(PUR.L) Pure Wafer PLC Buy/Sell

RNS Number : 7642I Pure Wafer PLC 18 March 2010

18 March 2010

PURE WAFER PLC

("Pure Wafer" or "the Company")

Interim Results for 6 months ended 31 December 2009

Pure Wafer plc, the provider of high quality silicon wafer reclaim services for many of the world's leading semiconductor manufacturers as an integral part of their cost control programmes, today reports its interim results for the 6 months to 31 December 2009.

HIGHLIGHTS

Financial Highlights · Revenue £7.2m (6 months to 31 December 2008: £10.2m)

· EBITDA loss £0.5m (2008: profit £0.3m)

· Pre-tax loss £3.1m (2008: £2.7m)

· Basic loss per share 2.42p (2008: loss per share 2.16p)

· Net cash outflow from operating activities £1.8m (2008: inflow £1.7m)

Operational Highlights

· Volume sales recovery, 28% up from prior period
· Successful and ongoing cost reductions, cost per unit 40% down
· Entry into solar photovoltaic market with launch of new products

Stephen Boyd, Chairman, Pure Wafer, commented,

"We are pleased to report the continued recovery of the semiconductor market together with the subsequent increasing volume sales of our wafer reclaim services. Whilst pricing pressure remains, our cost reduction actions have resulted in a lower cost of manufacture of our product."

ENQUIRIES

Pure Wafer plc (www.purewafer.com) Tel. +44 (0) 1792 311 200

Peter Harrington, Chief Executive

PURE WAFER PLC

("Pure Wafer" or "the Company")

Interim Results for 6 months ended 31 December 2009

Chairman's Statement

Introduction

During the period to 31st December 2009 the semiconductor industry continued its upturn from the lows of early 2009 and we have seen a welcome recovery in volume trading from all the geographical regions in which we are active.

The pricing pressure that we experienced during the downturn is still with us, and although price erosion has slowed, prices did not show an upturn in the period under review.

The severe market conditions have taken its toll on some of our competitors with six wafer reclaim suppliers exiting the market, due to either insolvency or a change in strategy.

During the period the weakening of sterling against the US dollar has mitigated some of the effects of our falling selling prices and revenues, when converted to sterling as our reporting currency.

Operational

During the period we saw volume business continue its recovery, with volume sales when expressed as 300mm equivalents up 28% compared to the prior period, however this is still 11% down on the comparative period to 31st December 2008. This increased volume allowed both manufacturing sites to return to full time working during the period following seven months of short time working.

Our cost reduction activities have continued to be successful, with reductions across all areas, including consumable costs to some of our fixed costs. This has now reduced Pure Wafer's manufacturing costs by in excess of 40% to its lowest ever cost per wafer without affecting either our manufacturing output capability or the quality of our product. We continue to work on cost reduction programmes.

Financial performance

· Revenue £7.2m (6 months to 31 December 2008: £10.2m)

· EBITDA loss £0.5m (2008: profit £0.3m)

· Pre-tax loss £3.1m (2008: £2.7m)

· Basic loss per share 2.42p (2008: loss per share 2.16p)

· Net cash outflow from operating activities £1.8m (2008: inflow £1.7m)

The board are encouraged by the actions of the management team during the period to reduce the impact of the market conditions by reducing costs across all sectors of the business as well as maximising revenue during a difficult trading period.

Group funding

During the period we successfully negotiated with our bank and asset funders a financial restructuring package. The financial agreements comprised of rescheduling all the Company's existing debt over a six year period which includes up to two years of capital repayment holidays, with initial capital repayments due to commence as scheduled in July 2010, together with an additional overdraft facility of up to £1.4million. The Company continues to trade within its facilities.

As a condition of the financial restructuring, and to demonstrate their commitment and confidence in the business, certain directors and senior management invested £0.30million of cash into the business by way of a placement of shares. The open offer to shareholders which was made during August 2009 was well subscribed, raising £1.16million of funds. This together with the placing of excess shares which raised £0.53million resulted in a total of £1.99million, before costs, being raised.

