01 Highlights
 02 Chairman’s statement
 04 Chief executive’s review
 06 Financial review
 10 Board directors, senior management  
  and advisers
 12 Directors’ report
 15 Corporate governance report
 17 Report of the remuneration committee
 20 Statement of directors’ responsibilities
 21 Independent auditors’ report
 22 Consolidated proﬁt and loss account
 23 Balance sheets
 24 Consolidated cash ﬂow statement
 25 Notes to the ﬁnancial statements
 43 Notice of annual general meeting
“
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 a state of the art foundry which 
has the capability to meet the stringent 
standards of purity and ﬂatness required 
by its customers.
Pure Wafer is listed on the Alternative 
Investment Market (AIM) 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.
“
Pure Wafer plc
Annual report and accounts 2007 
07
Pure Wafer plc Annual report and accounts 2007
Pure Wafer plc
Central Business Park 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax: +44 (0)1792 795 420 
Web: www.purewafer.com
Corporate statement
_01_cover.indd   1 16/10/2007   18:01:41  01 Highlights
 02 Chairman’s statement
 04 Chief executive’s review
 06 Financial review
 10 Board directors, senior management  
  and advisers
 12 Directors’ report
 15 Corporate governance report
 17 Report of the remuneration committee
 20 Statement of directors’ responsibilities
 21 Independent auditors’ report
 22 Consolidated proﬁt and loss account
 23 Balance sheets
 24 Consolidated cash ﬂow statement
 25 Notes to the ﬁnancial statements
 43 Notice of annual general meeting
“
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 a state of the art foundry which 
has the capability to meet the stringent 
standards of purity and ﬂatness required 
by its customers.
Pure Wafer is listed on the Alternative 
Investment Market (AIM) 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.
“
Pure Wafer plc
Annual report and accounts 2007 
07
Pure Wafer plc Annual report and accounts 2007
Pure Wafer plc
Central Business Park 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax: +44 (0)1792 795 420 
Web: www.purewafer.com
Corporate statement
_01_cover.indd   1 16/10/2007   18:01:41 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 re-use of silicon test wafers within their production processes. 
“
”
Our history
Pure Wafer was established in 
2000 by a management team widely 
experienced in the semiconductor 
industry with the backing of strategic 
investment from Venture Capital and 
industry partners. 
The Group ﬂoated on AIM in 
December 2004 and in February 
2007 Pure Wafer completed the 
acquisition of a wafer reclaim 
facility in Arizona, US.
The Group is now an industry leading 
provider of wafer reclaim services.
 
Our facilities – UK
The UK business operates from a 
state of the art, purpose built facility 
situated in a new technology park 
in Swansea, Wales 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. 
We have installed the latest generation 
of tools available on the market, 
with the most advanced equipment 
as used by IC and prime silicon 
producers. With the highest technical 
speciﬁcations, we are positioned to 
offer the most effective wafer reclaim 
service to our customers with minimal 
silicon removal. This enables our 
customers to maximise the number 
of times a test wafer can be reclaimed.
Our facilities – US
The facility in Prescott, Arizona 
was constructed in 1997 and 
has received in excess of $40m 
of investment since then. This high 
volume high-tech fab has been 
focussed on provision of 100mm, 
125mm, 150mm and 200mm 
wafer reclaim services, but following 
the acquisition by Pure Wafer in 
February 2007 capability to reclaim 
300mm wafers has been installed.
Wafer reclaim
During the many stages of 
the manufacturing process of 
semiconductors, large quantities 
of test wafers are used to check 
the accurate calibration of 
equipment. These test wafers 
are a key consumable in the 
manufacture of semiconductors 
and the ability to reclaim them 
through Pure Wafer’s advanced 
process provides manufacturers 
with the opportunity to reduce costs.
The semiconductor industry is currently 
seeing a rapid transition to 300mm 
wafers. In order for manufacturers to 
continue to increase 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 
sophisticated process. Only a few 
companies worldwide are able to 
meet the exacting standards required 
by semiconductor manufacturers 
for the reclaim of 300mm wafers, 
of which Pure Wafer is one.
Our process
At Pure Wafer, our process for 
reclaiming test wafers involves 
the following key 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
The Company has an established track record, one of the world’s most advanced wafer 
reclaim facilities and a blue chip customer base that includes some of the world’s 
largest semiconductor manufacturers and independent foundries. As a business 
partner, Pure Wafer works with its customers to design and develop a service that 
delivers reclaimed wafers to the exact speciﬁcations and high standards required 
by today’s leading semiconductor manufacturers. 
“
”
At a glance
_01_cover.indd   2 16/10/2007   18:01:58 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 re-use of silicon test wafers within their production processes. 
“
”
Our history
Pure Wafer was established in 
2000 by a management team widely 
experienced in the semiconductor 
industry with the backing of strategic 
investment from Venture Capital and 
industry partners. 
The Group ﬂoated on AIM in 
December 2004 and in February 
2007 Pure Wafer completed the 
acquisition of a wafer reclaim 
facility in Arizona, US.
The Group is now an industry leading 
provider of wafer reclaim services.
 
Our facilities – UK
The UK business operates from a 
state of the art, purpose built facility 
situated in a new technology park 
in Swansea, Wales 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. 
We have installed the latest generation 
of tools available on the market, 
with the most advanced equipment 
as used by IC and prime silicon 
producers. With the highest technical 
speciﬁcations, we are positioned to 
offer the most effective wafer reclaim 
service to our customers with minimal 
silicon removal. This enables our 
customers to maximise the number 
of times a test wafer can be reclaimed.
Our facilities – US
The facility in Prescott, Arizona 
was constructed in 1997 and 
has received in excess of $40m 
of investment since then. This high 
volume high-tech fab has been 
focussed on provision of 100mm, 
125mm, 150mm and 200mm 
wafer reclaim services, but following 
the acquisition by Pure Wafer in 
February 2007 capability to reclaim 
300mm wafers has been installed.
Wafer reclaim
During the many stages of 
the manufacturing process of 
semiconductors, large quantities 
of test wafers are used to check 
the accurate calibration of 
equipment. These test wafers 
are a key consumable in the 
manufacture of semiconductors 
and the ability to reclaim them 
through Pure Wafer’s advanced 
process provides manufacturers 
with the opportunity to reduce costs.
The semiconductor industry is currently 
seeing a rapid transition to 300mm 
wafers. In order for manufacturers to 
continue to increase 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 
sophisticated process. Only a few 
companies worldwide are able to 
meet the exacting standards required 
by semiconductor manufacturers 
for the reclaim of 300mm wafers, 
of which Pure Wafer is one.
Our process
At Pure Wafer, our process for 
reclaiming test wafers involves 
the following key 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
The Company has an established track record, one of the world’s most advanced wafer 
reclaim facilities and a blue chip customer base that includes some of the world’s 
largest semiconductor manufacturers and independent foundries. As a business 
partner, Pure Wafer works with its customers to design and develop a service that 
delivers reclaimed wafers to the exact speciﬁcations and high standards required 
by today’s leading semiconductor manufacturers. 
“
”
At a glance
_01_cover.indd   2 16/10/2007   18:01:58 01 Pure Wafer plc Annual report and accounts 2007
Financial 
 Turnover £22.35m (2006: £14.52m) up 54%
 EBITDA £6.07m (2006: £3.93m) up 54% (see note 3)
 Operating proﬁt £2.98m (2006: £1.90m) up 57%
 Pre-tax proﬁt £2.70m (2006: £1.96m) up 38% 
  Pre-tax proﬁt at constant exchange rates up 165%  
(see ﬁnancial review for details)
  Adjusted diluted EPS 11.11p (2006: 7.63p) up 46% 
(see ﬁnancial review for details)
  Net cash inﬂow from operating activities £4.26m 
(2006: £2.68m) up 59%
Operational 
 Completed transforming acquisition in February 2007
 Continued increase in 300mm capacity
 Good performance from our recently acquired site in Arizona
 51% increase in output from Swansea site
 Operating margins improved at constant exchange rates
 
Highlights
£2.70m
Proﬁt before tax
(2006: £1.96m)
£22.35m
Turnover
(2006: £14.52m)
11.11p
Adjusted diluted EPS
(2006: 7.63p)
_0_PUR_ar07_front.indd   1 16/10/2007   18:34:34 02 Pure Wafer plc Annual report and accounts 2007
Chairman’s statement
This has been a good year of progress. The Board expects 
proﬁtable growth during ﬁnancial year 2008. 
“
”
Introduction
This has been a good year of progress and gives a ﬁrm basis for optimism about the future. 
I am pleased to announce that the management team has again met expectations and continued 
to deliver growth in proﬁt, in particular a 54% increase in EBITDA and a 46% increase in adjusted 
diluted EPS.
This year has been the most signiﬁcant in terms of strategic positioning since the formation of 
the Group. We acquired a wafer reclaim facility in Arizona, US during February of this year which 
gives us further access to a very exciting market.
We also saw the exit of our original venture capital funding partner, Apax Partners Limited (“Apax”). 
On behalf of all at Pure Wafer, I would like to thank Apax for their continued support from formation 
until the day they exited. Without Apax’s initial ﬁnancial and management support to one of the 
UK’s largest ever venture capital backed greenﬁeld start-ups, Pure Wafer would not be in the 
enviable position that we ﬁnd ourselves in today.
Shareholders may wish to note that the Group’s results have been signiﬁcantly affected by 
movements in the US Dollar. I draw your attention to the ﬁnance director’s analysis in the ﬁnancial 
review and point out that movements in the exchange rate this year have had a negative impact 
of approximately £1.4m on our pre-tax proﬁts. It is worth noting that the US acquisition will 
reduce our exposure to currency movements on new business in our largest market.
Financial results
 Turnover £22.35m (2006: £14.52m) up 54%
 EBITDA £6.07m (2006: £3.93m) up 54% (see note 3)
 Operating proﬁt £2.98m (2006: £1.90m) up 57%
 Pre-tax proﬁt £2.70m (2006: £1.96m) up 38% 
 Pre-tax proﬁt at constant exchange rates up 165% (see ﬁnancial review for details)
  Adjusted diluted EPS 11.11p (2006: 7.63p) up 46% (see ﬁnancial review for details, 
where other EPS measures are also included)
 Net cash inﬂow from operating activities £4.26m (2006: £2.68m) up 59%
Highlights
  Good year of progress
  Completed company 
transforming acquisition
  Satisfactory result, despite 
weakening of US Dollar
  Appointment of Paul Dolan
_0_PUR_ar07_front.indd   2 16/10/2007   18:34:38 03 Pure Wafer plc Annual report and accounts 2007
Management
We have further strengthened our Board this year by the appointment of Paul Dolan, a chartered 
accountant and formerly a partner of Deloitte, as non-executive director following the departure 
of the Apax representative, John Samuel.
Our senior management team is also beneﬁting from the wealth of experience and skills acquired 
as part of the purchase of our US facility. The senior management of the US site has many years 
experience of the semiconductor and wafer reclaim industry between them, in many key areas 
from manufacturing and process development through to sales.
