Pure Wafer plc
Annual report and accounts 2009
Pure Wafer plc
Central Business Park 
Swansea Vale 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax: +44 (0)1792 795 420 
Web: www.purewafer.com
Pure Wafer plc  Annual report and accounts 2009
_0_PUR_ar09_Cover.indd   1 20/11/2009   14:55:23 Corporate statement
Pure Wafer is an industry-leading, provider 
of silicon wafer reclaim services. Pure Wafer 
cleans and polishes silicon wafers sent 
for reclaim by many of the world’s largest 
semiconductor manufacturers. Pure Wafer 
operates state-of-the-art foundries in the 
UK and the USA which have the capability 
to meet the stringent quality standards 
required by its customers.
Pure Wafer is listed on AIM part of the 
London Stock Exchange. Headquartered 
in the UK, it operates on a global basis 
through an international sales force 
throughout Europe, North America and 
South East Asia.
_0_PUR_ar09_Cover.indd   2 20/11/2009   14:56:13 01 Annual report and accounts 2009  Pure Wafer plc
Highlights
›  Turnover £17.2m (2008: £22.3m)
› 	 Operating	loss	£3.8m	(2008:	£0.2m	profit)
› Pre-tax loss £5.3m (2008: £0.8m)
›  Pre-tax loss £4.4m before restructuring 
costs and other losses (2008: £0.1m)
›  Basic loss per share 19.9p (2008: loss 
per share 23.1p) 
› 	 	 Net	cash	inflow	from	operating	activities	
£2.8m (2008: £1.7m)
Financial Operational
›  Group banking arrangements have 
been restructured
 ›  Existing debt rescheduled over 
a six year period, including up 
to 	 two 	 year 	 capital 	 moratorium
 ›  Additional facilities of £1.4m agreed
›  Successful placement and open 
offer of shares raised £2.0m cash 
for	working	capital
› 	 	 U K 	 s i t e 	 i n 	 S w a n s e a 	 h a s 	 b e e n	
operationally	restructured,	whilst	
maintaining	operational	efficiency
›  US operation in Prescott, Arizona, 
has 	 qualified 	 to 	 act 	 as 	 a 	 supplier 	
to the majority of US semiconductor 
m a n u f a c t u r e r s , 	 w i t h 	 v o l u m e	
production ramping
› 	 	 Significant 	 and 	 successful 	 cost 	
reduction activities across the group’s 
operational activities
›  The US Dollar strengthened against 
Sterling during the period
› 	 	 B u s i n e s s 	 n o w 	 s t a b i l i s e d 	 a n d , 	 w i t h 	 s p a r e	
capacity, is ready to take advantage of 
the 	 upswing 	 in 	 the 	 semiconductor 	 mark et
 IFC Corporate statement 
01 Highlights
 02 Pure Wafer at a glance 
 04 Chairman’s statement 
06 Chief executive’s review 
 08 Financial review 
10  Board of directors and advisers 
 12 Directors’ report 
17 Directors’ remuneration report 
19 Statement of directors’ responsibilities
20 Consolidated independent auditors’ report 
21 Consolidated income statement 
 22 Consolidated statement of changes in equity
 23 Consolidated balance sheet
 24	 Consolidated	cash	flow	 statement
 25	 Notes	to	the	consolidated	financial	statements
44 Company independent auditors’ report
 45 Company balance sheet
46	 Notes	to	the	company	financial	statements	
49 Notice of Annual General Meeting
_1_PUR_ar09_Front.indd   1 20/11/2009   13:50:43 02 Pure Wafer plc  Annual report and accounts 2009
Pure Wafer at a glance
The company has an established track 
r e c o r d , 	 t w o 	 o f 	 t h e 	 w o r l d ’ s 	 m o s t 	 a d v a n c e d	
wafer	reclaim	facilities	and	a	blue	chip	
customer base that includes the majority 
o f 	 t h e 	 w o r l d ’ s 	 l a r g e s t 	 s e m i c o n d u c t o r	
manufacturers and independent foundries. 
As	a	business	par tner ,	P ure	W afer	works	
with	its	customers	to	design	and	develop	
a	ser vice	that	delivers	reclaimed	wafers	
to	the	exacting	specifications	and	high	
standards required by today’s leading 
semiconductor manufacturers.
Our history
P ure	W afer	was	established	in	2000	by	
a	management	team	widely	experienced	
i n 	 t h e 	 s e m i c o n d u c t o r 	 i n d u s t r y 	 w i t h 	 t h e	
backing of strategic investment from 
Venture Capital and industry partners.
T h e 	 g r o u p 	 fl o a t e d 	 o n 	 A I M 	 i n 	 D e c e m b e r 	 2 0 0 4	
and in February 2007 Pure Wafer completed 
the	acquisition	of	a	wafer	reclaim	facility	
in Arizona, the US.
Our facilities
The UK business operates from a state 
of the art, purpose built facility situated in 
a	technology	park	in	Swansea,	W ales	and	
is the most advanced plant of its kind in 
Europe. The size of the facility is in excess 
of 4,500m
2
 and includes over 2,000m
2
 
