PUR.L Regulatory News (PUR)

1 Mar 2006 07:01

Pure Wafer PLC01 March 2006 01 March 2006 PURE WAFER PLC ("Pure Wafer" or "the Company") Interim Results for 6 months ended 31 December 2005 Pure Wafer provides high quality silicon wafer reclaim services for many of theworld's leading semiconductor manufacturers. HIGHLIGHTS Financial • Turnover of £6.46m, an increase of 62% over the corresponding period ended 31 December 2004 (2004: £3.98m). • EBITDA of £1.53m (2004: EBITDA of £0.37m). • Operating profit of £651k (2004: operating loss of £425k). • Pre-tax profit of £701k (2004: pre-tax loss of £480k). • Earnings per share of 2.64p (2004: loss per share of 2.19p). Operational • As forecast, our key market, reclaim of 300mm silicon wafers, has continued to expand and Pure Wafer has been well positioned to benefit from this. In order to maximise exploitation of the market growth, Pure Wafer has embarked upon a series of further capital investments. • £2.8m invested in new equipment in the first half of the year, predominantly capacity enhancing, with a further c£4m to be invested before the end of the financial year. Giles Clarke, Chairman, Pure Wafer, commented,"Pure Wafer has delivered a good performance with the Company achieving growthin turnover and profit in line with management expectations. The capitalequipment purchased in the first half of the financial year was commissioned inearly 2006 and in conjunction with the capital assets which are on order willsteadily increase capacity over the second half of the financial year. This willensure that Pure Wafer meets expectations of performance, and is well placed totake advantage of the expected further increases in market size. With thecapacity expansion programme progressing according to plan, I am confident thatsteady, sustainable, profitable growth will continue throughout the remainder ofthe year." ENQUIRIES Pure Wafer plc (www.purewafer.com) Tel. +44 (0) 1792 311 200Keith Baker, Chief ExecutiveJames Dearing, Group Finance Director ICIS Tel. +44 (0) 20 7651 8688Tom MoriartyPaul Youens PURE WAFER PLC ("Pure Wafer" or "the Company") Interim Results for 6 months ended 31 December 2005 Chairman's Statement Introduction I am pleased to report that Pure Wafer has continued to make satisfactoryprogress during the last 6 month period. The Company is now established as aprofitable business and is well placed to continue growing volumes, revenues andprofits. Financial Results •Turnover of £6.46m, an increase of 62% over the corresponding period ended 31 December 2004 (2004: £3.98m). •EBITDA of £1.53m (2004: EBITDA of £0.37m). •Operating profit of £651k (2004: operating loss of £425k). •Pre-tax profit of £701k (2004: pre-tax loss of £480k). •Earnings per share of 2.64p (2004: loss per share of 2.19p). •Strong cash position, with £5.0m in the bank as at 31 December 2005. Turnover in the period increased by 62% due to continued demand from existingcustomers in the 300mm sector driving the proportion of 300mm sales to more than85% of our revenue in comparison with 73% this time last year. Pure Wafer is nowbenefiting from the relatively high operational gearing within its businessmodel, so unit costs have been driven down through increased wafer throughput.As a result, percentage increases in revenue have a magnified increase inprofit. Compared to the previous 6 month period ending 30 June 2005, turnoverincreased by 24% and pre-tax profit increased by 107%. Profits continue to beused to fund the organic growth of the business and therefore the Directors donot intend to pay an interim dividend. Market PositionPure Wafer remains in a good position within its core customer base, withexcellent relationships and a reputation for quality which helps drive customerdemand for our services. We are continuing to expand our customer base throughqualification and integration into new customers' processes. The long termrepeat order nature of the business gives us confidence in sustained growth. 300mm wafer reclaim remains at the heart of Pure Wafer's strategy, and willdrive the growth of the company as the semiconductor industry continues theswitch from 200mm to 300mm wafers as an integral part of the industry's drive toachieve greater efficiencies. Demand for our 200mm services continues to grow. New applications of our technology/Appointment of Chief ScientistIn previous updates, we have stated that we were investigating otherapplications of our technology and facilities, outside of silicon wafer reclaim.We continue to make good progress in these areas. Pure Wafer have appointed a leading semiconductor and technology scientist,Professor A.R. Peaker, as Chief Scientist, to advise the Company on the furtherexpansion of new product pipelines. Tony Peaker is Professor at the School ofElectrical & Electronic Engineering, University of Manchester where he heads ateam of over 60 researchers in the field of Microelectronics & Nanostructures.With four decades of experience at the forefront of semiconductor technologiesin industry and academia, Professor Peaker is a welcome addition to the team. OutlookPure Wafer has delivered a good performance with the Company achieving growth inturnover and profit in line with management expectations. The capital equipmentpurchased in the first half of the financial year was commissioned in early 2006and in conjunction with the capital assets which are on order will steadilyincrease capacity over the second half of the financial year. This will ensurethat Pure Wafer meets expectations of performance, and is well placed to