7th Oct 2014 08:19
LONDON (Alliance News) - Pure Wafer PLC Tuesday said it will pay a maiden final dividend of 0.7 cent per share as it reported a 20% jump in pretax profit in its recent financial year, despite pricing pressure in the wafer reclaim business and a fall in revenue in its solar business.
In a statement, Pure Wafer, which provides silicon wafer reclaim services to semiconductor manufacturers and foundries, said it made a USD3.6 million pretax profit in the year ended June 30, compared with USD3.0 million in the corresponding period last year.
However, revenue fell by 3% year on year to USD35.9 million from USD37.0 million. Administrative expenses decreased to USD6.5 million from from USD8.0 million, with Pure Wafer citing its cost-cutting measures and lower depreciation and amortisation costs. Finance costs fell to USD218,000 from USD552,000.
"I am delighted to announce continued improvement in the profitability of the company and a further strengthening of the balance sheet. Continued and sustained strong cash generation has enabled Pure Wafer to invest in additional 300mm wafer capacity, introduce further technology advancements and further reduce debt, finishing the year with a net cash balance of USD1.5million, representing a turnaround of more than USD3.0 million since June 2013," Chairman Peter Harrington said in a statement.
Chief Executive Richard Howells added: "Demand for our wafer reclaim services has remained strong since the year-end, especially from Asia and the large foundry sector and we are confident that these levels of demand will continue throughout the current financial year. With the semiconductor market expected to continue its growth profile through to 2017 and beyond, and with Pure Wafer having additional 300mm capacity and leading-edge technology in place, the board firmly believes that the company is well placed for continued future growth."
Pure Wafer shares were Tuesday quoted up 4.4% at 70.50p.
By Samuel Agini; [email protected]; @samuelagini
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