of production cleanrooms.
The	facility	in	P rescott,	Arizona	was	
constructed in 1997 and has received 
in excess of $50m of investment since 
then. This high-volume high-tech fab 
was	originally	designed	 for	200mm	and	
smaller	diameter	wafer	reclaim	ser vices,	
but	following	the	acquisition	by	P ure	W afer	
i n 	 2 0 0 7 	 c a p a b i l i t y 	 t o 	 r e c l a i m 	 3 0 0 m m 	 w a f e r s	
has been installed.
We have installed the latest generation 
o f 	 t o o l s 	 a v a i l a b l e 	 o n 	 t h e 	 m a r k e t , 	 w i t h	
the most advanced equipment as used 
by	integrated	chip	(IC)	and	prime	silicon	
producers. With the highest technical 
specifications,	we	are	positioned	to	offer	
the	most	effective	wafer	reclaim	ser vices	
to	our	customers	with	minimal	silicon	
removal. This enables our customers 
to maximise the number of times a 
test	wafer	can	be	reclaimed.
Pure Wafer is a worldwide leader in the provision 
of 300mm wafer reclaim services. These services 
enable semiconductor manufacturers to gain 
efficiencies through the increased use of silicon 
test wafers within their production processes.
_1_PUR_ar09_Front.indd   2 20/11/2009   13:50:44 03 Annual report and accounts 2009  Pure Wafer plc
Our process
At Pure Wafer our process for reclaiming test 
wafers	involves	the	following	k ey	stages:
› 	 	 Inspection	of	the	wafers	for	defects	and	
classification	by	type	of	contaminant	to	
be removed
›  Submersion in a precise mix of chemicals 
appropriate to remove the contaminant
›  Assessment	of	flatness	and	correction	
of defects using Pure Wafer’s advanced 
polishing processes
› Cleaning and drying
›  Final quality inspection and packaging 
for return to the customer
Wafer reclaim
During the many stages of the manufacturing process of 
semiconductors, 	 large 	 quantities 	 of 	 test 	 wafers 	 are 	 used 	 to 	 check	
t h e 	 a c c u r a t e 	 c a l i b r a t i o n 	 o f 	 e q u i p m e n t . 	 T h e s e 	 t e s t 	 w a f e r s 	 a r e 	 a 	 k e y	
consumable in the manufacture of semiconductors and the ability 
to reclaim them through Pure Wafer’s advanced process provides 
manufacturers	with	the	oppor tunity	to	reduce	costs.
T h e 	 s e m i c o n d u c t o r 	 i n d u s t r y 	 t r a n s i t i o n 	 t o 	 3 0 0 m m 	 d i a m e t e r 	 w a f e r s 	 i s	
n o w 	 w e l l 	 a d v a n c e d . 	 I n 	 o r d e r 	 f o r 	 m a n u f a c t u r e r s 	 t o 	 c o n t i n u e 	 t o 	 i n c r e a s e	
functionality at a reduced cost, the industry has sought to increase the 
size	of	wafers	on	which	semiconductors	are	manufactured.	300mm	
wafer	processing	now	represents	the	fastest	growing	area	of	the	
semiconductor industry.
However ,	wafer	reclaim	is	 a	highly	specialised	and	technically	
s o p h i s t i c a t e d 	 p r o c e s s . 	 O n l y 	 a 	 f e w 	 c o m p a n i e s 	 w o r l d w i d e 	 a r e	
able to meet the exacting standards required by semiconductor 
m a n u f a c t u r e r s 	 f o r 	 t h e 	 r e c l a i m 	 o f 	 3 0 0 m m 	 w a f e r s , 	 o f 	 w h i c h	
Pure Wafer is one.
_1_PUR_ar09_Front.indd   3 20/11/2009   13:50:50 04 Pure Wafer plc  Annual report and accounts 2009
Introduction
The year ended 30 June 2009 proved to be 
an extremely challenging period for Pure Wafer. 
With the semiconductor industry struggling to 
recover from the slowdown experienced during 
last financial year, the onset of the worldwide 
economic recession during the first quarter 
of the financial year pushed the industry into 
the worst downturn ever experienced. We saw 
business in volume terms drop dramatically 
during our third quarter, compounded by falling 
selling prices as competitors sought to maintain 
volume sales. 
During the period the weakening of Sterling 
against the US Dollar mitigated some of the effect 
of the falling revenue streams, when converted 
to Sterling as our presentational currency.
Financial results
›  Turnover £17.2m (2008: £22.3m).
›  Operating loss £3.8m (2008: profit of £0.2m).
›  Pre-tax loss £5.3m (2008: £0.8m).
›  Pre-tax loss before restructuring costs and 
other gains and losses £4.4m (2008: £0.1m).
›  Basic loss per share 19.9p (2008: 23.1p). 
›  Net cash inflow from operating activities 
£2.8m (2008: £1.7m).
The board is encouraged by the actions of the 
management team during the period to reduce 
the impact of the market conditions by reducing 
costs across all areas of the business as well as 
focusing on revenue generation during a difficult 
trading period.
Group funding
Following the refinancing and equity fundraising 
in August 2009, the group is now on a much 
firmer financial footing. Our negotiations with the 
bank and asset funders succeeded in rescheduling 
the group’s existing debt over a six year period 
which includes up to two years of capital 
repayment holiday together with an additional 
overdraft facility of £1.4m.
As a condition of the financial restructuring, 
and to demonstrate their commitment and 
confidence in the business, certain directors 
and senior management invested £0.3m of 
cash into the business by way of a placing, 
alongside an open offer to shareholders, 
which was well supported. This together 
with the placing of excess shares raised 
a total of £2.0m of funds before costs.
The financial restructuring and take-up of 
the open offer and placement 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.
Management
In February 2009, we announced that 
Eurfyl ap Gwilym would be stepping 
down from his position of non-executive 
chairman to non-executive director; I was 
appointed as non-executive chairman in 
his place. I have served on the Pure Wafer 
board since October 2008, and led the 
complex negotiations with its lenders 
during the financial restructuring.
We further strengthened our board with 
the appointment of Tim Lowe as group 
finance director during August 2009. Tim 
qualified as a chartered accountant in 1988 
with T ouche Ross and is an experienced public 
company finance director, whose previous 
positions included group finance director of 
PKL Holdings plc (an AIM listed company). 
We also appointed Jerry Winters to the Board 
during November 2009. He has many years’ 
experience of manufacturing in the semiconductor 
industry and more specifically in the wafer 
reclaim sector, including as managing director 
of Pure Wafer Inc. since the acquisition of this 
company in 2007. We see Jerry’s appointment 
as a reflection of the growing importance of 
the US market to the Pure Wafer group.
I would like to thank the entire team for their 
support and effort during what has been a 
turbulent and challenging year.
Chairman’s statement
Pure Wafer’s successful financial restructuring and 
open offer demonstrates confidence in the recovery 
of the business and provides a strong foundation 
on which to move forward.
_1_PUR_ar09_Front.indd   4 20/11/2009   13:50:50 05 Annual report and accounts 2009  Pure Wafer plc
Highlights
›  Successful financial restructuring
›  Significant board changes
›  Signs of industry recovery
Outlook
Although it is too early to be confident 
about a sustained return to growth, recent 
trading together with positive news in the 
press of returning volumes and an industry 
recovery are encouraging signs from which 
we draw confidence that the growth in volume 
recovery, that we have seen over the last 
few months, will be maintained.
This together with our additional funding 
gives Pure Wafer a strong foundation on 
which to move forward.
stePHen bO yd
non-executive chairman
19 november 2009
_1_PUR_ar09_Front.indd   5 20/11/2009   13:50:54 06 Pure Wafer plc  Annual report and accounts 2009
Operational review
The financial year ended June 2009 proved to 
be a difficult period as the semiconductor industry 
suffered the most severe and sharp decline in 
its history, following the world economic turmoil 
during our first quarter.
Volume sales were severely affected during 
the period with 300mm wafer reclaim down 
by 22% when compared to the prior year, and 
200mm wafer reclaim down 11%. Whilst we 
saw a promising start to the period for volume 
sales, the second half of the year was severely 
affected. We saw a rapid decline in the third 
quarter, finally stabilising with a small recovery 
by the financial year end.
During a year of difficult trading conditions, 
the company concentrated on reducing its cost 
base. The board undertook a further operational 
restructuring process during the year ended 
30 June 2009, which has further reduced the 
production costs per wafer and thus enhanced 
the competitiveness of the group’s products. Further 
successful, engineering-led cost reduction activities 
have enabled us to reduce the consumable 
costs per wafer and certain fixed costs, all without 
affecting the quality of the group’s product offering.
In conjunction with the operational restructuring 
and due to low production volume requirements 
we implemented short time working during the 
second half of the period, where all employees 
took periods of unpaid leave each month. 
This was to maintain the essential level of skill 
base within the business required to produce 
a quality product, whilst giving cost savings 
proportional to volume trading.
I would like to thank all our employees for 
supporting the short-time working initiative, 
enabling Pure Wafer to continue to trade 
competitively throughout this difficult period.
Highlights
›  Group banking arrangements have 
been restructured:
 ›  existing debt rescheduled over a six year 
period, including up to two year 
capital moratorium.
 ›  additional facilities of £1.4m agreed.
›  Successful placement and open offer 
of shares raised £2.0m before costs 
for working capital.
›  UK site in Swansea has been operationally 
restructured, whilst maintaining 
operational efficiency.
›  US operation in Prescott, Arizona, has qualified 
to act as a supplier to the majority of US 
semiconductor manufacturers, with volume 
production ramping.
›  Significant and successful cost reduction 
activities across the group’s operational activities.
›  The US Dollar strengthened against Sterling 
during the period.
›  Business now stabilised and, with significant 
installed capacity, is ready to take advantage 
of the upswing in the semiconductor market.
Market
Despite the downturn we have made 
significant progress in increasing our 300mm 
wafer reclaim market share in the US, from our 
Prescott, Arizona facility. The Prescott facility 
is now fully equipped for large scale 300mm 
production and, with the quality of offering equal 
to the stringent requirements of our blue chip 
customer base, we envisage further significant 
market gains.
Whilst there have been some corporate 
failures within the competitive landscape, 
there still remains a worldwide overcapacity 
of wafer reclaim services, which in turn is 
reflected in continued pressure on selling 
prices. However, as customer specification 
requirements increase, the capacity of high 
quality reclaim services is restricted to wafer 
manufacturers who have both the technical 
know how and the relevant measurement 
equipment to produce an offering to the 
quality required.
Chief executive’s review
Pure Wafer is well placed to take advantage 
of any industry upturn following its operational 
restructuring together with significant and 
successful cost reduction activities.
_1_PUR_ar09_Front.indd   6 20/11/2009   13:50:54 07 Annual report and accounts 2009  Pure Wafer plc
With the group’s current installed capacity 
for 300mm and smaller diameter wafers 
at Pure Wafer’s high quality facilities in 
Swansea and Prescott, Arizona, together 
with the reduced cost per wafer, the board 
believes that the company is well placed 
to take advantage of any industry recovery.
new products
We continue to explore new opportunities 
outside our core business of wafer reclaim, 
to enhance our portfolio of products. We are 
looking at areas where we have certainty 
of the end market and where we will not 
incur significant research and development 
costs. We are confident that we can deliver 
new product developments in areas of global 
growth, compatible with our existing core skills 
and world-class manufacturing equipment 
and facilities.
Peter HarrInG tOn
Group chief executive
19 november 2009
Highlights
›  Arizona site gains further market share
›  Successful lowering of unit costs
›  Business now stabilised with market recovery expected
_1_PUR_ar09_Front.indd   7 20/11/2009   13:51:02 08 Pure Wafer plc Annual report and accounts 2009
r evenue
Revenue for the period was £17.2m, a decrease 
of 22% on last year (2008: £22.3m); an analysis 
of turnover by origin and destination can be found 
in note 5.
Volumes
The volume of 300mm equivalent wafers at 
844,000 (2008:1,029,000) was a reduction 
of 18% in the year. An analysis of turnover by 
origin and destination can be found in note 5.
Gross profit
Gross profit at £4.0m (2008: £6.2m), a reduction 
of 35%, was impacted both by the reduction in 
average 300mm selling prices in the marketplace 
and by the reduction in volumes. The gross profit 
margin reduced accordingly to 23% (2008: 28%).
Operating loss
The operating loss of £3.8m (2008: 
profit of £0.2m) was achieved after incurring 
£0.4m (2008: £0.4m) of restructuring costs. 
administrative expenses
Administrative expenses of £7.5m (2008: 
£5.7m) for the group show an increase however 
this is due to the increase in depreciation and 
amortisation charge included in the operating profit 
which was £4.4m (2008: £2.9m).
(Loss)/profit before tax
The loss before tax was £5.3m (2008: 
£0.8m profit).
Foreign exchange
As over 95% of group revenue is in US Dollars, 
revenue and margins are impacted by the 
movement in the currency. 
We continue to convert as much of the 
cost base as possible to US Dollars in order 
to provide a natural hedge against the US Dollar 
revenue streams. 
The group’s two major operating subsidiaries in 
the UK and the US both use the US Dollar as 
their functional currency. The strengthening of the 
US Dollar against Sterling during the year has led 
to an increase in the valuation of the fixed asset 
base of the group, which drives a retranslation 
gain of £3.9m, recorded directly in reserves.
Cash flow and capital expenditure
The group continues to be cash generative on 
an operating level, with a net cash inflow from 
operating activities of £2.8m (2008: £1.7m). 
taxation
There is no current tax charge across the 
group. Due to the losses incurred during the 
year, the Board has taken the prudent decision 
not to recognise the deferred tax asset of £6.4m 
(2008: £5.6m) in the balance sheet, as it is 
not expected to be utilised within the 
foreseeable future. 
ePs and dividend
Basic loss per share for the period was 19.9p 
(2008: 23.1p).
Due to the current economic climate, the cash 
constraints faced by the group moving forward 
and the lack of available distributable reserves 
the Board is not able to recommend the payment 
of a dividend for this financial year.
Maturity of debt
At the year end the company was in negotiations 
with its existing lenders to restructure the capital 
repayment terms of bank loans, hire purchase 
and finance leases. Although these negotiations 
were very well advanced at 30 June 2009 they 
were not completely finalised until shortly after 
the year end. 
Financial review
We continue to convert as much of the 
cost base as possible to US Dollars in 
order to provide a natural hedge against 
the US Dollar revenue streams.
_1_PUR_ar09_Front.indd   8 20/11/2009   13:51:02 09 Annual report and accounts 2009  Pure Wafer plc
At 30 June 2009, the group had ceased 
making capital repayments in line with the 
bank loan, hire purchase and finance lease 
agreements that were in place at that date. 
Accordingly, the group was in technical breach 
of those agreements and all debt is presented 
as repayable immediately as is shown in the 
statutory column of the balance sheet.
On 20 August 2009, the group reached an 
agreement with its lenders to restructure the 
capital repayment terms of bank loans, hire 
purchase and finance leases as set out in note 
31 of the financial statements. Accordingly, at 
the date of approval of the financial statements, 
the group is no longer in breach of the revised 
agreements. The proforma information presented 
on the balance sheet shows how the balance 
sheet would have appeared had that agreement 
been completed before 30 June 2009.
tIM l OWe
Group finance director
19 november 2009
   Year ended Year ended 
   30 June 31 June 
   2009 2008 
   £’000 £’000
Turnover   17,230 22,268
Gross profit   4,030 6,180
Operating (loss)/profit   (3,817) 162
(Loss)/profit before tax   (5,292) (799)
Adjusted diluted EPS   (19.9)p (23.1)p
We continue to convert as much of the cost base as possible to US Dollars in order to provide 
a natural hedge against the US Dollar revenue streams. 
_1_PUR_ar09_Front.indd   9 20/11/2009   13:51:04 10 Pure Wafer plc  Annual report and accounts 2009
Board of directors and advisers
1. stePHen bO yd
non-executive chairman
Stephen Boyd has worked in a number of 
manufacturing industries, including five years 
as group chief executive of Capital Industries plc. 
Stephen currently sits on a number of boards 
of both public and private companies, mainly in 
the technology sector and is currently chairman 
of Pittards plc. Stephen joined the board on 
1 October 2008.
2. GIles Clarke dl
non-executive director and deputy chairman
Giles Clarke is chairman and majority shareholder 
of a number of private companies, including 
ATL T elecom, a designer of data transmission chips. 
He founded Majestic Wine in 1981 and 
co-founded Pet City in 1990. Giles is chairman 
of the England and Wales Cricket board and is 
non-executive chairman of Amerisur Resources plc. 
He joined the board in November 2004.
3. dr eurFyl aP GWIlyM
non-executive director 
Eurfyl ap Gwilym has a wide experience 
of the technology industry, having served 
on the boards of many companies including 
Philips Electronics, GE Information Services 
and BIS Banking International. He is currently 
a non-executive director of a number of listed 
companies and the Principality Building Society. 
Eurfyl joined the board in November 2004. 
4. Paul dOlan FCa
non-executive director
Paul Dolan spent many years as an audit partner 
at Deloitte, where his clients included several 
semiconductor and technology companies. Paul 
retired from Deloitte in 2004. In 2006, he took 
up the position of non-executive director at XP 
Power plc and remained in this position until 
the relocation of XP Power plc to Singapore in 
2007. Paul joined the board of Pure Wafer plc 
in June 2007 and became chair of the audit 
committee on appointment to the board.
Jerry WInters
us operations director
Jerry Winters has 31 years experience in the 
Semiconductor Materials and IC industry. He 
started his career with Fairchild’s Semiconductor 
in 1978 and during his 9 years with that 
company, held positions in both Engineering and 
Operations Management. In 1987 Jerry joined 
the Laporte/Rockwood Specialties group where 
he was Global Operations Manager of their US 
and European silicon wafer reclaim operations. 
In 2007 he joined the Pure Wafer organisation 
following the acquisition of Exsil from Rockwood 
Specialties, where he was an officer of Exsil.
non-executive directors
1.
4. 
2. 
3. 
_1_PUR_ar09_Front.indd   10 20/11/2009   13:51:10 11 Annual report and accounts 2009  Pure Wafer plc
5. Peter HarrInG tOn
Group chief executive
Peter Harrington is a co-founder of the 
company. He has over 30 years’ industry 
experience in commercial and project 
management roles. Peter was previously 
finance executive with Meissner+Wurst, 
one of the world’s leading constructors 
of semiconductor fabrication facilities.
6. keItH baker
Chief operating officer
Keith Baker is a co-founder of the company. He has 
many years experience in the semiconductor 
industry, working for leading chip manufacturers 
such as Siemens Microelectronics and National 
Semiconductor. Keith was previously vice president 
of technology for Steag Microtech, where he played 
a key role in the early development of the 300mm 
wafer manufacturing processes.
7. tIM lOWe
Group finance director
Tim Lowe qualified as a chartered accountant in 
1988 with Touche Ross, and is an experienced 
public company finance director. Tim has held 
the position of group finance director of PKL 
Holdings plc (an AIM listed company) before 
joining Stradform Limited where he led the 
negotiations of the sale of the business to 
one of the largest contractors in Europe.
executive directors
CoMPANY SeCret Ar Y 
AND reGIStereD oFFICe
tIM LoWe
Pure W AFer PLC
Central Business Park 
Swansea Vale 
Swansea SA7 0AB
SoLICItorS
MorGAN CoLe 
Llys Tawe 
Kings Road 
Swansea SA1 8PG
BANkerS
roYAL BANk oF SCotLAND
One Kingsway 
Cardiff CF10 3YB
NoMINAteD ADvISerS/BrokerS
ALtIuM
30 St James’s Square 
London SW1Y 4AL 
AuDItorS
DeLoItte LLP
Blenheim House 
Fitzalan Court 
Newport Road 
Cardiff CF24 0TS
reGIStrArS
CAPIt A reGIStrArS
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
advisers
5. 6. 7. 
_1_PUR_ar09_Front.indd   11 20/11/2009   13:51:12 12 Pure Wafer plc  Annual report and accounts 2009
The directors present their annual report and the audited financial statements of the group for the year ended 30 June 2009.
Principal activity 
The principal activity of the group remains the reclaim of silicon test wafers. The principal activity of the company is as a holding company 
and the provision of management services to the group’s trading subsidiaries.
The consolidated income statement is set out on page 21.
A review of developments affecting the group during the year and its prospects for the future is set out in the chairman’s statement, 
chief executive’s review and the financial review.
Business review
A detailed review of the group’s operations and key performance indicators is contained in the chairman’s statement on pages 4 and 5, the chief 
executive’s review on pages 6 and 7 and the financial review on pages 8 and 9.
Information about the use of financial instruments by the company and its subsidiaries is given in note 25 to the financial statements. 
Dividends
The directors do not recommend the payment of a dividend (2008: £nil).
Risks and uncertainties 
There are a number of potential risks and uncertainties which could have a material impact on the company’s long-term performance.
Market risk
Volumes – in the current climate, there is a risk that sales volumes, whilst currently recovering, will decrease if the industry recovery is not sustained, 
leading to a reduction in market prices as our competitors compete for existing business. We mitigate the risk by maintaining our standards of quality 
and endeavouring to qualify to provide wafer reclaim services to as many of the major semiconductor manufacturers as we can.
Price – competitive pressures create a risk that the market price for wafer reclaim services will fall, affecting our gross margin. We mitigate this risk 
by understanding the production cost for each wafer and only tendering for work at rates that will achieve an acceptable return.
Credit risk
The group offers short-term credit to customers and there is a risk that customers will default on payments for services provided. The group 
manages the risk by trading with a wide range of customers in diverse geographical locations and monitoring the creditworthiness of customers, 
both before offering credit terms and during their relationship with Pure Wafer. 
Treasury risk
Foreign exchange – the group’s sales are predominantly in US Dollars, therefore changes in the strength of Sterling against the US Dollar will 
affect reported revenue. The group currently hedges a portion of this risk with forward exchange contracts, but also achieves natural hedges by 
incurring a proportion of the group’s operating costs and securing all of the loan finance in US Dollars.
Interest rate – the group’s borrowings include variable rate term loans and fixed rate finance leases. We mitigate the risk associated with our 
variable rate loans by entering into interest rate swaps. 
Competitor risk
New entrants – the high level of investment required and the related cost of capital makes this unlikely in the current market conditions.
Technology risk
As the group operates in a technology sector, there is a risk that the process could be superseded and new capital investment required; however, 
the board feels that this is extremely unlikely in the current market and based on available knowledge of new product/technology developments.
Capital structure
Details of the authorised and issued share capital are shown in note 26. The company has one class of ordinary shares which carry no right 
to fixed income. Each share carries the right to one vote at general meetings of the company. 
There are no specific restrictions on the size of a holding or on the transfer of shares, which are both governed by the general provisions of the 
Articles of Association and prevailing legislation. The directors are not aware of any agreements between holders of the company’s shares that 
may result in restrictions on the transfer of securities or on voting rights. Substantial shareholders are listed in a separate section that follows.
Details of employee share schemes are set out in note 27. 
No person has any special right of control over the company’s share capital and all issued shares are fully paid.
Directors’ report 
_2_PUR_ar09_back.indd   1 20/11/2009   14:51:53 13 Annual report and accounts 2009  Pure Wafer plc
Capital structure continued
With regard to the appointment and replacement of directors, the company is governed by its Articles of Association, the Companies Acts 
and related legislation. The Articles themselves may be amended by special resolution of the shareholders. The powers of the directors are described 
in the corporate governance section of the directors’ report on pages 12 to 16.
Under its Articles of Association, the company has authority to issue ordinary shares up to an aggregate nominal value equal to 5% of the 
aggregate nominal ordinary share capital as in issue immediately following admission.
Supplier payment policy 
The group’s policy is to settle terms of payment with suppliers when agreeing the terms of trade. Trade creditors of the group at 30 June 2009 
were equivalent to 65 days (2008: 67 days) purchases, based on the average daily amount invoiced by suppliers during the year. 
Directors and their interests 
The directors of the company, who served throughout the financial year unless stated otherwise, are as shown below: 
S Boyd non-executive chairman
†
 (appointed 1 October 2008) 
C G Clarke non-executive director 
E ap Gwilym non-executive director 
P Dolan non-executive director 
P Harrington group chief executive 
K Baker chief operating officer 
T Lowe group finance director* (appointed 21 August 2009) 
S Young interim group finance director* (resigned 30 April 2009)
*  S Young stood down as interim group finance director on 30 April 2009 and was replaced by T Lowe as interim group finance director until his appointment as group finance 
director on 21 August 2009. 
†
  S Boyd took over from E ap Gwilym as chairman on 1 February 2009.
The beneficial interests of the directors in the share capital of the company at the beginning and the end of the financial year were as follows:
        30 June 30 June   
        2009 2008 30 June 30 June 
        2p ordinary 2p ordinary 2009 2008 
        share share 2p ordinary 2p ordinary 
        options options shares shares 
        Number  Number  Number  Number
C G Clarke        — — 279,482 279,482
E ap Gwilym        — — 25,000 25,000
P Harrington        — 95,203 159,066 159,066
K Baker        — 158,911 163,012 163,012
P Dolan        — — 65,000 65,000
The directors held no shares in any other group company at any time during the financial year.
Substantial shareholders 
As at 12 November 2009, notifications of beneficial interests in 3% or more of the company’s issued share capital are as follows:
         Ordinary shares  
         Number %
Blackrock Investment Management        25,637,696 20.3
AXA Framlington         16,007,053 12.7
Stephen Boyd          7,500,000 5.9
Aviva          6,755,369 5.4
Polar Capital European Forager Fund Ltd        6,057,748 4.8
Michinoko          5,921,440 4.7
 