I shall take this opportunity to welcome our new colleagues in Arizona and all new employees in 
Swansea, and to congratulate them on joining this successful, results driven Group.
I would like to thank the entire team across both sites, led by Keith Baker, for their hard work and 
continued delivery of results. I am conﬁdent that they will continue to strive for success and 
achievement in the current ﬁnancial year.
Outlook
The Board expects proﬁtable growth during the next ﬁnancial year as the Group exploits its strong 
position in the expanding global 300mm wafer reclaim market. The results for the ﬁrst quarter 
of ﬁnancial year 2008 are expected to be affected by technical difﬁculities slowing down the ramp 
of a new product line with a single customer. With support from the customer we have recently 
developed an improved manufacturing process that we believe will enable us to run this product 
in higher volume. 
We look to the future with conﬁdence.
Giles Clarke
Chairman
3 September 2007
_0_PUR_ar07_front.indd   3 16/10/2007   18:34:48 04 Pure Wafer plc Annual report and accounts 2007
Chief executive’s review
Highlights
  Another year of record 300mm 
reclaim volumes
  Further capacity increases 
underway
  Arizona site performed in line 
with expectations
  New customers on board
  Market growth continues
Operational review
Volumes for all wafer sizes were increased during the year, with 300mm volumes up by 53% 
and 200mm volumes up by 131% (enhanced by our North American acquisition). The month 
of June 2007 saw a record for 300mm wafer reclaim at Pure Wafer.
We are planning to further increase our 300mm wafer reclaim capacity at the Swansea site 
to 100,000 wafers per month at the end of the ﬁnancial year to June 2008, through further 
process development and capital expenditure. Such expenditure will be fully funded through 
cash generation and existing facilities.
Prescott site, Arizona, US
The development of the US site that we acquired in February this year continues in line with our 
original plans. The existing business is cash positive and proﬁtable on an operating proﬁt level. 
I am pleased to announce that the transfer of the 300mm technology from our Swansea site is 
progressing satisfactorily: the ﬁrst 300mm wafer reclaim line is now substantially in place and the 
installation is running according to plan, both in terms of cost and time. We expect capacity of 
this 300mm line to be approximately 20,000 wafers per month at the end of our ﬁnancial year 
to June 2008.
Market and products
Our customer base has signiﬁcantly increased as a result of the acquisition, more than doubling 
to over 80 customer sites, and I would like to take this opportunity to welcome all new Pure Wafer 
customers and to thank them for their support through the change of ownership of the US plant.
Smaller diameter wafer reclaim (100mm, 125mm and 150mm) is a new addition to the Pure Wafer 
product portfolio and has been gained through our US acquisition. These are proﬁtable product 
lines, with well established processes in a developed market place.
The current slowdown within the semiconductor industry is having the impact of reducing the 
demand for smaller diameter wafer reclaim as customers look to switch towards the more efﬁcient 
300mm manufacturing. With the comprehensive product offerings within the business we are well 
placed to support our customers through this transition.
Both the Swansea site and the newly acquired Arizona site 
performed in line with our expectations. 
“
”
_0_PUR_ar07_front.indd   4 16/10/2007   18:34:50 05 Pure Wafer plc Annual report and accounts 2007
As expected, the competitive landscape is increasing as the market continues its growth, with 
two new 300mm competitors emerging in Taiwan and existing competitors continuing to increase 
capacity. We feel that we are well placed with our multi-site locations, leading technology, and 
wealth of experience, to maintain our position as a leading supplier of 300mm products.
During the year we shipped in high volume our new 50nm product offering. This product is very 
much in the early stages of product ramp, but we remain optimistic about the future potential of 
this product line.
New technology
We are continuing to look at opportunities outside of wafer reclaim, following the successful 
introduction of our 50nm product. We are conﬁdent that there are many more ways that we can 
leverage our world-class cleanrooms and silicon polishing expertise in order to continue to deliver 
increasing shareholder value in the future.
Keith Baker
Chief Executive
3 September 2007
_0_PUR_ar07_front.indd   5 16/10/2007   18:34:51 06 Pure Wafer plc Annual report and accounts 2007
Financial review 
Turnover
Turnover for the period was £22.35m, an increase of 54% on last year (2006: £14.52m).
Analysed by destination:
 Europe £7.51m, up 76% (2006: £4.27m)
 North America £9.32m, up 43% (2006: £6.51m)
 South East Asia £5.52m, up 48% (2006: £3.73m)
Analysed by product:
 150mm wafer reclaim £0.43m (a new product line in the year as a result of the acquisition)
 200mm wafer reclaim £3.39m up 93% (2006: £1.76m)
 300mm wafer reclaim and 50nm polishing £17.26m up 35% (2006: £12.76m)
  Other revenue £1.27m, a new revenue stream in the year comprising smaller diameter 
wafer reclaim and scrap sales
Proﬁt before tax
Proﬁt before tax was £2.70m, up 38% on prior year (£1.96m). We added new wafer reclaim product 
lines with the acquisition (150mm diameter and smaller), and continued to organically grow 
existing business. Wafer volumes of each size continued to increase and each size remains proﬁtable.
Margins were impacted by the weaker US Dollar in the year and the acquisition of a site currently 
without the beneﬁt of the higher margin 300mm volumes.
Despite the challenges thrown up from the increase in customer speciﬁcations as the requirement 
for smaller and lower numbers of particles per wafer continues to progress, the consolidated 
Group has managed to continue to reduce the cost per 300mm equivalent wafer. We are continuing 
our focus on cost reduction and are pursuing production cost per wafer savings across both 
manufacturing sites.
Highlights
  Turnover up 66% at constant 
exchange rates
  Pre-tax proﬁt up 165% at 
constant exchange rates
  Adjusted diluted EPS up 169% 
at constant exchange rates
  Continued reduction in cost 
per 300mm equivalent wafer
Financially, another satisfactory year. 
“
”
_0_PUR_ar07_front.indd   6 16/10/2007   18:34:54 07 Pure Wafer plc Annual report and accounts 2007
Foreign exchange
As over 95% of Group revenue is in US Dollars, revenue and margins are impacted by the 
movement in the currency. 
As can be seen in the table below, year on year, the average rate achieved by the Group (after 
taking into account the impact of hedging instruments) has moved negatively by approximately 8%.
    Year ended  Year ended 
    30 June  30 June 
    2007  2006
Opening rate £1 = US$   1.84 1.79
Average rate achieved (after hedging) £1 = US$   1.91 1.77
Closing rate £1 = US$   2.01 1.84
In order to better review the year on year trading performance of the Group excluding the impacts 
of foreign exchange, the headline numbers are scheduled out below:
     Year ended   
    30 June   
    2006   
    (restated at % Increase  
  Year ended   2007  year on year 
  30 June   actual rate of  at constant 
  2007   £1 = US$1.91) exchange  
   £000  £000  rates
Turnover 22,348  13,478 66%
Gross proﬁt 8,917  5,208 71%
EBITDA 6,066  2,997 102%
Operating proﬁt 2,980  971 207%
Proﬁt before tax 2,702  1,020 165%
Adjusted diluted EPS 11.11p  4.13p 169%
We continue to convert as much of the costbase as possible to US Dollars in order to provide a 
natural hedge against the US Dollar revenue streams. 
_0_PUR_ar07_front.indd   7 16/10/2007   18:34:56 08 Pure Wafer plc Annual report and accounts 2007
Cash ﬂow and capital expenditure
The Group continues to be increasingly cash generative on an operating cash level, with a net 
cash inﬂow from operating activities of £4.26m (2006: £2.68m).
During the period, capital equipment with the value of £7.60m was acquired, with £5.64m 
of this expenditure happening at the UK site. The construction in progress value (£1.89m) 
relates to the upgrade of the US site and installation of a 300mm wafer reclaim line. 
Construction is nearing completion, and is currently running broadly in line with the 
ﬁnancial budget.
Taxation
There is no tax charge across the Group, as taxable proﬁts generated within the UK have been 
set against tax losses brought forward. The directors are conﬁdent of the trading and ﬁnancial 
prospects of the Group, so based upon short-term forecasts, the remaining available unutilised 
UK tax losses (£2.86m) were recognised in the balance sheet during 2007. This will have the 
impact in future periods of showing a UK tax charge in the proﬁt and loss account, but with 
no cash impact until the deferred tax asset has unwound.
Acquisition
The total purchase cost of US$11.20m comprised a payment of US$7.50m on completion, 
US$1.75m interest free deferred consideration falling due after 12 months, and a further 
US$1.95m interest free deferred consideration falling due after 24 months.
The initial purchase payment of $7.50m was funded through a four year variable rate 
interest loan from Royal Bank of Scotland (“RBS”) that was ﬁxed through an interest swap 
at the time of drawdown to a rate of 6.94% per annum. The deferred consideration payments 
are not contingent, and accordingly are backed by a letter of credit from RBS. The two deferred 
consideration payments have been discounted to present values, and are reﬂected in the 
accounts as a ﬁnancial liability within net funds. As the amounts have been discounted, 
an imputed non-cash interest charge is levied through the proﬁt and loss account each 
period until the deferred considerations are paid.
Financial review continued
The Group continues to be increasingly cash generative on an 
operating cash level. 
“
”
_0_PUR_ar07_front.indd   8 16/10/2007   18:34:56 09 Pure Wafer plc Annual report and accounts 2007
International Financial Reporting Standards (“IFRS”)
Following a European Union Regulation (IAS Regulation EC 1606/2002) issued in June 2002 
and AIM notice 22, Pure Wafer plc is required to prepare its consolidated ﬁnancial statements 
under International Financial Reporting Standards with effect for the year ending 30 June 2008.
This is the last set of Pure Wafer plc ﬁnancial statements prepared under UK GAAP . The Group 
adopted IFRS on 1 July 2007 and consequently future ﬁnancial reporting will be under IFRS. 
The Group will hold a brieﬁng at the Annual General Meeting to update stakeholders on the 
impact of adoption of IFRS.
EPS and dividend
Diluted EPS for the period was 20.59p (2006: 14.42p), which included the effect of the  
recognition of the UK deferred tax asset and FRS20 share option charge. Excluding these 
items, adjusted diluted EPS for the Group was 11.11p (2006: 7.63p).
As at 30 June 2007, the Group did not have sufﬁcient distributable reserves for the Board to 
be able to recommend a dividend. Accordingly, no dividend is payable for this ﬁnancial year.
Following the end of the ﬁnancial year, the subsidiary company Pure Wafer International Limited 
completed a capital reduction which is expected to leave the Group with distributable reserves 
by 30 June 2008.
James Dearing
Group Finance Director
3 September 2007
_0_PUR_ar07_front.indd   9 16/10/2007   18:34:57 10 Pure Wafer plc Annual report and accounts 2007
Board directors, senior management and advisers
Keith Baker
group chief executive
Keith Baker is a co-founder of the Group. Keith 
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.
Peter Harrington
group strategic planning director
Peter Harrington is a co-founder of the Group. 
Peter 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.
James Dearing ACA
group ﬁnance director
James Dearing qualiﬁed as a chartered 
accountant with Deloitte, before moving to 
ﬁnance roles within DSG International plc and 
Imperial Tobacco Group plc. James joined 
Pure Wafer plc as Group ﬁnance director in 
August 2005.
