THIS ANNOUNCMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR") AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

16 October 2025

EnSilica plc

("EnSilica", the "Company" or the "Group")

Trading Update

EnSilica plc (AIM: ENSI), a leading chip maker of mixed signal ASICs (Application Specific Integrated Circuits), announces the following update on current trading and for the financial year ended 31 May 2025 ("FY 2025").

FY 2025 Update

The Company generated solid new business momentum in FY 2025 alongside producing strong levels of Non-Recurring Engineering ("NRE") and recurring supply revenue from existing contracts.

Key highlights include:

·      Secured six new design and supply contract wins (ahead of annual target of 3-4 wins).

·      Recurring revenue base also expanding as chip designs move to long-term supply, with annual chip supply revenues increasing to £5.7 million (FY 2024 £2.9m).

·      Following this strong run of contract wins, booked NRE revenue now stands at over US$40 million for the next two financial years, with a healthy pipeline of opportunities expected to drive further growth.

·      Good visibility on additional multi-million-pound design and manufacturing contracts, expected to further boost revenues for the financial year ending 31 May 2026 ("FY 2026") onwards.

·    Total lifetime revenue from supply contracts is expected to deliver over US$250 million in chip supply revenues.

The project with our customer, SIAE MICROELETTRONICA ("SIAE"), a leading European specialist in wireless communication technology, highlighted in our April 2025 trading statement, remains on hold due to SIAE's cash constraints.  SIAE has been awarded €149 million in grant funding under the European Union's IPCEI programme (Important Project of Common European Interest) for a product in which EnSilica's ASIC plays a critical role. SIAE expects these funds to start being released in 2026 and remains fully committed to the project, which is central to its commercial strategy and is expected to resume in 2026.

However, in light of the extended delay relative to the original timetable with SIAE, the Board has decided it is prudent to make a bad debt provision of £1.6 million in FY 2025 for the outstanding amounts owed by SIAE for work undertaken in FY 2025, and to prudently remove projected SIAE-related income from future forecasts.  The Company continues to maintain a close dialogue with SIAE and remains hopeful that work on the project will resume.

Separately, a recent cybersecurity issue within an automotive customer's supply chain has occurred and while it is too early to fully assess the impact, the Company has considered it prudent to be conservative and revise expectations for chip supply volumes required for this customer in FY 2026.

As a result of the bad debt provision, the Company now expects to announce revenues of approximately £18.2 million and an EBITDA loss of approximately £1.3 million for FY 2025*. Excluding the bad debt provision a positive EBITDA of approximately £0.3 million was expected for FY 2025*, in line with the Company's trading update announcement of 7 April 2025.

Outlook

Added to the excellent run of new business wins in FY 2025, EnSilica has made a strong start in FY 2026 with year-to-date revenues significantly exceeding those achieved in the prior year.  The Company has five chips in supply generating recurring revenues and thirteen chips currently in the design stage generating NRE revenues and moving towards supply.  This represents a solid base upon which to continue to scale the business.

While still targeting a substantial increase in revenues and profitability in the current year, the decision on SIAE and the cybersecurity issues for our automotive customer's supply chain, means the Company now expects to deliver revenues of between £28 million and £30 million for the 12 months ending 31 May 2026*, with approximately 80% of revenue already covered by existing customer contracts.  EBITDA is now expected to be between £3.5 million and £4.5 million for FY 2026*.

Importantly, the strong NRE order book, coupled with increasing profits from chip supply, means the Board is seeing decreased cash consumption and the Company should reach positive monthly cash generation in due course.

Ian Lankshear, CEO of EnSilica, commented:

"We are targeting an increase of more than 50% in revenues in the current financial year after having absorbed the impact from the challenges SIAE and our automotive client are facing, and it may well turn out that we have been too conservative. Frustrating as the impact of these two events are, they reflect the current stage of the development of the business. As the business continues to scale up the individual impact of specific projects will mitigate through the growth in the breadth of our chip supply contracts.

The opportunity remains substantial. We maintain our forecast for total lifetime revenue from supply contracts of over US$250 million in chip supply revenues as the reduction from SIAE has been made up by increased demand from other clients.

Our overall position has strengthened during FY2025 as we have increased our customer base and further progressed projects towards supply with the associated long term revenue opportunity and we anticipate further customer wins in the current year."

EnSilica will announce final results for the 12 months ended 31 May 2025 on 4 November 2025.

* Immediately prior to this announcement, the Company believes that market expectations for the year ended 31 May 2025 were for revenues of £19.6 million and EBITDA of £0.4 million, and for the year ended 31 May 2026 were for revenues of £33 million and EBITDA of £5.1million.

For further information please contact:

The person responsible for arranging release of this announcement on behalf of the Company is Ian Lankshear, Chief Executive Officer.

About EnSilica plc

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 is international customers in the automotive, industrial, healthcare and communications markets.  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, India, Brazil and Hungary.