_2_PUR_ar09_back.indd   2 20/11/2009   14:51:53 14 Pure Wafer plc  Annual report and accounts 2009
Substantial shareholders continued
Authority to issue and allot shares
The Companies Act 2006 contains restrictions on the power of the directors to allot a company’s shares. As a result, the directors may only 
issue the shares pursuant to the authority within the statutory terms given by shareholders’ resolutions or contained in the Articles of Association. 
Their power to issue equity shares for cash to persons other than the existing shareholders is similarly restricted.
Resolutions to confer these authorities were passed at the previous Annual General Meeting (AGM), not on incorporation. These authorities will 
expire at the conclusion of the next AGM unless previously renewed, varied or revoked by the company in general meeting.
Resolutions to renew the authorities will be prepared at the 2009 AGM to be held on 15 December 2009.
Subsequent to the passing of these resolutions, the directors will have the authority to allot shares up to an aggregate nominal amount of £757,816 
and it will not be necessary for the directors to seek further approval from shareholders to issue shares for cash to persons, other than existing 
shareholders, up to an aggregate nominal amount of £126,303.
Health and safety, environmental and social responsibility
The company has detailed health and safety guidelines which are communicated to all employees and which are regularly reviewed for suitability 
in the context of the company’s activities.
The group is fully committed to protecting the environment in which we live and work, both ecologically and socially. A formal policy is in place 
with internal management control systems to ensure that this is achieved as best as is practicable and to ensure that the international standard 
for environmental management ISO 14001 is met.
Charitable and political donations
The group did not make any monetary charitable or political donations during the period.
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 pages 4 and 5. The financial position of the group, its cash flows, liquidity position and borrowing facilities are described 
in the financial review on pages 8 and 9. The key business risks faced are described in the directors’ report on pages 12 to 16. In addition note 25 
to the financial statements includes the group’s objectives, policies and processes for managing its capital; its financial risk management objectives; 
details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk. 
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. 
This review considered detailed forecasts for the period to 30 June 2012. On this basis the directors have concluded that it is appropriate 
to prepare the financial statements on a going concern basis.
As described in the chairman’s statement on pages 4 and 5, the current environment is challenging. The group has recorded a pre-tax loss: 
however, as noted in the chairman’s statement, the group successfully negotiated a financial restructuring package in August 2009. The financial 
agreements comprise the rescheduling of all of the group’s existing debt over a six year period which includes up to two years of capital repayment 
holidays together with an additional overdraft facility of £1.4m. The impact of this post year end transaction is demonstrated with the inclusion 
of a proforma balance sheet, which indicates how the balance sheet would have looked had it been signed on 30 June 2009.
As a condition of the agreement the group undertook a share placement that resulted in a total of £2.0m of funds before costs being raised 
in September 2009. This gives the group significant headroom above its forecast cash requirement, which will allow it to manage its business 
risks successfully despite the current uncertain outlook. 
The key sensitivity in the forecasts includes the achievement of increased sales volumes and the forward US Dollar rate. The business is beginning 
to see an upturn in demand and the directors believe that this will be sustained. Sales prices are assumed to remain largely unchanged.
After making enquiries, the directors have a reasonable expectation that the group and the company have adequate resources to continue 
in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the annual report 
and financial statements.
Post balance sheet events
Details regarding the post year end restructuring of existing loans, arrangement of an extended overdraft facility and the placing and open offer 
for new shares as set out in the going concern section above are given in note 31 to the consolidated financial statements.
Corporate governance
The company is listed on AIM and is therefore not required to comply with the provisions of the Combined Code. However, the board adopts a 
number of principles of the Combined Code that it feels are relevant to a business of the size and complexity of Pure Wafer plc, as set out below.
During the year the board comprised a non-executive chairman, three executive directors and a further three non-executive directors who brought 
an independent judgement to the group. The roles of chairman and chief executive have been split.
All the directors have access to the advice and services of the company secretary, who is responsible to the board for ensuring that board procedures 
are followed and compliance with applicable rules and regulations. If necessary, independent professional advice can be sought by all the directors 
of the company.
Directors’ report 
continued
_2_PUR_ar09_back.indd   3 20/11/2009   14:51:53 15 Annual report and accounts 2009  Pure Wafer plc
Corporate governance continued
Board responsibilities
The board of directors, which includes four non-executive directors, meets regularly throughout the year. 
S Boyd, C G Clarke, E ap Gwilym and P Dolan are considered by the board to be independent non-executive directors.
The board is responsible for overall group strategy, acquisition and investment policy, approval of major capital expenditure projects and consideration 
of significant financing matters. There is a formal schedule of matters specifically reserved to the board’s jurisdiction. It reviews the strategic direction 
of the group, its annual budgets, the progress towards achievement of those budgets, its forecasts and its capital expenditure programmes. In furtherance 
of their duties, there are agreed procedures for the directors to take independent advice, if necessary, at the company’s expense.
The board considers the chairman to be the main point of contact to whom concerns of whatever nature may be conveyed. In the event that 
an individual does not wish to raise a concern with him, the board has identified the deputy chairman as an independent member of the board 
to whom such concerns may be addressed.
Audit committee
The company has an audit committee comprising three non-executive directors. During the period the committee was chaired by P Dolan. 
The committee provides a link between the board and the group’s auditors on matters falling within the scope of the group’s audit. These matters 
include accounting standards and policies, internal financial control procedures and the group’s statutory financial statements, which are intended 
for publication. 
Remuneration committee
The remuneration committee comprises the non-executive directors and the chairman and meets at least once a year. During the year, the committee 
was chaired by E ap Gwilym. It is the remuneration committee’s role to establish a formal and transparent policy on executive remuneration 
and to set remuneration packages for individual directors.
Treasury committee
The treasury committee comprises the executive directors. The committee meets on an as-needed basis where speedy approval of treasury 
matters, particularly relating to foreign exchange, is required. The chairman of the committee, P Harrington, reports any decisions taken, 
with justification, to the board as quickly as practicable.
Board meetings
During the period ended 30 June 2009, there were 16 board meetings, three audit committee meetings and one remuneration committee meeting. 
Attendance was as follows:
      Board  Audit  Remuneration  
      meeting committee committee 
S Boyd      11 — 1 (appointed 1 October 2008)
C G Clarke      7 3 1 
E ap Gwilym      16 3 1 
P Dolan      13 3 1 
P Harrington      16 — — 
K Baker       16 — — 
T Lowe      2 — — (appointed 21 August 2009)
S Young      13 — — (resigned 30 April 2009)
Risk management
The board of directors has overall responsibility for the group’s system of internal control and for reviewing its effectiveness, whilst the role 
of management is to implement board policies on risk and control. The system of internal control is designed to manage rather than eliminate 
the risk of failure of business objectives. In pursuing these objectives, internal controls can provide only reasonable and not absolute assurance 
against material misstatement or loss.
The key elements of this system are:
›  the audit committee;
›  a comprehensive budgeting system, with an annual budget approved by the group board;
›  detailed monthly reporting, including forecasting to the group board and comparison of results against budget, with performance monitoring 
and explanations provided for significant variances; and
›  a defined procedure for seeking and obtaining approval for major transactions.
_2_PUR_ar09_back.indd   4 20/11/2009   14:51:53 16 Pure Wafer plc  Annual report and accounts 2009
Directors’ report 
continued
Corporate governance continued
Risk management continued
In order to address risk management, a control framework is in place which aims, as best as practicable, to:
›  safeguard group assets;
›  ensure proper accounting records are maintained; and
›  provide reliable financial information for internal and external use.
Dialogue with shareholders
The company reports formally to the shareholders twice a year, when its half-year and full-year results are announced, and the interim report 
and annual report are sent to shareholders. The annual report is accompanied by notice of the AGM of the company, at which a presentation 
is given and directors are available to take questions, both formally during the meeting and informally after the meeting. The management is 
available for dialogue with major shareholders on the company’s plans and objectives and from time to time meets with them.
Auditors
In the case of each of the persons who are directors of the company at the date when this report is approved:
›  so far as each of the directors is aware, there is no relevant audit information of which the company’s auditors are unaware; and
›  each of the directors has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit 
information and to establish that the company’s auditors are aware of that information. 
This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.
Deloitte LLP have indicated their willingness to continue in office as auditors. A resolution for their reappointment will be proposed at the 
forthcoming AGM.
Approved by the board of directors and signed on behalf of the board 
PeTeR HARRinGTon
19 november 2009 
_2_PUR_ar09_back.indd   5 20/11/2009   14:51:54 17 Annual report and accounts 2009  Pure Wafer plc
Directors’ remuneration report 
introduction
This report sets out Pure Wafer’s executive remuneration policy, structure and details of remuneration received by directors in the year ended 
30 June 2009. This report is unaudited.
Role of the remuneration committee
The remuneration committee is responsible for:
›  establishing and recommending to the board the policy for executive remuneration;
›  determining, on behalf of the board and shareholders the level and structure of remuneration packages of the executive directors; and
›  reviewing and ensuring the alignment of executive remuneration with remuneration throughout the organisation, including company share schemes.
The remuneration of non-executive directors is determined by the board as a whole. No director is involved in discussions related to his own remuneration.
Membership and meetings
Members of the committee were E ap Gwilym, chair of the committee, S Boyd, C G Clarke and P Dolan. All the members of the committee 
are non-executive directors. The committee met once during the year and all the members attended the meeting.
Advisers
During the year, the remuneration committee received guidance from the chief executive officer and the company secretary, except on matters 
relating to their own remuneration.
Remuneration policy
The committee and board believe that in order to attract, motivate and retain a senior management team of the right calibre it is necessary 
to provide a competitive market-based remuneration structure which rewards company and individual performance.
Remuneration packages comprise:
›  basic salary;
›  annual performance related bonus;
›  other benefits; and
›  participation in share incentive plans.
Basic salary
Salaries are normally reviewed annually and any changes are effective from July in each year. Pay reviews take into account company 
and individual performance. In the period directors took a reduction in remuneration.
Performance related bonuses
Payments under the scheme are based upon the achievement of financial targets for the company as set by the remuneration committee.
Benefits
Benefits in kind include the provision of a car or car allowance, a payment of private fuel, private medical insurance, life assurance and 
permanent health insurance.
Share incentives
Remaining share options in the executive scheme have all lapsed as a result of the earnings for 30 June 2009 not achieving the vesting targets 
(2008: 414,697 options outstanding).
The executive directors had the following interests in options:
  Options   Market    
 Balance at lapsed Balance at  price at  Performance  
 1 July during 30 June  date of  Exercise period  
 2008  year  2009    grant  price (financial  
 Number  Number Number Date of grant (£)  (£) year) Expiry date
K Baker 63,829 63,829 — 16/11/2005 2.35 0.02 2008 15/11/2015
 95,082 95,082 — 27/11/2006 2.46 0.02 2009 26/11/2016
 158,911 158,911 —     
        
P G Harrington 25,531 25,531 — 16/11/2005 2.35 0.02 2008 15/11/2015
 69,672 69,672 — 27/11/2006 2.46 0.02 2009 26/11/2016
 95,203 95,203 —     
_2_PUR_ar09_back.indd   6 20/11/2009   14:51:54 18 Pure Wafer plc  Annual report and accounts 2009
Directors’ remuneration report 
continued
Share incentive schemes (non-directors)
The group also operates a share option scheme in relation to employees who are not directors.
The group had granted options over 138,621 shares during 2006. The exercise price of the options is £1.45 and the option can be exercised 
by the individuals at any point from two years from the date of issue, up to a period of ten years from the date of issue of the option. These options 
do not have any performance criteria. There remain 22,398 share options under the scheme that have not yet been exercised or lapsed.
SAYe scheme
Each year consideration is given to setting up a SAYE scheme for the benefit of all employees.
Directors’ remuneration
          Total Total 
      Salary Benefits Bonus Pension 2009 2008 
Director      £ £ £ £ £ £
S Boyd      33,418 — — — 33,418 —
C G Clarke      30,278 — — — 30,278 75,000
E ap Gwilym      32,440 — — — 32,440 31,350
P Dolan      32,196 — — — 32,196 80,000
P Harrington      113,201 13,465 — 5,000 131,666 159,989
K Baker      113,201 22,654 — 5,000 140,855 187,892
T Lowe*      22,718 — — 2,500 25,218 —
S Young***      52,958 — — — 52,958 —
J Dearing****      — — — — — 144,504
      430,410 36,119 — 12,500 479,029 678,735
   * From date of appointment as interim finance officer on 6 April 2009. T Lowe was formally appointed as group finance director on 21 August 2009.
  ** 2008 salary includes elements which relate to non-executive director role and as interim group finance director between 14 November 2007 and 23 June 2008.
 *** From appointment on 23 June 2008 to date of resignation on 30 April 2009
**** To date of resignation on 30 April 2008
Service contracts for directors
K Baker has a service agreement with the company dated 9 December 2004, subject to termination upon twelve months’ notice given by either party.
P Harrington has a service agreement with the company dated 9 December 2004 subject to termination upon twelve months’ notice given 
by either party. 
T Lowe has a service agreement with the company dated 6 April 2009, subject to termination upon six months’ notice given by either party.
Letters of appointment for non-executive directors
C G Clarke has a letter of appointment with the company dated 1 June 2006, which is subject to termination upon a notice period of twelve months 
given by either party.
E ap Gwilym has a letter of appointment with the company dated 1 June 2006, which is subject to termination upon a notice period of twelve months 
given by either party.
P Dolan has a letter of appointment with the company dated 25 June 2007, which is subject to termination upon a notice period of twelve months 
given by either party.
S Boyd has a letter of appointment with the company dated 1 October 2008, which is subject to termination upon a notice period of three months 
given by either party.
Directors’ interest in shares
The beneficial interest of directors at the end of the year in the ordinary share capital of the company is set out in the directors’ report.
euRfYL AP GWiLYM
19 november 2009
_2_PUR_ar09_back.indd   7 20/11/2009   14:51:54 19 Annual report and accounts 2009  Pure Wafer plc
Statement of directors’ responsibilities
Directors’ responsibilities statement
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors are required to prepare 
the group financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and 
have elected to prepare the parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they 
are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. 
In preparing the parent company financial statements, the directors are required to:
›  select suitable accounting policies and then apply them consistently;
›  make judgments and accounting estimates that are reasonable and prudent;
›  state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained 
in the financial statements; and
›  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
In preparing the group financial statements, International Accounting Standard 1 requires that directors:
›  properly select and apply accounting policies;
›  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; 
›  provide additional disclosures when compliance with the specific requirements in IFRS are insufficient to enable users to understand the impact 
of particular transactions, other events and conditions on the entity’s financial position and financial performance; and
›  make an assessment of the company’s ability to continue as a going concern.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and 
disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply 
with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for 
the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. 
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
_2_PUR_ar09_back.indd   8 20/11/2009   14:51:54 20 Pure Wafer plc  Annual report and accounts 2009
Consolidated independent auditors’ report 
to the members of Pure Wafer plc
We have audited the group financial statements of Pure Wafer Plc for the year ended 30 June 2009 which comprise the consolidated income 
statement, the consolidated statement of changes in equity, the consolidated balance sheet, the consolidated cash flow statement and the related 
notes 1 to 31. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting 
Standards (IFRS) as adopted by the European Union.
This report is made solely to the company’s members, as a body, in accordance with Sections 495 and 496 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company 
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the group financial statements 
and for being satisfied that they give a true and fair view. Our responsibility is to audit the group financial statements in accordance with applicable 
law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) 
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the 
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting 
policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant 
accounting estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements
In our opinion the group financial statements:
›  give a true and fair view of the state of the group’s affairs as at 30 June 2009 and of its loss for the year then ended;
›  have been properly prepared in accordance with IFRSs as adopted by the European Union; and
›  have been prepared in accordance with the requirements of the Companies Act 2006.
opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent 
with the group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
›  certain disclosures of directors’ remuneration specified by law are not made; or
›  we have not received all the information and explanations we require for our audit.
other matter
We have reported separately on the parent company financial statements of Pure Wafer plc for the year ended 30 June 2009.
niGeL THoMAS (SenioR STATuToRY AuDiToR) 
foR AnD on BeHALf of DeL oiTTe LLP
Chartered Accountants and Statutory Auditors
Cardiff, united Kingdom
19 november 2009
_2_PUR_ar09_back.indd   9 20/11/2009   14:51:54 21 Annual report and accounts 2009  Pure Wafer plc
Consolidated income statement
year ended 30 June 2009
      2009 2008 
     Note £’000 £’000
Revenue     4 17,230 22,268
Cost of sales      (13,200) (16,088)
Gross profit      4,030 6,180
Depreciation and amortisation      (4,369) (2,932)
Share-based payment credit      — 426
Other administrative expenses      (3,109) (3,157)
Total administrative expenses      (7,478) (5,663)
Restructuring costs      (369) (355)
Operating (loss)/profit     6 (3,817) 162
Investment revenue     8 40 182
Finance costs      9 (989) (777)
Other gains and losses     10 (526) (366)
Loss on ordinary activities before taxation      (5,292) (799)
Tax on loss on ordinary activities     11 — (5,331)
Loss for the financial year      (5,292) (6,130)
   