Giles Clarke DL
non-executive chairman
Giles Clarke is chairman and majority 
shareholder of a number of private companies, 
including ATL Telecom, a designer of data 
transmission chips. He founded Majestic Wine 
in 1981 and co-founded Pet City in 1990. 
Giles is a National Council member of the 
Learning and Skills Council, is chairman of the 
England and Wales Cricket Board and is  
non-executive chairman of Amerisur Resources plc. 
Giles joined the Board in November 2004.
Dr Eurfyl ap Gwilym
non-executive director
Eurfyl ap Gwilym has 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.
Paul Dolan FCA
non-executive director
Paul Dolan spent many years as a partner at the 
Cardiff ofﬁce of Deloitte, which included running 
the audit of several semiconductor and technology 
companies. Following his departure from Deloitte 
in 2004, Paul 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.
Board directors
_0_PUR_ar07_front.indd   10 16/10/2007   18:35:21 11 Pure Wafer plc Annual report and accounts 2007
Company secretary  
and registered ofﬁce
J J Dearing
Pure Wafer 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
Numis Securities Ltd
10 Paternoster Square 
London EC4M 7LT
Auditors
PricewaterhouseCoopers LLP
Princess House 
Princess Way 
Swansea SA1 5LH
Registrars
Capita Registrars
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
Public Relations Advisers
Financial Dynamics
Holborn Gate 
26 Southampton Buildings 
London WC2A 1PB
Senior executive management
David Maternaghan
sales and marketing director
David Maternaghan has held various senior 
management positions, responsible for business 
development, sales and marketing in worldwide 
markets supporting blue chip customers. He 
joined Pure Wafer from Rockwood Electronic 
Materials, a supplier of materials and services 
to the semiconductor industry.
Trevor Hoskins
operations director – UK
Trevor Hoskins joined the Group in August 2006. 
He has held several senior posts for global blue 
chip companies based in Japan, North America 
and South Africa, and has a history of delivering 
proﬁtable growth within manufacturing industries 
through successful implementation of lean 
manufacturing techniques.
Jerry Winters
managing director – US
Jerry Winters has been involved in wafer reclaim 
for many years as part of Rockwood Electronic 
Materials, and in 1997 set up the site in Prescott 
that was acquired by Pure Wafer in February 2007. 
Jerry has led the strong and very experienced 
team from the commencement of the facility 
construction, and continues to provide excellent 
management of US operations under the 
Pure Wafer brand.
Advisers
_0_PUR_ar07_front.indd   11 16/10/2007   18:35:21 12 Pure Wafer plc Annual report and accounts 2007
Introduction
The directors present their annual report and audited ﬁnancial statements for the year ended 30 June 2007.
The accounts are the third set of accounts for the Pure Wafer plc Group and the ﬁrst containing results of the newly acquired US operations. 
The US facility was acquired on 12 February 2007, so accordingly the Pure Wafer plc Group results reﬂect the 4.5 months of trading since 
the acquisition.
Review of business and future developments
The principal activity for the Group remains the reclaim of silicon test wafers.
The Group proﬁt and loss account is set out on page 22.
A review of developments affecting the Group during the year and its prospects for the future is set out in the chairman’s statement and 
the chief executive’s review.
Dividends
The directors do not recommend a dividend for the period.
Research and development
The Group has continued to invest in the ongoing continuous improvement of a proven process to reclaim silicon test wafers, together with 
complementary products. Costs attributable to the development of the wafer reclaim process have been charged to the proﬁt and loss account 
as incurred.
Directors
The directors of the Group, who served throughout the year unless otherwise noted, were as follows:
C G Clarke  non-executive chairman 
K Baker  chief executive ofﬁcer 
J J Dearing group ﬁnance director 
P G Harrington group strategic planning director 
E ap Gwilym non-executive director, deputy chairman, chair of remuneration committee 
J A W Samuel non-executive director (resigned 31 March 2007) 
P D B Dolan non-executive director, chair of audit committee  (appointed 25 June 2007)
Directors’ interests in shares
The beneﬁcial interests of the directors in the ordinary share capital of the Group are as follows:
       At  At  
       30 June 30 June 
       2007  2006 
       Number Number
C G Clarke       279,482 159,482
K Baker       163,012 120,921
P G Harrington       159,066 120,921
E ap Gwilym       25,000 25,000
As part of Apax’s exit during the year, K Baker and P G Harrington exercised their options to acquire shares (K Baker: 346,667; P G Harrington: 
314,167) from Apax at a price of 145p per share (equivalent to the ﬂoat price when Pure Wafer plc listed on AIM in 2004). As part of the 
transaction, K Baker and P G Harrington sold an element of this new shareholding (K Baker: 304,576 shares; P G Harrington: 276,022 shares) 
in order to fund the acquisition of option shares from Apax and related taxes.
During the year, C G Clarke purchased 120,000 shares at the market price of 235p.
Details of options over the Group’s share capital held by the directors are set out in the report of the remuneration committee on page 17.
Directors’ report for the year ended 30 June 2007
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Employees
The Group’s employment policies are designed to attract, retain and motivate the very best staff for each role in the Group, recognising that this 
can be achieved only through offering equal opportunities regardless of gender, race, religion or disability.
Regular meetings are held with employees to discuss the performance of the Group as a whole and the area in which they work. Financial and 
economic factors are dealt with in this context.
Information concerning employees and their remuneration is given in notes 4 and 5 to the accounts and in the report of the remuneration committee.
Supplier payment policy
The Group’s policy in relation to the payment of its suppliers is to settle its terms of payment with each supplier when agreeing the terms of each 
business transaction. The supplier is made aware of the terms, which are detailed on the Group’s purchasing orders. It is the Group’s practice 
to abide by the agreed terms of payment. The Group’s creditor payment period was 60 days (2006: 72 days) and the Company’s creditor 
payment period was 86 days (2006: 78 days).
Substantial interests
As at 30 June 2007, the Group had been notiﬁed, in accordance with Sections 198 to 209 of the Companies Act 1985, of the following 
substantial interests of 3% or more in the ordinary share capital of the Group:
       Number % 
        of ordinary of ordinary 
       shares held shares held
AXA Framlington Investment Managers       4,866,985 18.30
BlackRock Investment Management       3,277,010 12.32
Goldman Sachs       1,725,000 6.49
New Star Asset Management       1,302,102 4.90
Majedie Asset Management       1,300,000 4.89
F&C Asset Management       1,296,276 4.87
Royal London Asset Management       1,293,294 4.86
Jupiter Asset Management       1,027,126 3.86
Polar Capital       860,000 3.23
Capital Group       833,800 3.14
Standard Life Investments       800,000 3.01
Authority to issue and allot shares
The Companies Act 1985 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 2007 AGM unless previously renewed, varied or revoked by the Group in general meeting.
Resolutions to renew the authorities will be proposed at the AGM to be held on 14 November 2007.
Subsequent to the passing of these resolutions, the directors will have the authority to allot shares up to an aggregate nominal amount 
of £159,547 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 £26,591.
Financial risk management
The directors’ assessment of key ﬁnancial risks and policies in place to mitigate those risks, is set out in note 18 to the ﬁnancial statements.
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Health and safety, environmental and social responsibility
The Group has detailed health and safety guidelines which are communicated to all employees, and which are regularly reviewed for suitability 
in the context of the Group’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.
Key performance indicators
Commentary on key performance indicators is included in the ﬁnancial review on page 8. The Board deem that the Group’s signiﬁcant KPIs are 
largely ﬁnancial and include: turnover, proﬁt before tax, results at constant exchange rates, cash ﬂow and EPS.
Charitable and political donations
The Group did not make any monetary charitable or political donations during the period.
Provision of information to auditors
Each of the persons who is a director at the date of approval of this report conﬁrms that:
 so far as the director is aware, there is no relevant audit information of which the Group’s auditors are unaware; and
  the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit 
information and to establish that the Group’s auditors are aware of that information.
This conﬁrmation is given and should be interpreted in accordance with the provisions of Section 234ZA of the Companies Act 1985.
Going concern
The directors are of the opinion that, at the time of approving the ﬁnancial statements, the Group has 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 
ﬁnancial statements.
By order of the Board
James Dearing
Company Secretary
3 September 2007
Directors’ report for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   14 16/10/2007   18:02:38 15 Pure Wafer plc Annual report and accounts 2007
The Group 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 two 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 Group.
Board responsibilities
The Board of directors, which includes three non-executive directors, meets regularly throughout the year. C G Clarke, E ap Gwilym and P D B 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 Group’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 E ap Gwilym, the deputy chairman, as an independent member 
of the Board to whom such concerns may be addressed.
Audit committee
The Group has an audit committee comprising two non-executive directors and the chairman. During the year, the committee was chaired 
by J A W Samuel and P D B Dolan, and 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 two 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 three executive directors and the Group ﬁnancial controller. The committee meets on an as-needed basis 
where speedy approval for treasury matters, particularly relating to foreign exchange, is required. The chairman of the committee, J J Dearing, 
reports any decisions taken, with justiﬁcation, to the Board as quickly as practicable.
Corporate governance report
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Board meetings
There were seven Board meetings during the period to 30 June 2007. All Board members attended every meeting that took place whilst they 
were a director. 
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.
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 Group 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 Group, 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 Group’s plans and objectives and from time to time meets with them.
Corporate governance report continued
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Introduction
This report sets out the Pure Wafer executive remuneration policy, structure and details of remuneration received by directors in the year ended 
30 June 2007. The share incentives and directors’ remuneration sections of this report have been audited.
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 Group 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, C G Clarke and J A W Samuel. All the members of the committee were 
non-executive directors. The committee met three times during the year and all the members attended all three meetings.
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, and Odgers, Ray & Berndtson.
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 Group 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 Group 
and individual performance.
Performance related bonuses
Payments under the scheme are based upon the achievement of ﬁnancial targets for the Group 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.
Report of the remuneration committee
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Share incentives (audited)
Under this executive share option scheme members of the management team have options over 614,311 shares (429,211 options granted 
during the year), exercisable between three and ten years following grant at 2p subject to achievement of certain EPS performance criteria.
The executive directors’ interests in the options are as follows:
  Options   Market    
 Balance at granted Balance at  price at  Performance  
 1 July during 30 June  date of  Exercise period  
 2006  year  2007    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     
        
J J Dearing 25,531 — 25,531 16/11/2005 2.35 0.02 2008 15/11/2015
 — 54,918 54,918 27/11/2006 2.46 0.02 2009 26/11/2016
   80,449     
        
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     
No executive director schemes vested in the period.
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.
Report of the remuneration committee continued
_0_PUR_ar07_back.indd   18 16/10/2007   18:02:38 19 Pure Wafer plc Annual report and accounts 2007
SAYE scheme
Each year a SAYE scheme is set up for the beneﬁt of all employees.
