13th May 2025 13:05
(Alliance News) - IQE PLC on Tuesday said its loss widened despite revenue edging higher in 2024, with its bottom line hurt by increased impairments.
The Cardiff-based supplier of advanced wafer products for the semiconductor industry said its pretax loss widened to GBP36.9 million in 2024 from GBP28.8 million a year prior. The diluted loss per share widened to 3.96 pence from 3.28 pence.
Revenue increased 2.4% to GBP118.0 million from GBP115.3 million.
IQE faced a GBP3.8 million impairment on intangible assets and a GBP4.6 million property, plant and equipment impairment, compared to none in 2023.
Adjusted earnings before interest, tax, depreciation and amortisation surged 88% to GBP8.1 million from GBP4.3 million, however.
"IQE delivered a solid set of financials in line with our January 2025 trading update. Our focus has been on reducing costs and optimising our footprint, and I am pleased to see this has resulted in an improved adjusted Ebitda position year-on-year," said Chief Executive and Financial Officer Jutta Meier.
IQE said, as previously announced, that it is conducting a strategic review. It is prioritising the possibility of selling IQE Taiwan, alongside a potential floating.
The company said it is evaluating a range of proposals and will provide a further update at a later date.
The board confirmed that Meier has become permanent CEO following a period in the position on an interim basis. Meier will continue in a dual role as CEO and CFO.
IQE said global markets are being impacted by macroeconomic uncertainty, with some end customer demand being fulfilled with existing inventory as a result. The firm expects this to correct in the second half.
The customer pipeline "remains strong" and is expected to grow in the second half of 2025, IQE said.
It noted that there is currently no direct impact from the implementation of US tariffs, but it is closely monitoring developments.
It said revenue and adjusted Ebitda are expected to be within the range of analyst forecasts, with weighting towards the second half consistent with destocking in the first quarter.
The range of expectations is for 2025 revenue between GBP115.1 million and GBP123.0 million, with adjusted Ebitda between GBP7.4 million and GBP10.0 million.
Shares in IQE were up 5.9% to 9.71 pence in London on Tuesday afternoon.
By Michael Hennessey, Alliance News reporter
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