Loss per share     12  
Basic      (19.9)p (23.1)p
Diluted      (19.9)p (23.1)p
All activities derive from continuing operations.
_2_PUR_ar09_back.indd   10 20/11/2009   14:51:54 22 Pure Wafer plc  Annual report and accounts 2009
Consolidated statement of changes in equity
year ended 30 June 2009
      Exchange   
  Share Premium  Merger  Retained  translation  Total 
  capital  account  reserve earnings  reserve  equity 
  £’000 £’000 £’000 £’000 £’000 £’000
Balance at 30 June 2007  532 12,783 30,425 (14,987) (1,774) 26,979
Net gain on translation of subsidiaries with foreign functional currency   — — — — 140 140
Loss for the financial year  — — — (6,130) — (6,130)
Equity-settled share-based payments  — — — (386) — (386)
Balance at 30 June 2008  532 12,783 30,425 (21,503) (1,634) 20,603
Net gain on translation of subsidiaries with foreign functional currency   — — — — 3,930 3,930
Loss for the financial year  — — — (5,292) — (5,292)
Balance at 30 June 2009  532 12,783 30,425 (26,795) 2,296 19,241
_2_PUR_ar09_back.indd   11 20/11/2009   14:51:54 23 Annual report and accounts 2009  Pure Wafer plc
     2009 2009  
     Statutory Proforma 2008 
     Note £’000 £’000 £’000
Non-current assets   
Goodwill    13 4,043 4,043 3,348
Other intangible assets    13 117 117 146
Property, plant and equipment    14 27,872 27,872 24,254
     32,032 32,032 27,748
Current assets   
Inventories    15 1,903 1,903 3,311
Trade and other receivables    16 3,110 3,110 5,177
Derivative financial instruments    19 — — 50
Assets held for sale    17 — — 735
Cash and cash equivalents    16 1,622 1,622 962
     6,635 6,635 10,235
Total assets     38,667 38,667 37,983
Current liabilities   
Trade and other payables    18 (3,646) (3,646) (3,541)
Interest-bearing loans and borrowings    20 (13,474) (2,181) (3,894)
Deferred consideration    23 — — (943)
Derivative financial instruments    19 (324) (324) (150)
     (17,444) (6,151) (8,528)
Non-current liabilities   
Interest-bearing loans and borrowings    20 — (11,293) (6,912)
Deferred income    24 (1,982) (1,982) (1,940)
     (1,982) (13,275) (8,852)
Total liabilities     (19,426) (19,426) (17,380)
Net assets     19,241 19,241 20,603
On 20 August 2009, the group reached an agreement with its existing lenders to restructure the capital repayment terms of bank loans, hire purchase 
and finance leases as set out in note 31 of the financial statements. The proforma information presented in this note shows how the balance sheet 
would have appeared had that agreement been completed before 30 June 2009. Proforma information is unaudited.
     2009 2009  
     Statutory Proforma 2008 
     Note £’000 £’000 £’000
Equity   
Share capital    26 532 532 532
Share premium account     12,783 12,783 12,783
Merger reserve      30,425 30,425 30,425
Retained earnings     (26,795) (26,795) (21,503)
Exchange translation reserve     2,296 2,296 (1,634)
Total equity     19,241 19,241 20,603
These financial statements were approved by the board of directors on 19 November 2009 and signed on its behalf by:
PeTeR HARRinGTon TiM LoWe
Chief executive Group finance director
Consolidated balance sheet
30 June 2009
_2_PUR_ar09_back.indd   12 20/11/2009   14:51:55 24 Pure Wafer plc  Annual report and accounts 2009
Consolidated cash flow statement
year ended 30 June 2009
      2009 2008 
      Note £’000 £’000
Net cash inflow from operating activities      29 2,770 1,733
Investing activities    
Interest received      40 182
Purchase of property, plant and equipment       (2,003) (4,964)
Proceeds from disposal of property, plant and equipment      735 —
Acquisition of subsidiaries – deferred consideration payments     23 (943) (857)
Net cash used in investing activities       (2,171) (5,639)
Financing activities    
Interest paid      (829) (777)
Repayment of bank loans      (1,682) (1,002)
Repayments of obligations under finance leases      — (1,645)
Increase in borrowings      943 5,547
Net cash used in financing activities       (1,568) 2,123
Net decrease in cash and cash equivalents       (969) (1,782)
Cash and cash equivalents at beginning of year       962 2,976
Exchange losses on translation       (552) (231)
Cash and cash equivalents at end of year      (559) 962
_2_PUR_ar09_back.indd   13 20/11/2009   14:51:55 25 Annual report and accounts 2009  Pure Wafer plc
Notes to the consolidated financial statements 
year ended 30 June 2009
1. General information
Pure Wafer plc is a company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is Pure Wafer plc, 
Central Business Park, Swansea Vale, Swansea SA7 0AB. The nature of the UK group’s operations and its principal activities are set out in the 
Financial review and principal activity section on pages 8 and 9.
Adoption of new and revised standards
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union 
as they apply to financial statements of the group for the year ended 30 June 2009 and applied in accordance with the Companies Act 2006. 
The financial statements have been prepared in accordance with the historical cost convention.
In the current year, two Interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current period. 
These are: ‘IFRIC 11 IFRS 2 Group and Treasury Share Transactions and IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding 
Requirements and their Interaction’. The adoption of these Interpretations has not led to any changes in the group’s accounting policies.
IAS 1 (revised 2007), IAS 23 (revised 2007), IAS 27 (revised 2008), IAS 32 (amended), IAS 39 (amended July 2008 and November 2008), 
IFRS 1 (amended), IFRS 2 (amended), IFRS 3 (revised 2008), IFRS 8 and IFRIC Interpretations 12, 15, 16, 17 and 18 were in issue but not yet 
effective as at the year end, and have not been applied in the preparation of the financial statements. The directors do not anticipate that the adoption 
in future periods of these standards and interpretations will have a material impact on the financial statements of the Group except for additional 
disclosures when IAS1 (revised 2007) and IFRS 8 come into effect for periods commencing on or after 1 January 2009.
2. Accounting policies
Basis of preparation
These accounting policies are based on the IFRS, IAS and IFRIC Interpretations as adopted by the EU (collectively “IFRS”). 
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 pages 4 and 5. The financial position of the group, its cash flows, liquidity position and borrowing facilities are described 
in the financial review on pages 8 and 9. The key business risks faced are described in the directors’ report on pages 12 to 16. In addition note 25 
to the financial statements includes the group’s objectives, policies and processes for managing its capital; its financial risk management objectives; 
details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk. 
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. 
This review considered detailed forecasts for the period to 30 June 2012. On this basis the directors have concluded that it is appropriate 
to prepare the financial statements on a going concern basis.
As described in the chairman’s statement on pages 4 and 5, the current environment is challenging. The group has recorded a pre-tax loss, 
however as noted in the chairman’s statement the group successfully negotiated a financial restructuring package in August 2009. The financial 
agreements comprise of rescheduling all of the group’s existing debt over a six year period which includes up to two years of capital repayment 
holidays together with an additional overdraft facility of up to £1.4m. The impact of this post year end transaction is demonstrated with the inclusion 
of a proforma balance sheet, which indicates how the balance sheet would have looked had it been signed on 30 June 2009.
As a condition of the agreement the group undertook a share placement that resulted in a total of £2.0m of funds before costs being raised 
in September 2009. This gives the group significant headroom above its forecast cash requirement, which will allow it to manage its business 
risks successfully despite the current uncertain outlook. 
The key sensitivity in the forecasts includes the achievement of increased sales volumes and the forward US Dollar rate. The business is beginning 
to see an upturn in demand and the directors believe that this will be sustained. Sales prices are assumed to remain largely unchanged.
After making enquiries, the directors have a reasonable expectation that the group and the company have adequate resources to continue 
in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the annual report 
and financial statements.
Basis of consolidation
The consolidated financial statements comprise Pure Wafer plc (the company) and its subsidiary undertakings, Pure Wafer International Limited 
and Pure Wafer, Inc.
Subsidiaries are those entities controlled by the company. Control exists when the company has the power to govern the financial and operating 
policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated 
financial statements from the date that control commences until the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured at the fair value 
of the consideration plus costs directly attributable to the acquisition. The excess of the cost of the acquisition over the group’s share of the fair value 
of the net identifiable assets of the subsidiary acquired is recorded as goodwill. Intragroup transactions, balances and unrealised gains on transactions 
between group companies are eliminated; unrealised losses are also eliminated unless costs cannot be recovered. Where necessary, accounting 
policies of subsidiaries have been changed to ensure consistency with the policies adopted by the group.
_2_PUR_ar09_back.indd   14 20/11/2009   14:51:55 26 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
2. Accounting policies continued
f oreign currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in 
which the entity operates (the functional currency). For the group’s two operating subsidiaries, Pure Wafer International Limited and Pure Wafer Inc. 
this has been determined to be US Dollars. Pure Wafer plc as an individual entity has a Sterling functional currency.
The income and cash flow statements of non-Sterling denominated group entities are translated to Sterling (the group’s presentation currency) 
at average rates of exchange in each period. Assets and liabilities of these undertakings are translated at rates of exchange ruling at the balance 
sheet date. The differences between retained profits and losses translated at average and closing rates are taken to reserves, as are differences 
arising on the retranslation to Sterling of non-Sterling denominated group entity net assets at the beginning of the year.
Any translation differences that have arisen since 1 July 2006 are presented as a separate component of equity. As permitted by IFRS 1, 
any differences prior to this date are not included in this separate component of equity. 
Foreign currency transactions are initially recorded at the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses 
resulting from the settlement of such transactions and from the translation at exchange rates ruling at the balance sheet date of monetary assets 
and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying net 
investment hedges.
Revenue recognition
Revenue, which represents the value of goods and services supplied, excluding value added tax and trade discounts, is recognised on completion 
of the service or despatch of goods sold. In respect of the provision of wafer reclaim services, the service is deemed to be complete at the point 
that the wafers are despatched for return to the customer. If entitlement to revenue is subject to the customer’s use of reclaimed wafers, the revenue 
is deferred until the point at which the wafer is utilised by the customer and revenue is earned.
f inancial instruments
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the relevant instrument. 
Financial assets are derecognised when the rights to receive benefits have expired or been transferred, and the group has transferred substantially 
all risks and rewards of ownership. Financial liabilities are derecognised when the obligation is extinguished.
Non-derivative financial assets are classified as either receivables or cash and cash equivalents. They are stated at amortised cost using the 
effective interest method, subject to reduction for allowances for estimated irrecoverable amounts. A provision for impairment of trade receivables 
is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of those 
receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, 
and is recognised in the income statement. For interest-bearing assets, their carrying value includes accrued interest receivable.
Cash and cash equivalents include cash in hand and deposits held on call, together with other short-term highly liquid investments. 
Non-derivative financial liabilities are stated at amortised cost using the effective interest method. For borrowings, their carrying value 
includes accrued interest payable, as well as any unamortised issue costs.
The group transacts derivative financial instruments to manage the underlying exposure to foreign exchange and interest rate risks. The group 
does not transact derivative financial instruments for trading purposes. However, as the group has decided not to hedge account for its derivative 
financial instruments as permitted under IAS 39, they are accounted for through the income statement. Derivative financial assets and liabilities 
are stated at fair value, which includes accrued interest receivable and payable where relevant. Changes in fair values are recognised in the 
income statement in the period in which they arise.
Provisions
A provision is recognised in the balance sheet when the group has a legal or constructive obligation as a result of a past event, where it is more 
likely than not that an outflow of resources will be required to settle that obligation, and a reliable estimate of the amount can be made.
A provision for restructuring is recognised when the group has approved a detailed and formal restructuring plan, and the restructuring has either 
commenced or has been publicly announced. Future operating losses are not provided for.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the 
class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same 
class of obligations may be small.
Property, plant and equipment
Property, plant and equipment are shown in the balance sheet at their historical cost less accumulated depreciation and impairment. Historical cost 
includes expenditure that is directly attributable to the acquisition and installation of the items. Subsequent costs are included in the assets’ 
carrying amounts or recognised as a separate asset as appropriate only when it is probable that future economic benefits associated with them 
will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement 
as incurred.
Depreciation is provided so as to write off the initial cost of each asset to its residual value on a straight-line basis over its estimated useful life 
as follows:
Long leasehold buildings 15 years 
Fixtures and fittings 5 years 
Plant and equipment 4–10 years 
Computer equipment 3 years 
Motor vehicles 5 years
_2_PUR_ar09_back.indd   15 20/11/2009   14:51:55 27 Annual report and accounts 2009  Pure Wafer plc
2. Accounting policies continued
Property, plant and equipment continued
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet date. Where the carrying amount 
of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on 
disposals are determined by comparing proceeds with carrying amounts. These are included in the income statement.
As described in note 14, carriers, which have historically been treated as inventory are now refurbished back to their original condition and this 
extends their life very significantly. Accordingly, on 30 June 2009, the carriers were transferred to property plant and equipment. Carriers will 
be amortised over a period of four years and depreciation will be charged for the first time in 2010.
non-current assets held for sale
Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets are 
classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is 
regarded as being met only when the sale is highly probable and the asset is available for immediate sale in its present condition. Management 
must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification.
Government grants
Government grants are recorded initially as deferred income and recognised in the income statement in line with the expense to which they 
contribute. For grants in respect of the purchase of property, plant and equipment, the deferred income is released over the life of the related 
assets. For grants in respect of staff costs, the deferred income is released over the monitoring period of the grant offer.
intangible assets – goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets and liabilities acquired both tangible 
and intangible.
Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. Any impairment is recognised 
immediately in the income statement and cannot be subsequently reversed. Goodwill is allocated to groups of cash-generating units for the 
purpose of impairment testing. Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 
internally generated intangible assets – research and development
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the group’s development is recognised only if all of the following conditions are met: an asset 
is created that can be separately identified; it is probable that the asset created will generate future economic benefits; and the development cost 
of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their useful lives. Where no internally-generated intangible asset 
can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.
intangible assets – other
These consist mainly of process development costs capitalised. The assets are amortised on a straight-line basis over the expected useful 
economic life of five years.
impairment of assets
Assets that have an indefinite life are not subject to amortisation and are tested at least annually for impairment. Assets that are subject to 
amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 
An impairment loss is recognised in the income statement for the amount by which the carrying amount of the asset exceeds its recoverable 
amount. The recoverable amount is the higher of the fair value less costs to sell and the value in use. For the purpose of assessing impairment, 
assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished 
goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating 
capacity) but excludes borrowing costs. Work in progress is valued to reflect the historical yield from the reclaim process. Net realisable value is 
the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Leasing
Assets held under finance leases are recognised as assets of the group at their fair value, or, if lower, at the present value of the minimum lease 
payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance 
lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate 
of interest on the remaining liability. Finance charges are charged directly against income.
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
Restructuring costs
Certain costs are classified as relating to restructuring where they relate to the incremental cost of undertaking a significant change to the 
operations or staff structure of the business.
operating loss
Operating loss is stated after charging restructuring costs, but before investment income, finance costs and foreign exchange gains and losses.
_2_PUR_ar09_back.indd   16 20/11/2009   14:51:55 28 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
2. Accounting policies continued
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take 
a substantial period of time to get ready for their intended use or sale, are added to the costs of those assets, until such time as the assets 
are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from 
the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the income statement in the period in which they are incurred.
Taxes
Tax on the profit or loss for the year comprises current and deferred tax.
Current tax is the expected tax payable on the taxable income for the year, using tax rates substantially enacted at the balance sheet date, 
and any adjustments to tax payable in respect of previous years.
Deferred tax is provided in full on temporary differences between the carrying amount of assets and liabilities in the financial statements, 
and the tax base. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against 
which the temporary differences can be utilised. Deferred tax assets and liabilities are not discounted.
Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date, and are expected 
to apply when the deferred tax liability is settled or the deferred tax asset is realised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal 
of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future.
Tax is recognised in the income statement, except where it relates to items recognised directly in equity, in which case it is recognised in equity.
Share-based payments
In accordance with IFRS 2 Share-Based Payments, the fair value of equity-settled share-based payments to employees is determined at the date 
of grant and is expensed on a straight-line basis over the vesting period based on the company’s estimate of shares or options that will eventually 
vest. Where the estimate of the number of options vesting due to achievement of performance conditions is revised, the change to the share-based 
payments cost is adjusted prospectively, leading to a share-based payments credit in periods where the performance criteria that were historically 
expected to be achieved are determined to be unlikely to be met. Fair value of new options granted is measured by a Black-Scholes pricing model.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity 
as a deduction, net of tax, from the proceeds. 
3. Critical accounting judgements and key sources of estimation uncertainty 
In the application of the group’s accounting policies, which are described in note 2, the directors are required to make judgements, 
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates 
and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ 
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period 
in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects 
both current and future periods.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
impairment of non-current assets
Determining whether goodwill, property, plant and equipment, or intangible assets are impaired requires an estimation of the value in use of the 
cash generating units (CGUs) to which those assets are allocated. The group has two separate CGUs, representing the UK and the US businesses. 
The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable 
discount rate in order to calculate present value. The carrying amount of goodwill was £4.0 m and property plant and equipment was £26.8m 
at the balance sheet date. 
The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the first three years 
assuming growth based on detailed sales and cost forecasts. The cash flows are extrapolated for the following nine years assuming 6% growth. 
This rate does not exceed the average long-term growth rate for the relevant markets. The rate used to discount the forecast cash flows of each 
of the CGUs as defined above was based on the group’s weighted average cost of capital 8.2%. 
For both CGUs, the impairment review is sensitive to the forecast level of sales. Sales are planned to increase as demand returns to the market 
through the three year forecast period. The impairment review includes significant headroom, particularly for the US CGU, to address this. 
There is a risk of impairment if sales were to fall well below expectation.
The review of the UK CGU is also sensitive to discount rate and the forward US$ rate. Were the discount rate to increase to above 11% 
or the long term US$ forward rate to rise above $1.65, there would be a risk of impairment.
Based on the assumptions made by the directors, no impairment has been booked.
_2_PUR_ar09_back.indd   17 20/11/2009   14:51:55 29 Annual report and accounts 2009  Pure Wafer plc
3. Critical accounting judgements and key sources of estimation uncertainty 
Key sources of estimation uncertainty continued
Fair value of derivatives and other financial instruments
As described in note 25, the directors use their judgement in selecting appropriate valuation techniques for financial instruments not quoted 
on an active market. Valuation techniques commonly used by market practitioners are applied. For derivative financial instruments, assumptions 
are made based on quoted market rates adjusted for specific features of the instrument. Other financial instruments are valued using a discounted 
cash flow analysis based on the assumptions supported, where possible, by observable market prices or rates. The fair value of financial 
instruments at the balance sheet date was a net liability of £324,000 (2008: £100,000). 
Deferred tax
The group has tax losses of some £23m available for offset against future taxable profits. In determining the value of the deferred tax asset 
that can be attributed to these losses, the directors have to estimate likely future taxable profits and the period over which the asset may be recovered. 
The directors consider the most up-to-date forecasts for the business and assess the risks inherent in achieving those forecasts. At the balance 
sheet date, no deferred tax asset has been recorded. The deferred tax asset may be recognised again in future if there is an improvement in the 
forecast taxable profits. 
useful life of property, plant and equipment
The group’s plant and machinery is amortised over a period of seven to ten years. In estimating the life of the equipment, the directors have 
to consider the likely period over which the technology will be used in the market and the ability of the business to maintain the equipment 
to an appropriate condition for use. Were the technology to be superseded in a much shorter timeframe than this, the carrying value would 
need to be depreciated over a shorter timeframe, resulting in an increase in the annual depreciation charge.
4. Revenue
An analysis of the group’s revenue is as follows:
          2009 2008 
          £’000 £’000
Continuing operations          17,230 22,268
Financial income          40 182
          17,270 22,450
5. Business and geographical segments 
The group’s activities and turnover primarily consist of the reclamation and reprocessing of silicon test wafers, in the UK and the US, 
for external customers. 
For management purposes, the group is organised into two operating divisions based on the geographical territory of origin. These divisions 
are the basis on which the group reports its primary segment information.
Segment information is presented below:
          North  
         UK America Consolidated 
Year ended 30 June 2009         £’000 £’000 £’000
Revenue         11,025 6,205 17,230
Inter-segment sales are charged at prevailing market prices.    
    