Directors’ remuneration (audited)
       Total Total 
   Salary Beneﬁts Bonus Pension 2007 2006 
Director   £ £ £ £ £ £
C G Clarke   100,000 — — — 100,000 50,000
K Baker   116,390 11,755 58,000 5,000 191,145 179,135
J J Dearing*   71,750 2,478 38,500 5,000 117,728 86,469
P G Harrington   87,550 11,978 43,800 5,000 148,328 132,095
E ap Gwilym   31,350 — — — 31,350 30,000
P D B Dolan**   575 — — — 575 —
J A W Samuel**   23,513 — — — 23,513 30,000
* Represents part year in 2006.
** Represents part year in 2007.
At the time of the placing of Apax shares at 300p, K Baker exercised 346,667 options to purchase shares in the Group from Apax at 145p and 
P G Harrington exercised 314,167 options to purchase shares in the Group from Apax at 145p. 
Service contracts for directors
K Baker has a service agreement with the Group dated 9 December 2004, subject to termination upon twelve months’ notice given by either party.
P G Harrington has a service agreement with the Group dated 9 December 2004 subject to six months’ notice given by either party. 
J J Dearing has a service agreement with the Group dated 25 July 2005, 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 Group dated 1 June 2006, and is subject to termination upon a notice period of twelve 
months’ notice given by either party.
E ap Gwilym has a letter of appointment with the Group dated 1 June 2006, and is subject to termination upon a notice period of twelve 
months’ notice given by either party.
P D B Dolan has a letter of appointment with the Group dated 25 June 2007, and is subject to termination upon a notice period of twelve 
months’ notice 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 Group, is set out in the directors’ report.
Eurfyl ap Gwilym
Chairman of remuneration committee
3 September 2007
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Company law requires the directors to prepare ﬁnancial statements for each ﬁnancial year that give a true and fair view of the state of affairs of 
the Company and the Group and of the proﬁt and loss of the Group for that period. The directors are required to prepare the ﬁnancial statements 
on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors conﬁrm that suitable accounting policies have been used and applied consistently. They also conﬁrm that reasonable and prudent 
judgements and estimates have been made in preparing the ﬁnancial statements for the year ended 30 June 2007 and that applicable 
accounting standards have been followed.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy, at any time, the ﬁnancial position of the 
Company and the Group and enable them to ensure that the ﬁnancial statements comply with the Companies Act 1985. They are also responsible 
for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for ensuring that the directors’ report and other information included in the annual report is prepared in 
accordance with company law in the United Kingdom. They are also responsible for ensuring that the annual report includes information 
required by the AIM Rules of the London Stock Exchange.
The directors are responsible for the maintenance and integrity of the Group’s website on which these ﬁnancial statements are published. 
The directors acknowledge that legislation in the UK governing the preparation and dissemination of the ﬁnancial information contained in the 
ﬁnancial statements may differ from legislation in other jurisdictions. The directors are aware that the uncertainties that exist are compounded 
as information published on the internet is accessible in many countries with different legal requirements relating to the preparation and dissemination 
of ﬁnancial statements.
James Dearing
Company Secretary
3 September 2007
Statement of directors’ responsibilities
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We have audited the Group and parent company ﬁnancial statements (the ‘‘ﬁnancial statements’’) of Pure Wafer plc for the year ended 30 June 2007 
which comprise the Group proﬁt and loss account, the Group and Company balance sheets, the Group cash ﬂow statement and the related 
notes. These ﬁnancial statements have been prepared under the accounting policies set out therein. We have also audited, at the request of the 
directors, the information in the report of the remuneration committee that is described as having been audited.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the ﬁnancial statements in accordance with applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the statement of directors’ responsibilities. 
The directors are also responsible for preparing the report of the remuneration committee.
Our responsibility is to audit the ﬁnancial statements in accordance with relevant legal and regulatory requirements and International Standards 
on Auditing (UK and Ireland). We also, at the request of the directors, audit the part of the report of the remuneration committee to be audited. 
This report, including the opinion, has been prepared for and only for the Company’s members as a body in accordance with Section 235 of 
the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or 
to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and whether the ﬁnancial statements and the part 
of the report of the remuneration committee to be audited have been properly prepared in accordance with the Companies Act 1985. We also 
report to you whether in our opinion the information given in the directors’ report is consistent with the ﬁnancial statements. The information 
given in the directors’ report includes that speciﬁc information presented in the chairman’s statement and the chief executive’s review that 
is cross referred from the review of business and future developments section of the directors’ report. 
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information 
and explanations we require for our audit, or if information speciﬁed by law regarding directors’ remuneration and other transactions is not disclosed.
We read other information contained in the annual report, and consider whether it is consistent with the audited ﬁnancial statements. This other 
information comprises only the directors’ report, the unaudited part of the report of the remuneration committee, the chairman’s statement, the 
chief executive’s review, the ﬁnancial review and the corporate governance report. We consider the implications for our report if we become 
aware of any apparent misstatements or material inconsistencies with the ﬁnancial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the ﬁnancial statements and the part 
of the report of the remuneration committee to be audited. It also includes an assessment of the signiﬁcant estimates and judgments made 
by the directors in the preparation of the ﬁnancial statements, and of whether the accounting policies are appropriate to the Group and 
Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufﬁcient evidence to give reasonable assurance that the ﬁnancial statements and the part of the report of the remuneration committee to 
be audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the 
overall adequacy of the presentation of information in the ﬁnancial statements and the part of the report of the remuneration committee to be audited.
Opinion
In our opinion:
  the ﬁnancial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state 
of the Group and the parent company’s affairs as at 30 June 2007 and of the Group’s proﬁt and cash ﬂows for the year then ended;
  the ﬁnancial statements and the part of the report of the remuneration committee to be audited have been properly prepared in accordance 
with the Companies Act 1985; and
 the information given in the directors’ report is consistent with the ﬁnancial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
Swansea
3 September 2007
Independent auditors’ report to the members of Pure Wafer plc
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     2007 2007 2007 2006 
     Continuing Acquisitions Total Total 
        (restated) 
    Notes £000 £000 £000 £000
Turnover    2 20,310 2,038 22,348 14,521
Cost of sales     (12,296) (1,135) (13,431) (8,136)
Gross proﬁt     8,014 903 8,917 6,385
Administrative expenses     (5,092) (845) (5,937) (4,483)
Operating proﬁt    3 2,922 58 2,980 1,902
Interest receivable     149 — 149 198
Interest payable and similar charges    6 (286) (141) (427) (145)
Proﬁt/(loss) on ordinary activities before taxation     2,785 (83) 2,702 1,955
Taxation    7 2,860 — 2,860 1,895
Proﬁt/(loss) for the ﬁnancial period    21 5,645 (83) 5,562 3,850
Earnings per share        
Basic    9   20.97p 14.53p
Basic diluted    9   20.59p 14.42p
Adjusted    9   11.32p 7.69p
Adjusted diluted    9   11.11p 7.63p
The Group has no recognised gains or losses other than those included in the result above and, therefore, no separate statement of total 
recognised gains or losses has been presented.
There is no difference between the result for the ﬁnancial period stated above and its historical cost equivalent. 
Consolidated proﬁt and loss account for the year ended 30 June 2007
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     Group Group Company Company 
     2007 2006 2007 2006 
    Notes £000 £000 £000 £000
Fixed assets
Intangible assets    10 3,506 261 — —
Tangible assets    11 25,981 19,576 — —
Investments    12 — — 9,215 9,215
     29,487 19,837 9,215 9,215
Current assets     
Stock    13 2,812 1,065 — —
Debtors    14 7,438 4,700 6,713 944
Debtors – deferred taxation    7 4,755 1,895 — —
Cash at bank and in hand     2,976 5,652 2,001 3,096
     17,981 13,312 8,714 4,040
Creditors: amounts falling due within one year    15 (8,765) (4,029) (1,923) (110)
Net current assets     9,216 9,283 6,791 3,930
Total assets less current liabilities     38,703 29,120 16,006 13,145
Creditors: amounts falling due after more than one year   16 (6,323) (2,433) (3,457) —
Deferred income    17 (2,865) (3,175) — —
Net assets     29,515 23,512 12,549 13,145
     
Capital and reserves     
Called up share capital    19 532 530 532 530
Share premium    21 12,783 12,644 12,783 12,644
Merger reserve    21 30,425 30,425 — —
Proﬁt and loss account    21 (14,225) (20,087) (766) (29)
Shareholders’ funds    21 29,515 23,512 12,549 13,145
The ﬁnancial statements on pages 22 to 42 were approved by the Board of directors on 3 September 2007 and were signed on its behalf by:
Keith Baker   James Dearing
Chief Executive   Group Finance Director
3 September 2007  3 September 2007
Balance sheets as at 30 June 2007
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       2007 2006 
       Notes £000 £000
Net cash inﬂow from operating activities      22 4,259 2,677
Returns on investments and servicing of ﬁnance        
Interest received       149 201
Interest paid       (347) (127)
Net cash (outﬂow)/inﬂow from returns on investments and servicing of ﬁnance    (198) 74
Taxation        
UK corporation tax        — —
Capital expenditure and ﬁnancial investment        
Expenditure on intangible ﬁxed assets       — (261)
Purchase of tangible ﬁxed assets       (7,927) (4,869)
Net cash outﬂow on capital expenditure and ﬁnancial investment      (7,927) (5,130)
Acquisitions
Purchase of trade and assets of Exsil, Inc       (3,846) —
Net cash outﬂow from acquisitions       (3,846) —
Net cash outﬂow before use of liquid funds and ﬁnancing      (7,712) (2,379)
Financing        
Funds received in relation to ordinary share capital       141 —
Drawdown of bank loan       3,846 —
Capital repayment of bank loan       (233) —
Drawdown of ﬁnance leases       2,369 3,488
Capital repayment of ﬁnance leases       (895) (323)
Cash inﬂow from ﬁnancing       5,228 3,165
(Decrease)/increase in cash in the year      23 (2,484) 786
Consolidated cash ﬂow statement for the year ended 30 June 2007
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1. Principal accounting policies
The accounts have been prepared in accordance with Accounting Standards currently applicable in the United Kingdom and in accordance with 
the provisions of the Companies Act 1985. The principal accounting policies have been applied consistently with the exception of the changes 
arising on the adoption of new Accounting Standard FRS20 (share-based payments), as set out below.
Changes in accounting policy and presentation
During the year, FRS20 (share-based payments), has been adopted. This resulted in the following restatement to the proﬁt and loss account for 
the year ended 30 June 2006:
        Year ended 
        30 June  
        2006 
        £000
Proﬁt before tax, as reported        2,038
Impact of adoption of FRS20        (83)
Proﬁt before tax, restated        1,955
No restatement to the comparative balance sheet or cash ﬂow statement was required.
The charge for the current year was £300,000.
Basis of accounting
The ﬁnancial statements have been prepared under the historical cost convention.
Basis of consolidation
The Group accounts comprise the consolidation of the accounts of the Group and all its subsidiary undertakings after eliminating intragroup 
transactions. As provided by Section 230 of the Companies Act 1985, a separate proﬁt and loss account for the Company is not disclosed.
