Ensilica Company Research (ENSI)

EnSilica has released interims for the 6m period to the end of November 2024. Group revenues of £9.3m were lighter than hoped for, implying a strong second half is required to hit our FY forecasts. However, key within the top line figure is the 170% growth in Chip Supply revenues which, at £2.9m, are finally beginning to make a material contribution. We believe the continued growth in the higher margin and recurring Chip Supply revenues will be the primary value generator for EnSilica. During H1 2025 EnSilica continued to win new contracts which, after the typical c.2-3 year Design stage, will also add to the long tail of recurring Chip Supply revenues. As such, the medium to long-term outlook remains extremely positive. We leave our FY forecasts unchanged but note the need for a strong H2 and associated risk to the downside.