News blog

Pure Wafer

• BY: Andrew Hore |
• POSTED: 11/03/2013 |

Silicon wafer reclaim services provider Pure Wafer returned to profit in the first half and it is expected to build on this in the second half on the back of a booming semiconductor market. 

In the six months to December 2012, revenues edged ahead from $17.9m to $18.5m, while a $673,000 loss was turned into a profit of $242,000, although that includes a credit of $248,000 relating to savings from a debt restructuring. That improvement came from a combination of higher gross margins and much lower interest charges. The business continues to generate cash. Net debt was $3.37m at the end of 2012 and this should be eliminated by June 2014. .

Core 300mm wafer reclaim volumes increased by 28% and cost cutting has reduced the cost of producing those units. There is an ongoing switch from 20mm wafers where volumes fell by 7%. The solar division remains a small contributor to revenues.

Pure Wafer says that industry analysts expect continued growth in semiconductor production into 2015. If sterling weakens further than Pure Wafer will benefit from the translation of UK costs into dollars.

At 5.12p a share, Pure Wafer is valued at £13.7m. WH Ireland has upgraded its 2012-13 pre-tax profit forecast from $330,000 to $830,000.  The shares are trading on 19 times prospective 2012-13 earnings, falling to 13 in 2013-14.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFFebruary2013_41.pdf