Intangible ﬁxed assets – goodwill
Businesses acquired have been dealt with in the consolidated accounts using acquisition accounting. Upon the acquisition of a business, 
the fair values that reﬂect the condition at the date of acquisition are attributed to the identiﬁable assets and liabilities acquired. Adjustments 
are also made to bring the accounting policies of the businesses acquired into alignment with those of the Group. Where the consideration 
paid exceeds the fair value of the net assets acquired, the difference is treated as goodwill.
Goodwill arising on the acquisition made during the year has been capitalised and is being amortised over 20 years on a straight line basis. 
The amortisation period is the length of time over which the directors believe the Group will draw economic beneﬁt from the acquisition.
Tangible ﬁxed assets
The cost of ﬁxed assets is their purchase cost, together with any incidental costs of acquisition.
Depreciation is calculated so as to write off the cost, or valuation, of tangible ﬁxed assets, less their estimated residual values, on a straight line 
basis, over the expected useful economic lives of the assets concerned. No depreciation is charged until the assets have been commissioned 
and are in use.
The principal rates used are as follows:
Leasehold buildings   15 years
Plant and machinery  10 years
Fixtures, ﬁttings and equipment 5 years
IT equipment   3 years
Motor vehicles   3 years
Equipment acquired as part of the trade and assets of Exsil, Inc during the year have been assessed and an average useful economic life of seven 
years has been applied from the date of acquisition.
Notes to the ﬁnancial statements for the year ended 30 June 2007
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1. Principal accounting policies continued
Impairment of ﬁxed assets
Impairment is calculated as the difference between the carrying value and the recoverable value of income-generating units. Recoverable value 
is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present 
value of expected future discounted cash ﬂows. If incurred, impairment is recognised in the proﬁt and loss account.
Stocks and work in progress
Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on a ﬁrst in ﬁrst out basis 
and includes transport and handling costs; in the case of manufactured products, cost includes all direct expenditure and production overheads 
based on the normal level of activity. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing 
for the costs of realisation and, where appropriate, the cost of conversion from their existing state to a ﬁnished condition. Provision is made 
where necessary for obsolete, slow-moving and defective stocks.
Taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions 
or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.
A net deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there 
will be suitable taxable proﬁts against which to recover carried forward tax losses and/or from which the future reversal of underlying timing 
differences can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected 
to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured 
on a non-discounted basis. 
Government grants
Government grants in respect of capital expenditure are credited to a deferred income account which is released to the proﬁt and loss account 
over the expected lives of the assets concerned. All other grants are credited to the proﬁt and loss account on a receivable basis.
Translation of foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated to Sterling at the rate of exchange ruling at the balance sheet 
date, except where covered by forward currency transactions when they are translated at the contracted rates. Other assets are translated to 
Sterling at the rates of exchange ruling at the date of purchase or, where covered by forward currency transactions, at the contract rate. 
The proﬁt and loss accounts and cash ﬂow statements of non-sterling denominated Group companies are translated to Sterling (the Group’s 
presentation currency) at average rates of exchange in each period. Assets and liabilities of those companies 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 re-translation to Sterling of non-sterling denominated net assets at the beginning of the year. 
Research and development expenditure
All research and development costs are written off in the year in which they are incurred, with the exception of certain major product development 
projects relating to new products or processes where reasonable certainty exists, as regards technical and commercial viability. Such expenditure is 
capitalised and amortised over the expected product life commencing in the year when sales of the product are made for the ﬁrst time.
Leased assets
Where assets are ﬁnanced by leasing agreements which give substantially the same rights as ownership (“ﬁnance leases”) the assets are treated 
as if they had been purchased outright at the capital value of the assets and the corresponding leasing commitments are shown as obligations 
to the lessor. The capital element of lease payments is applied to reduce the outstanding obligations and the interest is charged to the proﬁt 
and loss account over the period of the lease. Other rentals are charged wholly to the proﬁt and loss account.
Financial instruments
The only derivative instruments utilised by the Group are forward exchange contracts. Forward exchange contracts are used for hedging 
purposes to alter the risk proﬁle of an existing underlying exposure of the Group in line with the Group’s risk management policies.
Turnover
Turnover, which represents the value of goods and services supplied, excluding value added tax, trade discounts and commissions paid, 
is recognised on despatch of goods sold.
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   26 16/10/2007   18:02:40 27 Pure Wafer plc Annual report and accounts 2007
1. Principal accounting policies continued
Pension scheme arrangements
The Group makes contributions on behalf of its employees into deﬁned contribution pension arrangements. Contributions are charged 
to the proﬁt and loss account as incurred.
Share-based payment
In accordance with FRS20 (share-based payment), 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 Group’s estimate of shares or options that will eventually 
vest. In the case of options granted, fair value is measured by a Black-Scholes pricing model.
2. Segmental analysis
The Group’s activities and turnover primarily consist of the reclamation and reprocessing of silicon test wafers, in the UK and US for external customers.
The Group’s turnover is analysed by geographical territory of destination as follows:
       2007 2006 
       £000 £000
Europe       7,509 4,274
North America       9,319 6,514
South East Asia and Middle East       5,520 3,733
       22,348 14,521
The Group’s turnover is analysed by product variant as follows:
       2007 2006 
       £000 £000
150mm wafer reclaim       424 —
200mm wafer reclaim       3,389 1,763
300mm wafer reclaim and 50nm polishing       17,262 12,758
Other revenue       1,273 —
       22,348 14,521
The Group’s performance and position analysed by geographical territory of origin is as follows:
   Turnover  Proﬁt before taxation  Net assets 
   2007 2006 2007 2006 2007 2006 
   £000 £000 £000 £000 £000 £000
United Kingdom   20,310 14,521 2,785 1,955 26,738 23,512
North America (acquisitions)   2,038 — (83) — (83) —
   22,348 14,521 2,702 1,955 26,655 23,512
Analyses are based upon the Group’s management structure.
_0_PUR_ar07_back.indd   27 16/10/2007   18:02:40 28 Pure Wafer plc Annual report and accounts 2007
3. Operating proﬁt
Operating proﬁt is stated after charging:
       2007 2006 
      Note £000 £000
Depreciation:  
– owned assets       2,349 1,971
– leased assets       559 284
Hire of assets:  
– land and building       175 91
– equipment       141 145
– other       33 31
Amortisation:  
– goodwill       57 —
– other intangibles       52 —
Research and development written off to the proﬁt and loss account      434 260
Auditors’ remuneration:  
– statutory audits (Company: £12,000, 2006: £10,000)       40 22
– audit related regulatory reporting       9 8
– tax compliance and other       11 55
And after crediting:  
– release of grants       17 (310) (314)
In addition to the above, the Group incurred charges during 2007 from its auditors of £113,000 for due diligence and regulatory work 
in relation to the Group’s acquisition of the trade and assets of Exsil, Inc. This amount was capitalised.
Of the research and development charge in the year, £52,000 (2006: £nil) relates to amortisation of deferred expenditure. In addition to 
the research and development written off to the proﬁt and loss account, no expenditure was capitalised during the year (2006: £261,000).
Reconciliation of operating proﬁt for the year to EBITDA
       2007 2006 
       £000 £000
Operating proﬁt for the period       2,980 1,902
Depreciation       2,908 2,255
Amortisation of goodwill       57 —
Amortisation of other intangible ﬁxed assets       52 —
Charges associated with share options*       379 83
Release of deferred capital grant       (310) (314)
Earnings before interest, tax, depreciation and amortisation (EBITDA)      6,066 3,926
* Includes accrual for national insurance.
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   28 16/10/2007   18:02:40 29 Pure Wafer plc Annual report and accounts 2007
4. Directors’ emoluments
The remuneration paid to the directors was:
       2007 2006 
       £000 £000
Amounts paid to third parties for services of directors       — 30
Aggregate emoluments (including beneﬁts in kind)       598 464
       598 494
Pension contributions to a money purchase pension scheme      15 13
The pension contributions to the money purchase pension scheme are in relation to three (2006: three) directors.
Highest paid director:
       2007 2006 
       £000 £000
Aggregate emoluments (including beneﬁts in kind)       186 174
Pension contributions to a money purchase pension scheme      5 5
During the year, the highest paid director exercised the option to purchase shares in the Company from Apax.
Further details regarding directors’ emoluments are set out in the report of the remuneration committee.
5. Employee information
The average monthly number of persons employed by the Group (including directors) during the period was as follows:
       2007 2006 
       Number Number
Production       200 139
Sales and administration       26 19
       226 158
As at 30 June 2007, the Group had 280 employees.
The staff costs in respect of these employees were as follows:
       2007 2006 
       £000 £000
Salaries and wages       5,739 3,870
Social security costs       575 401
Pension costs       169 94
       6,483 4,365
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6. Interest payable and similar charges
       2007 2006 
       £000 £000
Bank loans       96 —
Imputed non-cash interest on interest free deferred consideration      45 —
Finance leases       286 145
       427 145
7. Taxation
       2007 2006 
       £000 £000
Current tax  
United Kingdom corporation tax at 30% (2006: 30%)       — — 
Total current tax       —  — 
Deferred tax  
Origination and reversal of timing differences       982  630 
Recognition of prior years’ tax losses       (3,842) (2,525)
Total deferred tax       (2,860) (1,895)
Tax on proﬁt on ordinary activities       (2,860) (1,895)
Tax assessed for the period is different to the standard rate of corporation tax in the UK of 30% (2006: 30%). The differences are analysed below:
Tax reconciliation
       2007 2006 
       £000 £000
Proﬁt/(loss) before taxation       2,701 1,955 
Proﬁt on ordinary activities multiplied by 30%       810  587 
Tax impact of:  
Accelerated capital allowances and other timing differences      (206) (322)
Expenses not deductible for tax purposes       (10)  10 
Utilisation of losses brought forward       (594) (283)
Tax losses not utilised       — 8 
Tax charged to the proﬁt and loss account       — — 
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
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7. Taxation continued
Deferred taxation
Current year proﬁts have been relieved against brought forward tax losses. As the directors are conﬁdent of the trading and ﬁnancial prospects 
of the Group, based upon short-term forecasts, a deferred tax asset has been recognised for part of the unutilised tax losses at 30 June 2007 
to the extent that the asset is regarded as recoverable. The quantum of the deferred tax asset will be reassessed annually.
The Pure Wafer Group, headed by Pure Wafer plc, has approximately £23.9m (2006: £25.1m) of taxation losses. Of this, £6.5m (2006: £5.1m) 
has been utilised to eliminate the requirement for a deferred tax liability, £16.7m (2006: £6.3m) has been recognised as a deferred tax asset 
(tax value of £4.7m) and £0.7m (2006: £13.7m) has not yet been recognised as a deferred tax asset (tax value of £0.2m). 
       2007 2006 
       £000 £000
Tax effect of timing differences due to:  
Excess of tax allowances over depreciation       1,996  1,550 
Other timing differences       (139) (19)
Losses       (6,612) (3,426)
Deferred tax asset       (4,755) (1,895)
Deferred tax asset brought forward       (1,895) — 
Deferred tax asset recognised in the year       (2,860) (1,895)
Deferred tax asset carried forward       (4,755) (1,895)
Announcements were made in the March 2007 Budget that the following changes to the corporation tax legislation would be enacted in the 
2007 and 2008 Finance Acts:
1) The reduction of the main rate of corporation tax to 28% from 1 April 2008 onwards (Finance Act 2007);
2) The abolition of balancing adjustments on the sale of industrial buildings from 21 March 2007 onwards (Finance Act 2007); and
3) The phasing out of industrial buildings allowances from 1 April 2008 onwards (Finance Act 2008). 
