EnSilica - today's Trading Update explains why shares have been rising, now 51.80p, TP 55p

Mark Watson-Mitchell - 07.01.2026

Well, I got that wrong.

I recently wrote that I felt that the shares of EnSilica (LON:ENSI) could well fall back in price because I considered that the 'chipmaker' is needing a fund-raising for its future development.

On Monday, 29th December, I stated that the then £38m-capitalised chipmaker's shares, then 39.50p, were being nudged higher ahead of a New Year new capital whip round.

The group's shares were 32p a couple of days before Christmas.

With an average daily dealing volume of around 200,000 shares prior to December, it is therefore noteworthy of some volumes being recorded as follows -

December

24th - 64,864 shares dealt - 38.50p close

29th - 724,525 - 42.00p

30th - 579,063 - 46.00p

31st - 266,735 - 47.00p

January

2nd - 731,822 - 49.00p

5th - 983,934 - 51.00p

6th - 575,836 - 51.80p

That reminded me of the dealings in the group's shares at the start of last October, when they were taken from 40.50p up to 52.40p following mega-dealing volumes of over 2m traded daily - which I then classed as part of a dealing 'spoof' on the back of a suspicious valuation claim.

During that rapid rise, one significant holder lightened his position.

This Morning's News

EnSilica has reported a strong trading update for the six months to end-November, with revenue growth exceeding 35 per cent on a like-for-like basis, reaching approximately £12.7m compared to £9.3m in the prior year period.

The company achieved EBITDA profits of around £1.7m, a significant improvement from a £0.2m loss in H1 FY 2025, driven by increased Non-Recurring Engineering and supply revenues.

It maintains its full-year FY 2026 guidance of £28m to £30m in revenue and £3.5m to £4.5m in EBITDA profits, with over 95% of revenue already contracted, and anticipates positive monthly cash generation by the end of calendar year 2026.

Well, that certainly is positive news, but is it enough to value the group at £49.4m with its shares now at 51.80p.

Broker's View

Analysts Harvey Robinson and Andrew Ripper, at Panmure Liberum, have today reiterated their Buy rating on the group's shares with a Target Price of 55p.

Their current year-to-end-May estimates are for sales of £28.0m (£18.0m) with a pre-tax profit of £0.6m (loss of £3.5m), taking earnings up to 0.6p (loss of 1.0p) per share.

For next year, they see £33.0m sales, £1.6m profits and 1.6p per share of earnings.

My View

Please do not get me wrong, I am very bullish about the prospects for this little group, but I do question the current valuation being moved by its shares.

I know that there are some very longer-term holders who are keen to get out of lines of the stock.

I also assume that it will need some chunky funds to be pumped into its bank coffers to enable the swift progress in its development that will be necessary for its 'space sector' clients.

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

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