takeadvantage of the expected further increases in market size. With the capacityexpansion programme progressing according to plan, I am confident that steady,sustainable, profitable growth will continue throughout the remainder of theyear. Finally, I would like to thank the staff of Pure Wafer for their continued hardwork and commitment. Giles ClarkeChairman01 March 2006 PURE WAFER PLC Interim Results for 6 months ended 31 December 2005 Consolidated Profit & Loss Account 6 months ended 6 months ended Year ended 31 December 2005 31 December 2004 30 June 2005Notes £000 £000 £000 --------------------- ----------- ----------- --------- Turnover 6,460 3,980 9,171 Cost of sales (3,736) (2,815) (5,956) --------------------- ----------- ----------- --------- Gross profit 2,724 1,165 3,215 Administrative expenses (2,073) (1,590) (3,445) --------------------- ----------- ----------- --------- Operating profit/(loss) 651 (425) (230) Net interest receivable/ 50 (55) 88 (payable) ----------- ----------- --------- --------------------- Profit/(loss) on ordinary 701 (480) (142) activities before taxation Taxation - - - --------------------- ----------- ----------- --------- Profit/(loss) for the 701 (480) (142) financial period ----------- ----------- --------- --------------------- 3 Earnings/(loss) per share Basic 2.65p (2.19p) (0.59p) Fully diluted 2.64p (2.19p) (0.58p) --------------------- ----------- ----------- --------- All activities above relate to the continuing operations of the group. There are no other gains and losses for the period other than the results forthe period shown above and, accordingly, a separate statement of totalrecognised gains and losses has not been presented. There is no difference between the results for the financial period stated aboveand its historical cost equivalent. PURE WAFER PLC Interim Results for 6 months ended 31 December 2005 Consolidated Balance Sheet 31 December 31 December 30 June 2005 2004 2005 £000 £000 £000----------------------- ---------- ---------- --------Fixed assetsTangible assets 17,620 15,598 16,432----------------------- ---------- ---------- -------- Current assetsStock 941 293 420Debtors 4,502 2,342 3,624Cash at bank and in hand 5,016 6,993 4,974----------------------- ---------- ---------- -------- 10,459 9,628 9,018 Creditors: amounts fallingdue within one year (3,032) (2,534) (2,370)----------------------- ---------- ---------- -------- Net current assets 7,427 7,094 6,648----------------------- ---------- ---------- --------Total assets less currentliabilities 25,047 22,692 23,080 Creditors: amounts fallingdue after more than one year (1,437) (16) (12)Accruals and deferredincome (3,330) (3,435) (3,489)----------------------- ---------- ---------- -------- Net assets 20,280 19,241 19,579----------------------- ---------- ---------- -------- Share capital 530 530 530Share premium 12,644 12,644 12,644Merger reserve 30,425 30,425 30,425Profit and loss account (23,319) (24,358) (24,020)----------------------- ---------- ---------- -------- Shareholders' funds 20,280 19,241 19,579----------------------- ---------- ---------- -------- PURE WAFER PLC Interim Results for 6 months ended 31 December 2005 Consolidated Cash Flow Statement Notes 6 months ended 6 months ended Year ended 31 December 2005 31 December 2004 30 June 2005 £000 £000 £000 -------------------------- ----------- ----------- --------- 4 Net cash inflow/(outflow) 980 781 (52) from operating activities -------------------------- ----------- ----------- --------- Return on investments and servicing of finance Net interest received 65 21 164 -------------------------- ----------- ----------- --------- Net cash inflow from 65 21 164 returns on investments and servicing of finance -------------------------- ----------- ----------- --------- Taxation UK corporation tax - - - -------------------------- ----------- ----------- --------- Capital expenditure and financial investment Grants received - 200 Purchase of tangible fixed (2,768) (178) (1,703) assets -------------------------- ----------- ----------- --------- Net cash outflow on (2,768) (178) (1,503) capital expenditure and financial investment -------------------------- ----------- ----------- --------- Net cash outflow before (1,723) 624 (1,391) use of liquid funds and financing -------------------------- ----------- ----------- --------- Financing Funds received in relation - 7,000 7,000 to ordinary share capital Expenses of issue of - (1,247) (1,247) ordinary shares Funds received in relation 1,867 - - to finance leases Capital repayment of (89) (5) (9) finance leases -------------------------- ----------- ----------- --------- Cash inflow from 1,778 5,748 5,744 financing -------------------------- ----------- ----------- --------- 5 Increase in cash in the 55 6,372 4,353 year -------------------------- ----------- ----------- --------- PURE WAFER PLC Interim Results for 6 months ended 31 December 2005 Notes to the Financial Statements 1. Basis of preparation The group accounts of Pure Wafer plc comprise the consolidation of the accounts of the company and its subsidiary undertaking after eliminating inter-company balances and transactions. The results for the six months ended 31 December 2005 and 31 December 2004 are unaudited, although they have been reviewed by the auditors. The figures from the year ended 30 June 2005 are taken from the statutory accounts of Pure Wafer plc, which have been delivered to the Registrar of Companies and upon which an unqualified audit report was given. The accounting policies are as stated in the Annual Report and Accounts for the year ended 30 June 2005. 