11th Mar 2014 13:23
LONDON (Alliance News) - Silicon wafer services provider Pure Wafer PLC Tuesday reported an increase in profit and revenue for the full year, as sales of its products began to build momentum.
Swansea-based Pure Wafer posted a 46% increase in pretax profit for the six months to end-December to USD2.1 million from USD1.4 million, even though revenue dipped to USD18.2 million from USD18.5 million.
The company's revenue fell after it reduced its solar division activities, after slow demand for domestic solar systems following the UK government's decision to reduce feed-in-tarriffs.
However, Pure Wafer said it has continued to experience a rise in volume sales with an increase in 300mm wafer reclaim volume sales of 6.5% compared with the corresponding period, while 200mm volumes rose 8.5% during the period.
Operating profit rose 34% at USD2.2 million from USD1.6 million.
Net cash at the period end amounted to USD1.3 million compared with net debt of USD3.4 million in 2012.
"This strong trading performance has combined with increased cash generation and has moved the company into a net cash position, signifying long term stability for the company," Chairman Stephen Boyd said in a statement.
"With the semiconductor industry forecast to continue on its growth path for a number of years and the installation of our planned capacity expansion expected to be fully operational before the year-end, we are confident of benefiting further from this continued industry growth," he added.
Boyd said given the company's strong cash generation and net cash position the company is actively considering the introduction of dividend payments, while "directors currently expect to be able to recommend the payment of a final dividend in respect of the results for the current year as a whole."
The stock was trading at 87.00 pence Tuesday afternoon, up 2.00 pence or 2.4%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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