Result    
Segment result         (2,528) (289) (2,817)
Unallocated corporate expenses          (1,000)
Operating loss           (3,817)
Investment revenues           40
Finance costs           (989)
Other gains and losses           (526)
Loss before tax           (5,292)
Tax           —
Loss for the financial year           (5,292)
    
_2_PUR_ar09_back.indd   18 20/11/2009   14:51:56 30 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
5. Business and geographical segments continued
         North   
        UK America Eliminations Consolidated 
Year ended 30 June 2009        £’000 £’000 £’000 £’000
Capital additions        275 1,262 — 1,537
Depreciation and amortisation       3,139 1,171 — 4,310
Balance sheet    
Assets    
Segment assets        28,423 14,018 (4,432) 38,009
Unallocated corporate assets          658
Consolidated total assets          38,667
    
Liabilities    
Segment liabilities        9,620 13,302 4,432 (18,490)
Unallocated corporate liabilities          (936)
Consolidated total liabilities          (19,426)
          North  
         UK America Consolidated 
Year ended 30 June 2008         £’000 £’000 £’000
Revenue         16,926 5,342 22,268
Inter-segment sales are charged at prevailing market prices.    
    
Result    
Segment result         514 411 925
Unallocated corporate expenses          (763)
Operating profit           162
Investment revenues           182
Finance costs           (777)
Other losses           (366)
Loss before tax           (799)
Tax           (5,331)
Loss for the financial year           (6,130)
    
         North   
        UK America Eliminations Consolidated 
Year ended 30 June 2008        £’000 £’000 £’000 £’000
Capital additions        1,596 3,368 — 4,964
Depreciation and amortisation       2,543 389 — 2,932
    
Balance sheet    
Assets    
Segment assets        27,195 11,750 (5,044) 33,901
Unallocated corporate assets          4,082
Consolidated total assets          37,983
    
Liabilities    
Segment liabilities        (8,882) (11,961) (5,044) (15,799)
Unallocated corporate liabilities          (1,581)
Consolidated total liabilities          (17,380)
_2_PUR_ar09_back.indd   19 20/11/2009   14:51:56 31 Annual report and accounts 2009  Pure Wafer plc
5. Business and geographical segments continued
Analysis by product    
The revenue by product variant was as follows:    
          2009 2008 
          £’000 £’000
150mm wafers          750 963
200mm wafers          5,030 5,194
300mm wafers          9,691 14,287
Other, including scrap sales         1,759 1,824
          17,230 22,268
    
Analysis by destination     
The revenue by destination was as follows:    
          2009 2008 
          £’000 £’000
Europe           3,003 5,939
United States of America         7,752 8,133
Asia           6,475 8,196
          17,230 22,268
6. Operating (loss)/profit
This has been arrived at after charging/(crediting):
          2009 2008 
          £’000 £’000
Government grants           (528) (271)
Depreciation of property, plant and equipment:   
– owned assets           3,713 2,293
– leased assets           597 593
Hire of assets:  
– land and buildings          365 289
– equipment          196 236
– other          9 34
Restructuring costs           369 355
Amortisation of intangible fixed assets         59 46
Research and development costs          376 279
Staff costs (see note 7)          6,283 6,629
Auditors’ remuneration – audit services         40 38
Auditors’ remuneration – non-audit services         6 27
Restructuring costs relate to renegotiation of the group’s borrowing facilities as shown in note 31. Costs in 2008 related to changes in the operational 
and staff structure of the group.
Auditors’ remuneration 
          2009 2008 
          £’000 £’000
Fees payable to the company’s auditors for the audit of the company’s annual accounts     8 8
Fees payable to the company’s auditors for other services to the group:  
– audit of the company’s subsidiaries pursuant to legislation       32 30
Total audit fees          40 38
Other services:  
– other services pursuant to legislation        — 24
– tax services          6 3
Total non-audit fees          6 27
Fees payable to Deloitte LLP and their associates for non-audit services to the company are not required to be disclosed because the financial 
statements are required to disclose such fees on a consolidated basis. 
_2_PUR_ar09_back.indd   20 20/11/2009   14:51:56 32 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
7. information regarding directors and employees
          2009 2008 
          £’000 £’000
Directors’ emoluments  
Aggregate emoluments (including benefits in kind)       466 664
Contributions to money purchase pension schemes       13 15
          479 679
  
          2009 2008 
          £’000 £’000
Highest paid director  
Aggregate emoluments (including benefits in kind)       136 183
Contributions to money purchase pension schemes       5 5
          141 188
  
          2009 2008 
          Number Number
Number of directors in defined contribution pension scheme       3 3
  
          2009 2008 
          Number Number
Average number of persons employed (including directors)  
Production          178 237
Sales and administration         37 31
          215 268
 