At the balance sheet date the Finance Act 2007 had been substantially enacted and the numbers reported in the ﬁnancial statements have 
therefore been impacted as follows:
1)  The change in the main rate of corporation tax has resulted in the deferred tax asset recognised at 30 June 2007 being reduced 
by £0.3m; and
2) The abolition of balancing adjustments on the sale of industrial buildings has had no impact on the reported ﬁgures.
The changes to be enacted in the Finance Act 2008 would however reduce the deferred tax asset recognised at 30 June 2007 by £0.1m. 
8. Loss for the ﬁnancial year of the parent company
As permitted by Section 230 of the Companies Act 1985, the Company’s proﬁt and loss account has not been included in these ﬁnancial 
statements. Of the proﬁt for the year, a loss of £737,000 (2006: loss of £158,000) is dealt with in the entity accounts of Pure Wafer plc.
_0_PUR_ar07_back.indd   31 16/10/2007   18:02:41 32 Pure Wafer plc Annual report and accounts 2007
9. Earnings per share
The basic earnings per share is calculated by dividing proﬁt attributable to ordinary shareholders by the weighted average number of ordinary 
shares in issue during the year. 
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential 
ordinary shares.
Earnings per share have been calculated as follows:
       2007 2006 
        (restated) 
       ‘000 ‘000
Weighted average number of ordinary shares:  
– in issue during the year       26,524 26,494
– options       487 205
– fully diluted       27,011 26,699
Unadjusted earnings       £5,562 £3,850
Add: share option charge       £300 £83
Less: recognition of deferred tax asset       £(2,860) £(1,895)
Adjusted earnings       £3,002 £2,038
10. Intangible ﬁxed assets
      Process  
      development Goodwill Total 
Group      £000 £000 £000
Cost         
At 1 July 2006      261 — 261
Exchange movements      — (104) (104)
Acquisition related      — 3,456 3,456
At 30 June 2007      261 3,352 3,613
Amortisation   
At 1 July 2006      — — —
Exchange movements      — (2) (2)
Charge for the year      52 57 109
At 30 June 2007      52 55 107
Net book value        
At 30 June 2007      209 3,297 3,506
At 30 June 2006      261 — 261
The Company does not have any intangible ﬁxed assets.
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   32 16/10/2007   18:02:41 33 Pure Wafer plc Annual report and accounts 2007
11. Tangible ﬁxed assets
   Long  Plant  Fixtures, 
   leasehold land and  ﬁttings and  Motor Construction 
    and buildings machinery equipment vehicles in progress Total 
Group   £000 £000 £000 £000 £000 £000
Cost       
At 1 July 2006   10,334 20,557 457 — — 31,348
Exchange movements   — (54) — — (29) (83)
Acquisition   — 1,795 — — — 1,795
Additions   36 5,355 276 11 1,922 7,600
At 30 June 2007   10,370 27,653 733 11 1,893 40,660
Depreciation      
At 1 July 2006   3,266 8,151 355 — — 11,772
Exchange movements   — (1) — — — (1)
Charge for the year   689 2,152 67 — — 2,908
At 30 June 2007   3,955 10,302 422 — — 14,679
Net book value      
At 30 June 2007   6,415 17,351 311 11 1,893 25,981
At 30 June 2006   7,068 12,406 102 — — 19,576
Plant and machinery includes assets held under ﬁnance leases with a net book value of £6,827,000 (2006: £4,601,000). The depreciation 
charge on these assets amounted to £559,000 (2006: £284,000).
The Company does not have any tangible ﬁxed assets.
12. Investments
        Shares in 
        subsidiary 
        undertakings 
Company        £000
At 1 July 2006        9,215
Additions        —
At 30 June 2007        9,215
Pure Wafer plc owns 100% of the issued ordinary shares of 10p each of Pure Wafer International Limited, a company registered in England and 
Wales. The principal activity of Pure Wafer International Limited is the reclamation and reprocessing of silicon test wafers for fabrication plants 
that manufacture silicon chips or integrated circuits.
Pure Wafer plc is the sole owner of Pure Wafer, Inc, a company incorporated in Delaware, US. The principal activity of Pure Wafer, Inc is the 
reclamation and reprocessing of silicon test wafers for fabrication plants that manufacture silicon chips or integrated circuits.
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13. Stock
     Group Group Company Company 
     2007 2006 2007 2006 
     £000 £000 £000 £000
Raw materials     2,043 789 — —
Work in progress     615 247 — —
Finished goods     154 29 — —
     2,812 1,065 — —
14. Debtors
     Group Group Company Company 
     2007 2006 2007 2006 
     £000 £000 £000 £000
Amounts falling due within one year:        
Trade debtors     4,317 3,207 — —
Accrued income     1,685 779 — —
Other debtors and prepayments     1,436 714 68 61
Amounts falling due after more than one year:        
Due from subsidiary company     — —  6,645 883
     7,438 4,700 6,713 944
Interest was charged by Pure Wafer plc to the subsidiary, Pure Wafer International Limited, at a rate of 1% (2006: 1%) above Bank of England 
base rate. Interest between Pure Wafer plc and Pure Wafer, Inc, was charged at a rate equivalent to the external rate achieved at the time 
of acquisition.
15. Creditors: amounts falling due within one year
     Group Group Company Company 
     2007 2006 2007 2006 
     £000 £000 £000 £000
Trade creditors     2,568 1,561 — —
Capital creditors     1,278 1,087 — —
Obligations under ﬁnance leases     1,384 655 — —
Bank loan to fund acquisition     942 — 942 —
Deferred consideration to fund acquisition     834 — 834 —
Corporation tax     15 15 — —
Payroll, other taxation and social security     619 253 147 97
Accruals and other creditors     1,125 458 — 13
     8,765 4,029 1,923 110
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
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16. Creditors: amounts falling due after more than one year
     Group Group Company Company 
     2007 2006 2007 2006 
     £000 £000 £000 £000
Obligations under ﬁnance leases     2,866 2,433 — —
Bank loan to fund acquisition     2,590 — 2,590 —
Deferred consideration to fund acquisition     867 — 867 —
     6,323 — 3,457 —
17. Deferred income
Deferred income comprises the unreleased balance of Regional Selective Assistance grants received to date:
       2007 2006 
Group       £000 £000
As at the beginning of the ﬁnancial year       3,175 3,489
Amount credited to the proﬁt and loss account in the period       (310) (314)
As at the end of the ﬁnancial year       2,865 3,175
The Company does not have any deferred income.
18. Financial instruments
Policy
The role that ﬁnancial instruments have had during the period in creating or changing the risks that the Group faces in its activities is 
summarised below. This note also sets out details of the objectives and policies for holding or issuing ﬁnancial instruments and similar contracts. 
Details are also set out of the strategies for achieving these objectives that have been followed during the year.
The numerical disclosures in this note deal with the ﬁnancial assets and ﬁnancial liabilities as deﬁned in Financial Reporting Standard 13: 
Derivatives and other Financial Instruments (“FRS13”). For this purpose, certain ﬁnancial assets such as investments in subsidiary companies 
are excluded from the scope of these disclosures.
As permitted by FRS13, short-term debtors and creditors have been excluded from the disclosures, other than currency disclosures. 
(a) Objectives, policies and strategies
Introduction
The Group’s ﬁnancial instruments, other than derivatives, comprise borrowings, some cash and various items such as trade debtors and trade 
creditors, which arise directly from its operations. 
The Group also enters into forward foreign currency transactions, the purpose of which is to manage the currency risks arising from the Group’s operations.
It is, and has been throughout the period, the Group’s policy that no trading in ﬁnancial instruments is undertaken.
The Group has borrowings at ﬁxed rates only. Where a variable rate loan is taken out, an interest rate swap is taken out to ﬁx the rate on the 
date of drawdown. Accordingly, the Group is not subject to interest rate risk on existing borrowings.
The main risks arising from the Group’s ﬁnancial instruments are foreign currency risk and liquidity risk. The Board reviews and agrees policies 
for managing these risks, as summarised below:
Foreign currency risk
Over 95% of the Group’s sales are invoiced in US Dollars. The majority of the Group’s costs are incurred in Sterling. The Group uses forward 
currency contracts and any other similar derivative instruments, based on the forecast exposure for each quarter, to manage the risk.
Liquidity risk
The Group constantly reviews its borrowing requirements to ensure adequate funds are available for ongoing operations. This is achieved 
through the preparation of cash ﬂow forecasts with comparison to actual performance.
Credit risk
The Group has procedures in place to mitigate credit risk, including: credit checks on potential new customers, review of the ﬁnancial position 
of existing customers and a regular review of the ageing of debts.
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18. Financial instruments continued
(b) Summary of ﬁnancial instruments
Short-term debtors and creditors are excluded from the disclosures at (b) to (g), except for the currency proﬁle at (c) below:
       2007 2006 
      Notes £000 £000
Summary of ﬁnancial instruments   
Financial assets   
– cash at bank       2,976  5,652
Financial liabilities   
– obligations under ﬁnance leases      (i) (4,250) (3,088)
– borrowings      (ii) (3,532) —
– deferred consideration      (iii) (1,701) —
(i) Finance leases
The ﬁnance leases are in US Dollars and are repayable over four years, with interest rates ﬁxed on the date of drawdown. The blended interest 
rate achieved on interest bearing ﬁnance leases outstanding on 30 June 2007 is 7.8% per annum (2006: 8.1%).
(ii) Borrowings
The borrowings represent the bank loan drawndown on 12 February 2007 to fund the purchase of the trade and assets of Exsil, Inc. The loan 
is at a variable rate, but an interest rate swap was taken out at the time of drawdown to ﬁx the rate at 6.94%. The borrowings are in US Dollars 
and are repayable over four years. The Group is subject to a number of ﬁnancial covenants as part of the loan agreement for these borrowings. 
The covenants are measured on a quarterly basis.
(iii) Deferred consideration
As part of the consideration payable to acquire the trade and assets of Exsil, Inc, an element was deferred and is payable in two parts. The ﬁrst 
tranche of $1,750,000 falls due on 12 February 2008 and the second tranche of $1,950,000 falls due on 12 February 2009. Neither tranche 
is contingent on any criteria and as such are backed by an irrevocable letter of credit by the Group’s bankers.
(c) Currency proﬁle of ﬁnancial assets and liabilities
During the period, the functional currency of all of the Group’s operations has been Sterling.
The net amount of monetary assets/(liabilities) denominated in currencies other than Sterling as at each balance sheet date covered 
by this report was as follows:
       2007 2006 
       £000 £000
US Dollars       (6,659) 1,611
Euro       (763) (161)
Yen       (128) (8)
       (7,550) 1,442
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   36 16/10/2007   18:02:42 37 Pure Wafer plc Annual report and accounts 2007
18. Financial instruments continued
(d) Maturity proﬁle of ﬁnancial assets and liabilities
At 30 June 2007 the Group had bank and cash deposits of £2,976,000 (2006: £5,652,000) available on demand. 
