22nd Mar 2016 10:23
LONDON (Alliance News) - IQE PLC on Tuesday posted a big rise in pretax profit for 2015 thanks to lower one-off costs, a better gross margin, and an exceptional profit made on the establishment of a UK joint venture.
The semiconductor wafer products manufacturer said pretax profit for the year to the end of December was GBP19.4 million, nearly four times the GBP5.2 million posted a year earlier.
The profit was boosted by much lower one-off charges booked by the group and by a GBP5.2 million exceptional profit made by IQE on establishing a joint venture in the UK, where it contributed equipment in return for a 50% equity share in the business.
Revenue rose to GBP114.0 million from GBP112.0 million, with good growth from IQE's Photonics division and solid growth in licence income offset by a fall in wireless revenue. On the profit line, further benefits were felt from IQE's gross margin widening to 27% from 23% in 2014 due to cost cuts.
IQE Chief Executive Drew Nelson said the company expects its wireless business to return to growth in 2016, with growth to accelerate for the Photonics business.
"We have had a good start to 2016, and are trading in line with our expectations. The outlook remains positive, which underpins the board's confidence that we remain on track to achieve our expectations for the full year," Nelson added.
The company said it will pay no dividend for the year.
Shares in IQE were up 1.9% to 18.85 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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