          2009 2008 
          £’000 £’000
Staff costs during the year (including directors)  
Wages and salaries          5,363 6,169
Social security costs          716 672
Equity-settled share-based payments (note 27)*       — (426)
Pension costs          204 214
          6,283 6,629
* Includes related National Insurance.
8. investment revenue 
          2009 2008 
          £’000 £’000
Interest on bank deposits         40 182
9. f inance costs 
          2009 2008 
          £’000 £’000
Interest on bank loans          118 385
Interest on obligations under finance leases and hire purchase contracts      871 293
Deferred consideration finance charges (note 23)       — 99
          989 777
10. other gains and losses
          2009 2008 
          £’000 £’000
Foreign exchange losses         (320) (248)
Derivative financial instruments         (206) (118)
          (526) (366)
11. Tax on loss on ordinary activities
          2009 2008 
          £’000 £’000
Current taxation  
United Kingdom corporation tax:  
Current tax on income for the year at 28% (2008: 29.5%)       — —
Deferred taxation  
Valuation provision recognised against deferred tax asset       — 5,331
Total charge for the year          — 5,331
_2_PUR_ar09_back.indd   21 20/11/2009   14:51:56 33 Annual report and accounts 2009  Pure Wafer plc
11. Tax on loss on ordinary activities continued
The difference between the total tax shown above and the amount calculated by applying the standard rate of United Kingdom corporation tax 
to the loss before tax is as follows:
          2009 2008 
          £’000 £’000
Loss on ordinary activities before tax        (5,292) (799)
Tax on loss on ordinary activities before tax at 28% (2008: 29.5%)      (1,481) 236
Factors affecting charge for the year  
Non-recognition of deferred tax asset for losses carried forward      1,481 —
Valuation provision recognised against deferred tax asset for losses carried forward     — (5,567)
Total tax charge for the year          — (5,331)
12. Loss per share 
The calculation of the basic and diluted loss per share is based on the following data:
          2009 2008
Earnings  
Loss for the year (£’000)         (5,292) (6,130)
Number of shares  
Weighted average number of ordinary shares for the purpose of basic loss per share (‘000)    26,591 26,591
Effect of dilutive potential ordinary shares:  
– share options          — —
Dilutive weighted average number of shares        26,591 26,591
Loss per ordinary share – basic         (19.9)p (23.1)p
Loss per ordinary share – diluted         (19.9)p (23.1)p
Diluted loss per share is the same as basic for both years because the exercise of remaining options would have been anti-dilutive. On 14 September 2009 
the company issued 99,711,511 ordinary shares, as outlined in note 31. Had these shares been in issue at 30 June 2009 the loss per share 
would have been 4.2p.
13. Goodwill and other intangible fixed assets
          Process   
         Goodwill developments Total 
         £’000 £’000 £’000
Cost    
At 1 July 2007         3,297 231 3,528
Foreign exchange differences        51 9 60
At 1 July 2008         3,348 240 3,588
Foreign exchange differences        695 51 746
At 30 June 2009         4,043 291 4,334
Amortisation    
At 1 July 2007         — 46 46
Charge for the year          — 46 46
Foreign exchange differences        — 2 2
At 1 July 2008         — 94 94
Charge for the year          — 59 59
Foreign exchange differences        — 21 21
At 30 June 2009         — 174 174
Carrying amount    
At 30 June 2009         4,043 117 4,160
At 30 June 2008         3,348 146 3,494
Goodwill relates to the February 2007 acquisition of the group’s US business, is denominated in US$, and is considered to represent a single 
cash generating unit (CGU).
The group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations 
are those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the period. Management 
estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. 
The growth rates are based on industry growth forecasts. Changes in selling prices and direct costs are based on past practices and expectations 
of future changes in the market.
_2_PUR_ar09_back.indd   22 20/11/2009   14:51:57 34 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
13. Goodwill and other intangible fixed assets continued
The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the first three years 
assuming growth based on detailed sales and cost forecasts. The cash flows are extrapolated for the following nine years assuming 6% growth. 
This rate does not exceed the average long-term growth rate for the relevant markets. The rate used to discount the forecast cash flows of each 
of the CGUs as defined above was based on the group’s weighted average cost of capital of 8.2%. 
The impairment review is sensitive to the forecast level of sales. Sales are planned to increase sharply as demand returns to the market through 
the three year forecast period. The impairment review includes significant headroom to address this, but there is a risk of impairment if sales 
were to fall well below expectation.
Process development 
Process development costs are amortised over their useful economic lives which is estimated at five years. 
14. Property, plant and equipment 
      Long       
      leasehold Fixtures and Plant and Computer  Motor  
      buildings fittings machinery equipment vehicles Total 
      £’000 £’000 £’000 £’000 £’000 £’000
Cost      
At 1 July 2007      8,164 294 24,178 322 11 32,969
Additions      145 54 4,756 9 — 4,964
Transfer to asset held for sale - see note 17    — — (726) — — (726)
Transfer from inventory      — — 413 — — 413
Foreign exchange differences     126 5 420 5 — 556
At 1 July 2008      8,435 353 29,041 336 11 38,176
Additions      266 — 1,267 4 — 1,537
Transfer from inventory**     — — 1,102 — — 1,102
Foreign exchange differences     1,736 74 6,053 70 2 7,935
At 30 June 2009      10,437 427 37,463 410 13 48,750
Depreciation      
At 1 July 2007      2,854 123 7,658 198 — 10,833
Charge for the year      522 44 2,260 57 3 2,886
Foreign exchange differences     50 2 147 4 — 203
At 1 July 2008      3,426 169 10,065 259 3 13,922
Charge for the year      762 93 3,397 55 3 4,310
Foreign exchange differences     578 24 2,020 23 1 2,646
At 30 June 2009      4,766 286 15,482 337 7 20,878
Carrying amount      
At 30 June 2009      5,671 141 21,981 73 6 27,872
At 31 June 2008      5,009 184 18,976 77 8 24,254
 *  On 30 June 2008, certain spares which were used infrequently or could be refurbished were determined to be plant and machinery rather than inventory and were reclassified.
**  On 30 June 2009 carriers used in the reclamation process with a value of £1,102,000 were transferred from inventory to plant and machinery. This move reflects a change 
in the way the carriers are used allowing them to be refurbished and reused rather than disposed of after a short period of use.
Included within the net book value of plant and machinery are assets with a net book value of £4,408,000 (2008: £3,744,000) as assets held 
under finance lease agreements. 
15. inventories
          2009 2008 
          £’000 £’000
Raw materials           1,081 2,472
Work in progress          451 555
Finished goods          371 284
          1,903 3,311
_2_PUR_ar09_back.indd   23 20/11/2009   14:51:57 35 Annual report and accounts 2009  Pure Wafer plc
16. Other financial assets
Trade and other receivables
          2009 2008 
          £’000 £’000
Trade receivables          2,027 3,707
Other receivables and prepayments         592 1,053
Accrued income          491 417
          3,110 5,177
Trade receivables 
Total trade receivables (net of allowances) held by the group at 30 June 2009 amounted to £2,027,000 (2008: £3,707,000). 
The average credit period taken on sale of goods is 36 days (2008: 71 days). The group has provided fully for all receivables which are considered 
impaired. Management performs a detailed review of the trade receivables ledger across the group at least twice annually to assess receivables 
that are past due and not recoverable. 
Before accepting any new customer, the group uses an external credit scoring system to assess the potential customer’s credit quality and defines 
credit terms by customer. Of the trade receivables balance at the end of the year, £336,000 (2008: £593,000) is due from the group’s largest 
customer. There are no other customers who represent more than 10% of the total balance of trade receivables. 
Included in the group’s trade receivables balance are debtors with a carrying amount of £552,000 (2008: £1,348,000) which are past due 
at the reporting date for which the group has not provided as there has not been a significant change in the credit quality and the amounts are still 
considered recoverable. The group does not hold any collateral over these balances. The average age of these receivables is 90 days (2008: 110).
Ageing of past due but not impaired receivables
          2009 2008 
          £’000 £’000
Less than three months         493 1,168
More than three months         59 180
          552 1,348
Movement in the allowance for doubtful debts
          2009 2008 
          £’000 £’000
Balance at beginning of the year         228 114
Amounts written off as uncollectable        (275) (21)
Provision against specific customers         546 135
Balance at end of the year         499 228
In determining the recoverability of a trade receivable, the group considers any change in the credit quality of the trade receivable from the date 
credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. 
Accordingly, the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts. 
Ageing of impaired trade receivables
          2009 2008 
          £’000 £’000
Current          1 135
60–90 days          13 —
90–120 days          3 —
120+ days          482 93
          499 228
The directors consider that the carrying amount of trade and other receivables approximates their fair value. 
Cash and cash equivalents
These comprise cash in hand and deposits held at call with banks. The carrying amount of these assets approximates their fair value.
17. Assets held for sale
Assets held for sale at 30 June 2008 of £735,000 were sold in the year for proceeds equivalent to the carrying value. There were no such assets 
at 30 June 2009.
_2_PUR_ar09_back.indd   24 20/11/2009   14:51:57 36 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
18. Other financial liabilities
Trade and other payables
          2009 2008 
Current liabilities          £’000 £’000
Trade accounts payable         1,739 1,911
Other taxation and social security         837 342
Accruals and other creditors         1,070 1,288
          3,646 3,541
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for 
trade purchases is 65 days (2008: 67 days). The group endeavours to settle outstanding payables within the credit time frame while managing 
available working capital. 
The directors consider that the carrying amount of trade payables approximates their fair value.
19. Derivative financial instruments 
          2009 2008 
          £’000 £’000
Current assets  
Forward foreign exchange contracts         (144) 50
Current liabilities  
Interest rate swap           (180) (150)
Further detail of financial instruments is provided in note 25.
20. interest-bearing loans and borrowings
         2009 2009 
         Statutory Proforma 2008 
         £’000 £’000 £’000
Current liabilities  
Overdrafts         2,181 2,181 —
Bank loans         4,697 — 2,077
Hire purchase and finance lease agreements       6,596 — 1,817
         13,474 2,181 3,894
Non-current liabilities  
Bank loans         — 4,697 4,709
Hire purchase and finance lease agreements       — 6,596 2,203
         — 11,293 6,912
Overdrafts are repayable on demand. Bank loans, hire purchase and finance lease obligations are repayable as follows:
         2009 2009 
         Statutory Proforma 2008 
         £’000 £’000 £’000
Bank loans  
Within one year          4,697 — 2,077
Between one and two years        — 1,174 2,052
Between two and five years        — 3,523 2,657
         4,697 4,697 6,786
Hire purchase contracts and finance leases  
Within one year         6,596 — 1,817
Between one and two years        — — 1,425
Between two and five years        — 4,947 778
After five years         — 1,649 —
         6,596 6,596 4,020
Obligations under finance lease and hire purchase contracts are secured on the related assets. See note 21 for further detail on finance lease 
contracts. The bank loans are secured on the assets and undertakings of the group.
At 30 June 2009, the group had ceased making capital repayments in line with the bank loan, hire purchase and finance lease agreements 
that were in place at that date. Accordingly, the group was in technical breach of those agreements and all debt is presented as repayable 
immediately. The breaches were not enforced by the related counterparties.
On 20 August 2009, the group reached an agreement with its lenders to restructure the capital repayment terms of bank loans, hire purchase 
and finance leases as set out in note 31 of the financial statements. Accordingly, at the date of approval of the financial statements, the group 
is no longer in breach of the revised agreements. The proforma information presented in this note shows how the balance sheet would have 
appeared had that agreement been completed before 30 June 2009. Proforma information is unaudited.
_2_PUR_ar09_back.indd   25 20/11/2009   14:51:57 37 Annual report and accounts 2009  Pure Wafer plc
20. interest-bearing loans and borrowings continued
The fair value of the group’s loan, finance leases and hire purchase obligations approximates their carrying amount. 
Notwithstanding the restructuring of facilities noted above the principal features of the group’s bank loans, which were used to finance the acquisition 
and development of the US business at 30 June 2009 were as follows:
›  A loan for US$7.5m (£3.7m) was taken out in May 2007 with a variable interest rate based on US LIBOR. It was repayable in quarterly 
instalments commencing three months after the first drawdown and was due to be fully repaid in February 2011. 
›  A loan for US$1.75m (£0.9m) was taken out in May 2008 with a variable interest rate based on US LIBOR. It was repayable in quarterly 
instalments commencing three months after the first drawdown and was due to be fully repaid in February 2012.
›  A loan for US$7.0m (£3.5m) was drawn down during 2008 with an effective fixed interest rate of 5.4%. It was repayable in quarterly instalments 
commencing in 2008 and was due to be fully repaid in May 2012.
›  A loan for US$1.95m (£1.3m) was drawn down during 2009 with a variable interest rate based on UK LIBOR. It was repayable in quarterly 
instalments commencing three months after the first draw down and was due to be fully repaid in May 2013.
21. Obligations under finance leases 
 Minimum 
 lease payments
         2009 2009 
         Statutory Proforma 2008 
         £’000 £’000 £’000
Amounts payable under finance leases:  
– within one year         6,596 — 1,908
– in the second to fifth years inclusive       — 5,548 2,435
– after five years         — 1,850 —
Total value of lease obligations         6,596 7,398 4,343
Less: future finance charges        — (802) (323)
Present value of lease obligations        6,596 6,596 4,020
It is the group’s policy to lease certain plant and machinery under finance leases. 
The contractual payments in respect of finance leases based on the undiscounted cash flows and the earliest date on which the group 
and company can be required to pay are shown above. 
At 30 June 2009, the group had ceased making capital repayments in line with the hire purchase and finance lease agreements that were 
in place at that date. Accordingly, the group was in technical breach of those agreements and all debt is presented as repayable immediately. 
The breaches were not enforced by the related counterparties.
On 20 August 2009, the group reached an agreement with its lenders to restructure the capital repayment terms of hire purchase and finance 
leases as set out in note 31 of the financial statements. Accordingly, at the date of approval of the financial statements, the group is no longer 
in breach with the revised agreements. The proforma information presented in this note shows how the balance sheet would have appeared 
had that agreement been completed before 30 June 2009. Proforma information is unaudited.
For the year ended 30 June 2009, the average effective borrowing rate was 7.4% (2008: 7.8%). Interest rates are fixed at the contract date. 
All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The carrying amount 
of the borrowings approximates their fair value.
All lease obligations are denominated in US Dollars. The fair value of the group’s lease obligations approximates their carrying amount. 
The group’s obligations under finance leases are secured by the lessors’ rights over the leased assets.
22. Deferred tax asset
          2009 2008 
          £’000 £’000
Balance at 1 July           — 5,334
Deferred tax asset provided against during the year        — (5,334)
Balance at 30 June           — —
Due to the losses incurred during the current and prior years, the board has taken the prudent decision to fully provide against the deferred tax asset 
for losses carried forward, as they are not expected to be utilised within the foreseeable future. At 30 June 2009 the directors do not consider 
there is sufficient evidence to support recognition of this asset.
The value of the unrecognised deferred tax asset at 30 June 2009 is £6.4m (2008: £5.6m).
_2_PUR_ar09_back.indd   26 20/11/2009   14:51:57 38 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
23. Deferred consideration
          2009 2008 
          £’000 £’000
Deferred consideration due within one year        — 943
  
