EnSilica PLC (AIM: ENSI) has made substantial strides in the first half of 2025, capitalizing on its strategic market position in mixed-signal application-specific integrated circuits (ASICs). Despite a slight 3% decrease in overall revenues to £9.3 million, the company has shown robust growth in product supply revenue, which increased by 170.3% year over year.
The company's strategic focus on diversifying its contract portfolio has yielded significant results. EnSilica secured a £10.4 million match funding from the UK Space Agency, a partnership with Oriole Networks Ltd, a follow-on contract with Siemens, and a ten-year telecommunications ASIC design and supply contract valued at over $30 million.
Currently, EnSilica has four ASICs in production and eight in the design phase, positioning itself strongly in a global ASIC market projected to reach $25 billion by 2030. The company's investments in research and development, coupled with strategic partnerships like TSMC, are expected to enhance its competitive edge.
Management remains optimistic, targeting £6.0 million in supply revenue and maintaining expectations of positive EBITDA for the fiscal year. While the company reported a negative EBITDA of £(0.2) million compared to £0.5 million in the previous year, ongoing operational scaling and diverse contract wins suggest a promising trajectory.
The multiple valuation approaches by Stonegate Capital Partners, including P/E, DCF, and EV/EBITDA models, indicate a potential share value range of £0.86 to £0.99, with a midpoint of £0.92, reflecting confidence in the company's strategic direction and market potential.
