feels should be brought to the shareholders' attention.
13. Related party transactions
During the period under review, the Company undertook transactions with the
following related parties:
Twelve months to 31 May 2025 Twelve months to 31 May 2024
Name Services Transactions during the period Balance owing/ (owed) at 31 May 2025 Transactions during the year Balance owing/ (owed) at 31 May 2024 £'000
£'000
Ensilica India Private Limited Semiconductor design services 658 (657) 954 (1,045)
EnSilica Do Brasil Sociedade Unipessoal Limitada Semiconductor design services 1,357 - 1,151 -
EnSilica GMBH Semiconductor sales services 257 (288) 207 478
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