          2009 2008 
          £’000 £’000
Movement in deferred consideration  
At 1 July          943 1,701
Payment          (943) (857)
Discounting (note 9)          — 99
At 30 June          — 943
24. Deferred income
          2009 2008 
          £’000 £’000
Unamortised grant income          
– included within current liabilities         360 254
– included within non-current liabilities        1,982 1,940
Balance at 30 June           2,342 2,194
£312,000 was released to the income statement in the year (2008: £271,000)
25. f inancial instruments
Capital risk management
The capital structure of the group consists of debt, which includes the borrowings disclosed in note 20, cash and cash equivalents and equity 
directly attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the statement of 
changes in equity. 
Gearing ratio
The gearing ratio at the year end is as follows:
          2009 2008 
          £’000 £’000
Debt          (11,293) (10,806)
Cash and cash equivalents including overdrafts        (559) 962
Net debt          (11,852) (9,844)
Equity          19,241 20,603
Net debt to equity ratio          1:1.62 1:2.09
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis 
on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed 
in note 2 to the financial statements.
          2009 2008 
          £’000 £’000
Financial assets  
Fair value through profit or loss (FVTPL) derivative instruments as per note 19     — 50
Loans and receivables:   
– cash and cash equivalents         1,622 962
– trade receivables (note 16)         1,704 3,707
          3,326 4,719
Financial liabilities   
Fair value through profit or loss (FVTPL) derivative instruments      324 150
Amortised cost:  
– overdrafts          2,181 —
– bank loans          4,697 6,786
– finance leases          6,596 4,020
– trade creditors          1,739 1,911
– deferred consideration         — 943
          15,537 13,810
_2_PUR_ar09_back.indd   27 20/11/2009   14:51:58 39 Annual report and accounts 2009  Pure Wafer plc
25. f inancial instruments continued
f inancial risk management objectives
The group’s financial instruments comprise bank loans, finance leases, derivative financial instruments and trade receivables and trade payables 
that arise already from its operations. The purpose of the instruments is to raise finance for group activities. 
The group seeks to minimise the effects of financial risks by using derivative financial instruments to hedge known exposures. The interest rates 
on bank loans are managed through the use of interest rate swaps and interest on the remaining financial liabilities are fixed. The use of financial 
derivatives is governed by the group’s policies approved by the board of directors, which provide written principles on foreign exchange risk, 
interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. 
The group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
Market risk
The group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The group enters 
into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency risk, including:
›  forward foreign exchange contracts to hedge the exchange rate risk arising on the sale of services by the UK trading subsidiary in US Dollars; and 
›  interest rate swaps to mitigate the risk of rising interest rates.
f oreign currency risk management 
The group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. 
Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts. 
The carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
          2009 2008 
          £’000 £’000
Monetary assets  
Euro          43 171
Sterling          — 24
Monetary liabilities  
Euro          359 1,650
Sterling          2,956 1,401
Yen          112 369
US Dollar          — 737
f oreign currency sensitivity analysis 
The group is mainly exposed to fluctuations in the US Dollar. 
The following table details the group’s sensitivity to a 10% decrease in Sterling against the relevant foreign currencies. 10% is the sensitivity rate 
used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably 
possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and 
adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well 
as loans to foreign operations within the group where the denomination of the loan is in a currency other than the currency of the lender 
or the borrower (2008: 20%). The table below indicates the impact of a reduction in the US Dollar rate from $1.64, as at year end to $1.50.
       US Dollar currency impact
          2009 2008 
          £’000 £’000
Sensitivity applied           10% 20%
Reduction in profit/increase in loss          (535) (1,435)
Gain on translation of subsidiaries         2,634 5,232
Total net assets impact          2,099 3,797
_2_PUR_ar09_back.indd   28 20/11/2009   14:51:58 40 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
25. f inancial instruments continued
f orward foreign exchange contracts
It is the policy of the group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts within 
50% to 75% of the exposure generated. The group also enters into forward foreign exchange contracts to manage the risk associated with anticipated 
sales and purchase transactions out to six months within 50% to 75% of the exposure generated. The agreements undertaken cover the period 
up to December 2009, appropriate contracts will be put in place at the completion of the current agreements. Basic adjustments are made 
to the carrying amounts of non-financial hedged items when the anticipated sale or purchase transaction takes place.
The following table details the forward foreign currency contracts outstanding as at 30 June 2009:
    Fair value at  
    30 June 2009  
Buy amount Sell amount Rate Date mature £’000
GBP 1,542,689 USD 3,012,100 1.95 11 Dec 2009 (144)
    (144)
The following table details the forward foreign currency contracts outstanding as at 30 June 2008:
    Fair value at  
    30 June 2008  
Buy amount Sell amount Rate Date mature £’000
GBP 5,377,721 USD 10,500,003 1.95 11 December 2009 (1)
USD 1,500,000 GBP 768,246 1.95 11 December 2008 9
GBP 8,120,650 USD 15,750,000 1.94 11 June 2009 31
USD 2,250,000 GBP 1,160,093 1.94 11 December 2008 11
    50
These contracts have been valued at fair value, calculated as the difference between the Sterling value of the year-end calculated using mark to 
market off spot rate at close of business on 30 June 2009, and the rate contracted at maturity and included as financial instruments on balance 
sheet. The bank has an option to extend the 2008 foreign exchange contracts beyond initial contracted dates. The option was valued as a liability 
of £29,000 at 30 June 2009, within the value disclosed above, and has not yet been exercised post year. 
The contracts are net settled. 
interest rate risk management
The group is exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates. The risk is managed 
by the group maintaining an appropriate mix between fixed and floating rate borrowings, by the use of interest rate swap contracts to fix 
the interest rate on the floating rate loans. 
The group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note. 
interest rate swap contracts
Under interest rate swap contracts, the group agrees to exchange the difference between fixed and floating rate interest amounts calculated 
on agreed notional principal amounts. Such contracts enable the group to mitigate the risk of higher interest rates on the fair value of issued fixed rate 
debt held and the cash flow exposures on the issued variable rate debt held. The fair value of interest rate swaps at the reporting date is determined 
by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract, and is disclosed below. 
The average interest rate is based on the outstanding balances at the end of the financial year. The current contracts were matched to the original 
payment profiles for the group debt, with the financial restructuring package that has taken place after the year end these are no longer matched. 
The directors will consider the impact of the mismatch in evaluating the interest rate strategy going forward.
The group has entered into interest rate swap agreements in respect of the bank loans. 
The company has two interest rate swap contracts. The first expires on 12 February 2011; the fair value of the interest rate swap on 30 June 2009 
was a liability of £146,000 (2008: £159,000). The second expires on 12 February 2012; the fair value of the contract as at 30 June 2009 
was a liability of £34,000 (2008: £9,000 asset). The contracts are net settled. 
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. The group 
has adopted a policy of only dealing with creditworthy counterparties. The group only transacts with major high street banks. 
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on 
the financial condition of accounts receivable. The group does not have any significant credit risk exposure to a single counterparty (the details 
are disclosed in note 16). 
Liquidity risk management
The group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring 
forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. 
_2_PUR_ar09_back.indd   29 20/11/2009   14:51:58 41 Annual report and accounts 2009  Pure Wafer plc
25. f inancial instruments continued
Liquidity and interest risk tables
The following tables detail the group’s remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up 
based on the undiscounted cash flows of financial liabilities based on the earliest date on which the group can be required to pay. The table 
includes both interest and principal cash flows.
      Weighted       
      average Less than 6 months  1 – 2  2 – 5   
      effective 6 months  – 1 year years years  Total 
      interest rate £’000 £’000 £’000 £’000 £’000
2009      
Non-interest bearing      0.0% 2,576 — — — 2,576
Variable interest rate instruments     6.4% 4,697 — — — 4,697
Fixed interest rate instruments     5.4% 3,468 — — — 3,468
Finance lease liability      7.0% 3,128 — — — 3,128
      5.0% 13,869 — — — 13,869
2008      
Non-interest bearing      0.0% 2,253 943 — — 3,196
Variable interest rate instruments     6.4% 689 1,613 1,283 1,140 4,725
Fixed interest rate instruments     5.4% 529 534 1,024 1,650 3,737
Finance lease liability      7.0% 1,398 890 1,373 594 4,255
      5.0% 4,869 3,980 3,680 3,384 15,913
Note 20 describes that the majority of the group’s interest bearing debt is denominated in US Dollars. The above table presents the group’s 
liabilities at the year end exchange rate, which was $1.64 at 30 June 2009 (2008: $1.98). 
The above table is based upon the statutory presentation as indicated in note 20. As described in note 31, an agreement was reached post year end 
to restructure the group’s borrowing facilities and the amended presentation can be seen in notes 20 and 21.
With the exception of financial assets as disclosed in note 16, financial assets are current and are non interest bearing. 
Fair value of financial instruments
The fair values of financial assets and financial liabilities are determined as follows:
›  foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates 
matching maturities of the contracts;
›  interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves 
derived from quoted interest rates; and
›  the carrying amount of financial assets and financial liabilities recorded at amortised cost approximates to their fair value. 
26. Called up share capital 
          2009 2008 
          £’000 £’000
Authorised  
50,000,000 (2008: 50,000,000) ordinary shares of 2p each      1,000 1,000
Called up, allotted and fully paid  
26,591,182 (2008: 26,591,182) ordinary shares of 2p each      532 532
27. Share-based payments 
The group has one remaining share option scheme, which is a save as you earn scheme and is available to all employees of the group. 
Options are exercisable at a price equal to the average quoted market price of the company’s share on the date of grant. The average remaining 
vesting period for options which are not exercisable is 1.5 years. The options are exercisable in the year of vesting and are forfeited if the employee 
leaves the group before the options vest. 
The options issued under the former executive share option scheme all lapsed during the year ended 30 June 2009, because the business 
did not meet the required earnings targets.
_2_PUR_ar09_back.indd   30 20/11/2009   14:51:58 42 Pure Wafer plc  Annual report and accounts 2009
Notes to the consolidated financial statements 
year ended 30 June 2009 continued
27. Share-based payments continued
Details of the share options outstanding during the year were as follows: 
     2009  2008
         Weighted   Weighted 
        Number of  average Number of  average 
        share  exercise share  exercise 
        options price (p) options price (p)
Outstanding at beginning of year       437,579 14 731,484 35
Lapsed/forfeited during the year       (437,579) 14 (293,905) 67
Outstanding at end of the year       — — 437,579 14
Exercisable at end of the year       — — 22,398 145
28. operating lease arrangements 
          2009 2008 
          £’000 £’000
Minimum lease payments under operating leases recognised as an expense in the year     570 559
At the balance sheet date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases 
in respect of office properties which fall due as follows:
          2009 2008 
          £’000 £’000
Land and buildings:  
– within one year          382 280
– between one and two years         362 280
– between two and five years         958 750
– more than five years          4,143 4,101
          5,845 5,411
The operating leases greater than five years relate to a 99 year lease of land at the Swansea premises that expires in 2099, and the lease of land 
and buildings in Prescott, Arizona expiring in December 2017. None of the figures in the above table have been discounted to present value.
          2009 2008 
          £’000 £’000
Equipment:   
– within one year          61 88
– between one and two years         12 5
– between two and five years         9 3
          82 96
  
          2009 2008 
          £’000 £’000
Other:   
– within one year          3 25
– between one and two years         3 10
– between two and five years         7 2
– more than five years          1 —
          14 37
_2_PUR_ar09_back.indd   31 20/11/2009   14:51:58 43 Annual report and accounts 2009  Pure Wafer plc
29. Notes to the consolidated cash flow statement
          2009 2008 
          £’000 £’000
Loss for the period          (5,292) (6,130)
Adjustment for:  
– taxation           — 5,331
– finance expense          989 777
– finance income          (40) (182)
– other non-cash gains and losses         206 (386)
– depreciation and amortisation         4,369 2,932
– non-monetary foreign exchange translation on assets/liabilities      (103) (322)
Operating cash flows before movement in working capital       129 2,020
– decrease in receivables         1,365 2,261
– increase/(decrease) in payables         970 (2,049)
– decrease/(increase) in inventory         306 (499)
Net cash inflow from operating activities        2,770 1,733
30. Related party transactions
The ultimate controlling party of the group is Pure Wafer plc.
Transactions between the company and its subsidiaries, which are related parties of the company, have been eliminated on consolidation and 
are not disclosed in this note. 
The remuneration of the directors who are key management personnel of the group is set out in note 7 and in the directors’ remuneration report.
31. Post balance sheet events
On 20 August 2009, the group reached an agreement with its lenders to restructure the capital repayment terms of bank loans, hire purchase 
and finance leases. Under the terms of the agreement the debts fall due as follows:
Loans due to RBS will be repayable commencing 1 July 2011 in quarterly instalments and are due to be fully repaid in June 2015.
All finance leases will be repayable commencing 1 July 2012 in quarterly instalments and are due to be fully repaid in June 2016.
On 14 September 2009, the company issued 99.7m new ordinary shares for cash consideration of £2.0m before costs, via a placing and open offer.
_2_PUR_ar09_back.indd   32 20/11/2009   14:51:58 44 Pure Wafer plc  Annual report and accounts 2009
Company independent auditors’ report 
to the members of Pure Wafer plc
We have audited the financial statements of Pure Wafer plc for the year ended 30 June 2009 which comprise the company balance sheet 
and the related notes 1 to 12. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with sections 495 and 496 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company 
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the parent company 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the parent company financial statements 
in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the 
Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether 
the accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and adequately disclosed; 
the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements
In our opinion the parent company financial statements:
›  give a true and fair view of the state of the parent company’s affairs as at 30 June 2009;
›  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
›  have been prepared in accordance with the requirements of the Companies Act 2006.
opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent 
with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
›  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or
›  the parent company financial statements are not in agreement with the accounting records and returns; or
›  certain disclosures of directors’ remuneration specified by law are not made; or
›  we have not received all the information and explanations we require for our audit.
other matter
We have reported separately on the group financial statements of Pure Wafer plc for the year ended 30 June 2009.
niGeL THoMAS (SenioR STATuToRY AuDiToR) 
foR AnD on BeHALf of DeL oiTTe LLP
Chartered Accountants and Statutory Auditors
Cardiff, united Kingdom
19 november 2009
_2_PUR_ar09_back.indd   33 20/11/2009   14:51:58 45 Annual report and accounts 2009  Pure Wafer plc
Company balance sheet
30 June 2009
      2009 2008 
     Note £’000 £’000
Fixed assets
Investments     4 9,215 9,215
Current assets
Debtors     5 1,459 4,082
Cash at bank and in hand      648 —
      2,107 4,082
Creditors: amounts falling due within one year     6 (936) (978)
Net current assets      1,171 3,104
Total assets less current liabilities      10,386 12,319
Creditors: amounts falling due after more than one year     7 — (607)
Net assets          10,386 11,712
Capital and reserves
Called up share capital     9 532 532
Share premium account     10 12,783 12,783
Profit and loss account     10 (2,929) (1,603)
Shareholders’ funds     10 10,386 11,712
These financial statements were approved by the board of directors on 19 November 2009 and signed on its behalf by:
PeTeR HARRinGTon TiM L oWe
Chief executive Group finance director
_2_PUR_ar09_back.indd   34 20/11/2009   14:51:59 46 Pure Wafer plc  Annual report and accounts 2009
Notes to the company financial statements
year ended 30 June 2009
1. Accounting policies – company
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular accounting policies 
adopted, which have been applied consistently throughout the current and the prior financial year, are described below.
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 pages 4 and 5. The financial position of the group, its cash flows, liquidity position and borrowing facilities are described 
in the financial review on pages 8 and 9. The key business risks faced are described in the directors’ report on pages 12 to 16. In addition note 25 
to the financial statements includes the group’s objectives, policies and processes for managing its capital; its financial risk management objectives; 
details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk. 
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. 
This review considered detailed forecasts for the period to 30 June 2012. On this basis the directors have concluded that it is appropriate 
to prepare the financial statements on a going concern basis.
As described in the chairman’s statement on page 3, the current environment is challenging. The group has recorded a pre-tax loss, however as 
noted in the chairman’s statement the group successfully negotiated a financial restructuring package in August 2009. The financial agreements 
comprise rescheduling all of the group’s existing debt over a six year period which includes up to two years of capital repayment holidays together 
with an additional overdraft facility of up to £1.4m.
As a condition of the agreement the group undertook a share placement that resulted in a total of £2.0m of funds before costs being raised 
in September 2009. This gives the group significant headroom above its forecast cash requirement, which will allow it to manage its business 
risks successfully despite the current uncertain outlook. 
The key sensitivity in the forecasts include the achievement of increased sales volumes and the forward US$ rate. The business is beginning 
to see an upturn in demand and the directors believe that this will be sustained. Sales prices are assumed to remain largely unchanged.
After making enquiries, the directors have a reasonable expectation that the group and the company have adequate resources to continue 
in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the annual 
report and financial statements.
Accounting convention
The financial statements are prepared under the historical cost convention. 
investments
Investments in subsidiaries and associates are held as fixed assets and are stated at cost less provision for any impairment.
Cash flow statement
Under Financial Reporting Standard 1 (revised 1996), the company is not required to prepare a cash flow statement as a group cash flow 
statement has been included in the financial statements of the group. 
Taxation
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively 
enacted at the balance sheet date. 
Deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less 
tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion 
of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and 
liabilities are not discounted.
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2. information regarding directors and employees
          2009 2008 
          £’000 £’000
Directors’ emoluments  
Aggregate emoluments (including benefits in kind)       466 664
Contributions to money purchase pension schemes       13 15
          479 679
  
          2009 2008 
          £’000 £’000
Highest paid director  
Aggregate emoluments (including benefits in kind)       136 183
Contributions to money purchase pension schemes       5 5
          141 188
  
          2009 2008 
          Number Number
Number of directors in defined contribution pension scheme       3 3
  
          2009 2008 
          Number Number
Average number of persons employed (including directors)  
Sales and administration         7 7
  
