EnSilica (ENSI) H2 2024 earnings summary

Executive summary

• Revenue grew 23% year-over-year to £25.3m, driven by strong NRE/supply revenue, especially in satellite communications, with EBITDA up 6% to £1.7m and operating profit up 12% to £0.9m.

• Gross margin declined to 36% from 40% due to a large, lower-margin tape-out in Q4; net loss after tax was £0.2m, down from a £1.7m profit in FY23.

• Cash and cash equivalents increased by £2.1m to £5.2m, supported by £6.5m in equity fundraisings and £1.8m in R&D tax credits.

• Significant contract wins and extensions across automotive, industrial, healthcare, and communications, including multi-million dollar supply and design agreements.

• Four ASICs now in production, with over nine in the design pipeline, supporting a medium-term revenue target of c.£100m per annum.

Financial highlights

• Revenue: £25.3m (FY23: £20.5m), up 23% year-over-year.

• EBITDA: £1.7m (FY23: £1.6m), up 6% year-over-year.

• Operating profit: £0.9m (FY23: £0.8m), up 12% year-over-year.

• Gross margin: 36% (FY23: 40%), impacted by a large tape-out.

• Net loss after tax: £0.2m (FY23: £1.7m profit), reflecting higher deferred tax and lower R&D credits.

• Cash and cash equivalents: £5.2m (FY23: £3.1m).

• Intangible assets increased to £18.6m (FY23: £12.4m) due to £6.4m investment in IP and supply contracts.

• Bank loans at year-end: £4.0m (FY23: £4.2m).

Outlook and guidance

• FY25 revenue expected to be circa £30m, with 65% visibility from contracted or in-negotiation customers.

• EBITDA guidance for FY25 is circa £5m, with gross margins expected to improve and operating expenses tightly controlled.

• Additional external financing may be required if there are delays in customer receipts.

• Post year-end, a new £3m term loan and £3m revolving credit facility were secured, unlocking £2.1m in working capital.