Borrowings were repayable as follows:
       2007 2006 
       £000 £000
In one year or less, or on demand:  
– obligations under ﬁnance leases       (1,384) (655)
– borrowings       (942) —
– deferred consideration       (834) —
In more than one year but not more than two years:  
– obligations under ﬁnance leases       (1,418) (1,391)
– borrowings       (943) —
– deferred consideration       (867) —
In more than two years but not more than ﬁve years:  
– obligations under ﬁnance leases       (1,448) (1,042)
– borrowings       (1,647) —
Total       (9,483) (3,088)
All ﬁnance leases are secured on speciﬁc items of plant and machinery. Borrowings are secured by a ﬁxed and ﬂoating charge across the Group.
The deferred consideration is interest free, and guaranteed by a letter of credit. In accordance with UK GAAP , the value of the deferred 
consideration has been discounted back in order to charge a notional interest rate thereon.
Following the year end, Pure Wafer, Inc has made the ﬁrst drawdown on funding secured at the time of acquisition. This drawdown ($889,000) 
is to fund spending on the development of 300mm capacity at the Pure Wafer US site in Arizona.
(e) Fair value of ﬁnancial assets and liabilities
The fair value of the Group’s cash at bank and in hand and its ﬁnance leases as at 30 June 2007 and 30 June 2006 is considered by the 
directors not to be signiﬁcantly different to the book value.
(f) Hedging 
The Group has, on occasion, entered into forward foreign currency contracts to hedge against the currency exposures that arise on sales 
denominated in foreign currencies. Changes in the fair value of instruments used as hedges are not recognised in the ﬁnancial statements 
until the hedged position matures. 
At 30 June 2007, the fair value of unrealised gains on these ﬁnancial instruments amounted to £39,000 (2006: £10,000) of which £nil 
(2006: gains of £106,000) were carried forward in the balance sheet.
(g) Borrowing facilities
Aside from headroom within the ﬁnance leasing facilities and the letters of credit backing the deferred consideration relating to the acquisition, 
the Group did not have any unutilised borrowing facilities at 30 June 2007.
_0_PUR_ar07_back.indd   37 16/10/2007   18:02:42 38 Pure Wafer plc Annual report and accounts 2007
19. Called up share capital
       2007 2006 
       £000 £000
Authorised        
50,000,000 ordinary shares of 2p each       1,000 1,000
       1,000 1,000
Allotted and fully paid        
26,591,182 ordinary shares of 2p each       532 530
       532 530
Potential issues of ordinary shares
There are several share option schemes outstanding as of 30 June 2007. The number of shares subject to option is 731,484 (2006: 390,186). 
Details of option price, performance and exercise criteria are found in note 20 (share-based payments).
20. Share-based payments
A summary of the movements in the year is scheduled out below:
      2007  2006 
      Weighted  Weighted 
      average  average 
       exercise   exercise 
     2007 price 2006 price 
     (Number)  (£) (Number)  (£)
Outstanding at 1 July     390,186 0.95 138,621 1.45
Granted during the year     446,659 0.10 279,754 0.73
Lapsed during the year     8,448 1.97 28,189 1.29
Exercised during the year     96,913 1.45 — —
Outstanding at 30 June     731,484 0.35 390,186 0.95
The fair value of share options granted in the year was £1,060,000 (2006: £523,000).
All schemes are equity settled.
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   38 16/10/2007   18:02:42 39 Pure Wafer plc Annual report and accounts 2007
20. Share-based payments continued
Details of the share option schemes outstanding during the year and inputs into the Black-Scholes model used for calculating the fair value 
of the options, are as follows:
  Listing  Performance Save Performance Save 
  option  share as you share as you 
  scheme  plan earn plan earn 
  FY05  FY06  FY06  FY07  FY07
Financial year of grant  2005 2006 2006 2007 2007
Exercise price (£)  1.45 0.02 2.27 0.02 1.96
Financial year in which options may be exercised  2007 – 2015 2009 – 2016 2009 2010 – 2017 2010
Performance criteria  None EPS 2008 None EPS 2009 None
Outstanding at 1 July 2005  138,621 — — — —
Granted during 2006  — 191,482 88,272 — —
Lapsed during 2006  16,207 6,382 5,600 — —
Outstanding at 30 June 2006  122,414 185,100 82,672 — —
Granted during 2007  — — — 429,211 17,448
Lapsed during 2007  3,103 — 5,345 — —
Exercised during 2007  96,913 — — — —
Outstanding at 30 June 2007  22,398 185,100 77,327 429,211 17,448
Exercisable at 30 June 2006  — — — — —
Exercisable at 30 June 2007  22,398 — — — —
Share price at date of grant  £1.45 £2.35 £2.835 £2.46 £2.45
Dividend yield  0% 0% 0% 0% 0%
Risk-free interest rate  4.4% 4.3% 4.2% 4.5% 4.5%
Volatility*  1.24x 1.24x 1.24x 1.24x 1.24x
Estimated time to expiration from date of grant**  912 days 1277 days 1277 days 1277 days 1277 days
Fair value per option  £0.15 £2.33 £0.87 £2.44 £0.78
Weighted average market price at date of exercise  £2.91 — — — —
*  Given the limited empirical evidence associated with the share price movements of Pure Wafer plc, the expected volatility is based upon the 
historical volatility of a selection of comparator companies of similar size from the UK technology market sector.
** There is an assumption that all shares are exercised within six months of the ﬁrst possible date of exercise.
The charge for the year was £300,000 (2006 (restated): £83,000).
_0_PUR_ar07_back.indd   39 16/10/2007   18:02:42 40 Pure Wafer plc Annual report and accounts 2007
21. Movement in shareholders’ funds
      Proﬁt Total Total 
   Share Share Merger  and loss 2007 2006 
   capital premium reserve  account  (restated) 
Group   £000 £000 £000 £000 £000 £000
Beginning of the year   530 12,644 30,425 (20,087) 23,512 19,579
Net proceeds of new shares   2 139 — — 141 —
   532 12,783 30,425 (20,087) 23,653 19,579
Adjustment in respect of employee share schemes   — — — 300 300 83
Proﬁt for the period   — — — 5,562 5,562 3,850
End of year   532 12,783 30,425 (14,225) 29,515 23,512
      Proﬁt   
    Share Share  and loss Total Total 
    capital premium  account 2007 2006 
Company    £000 £000 £000 £000 £000
Beginning of the year    530 12,644 (29) 13,145 13,303
Net proceeds of new shares    2 139 — 141 —
    532 12,783 (29) 13,286 13,303
Loss for the period    — — (737) (737) (158)
    532 12,783 (766) 12,549 13,145
22. Cash ﬂow from operating activities
       2007 2006 
        (restated) 
       £000 £000
Operating proﬁt       2,980 1,902
Depreciation of tangible ﬁxed assets       2,908 2,255
Amortisation of intangible ﬁxed assets       109 —
Share option charge       300 83
Release of deferred income       (310) (314)
Increase in debtors       (1,933) (1,369)
Increase in stocks       (1,425) (645)
Increase in creditors       1,630 765
Net cash inﬂow from operating activities       4,259 2,677
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   40 16/10/2007   18:02:42 41 Pure Wafer plc Annual report and accounts 2007
23. Reconciliation of net cash ﬂow to movement in net funds
       Non-cash  
     At    ﬂow and At 
     1 July Cash   foreign  30 June 
     2006 ﬂow exchange 2007 
     £000 £000 £000 £000
Cash at bank     5,652 (2,484) (192) 2,976
Finance leases     (3,088) (1,474) 312 (4,250)
Borrowings     — (3,613) 81 (3,532)
Deferred consideration     — — (1,701) (1,701)
Net funds     2,564 (7,571) (1,500) (6,507)
24. Financial commitments
At 30 June 2007, the Group had placed contracts for future capital expenditure for a total of £2,789,000 (2006: £2,354,000).
The Group has the following annual commitments under non-cancellable operating leases:
 Land and buildings  Equipment  Other
   2007 2006 2007 2006 2007 2006 
   £000 £000 £000 £000 £000 £000
Expiring in:        
Less than one year   — — 58 61 — —
One to two years   — — 8 — — 7
Two to ﬁve years   81 54 8 8 26 28
More than ﬁve years   235 37 — — — —
   316 91 74 69 26 35
25. Pensions
The UK companies within the Group make contributions on behalf of its employees into a deﬁned contribution pension scheme. Contributions 
are charged to the proﬁt and loss account as incurred and the charge in the year amounted to £130,000 (2006: £94,000).
During the period, under Pure Wafer ownership, the US subsidiary contributed £39,000 to a “401k scheme” for retirement beneﬁts on behalf 
of its employees.
Outstanding Group pension and 401k scheme contributions at 30 June 2007 amounted to £50,000 (2006: £13,000). 
_0_PUR_ar07_back.indd   41 16/10/2007   18:02:42 42 Pure Wafer plc Annual report and accounts 2007
26. Acquisition of trade and assets of Exsil, Inc
On 12 February 2007, the Group acquired the trade and assets of Exsil, Inc for a cash consideration of $7,500,000 and deferred consideration 
of $3,700,000 (on an interest free basis, with $1,750,000 due on 12 February 2008 and $1,950,000 due on 12 February 2009).
A summary of the assets acquired is below:
      Accounting   
      policies   
    Book Fair value and other Fair Fair 
     value adjustment adjustments  value  value 
    £000 £000 £000 £000 £000
Net assets acquired:  
Tangible ﬁxed assets    2,080 (285) — 1,795 
Stocks    406 — (84) 322 
Debtors     639 — 32 671 
Creditors, including liabilities associated with the cost of making the acquisition   (365) — (324) (689) 
        2,099
Goodwill        3,456
Consideration        5,555
Consideration satisﬁed by:  
Cash       3,846 
Present value of deferred consideration       1,709 
        5,555
Assets at the date of acquisition have been translated at the exchange rate prevailing on the date of acquisition.
The previous results of the trade and assets acquired have historically not been reported separately. Consequently, no disclosure of trading 
performance prior to the date of acquisition by Pure Wafer plc is made.
27. Related party transactions
Transactions with directors and between Group companies
Directors’ remuneration is disclosed in Note 4 to the ﬁnancial statements. The parent company has taken advantage of the exemptions available 
under FRS8 not to disclose transactions with other Group companies as more than 90% of voting rights of the subsidiaries are held within the Group.
During the year, the Group was charged £4,366 (2006: £nil) by M J Associates Limited in respect of regional public relations services. 
M J Associates Limited is a company ultimately owned and controlled by C G Clarke. A total of £1,763 (2006: £nil) was owed to M J Associates Limited 
as at 30 June 2007.
Notes to the ﬁnancial statements for the year ended 30 June 2007 continued
_0_PUR_ar07_back.indd   42 16/10/2007   18:02:42 43 Pure Wafer plc Annual report and accounts 2007
Notice is given that the 2007 Annual General Meeting of Pure Wafer plc (“Company”) will be held at 12pm on 14 November 2007 
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 will be proposed as ordinary resolutions and resolutions 
7 and 8 will be proposed as special resolutions.