          2009 2008 
          £’000 £’000
Staff costs during the year (including directors)  
Wages and salaries          430 636
Social security costs          46 76
Pension costs          13 14
          489 726
3. Loss for the year
As permitted by Section 408 of the Companies Act 2006, the company has elected not to present its own profit and loss account for the year. 
Pure Wafer plc reported a loss for the financial year ended 30 June 2009 of £1,326,000 (2008: £837,000). 
Auditors’ remuneration for audit services for the company was £8,000 (2008: £8,000). Auditors’ remuneration for non-audit services for the 
company was £nil (2008: £20,000). 
4. investments
           Investment in 
           subsidiaries 
           £’000
Cost and net book value 
At 1 July 2008 and 30 June 2009          9,215
The company’s investments in group companies relate to:
 Holding   
 ($1 ordinary  Country of 
Subsidiaries shares) Activity  incorporation
Pure Wafer International Limited 100% Reclamation and reprocessing of silicon test wafers  United Kingdom
Pure Wafer, Inc. 100% Reclamation and reprocessing of silicon test wafers United States
5. Debtors
          2009 2008 
          £’000 £’000
Amounts owed by group undertakings         1,449 4,016
Other debtors and prepayments         10 66
          1,459 4,082
_2_PUR_ar09_back.indd   36 20/11/2009   14:51:59 48 Pure Wafer plc  Annual report and accounts 2009
Notes to the company financial statements
year ended 30 June 2009
6. Creditors: amounts falling due within one year 
          2009 2008 
          £’000 £’000
Bank loans and overdraft (note 8)         867 978
Other creditors and accruals         69 —
          936 978
7. Creditors: amounts falling due after more than one year 
          2009 2008 
          £’000 £’000
Bank loans           — 607
8. Borrowings 
          2009 2008 
          £’000 £’000
Overdraft   
Within one year          — 757
  
Bank loans   
Within one year          867 221
Between one and two years         — 221
Between two and five years         — 386
          867 828
  
Deferred consideration  
Within one year          — —
Between one and two years         — —
          — —
At 30 June 2009, the company had ceased making capital repayments in line with the bank loan agreement that was in place at that date. 
Accordingly, the company was in technical breach of that agreements and all debt is presented as repayable immediately. The breach was 
not enforced by the related counterparties.
On 20 August 2009, the company reached an agreement with its lenders to restructure the capital repayment terms of bank loans, hire purchase 
and finance leases as set out in note 31 of the consolidated financial statements. Accordingly, at the date of approval of the financial statements, 
the group is no longer in breach of the revised agreements.
9. Called up share capital
          2009 2008 
          £’000 £’000
Authorised  
50,000,000 (2008: 50,000,000) ordinary shares of 2p each      1,000 1,000
Called up, allotted and fully paid  
26,591,182 (2008: 26,591,182) ordinary shares of 2p each      532 532
          532 532
10. Combined reconciliation of movement in shareholders’ funds and statement of movements on reserves
        Share Profit    
       Share premium and loss Total  Total 
       capital account account  2009 2008 
       £’000  £’000  £’000  £’000  £’000
At the beginning of the year       532 12,783 (1,603) 11,712 12,549
Loss for the financial year      — — (1,326) (1,326) (837)
At the end of the year        532 12,783 (2,929) 10,386 11,712
11. Related party transactions
Under Financial Reporting Standard 8, the company is not required to disclose transactions with entities, 90% or more of whose voting rights 
are controlled within the group.
12. Post balance sheet events
On 20 August 2009, the group reached an agreement with its lenders to restructure the capital repayment terms of bank loans, hire purchase 
and finance leases. Under the terms of the agreement the debts fall due as follows:
Loans due to RBS will be repayable commencing 1 July 2011 in quarterly instalments and are due to be fully repaid in June 2015.
All finance leases will be repayable commencing 1 July 2012 in quarterly instalments and are due to be fully repaid in June 2016.
On 14 September 2009, the company issued 99.7m new ordinary shares for cash consideration of £2.0m before costs, via a placing and open offer.
_2_PUR_ar09_back.indd   37 20/11/2009   14:51:59 49 Annual report and accounts 2009  Pure Wafer plc
Notice of Annual General Meeting
Notice is given that the 2009 Annual General Meeting of Pure Wafer plc (“Company”) will be held at 11.00am on 15 December 2009 
at Pure Wafer plc, Central Business Park, Swansea Vale, Swansea SA7 0AB for the following purposes:
Resolutions
To consider and, if thought fit, pass the following resolutions. Resolutions 1 to 6 and 8 will be proposed as ordinary resolutions and resolution 7 
will be proposed as special resolutions.
1.   To receive the directors’ report and the Company’s annual accounts for the year ended 30 June 2009, together with the auditors’ report 
on those accounts.
2.   To reappoint T Lowe as a director of the Company.
3.   To reappoint P Dolan as a director of the Company.
4.   To reappoint Deloitte LLP as auditors of the Company to hold office from the conclusion of the meeting until the conclusion of the next 
general meeting of the Company at which accounts are laid.
5.   To authorise the directors to fix the remuneration of the auditors.
6.   That the directors of the Company be and are hereby generally and unconditionally authorised, for the purposes of section 551 of the 
Companies Act 2006 (“the Act”), to issue and allot: 
  6.1  ordinary shares to be issued upon valid exercise of any share options granted to employees of the Company in accordance with 
the terms of the company’s 2005 Performance Share Plan and 2005 SAYE Option Plan; 
  6.2  ordinary shares pursuant to the warrants granted to Royal Bank of Scotland plc and certain executives of the Company as described in 
the Circular sent to shareholders on 21 August 2009;
  6.3  shares in the Company up to an aggregate nominal amount of £757,816
   provided that (unless previously revoked, varied or renewed) this authority shall expire at the conclusion of the next AGM of the company 
after the passing of this resolution, save that the company may make an offer or agreement before the expiry of this authority which would 
or might require relevant securities to be allotted after such expiry and the directors may allot relevant securities pursuant to any such offer 
or agreement as if the authority conferred by this resolution had not expired. This authority shall be in substitution for any such authority 
previously given.
7.   That, subject to the passing of resolution 6, pursuant to section 570 of the Act in substitution for all existing authorities under that section 
or under section 95 of the Companies Act 1985, the directors be and are generally empowered to allot equity securities (within the meaning 
of section 560 of the Act) for cash, either pursuant to the authority conferred by resolution 6 or by way of a sale of shares held in treasury, 
as if section 561 of the Act did not apply to any such allotment, provided that this power shall be limited to:
  7.1  the allotment of equity securities in connection with an offer (whether by way of a rights issue, open offer or otherwise) to holders 
of ordinary shares in the capital of the company in proportion (as nearly as practicable) to the respective numbers of ordinary shares held 
by them, subject to such exclusions or other arrangements as the directors may deem necessary or expedient in relation to fractional 
entitlements or any legal or practical problems under the laws of any territory or the requirements of any regulatory body or stock exchange;
  7.2  the allotment of equity securities to be issued pursuant to any share options granted to employees of the company in accordance 
with the terms of the company’s 2006 Performance Share Plan and 2005 SAYE Option Plan; 
  7.3  the allotment of ordinary shares pursuant to the warrants granted to Royal Bank of Scotland plc and certain executives of the Company 
as described in the Circular sent to shareholders on 21 August 2009; and
  7.3  the allotment of equity securities for cash (otherwise than pursuant to paragraphs 7.1 to 7.3 above) up to an aggregate nominal amount 
of £126,303
   and (unless previously revoked, varied or renewed) shall expire at the conclusion of the next AGM of the company after the passing of this 
resolution, save that the company may make an offer or agreement before the expiry of this power which would or might require equity securities 
to be allotted for cash after such expiry and the directors may allot equity securities for cash pursuant to any such offer or agreement 
as if the power conferred by this resolution had not expired. 
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Notice of Annual General Meeting 
continued
Resolutions continued
8.   That, pursuant to section 701 of the Act, the company be and is generally and unconditionally authorised to make market purchases 
(within the meaning of section 693(4) of the Act) of ordinary shares of 2p each in the capital of the company (“Shares”), provided that:
  8.1  the maximum number of Shares which may be purchased is 12,630,269.
  8.2  the minimum price (exclusive of expenses) which may be paid for a Share is 2p
  8.3  the maximum price (exclusive of expenses) which may be paid for a Share is an amount equal to the higher of:
   (i)  105% of the average of the closing middle market quotations for the Shares as quoted on the AIM market operated by the 
London Stock Exchange (“AIM”) for the five business days immediately preceding the day on which the purchase is made; and
   (ii)  the value of a Share calculated on the basis of the higher of the price quoted for: 
    a)  the last independent trade of; and
    b)  the highest current independent bid for,
     any number of Shares on AIM
   and (unless previously revoked, varied or renewed) shall expire at the conclusion of the next annual general meeting of the company after the 
passing of this resolution, save that the company may enter into a contract to purchase Shares before the expiry of this authority under which 
such purchase will or may be completed or executed wholly or partly after such expiry and may make a purchase of Shares pursuant to any 
such contract as if the authority conferred by this resolution had not expired.
By order of the board
TiM LoWe ReGiSTeReD offiCe
Company Secretary Pure Wafer plc
19 november 2009 Central Business Park
 Swansea Vale
 Swansea SA7 0AB
notes
entitlement to attend and vote
1.  Only those members registered on the Company’s register of members at:
  ›  6.00pm on 13 December 2009; or,
  ›  if this Meeting is adjourned, at 6.00pm on the day two days prior to the adjourned meeting,
  shall be entitled to attend and vote at the Meeting.
Website giving information regarding the Meeting
2.   Information regarding the Meeting, including the information required by section 311A of the Companies Act 2006, is available from 
www.purewafer.com.
Attending in person
3.   If you wish to attend the Meeting in person, you will need to bring with you a form of formal identification which includes your photograph, 
such as a passport or a picture driving licence.
Appointment of proxies
4.   If you are a member of the Company at the time set out in note 1 above, you are entitled to appoint a proxy to exercise all or any of your 
rights to attend, speak and vote at the Meeting and you should have received a proxy form with this notice of meeting. You can only appoint 
a proxy using the procedures set out in these notes and the notes to the proxy form.
5.   A proxy does not need to be a member of the Company but must attend the Meeting to represent you. Details of how to appoint the Chairman 
of the Meeting or another person as your proxy using the proxy form are set out in the notes to the proxy form. If you wish your proxy to speak 
on your behalf at the Meeting you will need to appoint your own choice of proxy (not the Chairman) and give your instructions directly to them.
6.   You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. You may not appoint 
more than one proxy to exercise rights attached to any one share. To appoint more than one proxy, please complete and return the enclosed 
form of proxy and return it to Capita Registrars, PXS, 34 Beckenham Road, Kent BR3 4TU in accordance with the instructions thereon.
7.   A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the resolution. 
If no voting indication is given, your proxy will vote or abstain from voting at his or her discretion. Your proxy will vote (or abstain from voting) 
as he or she thinks fit in relation to any other matter which is put before the Meeting.
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notes continued
Appointment of proxy using hard copy proxy form
8.   The notes to the proxy form explain how to direct your proxy how to vote on each resolution or withhold their vote.
  To appoint a proxy using the proxy form, the form must be:
  ›  completed and signed;
  ›  sent or delivered to Capita Registrars, PXS, 34 Beckenham Road, Kent BR3 4TU in accordance with the instructions thereon; and
  ›  received by Capita Registrars (at the above address) no later than 11.00am on 13 December 2009.
   In the case of a member which is a company, the proxy form must be executed under its common seal or signed on its behalf by an officer 
of the company or an attorney for the company.
   Any power of attorney or any other authority under which the proxy form is signed (or a duly certified copy of such power or authority) 
must be included with the proxy form.
Appointment of proxy by joint members
9.   In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the 
most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s 
register of members in respect of the joint holding (the first-named being the most senior).
Changing proxy instructions
10.  To change your proxy instructions simply submit a new proxy appointment using the methods set out above. Note that the cut-off time 
for receipt of proxy appointments (see above) also apply in relation to amended instructions; any amended proxy appointment received after 
the relevant cut-off time will be disregarded.
   Where you have appointed a proxy using the hard-copy proxy form and would like to change the instructions using another hard-copy 
proxy form, please contact Capita Registrars on 0871 664 0300 (calls cost 10p per minute plus network extras. Lines are open 
8.30am to 5.30pm Monday–Friday)
   If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies 
will take precedence.
Termination of proxy appointments
11.  In order to revoke a proxy instruction you will need to inform the Company using one of the following methods:
  ›  By sending a signed hard copy notice clearly stating your intention to revoke your proxy appointment to Capita Registrars, PXS, 
34 Beckenham Road, Kent BR3 4TU. In the case of a member which is a company, the revocation notice must be executed under its 
common seal or signed on its behalf by an officer of the company or an attorney for the company. Any power of attorney or any other 
authority under which the revocation notice is signed (or a duly certified copy of such power or authority) must be included with the 
revocation notice.
   In either case, the revocation notice must be received by Capita Registrars no later than 11.00am on 13 December 2009.
   If you attempt to revoke your proxy appointment but the revocation is received after the time specified then, subject to the paragraph 
directly below, your proxy appointment will remain valid.
   Appointment of a proxy does not preclude you from attending the Meeting and voting in person. If you have appointed a proxy and attend 
the Meeting in person, your proxy appointment will automatically be terminated.
Corporate representatives
12.  A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all its powers as a member 
provided that no more than one corporate representative exercises powers over the same share.
issued shares and total voting rights
13.  As at 12.00pm on 18 November 2009, the Company’s issued share capital comprised 126,302,693 ordinary shares of 2 pence each. 
Each ordinary share carries the right to one vote at a general meeting of the Company and, therefore, the total number of voting rights 
in the Company as at 12.00pm on 18 November 2009 is 126,302,693.
   The website referred to in note 2 will include information on the number of shares and voting rights.
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notes continued
Questions at the Meeting
14.  Under section 319A of the Companies Act 2006, the Company must answer any question you ask relating to the business being dealt with 
at the meeting unless:
  ›  answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information;
  ›  the answer has already been given on a website in the form of an answer to a question; or
  ›  it is undesirable in the interests of the Company or the good order of the meeting that the question be answered.
Voting
15.  Voting on all resolutions will be conducted by way of a poll rather than on a show of hands so that the votes of all shareholders attending 
in person or by proxy are properly taken into account. 
Documents on display
16.  The following documents will be available for inspection at the offices of the Company, Central Business Park, Swansea Vale, Swansea SA7 0AB 
from 19 November 2009 until the time of the Meeting and for at least 15 minutes prior to the Meeting until the end of the Meeting:
  ›  Copies of the service contracts of executive directors of the Company.
  ›  Copies of the letters of appointment of the non-executive directors of the Company.
Communication
17.  Except as provided above, members who have general queries about the Meeting should use the following means of communication 
(no other methods of communication will be accepted):
  ›  in writing to Tim Lowe, Pure Wafer plc, Central Business Park, Swansea Vale, Swansea SA7 0AB
   You may not use any electronic address provided either:
  ›  in this notice of annual general meeting; or 
  ›  any related documents (including the chairman’s letter and proxy form),
   to communicate with the Company for any purposes other than those expressly stated.
Notice of Annual General Meeting 
continued
_2_PUR_ar09_back.indd   41 20/11/2009   14:52:00 Corporate statement
_0_PUR_ar09_Cover.indd   2 20/11/2009   14:56:13 Pure Wafer plc
Annual report and accounts 2009
Pure Wafer plc
Central Business Park 
Swansea Vale 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax: +44 (0)1792 795 420 
Web: www.purewafer.com
Pure Wafer plc  Annual report and accounts 2009
_0_PUR_ar09_Cover.indd   1 20/11/2009   14:55:23