2. Reconciliation of operating profit/(loss) for the year to EBITDA 6 months ended 6 months ended Year ended 31 December 2005 31 December 2004 30 June 2005 £000 £000 £000 Operatingprofit/(loss)for the period 651 (425) (230)Depreciation 1,043 944 1,904Release ofdeferredcapital grant (159) (146) (292)--------------------- ----------- ----------- ---------Earningsbeforeinterest, tax,depreciationandamortisation 1,535 373 1,382--------------------- ----------- ----------- --------- 3. Earnings per share Earnings per share has been calculated as follows: 6 months ended 6 months ended Year ended 31 December 2005 31 December 2004 30 June 2005 '000 '000 '000Weighted average number ofordinary shares:- In issueduring theyear 26,494 21,955 24,206- Fullydiluted 26,592 21,955 24,279--------------------- ----------- ----------- ---------Earnings/(losses) £000 701 (480) (142)--------------------- ----------- ----------- --------- 4. Cash flow from operating activities 6 months ended 6 months ended Year ended 31 December 2005 31 December 2004 30 June 2005 £000 £000 £000--------------------- ----------- ----------- --------- Operating profit/(loss) 651 (425) (230)Depreciation of tangiblefixed assets 1,043 944 1,904Release of deferredincome (159) (146) (292)(Increase)/decrease indebtors (467) 33 (1,423)Increase in stocks (521) (632) (212)Increase in creditors 433 1,007 201--------------------- ----------- ----------- ---------Net cash inflow/(outflow)from operating activities 980 781 (52)--------------------- ----------- ----------- --------- 5. Reconciliation of net funds Cash Finance leases Total net funds £000 £000 £000----------------------- ---------- ---------- ----------- As at 30 June 2005 4,974 (21) 4,953Cash flow 55 (1,778) (1,723)Exchange (13) (85) (98)Other non cash movements - (13) (13)--------------------- ---------- ---------- -----------As at 31 December 2005 5,016 (1,897) 3,119--------------------- ---------- ---------- ----------- 6. Circulation A copy of this announcement is available from the Company Secretary, Pure Waferplc, Central Business Park, Swansea Vale, Swansea, SA7 0AB. A copy is alsoavailable on the Company's website: www.purewafer.com. Independent review report to Pure Wafer plc Introduction We have been instructed by the company to review the financial information forthe six months ended 31 December 2005 which comprises the consolidated profitand loss account, consolidated balance sheet, consolidated cash flow statementand the related notes. We have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority. The accounting policies are consistent with those that the directors intend touse in the next annual financial statements. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the disclosed accounting policies havebeen applied. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit and therefore provides a lower level of assurance.Accordingly we do not express an audit opinion on the financial information.This report, including the conclusion, has been prepared for and only for thecompany for the purpose of the Listing Rules of the Financial Services Authorityand for no other purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 December 2005. PricewaterhouseCoopers LLPChartered AccountantsSwansea, 01 March 2006 Notes: (a) The maintenance and integrity of the Pure Wafer plc web site is theresponsibility of the directors; the work carried out by the auditors does notinvolve consideration of these matters and, accordingly, the auditors accept noresponsibility for any changes that may have occurred to the interim reportsince it was initially presented on the web site. (b) Legislation in the United Kingdom governing the preparation anddissemination of financial information may differ from legislation in otherjurisdictions. NOTES FOR EDITORS About Wafer Reclaim During the many stages of the manufacturing process of semiconductors, largequantities of test wafers are used to check the accurate calibration ofequipment. Once used, these test wafers have no further use, unless they can bereclaimed. Reclaiming them for re-use thus represents a substantial cost savingfor semiconductor manufacturers. The semiconductor industry is currently seeing a rapid transition to 300mmwafers. In order for manufacturers to continue to increase functionality at areduced cost, the industry has sought to increase the size of wafers on whichsemiconductors are manufactured. 300mm wafer processing now represents thefastest growing area of the semiconductor industry. However, wafer reclaim is a highly specialised and technically sophisticatedprocess. Only a few companies worldwide are able to meet the exacting standardsrequired by semiconductor manufacturers for the reclaim of 300mm wafers, ofwhich Pure Wafer is one. About Pure WaferPure Wafer is an industry leading provider of silicon wafer reclaim services.Pure Wafer cleans and polishes silicon wafers sent for reclaim by many of theworld's largest semiconductor manufacturers. Pure Wafer operates a state of theart foundry that has received over £40m of investment to meet the stringentstandards of purity and flatness required by its customers. Pure Wafer is listed on the Alternative Investment Market of the London StockExchange. Headquartered in the UK, it operates on a global basis through aninternational sales force throughout Europe, United States and South East Asia. This information is provided by RNS The company news service from the London Stock Exchange