1.  To receive the directors’ report and the Company’s annual accounts for the year ended 30 June 2007, together with the auditors’ report 
on those accounts.
2. To reappoint K Baker as a director of the Company.
3. To reappoint P D B Dolan as a director of the Company.
4. To reappoint E ap Gwilym as a director of the Company.
5.  To appoint Deloitte & Touche 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 (see note 5 of this notice).
6. To authorise the directors to ﬁx the remuneration of the auditors.
7. That the directors of the Company be and are hereby generally and unconditionally authorised to issue and allot: 
 7.1  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; and
 7.2  relevant securities (within the meaning of Section 80 of the Companies Act 1985 (“Act”)) up to an aggregate nominal amount 
of £159,547
  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.
8.  That, subject to the passing of resolution 6, pursuant to Section 95 of the Act in substitution for all existing authorities under that section, 
the directors be and are generally empowered to allot equity securities (within the meaning of Section 94(2) of the Act) for cash pursuant 
to the authority conferred by resolution 6 as if Section 89(1) of the Act did not apply to any such allotment, provided that this power shall 
be limited to:
 8.1  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;
 8.2  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; and
 8.3  the allotment of equity securities for cash (otherwise than pursuant to paragraphs 7.2 and 7.3 above) up to an aggregate nominal 
amount of £26,591
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. 
Notice of Annual General Meeting
_0_PUR_ar07_back.indd   43 16/10/2007   18:02:43 44 Pure Wafer plc Annual report and accounts 2007
Resolutions continued
9.  That, pursuant to Section 166 of the Act, the Company be and is generally and unconditionally authorised to make market purchases 
(within the meaning of Section 163 of the Act) of ordinary shares of 2p each in the capital of the Company (“Shares”), provided that:
 9.1 the maximum number of Shares which may be purchased is 2,659,118;
 9.2 the minimum price (exclusive of expenses) which may be paid for a Share is 2p; and
 9.3  the maximum price (exclusive of expenses) which may be paid for a Share is an amount equal to 105% of the average of the middle 
market quotations for the Shares as derived from the Daily Ofﬁcial List of the London Stock Exchange for the ﬁve business days 
immediately preceding the day on which the purchase is made
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 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
James Dearing Registered Ofﬁce
Company Secretary Pure Wafer plc
19 October 2007 Central Business Park
 Swansea Vale
 Swansea SA7 0AB
Notes
1.  Only those members registered in the register of members of the Company as at 12pm on 12 November 2007 or, in the event that 
the meeting is adjourned, in the register of members 48 hours before the time of any adjourned meeting shall be entitled to attend or vote 
at the meeting in respect of the number of shares registered in their name at that time. Changes to entries in the register of members after 
12pm on 12 November 2007 or, in the event that the meeting is adjourned, after 48 hours before the time of any adjourned meeting 
shall be disregarded in determining the rights of persons to attend or vote at the meeting.
2.  A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and, on a poll, to vote instead of him/her. 
A proxy need not be a member of the Company. The appointment of a proxy will not preclude a member from attending and voting in person 
at the meeting if he or she so wishes.
3.  A form of proxy is enclosed. To be valid, it must be deposited at the ofﬁces of the Company’s registrars, Capita Registrars, The Registry, 
34 Beckenham Road, Kent BR3 4TU, by 12pm on 12 November 2007 (or, in the event that the meeting is adjourned, no later than 
48 hours before the time of any adjourned meeting).
4.  The register of interests of directors and their connected persons in the share capital of the Company is available for inspection during normal 
business hours at the registered ofﬁce of the Company (excluding weekends and public holidays). It will also be available for inspection at the 
place of the AGM from 11am on the day of the meeting until the conclusion of the meeting.
5.  In September 2007, the Board put the Group audit out to tender in order to adhere to corporate governance guidelines. Following a competitive 
tender process, the Board is recommending the appointment of Deloitte & Touche LLP .
Notice of Annual General Meeting continued
_0_PUR_ar07_back.indd   44 16/10/2007   18:02:43 Capita Registrars (Proxies)
PO Box 25
Beckenham
Kent BR3 4BR
Business Reply
Licence Number
MB 122 For use by shareholders in connection with the Annual General Meeting of Pure Wafer plc to be held on 14 November 2007.
I/We (Block capitals)  .................................................................................................................................................................
of (address)  ..............................................................................................................................................................................
being a member/members of Pure Wafer plc, hereby appoint the chairman of the meeting/or 
.................................................................................................................................................................................................
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on 14 November 2007 
and at any adjournment thereof, and I/we direct him/her to vote as follows in respect of the following resolutions to be proposed at the meeting.
If you want your proxy to vote in a certain way on the resolutions speciﬁed please place a mark in the relevant boxes. If you select 
‘discretionary’ or fail to select any of the given options your proxy can vote as he or she chooses or can decide not to vote at all. 
The proxy can also do this on any other resolution that is put to the meeting.
The ‘Vote withheld’ option is provided to enable you to abstain on any particular resolution however it should be noted that a 
‘Vote withheld’ is not a vote in law and it will not be counted in the calculation of the proportion of votes ‘For’ and ‘Against’ a resolution.
    Vote   
 Ordinary resolutions For* Against* withheld* Discretionary*
  Resolution 1 To receive the directors’ report and the Company’s  
annual accounts for the year ended 30 June 2007
 Resolution 2 To reappoint K Baker as a director of the Company
  Resolution 3 To reappoint P D B Dolan as a director of the Company
  Resolution 4 To reappoint E ap Gwilym as a director of the Company
   Resolution 5 To appoint Deloitte & Touche LLP as auditors of  
the Company
   Resolution 6 To authorise the directors to ﬁx the remuneration  
of the auditors
  Resolution 7 That the directors of the Company be and are hereby  
generally and unconditionally authorised to issue and allot ordinary  
shares and relevant securities
    Resolution 8 That, subject to the passing of resolution 6, the directors  
be and are generally empowered to allot equity securities
    Resolution 9 That, pursuant to Section 166 of the Act, the Company be 
and is generally and unconditionally authorised to make market purchases
* Please indicate by inserting x how you wish your vote to be cast on the resolutions
Signed ................................................................................................................ Dated .................................................
Notes:
1.  A member may appoint a proxy of his own choice, who need not be a member of the Company. If such an appointment is made, delete 
the words “the chairman of the meeting” and insert the name of the person appointed by proxy in the space provided. Please initial any such 
alteration. Return of a form of a proxy will not preclude a member from attending and voting at the meeting in person should he so decide.
2.  If the appointor is a corporation, this form of proxy must be executed under its seal or under the hand of an ofﬁcer, attorney or other person 
authorised to sign the same on its behalf. If the appointor is not a corporation, this form of proxy must be executed under the hand of the 
appointor or of his attorney duly authorised in that behalf.
3.  In the case of joint holders, the signature of any one holder will be sufﬁcient but the names of all the joint holders should be stated. The vote 
of the senior joint holder who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of other joint holders, 
and, for this purpose, seniority shall be determined by the order in which the names stand in the register of members in respect of the joint holding.
4.  T o be effective this form of proxy must be lodged at the ofﬁce of the Company’s registrars, Capita Registrars, PO Box 25, Beckenham, Kent, BR3 4TU 
not less than 48 hours before the start of the meeting or adjourned meeting and must be accompanied by any power of attorney or other 
authority under which it is signed or by a notarially certiﬁed copy of such power or authority.
Form of proxy 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 re-use of silicon test wafers within their production processes. 
“
”
Our history
Pure Wafer was established in 
2000 by a management team widely 
experienced in the semiconductor 
industry with the backing of strategic 
investment from Venture Capital and 
industry partners. 
The Group ﬂoated on AIM in 
December 2004 and in February 
2007 Pure Wafer completed the 
acquisition of a wafer reclaim 
facility in Arizona, US.
The Group is now an industry leading 
provider of wafer reclaim services.
 
Our facilities – UK
The UK business operates from a 
state of the art, purpose built facility 
situated in a new technology park 
in Swansea, Wales 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. 
We have installed the latest generation 
of tools available on the market, 
with the most advanced equipment 
as used by IC and prime silicon 
producers. With the highest technical 
speciﬁcations, we are positioned to 
offer the most effective wafer reclaim 
service to our customers with minimal 
silicon removal. This enables our 
customers to maximise the number 
of times a test wafer can be reclaimed.
Our facilities – US
The facility in Prescott, Arizona 
was constructed in 1997 and 
has received in excess of $40m 
of investment since then. This high 
volume high-tech fab has been 
focussed on provision of 100mm, 
125mm, 150mm and 200mm 
wafer reclaim services, but following 
the acquisition by Pure Wafer in 
February 2007 capability to reclaim 
300mm wafers has been installed.
Wafer reclaim
During the many stages of 
the manufacturing process of 
semiconductors, large quantities 
of test wafers are used to check 
the accurate calibration of 
equipment. These test wafers 
are a key consumable in the 
manufacture of semiconductors 
and the ability to reclaim them 
through Pure Wafer’s advanced 
process provides manufacturers 
with the opportunity to reduce costs.
The semiconductor industry is currently 
seeing a rapid transition to 300mm 
wafers. In order for manufacturers to 
continue to increase 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 
sophisticated process. Only a few 
companies worldwide are able to 
meet the exacting standards required 
by semiconductor manufacturers 
for the reclaim of 300mm wafers, 
of which Pure Wafer is one.
Our process
At Pure Wafer, our process for 
reclaiming test wafers involves 
the following key 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
The Company has an established track record, one of the world’s most advanced wafer 
reclaim facilities and a blue chip customer base that includes some of the world’s 
largest semiconductor manufacturers and independent foundries. As a business 
partner, Pure Wafer works with its customers to design and develop a service that 
delivers reclaimed wafers to the exact speciﬁcations and high standards required 
by today’s leading semiconductor manufacturers. 
“
”
At a glance
_01_cover.indd   2 16/10/2007   18:01:58  01 Highlights
 02 Chairman’s statement
 04 Chief executive’s review
 06 Financial review
 10 Board directors, senior management  
  and advisers
 12 Directors’ report
 15 Corporate governance report
 17 Report of the remuneration committee
 20 Statement of directors’ responsibilities
 21 Independent auditors’ report
 22 Consolidated proﬁt and loss account
 23 Balance sheets
 24 Consolidated cash ﬂow statement
 25 Notes to the ﬁnancial statements
 43 Notice of annual general meeting
“
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 a state of the art foundry which 
has the capability to meet the stringent 
standards of purity and ﬂatness required 
by its customers.
Pure Wafer is listed on the Alternative 
Investment Market (AIM) 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.
“
Pure Wafer plc
Annual report and accounts 2007 
07
Pure Wafer plc Annual report and accounts 2007
Pure Wafer plc
Central Business Park 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax: +44 (0)1792 795 420 
Web: www.purewafer.com
Corporate statement
_01_cover.indd   1 16/10/2007   18:01:41