The financial restructuring and take up of the open offer and placing demonstrates the commitment that the bank, asset funders, shareholders and management have to Pure Wafer and shows a confidence in the recovery of the business, and I would like to thank them for their support.

New products

We have recently entered the solar photovoltaic market utilising the scrap material from our wafer reclaim services to create solar cells and panels. We are excited about the prospects of this move into the growth area of the renewable energy market, whilst utilising the fixed cost elements of our wafer reclaim business in manufacturing our new products.

We will continue to explore further new opportunities outside our core business of wafer reclaim, to enhance our portfolio of products, looking at areas where we have certainty of the end market, where we will not incur significant research and development costs and which are compatible with our existing core skills and world-class manufacturing equipment and facilities.

Management

During the period we strengthened our board with the appointment of Jerry Winters as executive director responsible for our US operations. This appointment reflects the growing importance of the US market to the Pure Wafer Group.

Giles Clarke stepped down from his position as non-executive director having served on the Pure Wafer board since November 2004. I would like to thank Giles for the important contributions he made to Pure Wafer, both in his role as former Chairman of the Company and as a Non-Executive Director.

Outlook

Although it is too early to be confident about a sustained return to growth, recent trading since the period end, together with positive news of a long term industry recovery, are encouraging signs from which we draw confidence for continued volume recovery. In January I am pleased to report we were EBITDA positive and our entry into the solar market is an exciting move for Pure Wafer and we are confident that this will provide additional revenue streams. This, together with our additional funding, gives Pure Wafer a strong foundation on which to move forward.

Stephen Boyd

Chairman

18 March 2010

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2009

Consolidated Statement of Comprehensive Income

6 months ended 6 months ended Year ended
31 December 2009 31 December 2008 30 June 2009
Notes £'000 £'000 £'000
Revenue 7,200 10,248 17,230
Cost of sales (5,887) (7,992) (13,200)
Gross profit 1,313 2,256 4,030
Depreciation and (2,178) (1,696) (4,369)
amortisation
Other administrative (1,448) (1,771) (3,109)
expenses
Total administrative (3,626) (3,467) (7,478)
expenses
Restructuring costs (390) (198) (369)
Operating loss (2,703) (1,409) (3,817)
Investment revenue - 38 40
Finance costs (349) (443) (989)
2 Other losses (14) (912) (526)
Loss on ordinary (3,066) (2,726) (5,292)
activities before
taxation
Tax on loss on - - -
ordinary activities
Loss for the period (3,066) (2,726) (5,292)

3 Loss per share
Basic (2.42)p (2.16)p (4.19)p
Diluted (1.82)p (1.62)p (3.14)p

The results stated above arose entirely from continuing activities.

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2009

Consolidated Balance Sheet
Notes 31 December 2009 31 December 2008 30 June 2009
£'000 £'000 £'000
Non-current assets
Property, plant and 25,222 31,021 27,872
equipment
Intangible assets 89 161 117
Goodwill 4,118 4,420 4,043
29,429 35,602 32,032
Current assets
Inventory 1,633 3,635 1,903
Trade and other 3,533 3,768 3,110
receivables
Cash and cash 1,646 473
equivalents 1,622
6,812 7,876 6,635
Total assets 36,241 43,478 38,667
Current liabilities
Trade and other (2,957) (4,222) (3,646)
payables
Derivative financial (180) (821) (324)
instruments
Deferred - (1,290) -
consideration
Short-term (2,850) (3,237) (13,474)
borrowings
(5,987) (9,570) (17,444)
Non-current
liabilities
Long-term borrowings (11,077) (7,945) -
Deferred income (1,769) (2,651) (1,982)
(12,846) (10,596) (1,982)
Total liabilities (18,833) (20,166) (19,426)
Net assets 17,408 23,312 19,241
Equity
Share capital 2,526 532 532
Share premium 12,783 12,783 12,783
Merger reserve 30,425 30,425 30,425
Retained earnings (29,861) (24,229) (26,795)
Exchange translation 1,535 3,801 2,296
reserve
5 Total equity 17,408 23,312 19,241
attributable to
equity holders of
the Company

