Trading Update

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

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.