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
Ian Lankshear, Chief Executive
Officer
www.ensilica.com
|
Via Vigo Consulting
+44 (0)20 7390 0233
|
|
Allenby
Capital Limited, Nominated Adviser & Joint
Broker
Jeremy Porter / Vivek Bhardwaj (Corporate
Finance)
Joscelin Pinnington / Tony Quirke (Sales &
Corporate Broking)
|
+44 (0)20 3328 5656
info@allenbycapital.com
|
|
Singer Capital
Markets, Joint Broker
Rick Thompson / Asha Chotai
|
+44 (0)20 7496 3000
|
|
Vigo
Consulting (Investor & Financial Public
Relations)
Jeremy Garcia / Kendall Hill
|
+44 (0)20 7390 0233
ensilica@vigoconsulting.com
|
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.