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2009

Consolidated Cash Flow Statement

Notes 6 months ended 31 6 months ended Year ended
December 2009 31 December 2008 30 June 2009
£'000 £'000 £'000
4 Cash flows from (1,813) 1,703 2,770
operating activities
Cash flows from
investing activities
Net interest - 38 40
received
Purchase of (261) (863) (2,003)
property, plant and
equipment
Proceeds from - - 735
disposal of
property, plant and
equipment
Acquisition of - - (943)
subsidiaries -
deferred
consideration
Net cash used in (261) (825) (2,171)
investing activities
Cash flows from
financing activities
Issue of share 1,994
capital
Interest paid (349) (443) (829)
Repayment of bank - (611) (1,682)
loans
Sale of assets held - 749 -
for sale
Repayment of - (2,057) -
obligations under
finance leases
Increase in - - 943
borrowings
Net cash generated 1,645 (2,362) (1,568)
from financing
activities
Decrease in cash and (429) (1,484) (969)
cash equivalents

Consolidated Statement of Recognised Income and Expense

6 months ended 31 6 months ended Year ended
December 2009 31 December 2008 30 June 2009
£'000 £'000 £'000
Exchange movements (761) 5,435 3,930
Net income (761) 5,435 3,930
recognised directly
in equity
(Loss)/profit for (3,066) (2,726) (5,292)
the period
Total recognised
income and expense (3,827) 2,709 (1,362)
for the period
attributable to
equity holders of
the Company

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2009

Notes to the Accounts

1. Basis of preparation

The information for the year ended 30 June 2009 does not constitute statutory accounts as defined by the Companies Act 2006. A copy of the statutory accounts for the year ended 30 June 2009 has been delivered to the Registrar of Companies, upon which an unqualified audit report was given.

The annual financial statements of Pure Wafer Plc are prepared in accordance with IFRS as adopted by the European Union. These interim results are prepared on the basis of the accounting policies which the company will use in preparation of the financial statements for the year ended 30 June 2010. There are no changes from the policies disclosed in the 2009 financial statements.

Going concern

The group's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Chairman's Statement on page 2. The directors have assessed the balance sheet and likely future cash flows of the company and group at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the interim results on a going concern basis.

The directors have considered the company's performance to date and reviewed the cashflow forecasts for the forthcoming period. The challenging conditions in the semiconductor market make the timing of the recovery difficult to predict. Although cash will need to be tightly controlled, the directors believe the new facilities will be sufficient for the business to continue trading for the foreseeable future. In forming the conclusion about the going concern basis, the directors have considered all the forgoing information.

2. Reconciliation of other gains and losses
6 months ended 6 months ended Year ended
31 December 2009 31 December 2008 30 June 2009
£'000 £'000 £'000
Foreign exchange gain/(loss) 301 (351) (320)
Loss on derivatives (315) (561) (206)
Other losses and gains (14) (912) (526)
3. Earnings per share

The basic earnings per share is calculated by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. In the period the company issued additional shares of 99,711,511 and granted warrants over 42,293,889 shares. These numbers have been used to restate the comparatives.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

Earnings per share have been calculated as follows:

6 months ended 31 6 months ended Year ended 30 June 2009
December 2009 31 December 2008
'000 '000 '000

Weighted average number of ordinary shares:

RNS Number : 5046I Pure Wafer PLC 12 March 2010

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: ii
Pure Wafer PLC
2 Reason for the notification (please tick the appropriate box or boxes):
An acquisition or disposal of voting rights
X
An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments
X
An event changing the breakdown of voting rights
X
Other (please specify):

3. Full name of person(s) subject to the

notification obligation: iii
BlackRock, Inc.
4. Full name of shareholder(s)

