EnSilica (LON:ENSI) – are you watching them go?

11.08.2025

Last Friday saw this group’s shares hit 48p, just under a half of the 108p level at which they peaked almost two and a half years ago.

Even so, I am delighted with the recent performance of the shares, having burst through my early-June initiating Target Price of 43p, set when they were trading at just 34.50p – a subsequent 39% rise in just two months.

In February this year the group was awarded £10.4m of funding over three years from the UK Space Agency, to increase its competitiveness as a global supplier of semiconductor chips used to connect ground-based user terminals with Low Earth Orbit (LEO) satellites.

CEO Ian Lankshear, who owns 16.6% of its equity, recently stated that:

“By further expanding our engineering know-how across the satellite and communications market, I believe that this investment will enable the business to capitalise further on very real and near-term growth opportunities."

EnSilica has world-class expertise in supplying custom RF, mmWave, mixed-signal and digital ICs to its international customers spanning a number of fast-growing sectors, and it has a track record in delivering high-quality solutions to demanding industry standards.

The company, which is based near Oxford, has design centres across the UK, as well as having facilities in Bangalore, India, and in Porto Alegre and Campinas, Brazil.   

It is a leading designer and supplier of mixed signal ASICs (Application Specific Integrated Circuits), which are the most complex chips to design and therefore of the highest value.

EnSilica now has five chips in the supply-phase generating recurring revenues and twelve in the design-phase, which represents a significant financial milestone for the company and underpins its ongoing confidence in the business across the short and long-term.

Lankshear recently commented that:

"We are pleased to be offering what we believe will be a key component in delivering European-built products to market that enhance satellite broadband connectivity, crucial in a time of geopolitical instability.

EnSilica continues to offer innovative solutions for the fast-growing satellite communications market and aims to provide a resilient and secure source of chips fabricated and tested in Europe."

Analyst Matt Butlin, at Allenby Capital, is looking for the group to increase its revenues in the current year, which has just started, to £33.0m (est £19.5m), enabling a switch to pre-tax profits of £1.88m (est loss £1.7m).

The trio of analysts at Singer Capital Markets – Harold Evans, James Musker and Roddy Davidson – rate the group’s shares as a Buy, with a 71p Target Price.

For the year to end-May 2025, they estimate £19.7m revenues, and an adjusted pre-tax loss of £1.9m.

For this current year, to end-May 2026, they go for £33.0m of sales, £2.5m of profits, with 4.8p per share of earnings.

As I have said before – don’t tell me that I didn’t tell you about this little £44m- capitalised group and its potential.

I am hoping for good corporate news expected within the next month or so when the group reports its last year’s loss-making results to end-May 2025 – with a statement then clearly identifying that it is well on the road to chunky profits in this current year and thereafter.

The shares are not for chasing until we know a lot more about the group’s current prospects, even so they should be included in growth stock portfolios right now for FOMO.

(Profile 02.06.25 @ 34.50p set a Target Price of 43p*)

(Profile 23.07.25 @ 39p set a Target Price of 50p)