Ensilica, a UK-based semiconductor designer, experienced a significant 10% drop in shares on Tuesday morning due to contract delays attributed to the sluggish economy. The company noted a shift in business dynamics during the latter part of the year, reflecting the economic slowdown, leading to the postponement of new supply contracts until the first quarter of 2025.
Despite these challenges, Ensilica anticipates record revenues of approximately £25 million for the fiscal year ending May 2024, an increase from the £20.5 million reported the previous year. Post-tax profits are expected to rise to £1.9 million, with EBITDA projected to reach around £1.8 million, showcasing growth compared to the prior year’s figures.
The company attributes these positive results to ongoing new business momentum, successful execution of significant contracts with key clients, and the maturation of its supply business model. Notably, Ensilica secured a technology win with a major European automotive and industrial semiconductor supplier, along with a $20 million (£16 million) supply contract with a new US customer.
Ensilica, headquartered in Oxford, specializes in designing custom computer chips for global clients in sectors such as automotive, industrial, healthcare, and communications. In recent years, it has focused on developing chips for smartphones and artificial intelligence, expecting long-term revenue growth from these ventures within the next nine to 18 months.
The company reports a robust order book and sales pipeline exceeding $500 million (£400 million) and indicates positive progress for its US subsidiary. Management expresses confidence in achieving revenues surpassing £30 million and EBITDA of at least £5 million in 2025.