(if different from 3.):iv

5. Date of the transaction and date on

which the threshold is crossed or reached: v
10th March 2010
6. Date on which issuer notified:
11th March 2010
7. Threshold(s) that is/are crossed or

reached: vi, vii
Holding has gone below 20%

8. Notified details: A: Voting rights attached to sharesviii, ix
Class/type of Situation previous Resulting situation after the triggering transaction
shares to the triggering
transaction

if possible using the ISIN CODE
Number Number Number Number of voting % of voting rightsx
of of of shares rights
Shares Voting
Rights
Direct Directxi Indirectxii Direct Indirect
GB00B02QYY79 5,172,828* 5,172,828* N/A N/A 24,537,696 N/A 19.43%

*Based upon ISC of 26,591,182, as at 01/06/09. B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Type of financial Expiration Exercise/ Number of voting % of voting
instrument datexiii Conversion Periodxiv rights that may be rights
acquired if the
instrument is
exercised/ converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instrumentsxv, xvi Resulting situation after the triggering transaction
Type of financial Exercise price Expiration datexvii Exercise/ Number of voting rights instrument refers to % of voting rightsxix, xx
instrument Conversion periodxviii
CFD N/A N/A N/A Nominal Delta
623,710

0.49% 0.49%

Total (A+B+C)
Number of voting rights Percentage of voting rights
25,161,406 19.92%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:xxi BlackRock Investment Management (UK) Limited - 25,161,406 (19.92%)

Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder will cease to hold voting rights:

13. Additional information: BlackRock Compliance Disclosures Team
14. Contact name: Stuart Watchorn

15. Contact telephone number: 020 7743 5741; stuart.watchorn@blackrock.com

Note: Annex should only be submitted to the FSA not the issuer Annex: Notification of major interests in share

A: Identity of the persons or legal entity subject to the notification obligation
Full name BlackRock, Inc.

(including legal form of legal entities)
Contact address 33 King William
(registered office for legal entities) Street, London, EC4R

Phone number & email 020 7743 5741;
stuart.watchorn@
blackrock.com
Other useful information Stuart Watchorn

(at least legal representative for legal persons)

B: Identity of the notifier, if applicable Full name Contact address Phone number & email Other useful information (e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

For notes on how to complete form TR-1 please see the FSA website.

This information is provided by RNS The company news service from the London Stock Exchange

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RNS Number : 0554I Pure Wafer PLC 04 March 2010

Pure Wafer plc

("Pure Wafer" or the "Company")

New Product launch

Swansea based Pure Wafer plc, the provider of high quality silicon wafer reclaim services for many of the world's leading semiconductor manufacturers, is pleased to announce that it has completed the development of a new manufacturing process to convert the scrap material from its silicon wafer reclaim line into high efficiency single crystal photovoltaic cells (solar cells). The process has been developed in conjunction with Swansea University and with the assistance of Smart Grant funding from the Welsh Assembly Government. As this process utilises scrap silicon, the Directors believe that this is the lowest carbon method of producing high efficiency photovoltaic cells.

In order to expedite the move to mass production of its solar offerings, Pure Wafer is prudently investing an initial amount in equipment to manufacture solar panels from its own solar cells thus providing a wholly UK manufactured product.

These products will enable Pure Wafer to offer complete solar systems and solutions to its customers, ranging from single dwellings to large public and commercial buildings.

Pure Wafer has started to receive initial orders for its new products and services, and the level of interest and enquiries are encouraging. The Pure Wafer board is excited about the prospects of this move into the renewable energy market, through its solar offerings and the development of associated products, whilst maintaining its focus on the core business of wafer reclaim services to the world's major semiconductor manufacturers.
Pure Wafer Tel: +44 (0)1792 311200

Peter Harrington/Stephen Boyd

Background information on the solar market

Climate change and the limited supply of fossil fuels have demanded urgent action to generate renewable energy. The photovoltaic market is expected to grow rapidly in the next 20 years with the worldwide solar market already exceeding $30 billion with over 60% of that expended in Europe (Source: Crosslink Capital). The UK market grew by 25% last year and the Renewable Advisory Board are predicting that it will reach £1 billion per annum by 2016 aided by government initiatives, including the feed-in tariff which is set for introduction in April 2010.

This information is provided by RNS The company news service from the London Stock Exchange

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