Pure Wafer plc 
Annual report and accounts
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
Pure Wafer plc  Annual report and accounts 2008 Corporate statement
Pure Wafer is an industry leading provider 
of silicon wafer reclaim services. Pure Wafer 
cleans and polishes silicon wafers sent 
for reclaim by many of the world’s largest 
semiconductor manufacturers. Pure Wafer 
operates 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.
 IFC Corporate statement 
01 Highlights
 02 Pure Wafer at a glance 
 04 Chairman’s statement 
06 Chief executive’s review 
 07 Financial review 
10  Board of directors, senior management 
and advisers 
 12 Directors’ report 
17 Directors’ remuneration report 
19 Consolidated statement of directors’ responsibilities
20 Consolidated independent auditors’ report 
21 Consolidated income statement 
 22 Statement of changes in equity 
 23 Consolidated balance sheet
 24	 Consolidated	cash	flow	statement
 25	 Notes	to	the	consolidated	financial	statements
45 Company statement of directors’ responsibilities
46 Company independent auditors’ report
 47 Company balance sheet
48	 Notes	to	the	company	financial	statements	
51 Notice of Annual General Meeting 01 Annual report and accounts 2008  Pure Wafer plc
Highlights
›  Turnover £22.3m (2007: £22.3m)
›  EBITDA £3.1m (2007: £5.8m)
› 	 	 Operating	profit	£0.2m	(2007:	£3.5m)
› 	 	 P re-tax	loss	£0.8m	(2007:	£3.6m	profit)
›  Pre-tax loss £0.1m before restructuring 
costs	and	other	losses	(2007:	£3.2m	profit)
›   Basic loss per share 23.1p (2007: earnings 
per share 10.5p) 
› 	 	 Net	cash	inflow	from	operating	activities	
£1.7m (2007: £4.3m)
Financial
Operational
› 	 	 UK	site	in	Swansea	h as	been	
operationally restructured
›  USA operation in Prescott, Arizona, 
has increased 300mm capacity and 
is	in	process	of	obtaining	qualification	
to act as a supplier to the majority of 
US semiconductor manufacturers
› 	 	 The	 US	Dollar	remained	weak	against	
Sterling	during	the	period;	however ,	
following	period-end,	Sterling	has	
weak ened	against	the	US	Dollar
› 	 	 Business	now	stabilised	and,	with	spare	
capacity ,	is	ready	to	tak e	advantage	of	
the	upswing	in	the	semiconductor	mark et	
when	it	occurs 02 Pure Wafer plc  Annual report and accounts 2008
Pure Wafer at a glance
Our history
P ure	W afer	was	established	in	 2 0 0 0 	 b y	
a 	 m a n a g e m e n t 	 t e a m 	 w i d e l y 	 experienced	
in	the	semiconductor	 i n d u s t r y 	 w i t h 	 t h e	
b a c k i n g 	 o f 	 s t r a t e g i c 	 i n v e s t m e n t 	 f r o m	
Venture Capital and industry partners. 
T h e 	 G r o u p 	 fl o a t e d 	 o n 	 A I M 	 i n 	 D e c e m b e r 	 2 0 0 4	
and in February 2007 Pure Wafer completed 
t h e 	 a c q u i s i t i o n 	 o f 	 a 	 w a f e r 	 r e c l a i m 	 f a c i l i t y 	 i n	
Arizona, US.
T h e 	 G r o u p 	 i s 	 n o w 	 a n 	 i n d u s t r y 	 l e a d i n g	
provider	o f 	 w a f e r 	 r e c l a i m 	 s e r v i c e s .
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	mark et,	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	ser vice	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 (USA)
The	facility	in	P rescott,	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 	 ser vices,	
but	following	the	acquisition	by	P ure	W afer	
in February 2007 capability to reclaim 
300mm	wafers	has	been	installed.
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.  03 Annual report and accounts 2008  Pure Wafer plc
Our process
At Pure Wafer, our process for reclaiming 
t e s t 	 w a f e r s 	 i n v o l v e s 	 t h e 	 f o l l o w i n g 	 k e y 	 s t a g e s :	
› 	 I n s p e c t i o n 	 o f 	 t h e 	 w a f e r s 	 f o r 	defects	
a n d 	 c l a s s i fi c a t i o n 	 b y 	 t y p e 	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 
› 	 F inal	quality	inspection	and	packaging	
for return to the customer
About 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	k ey	
consumable in the manufacture of semiconductors and the ability 
to reclaim them through Pure Wafer’s advanced process provides 
manufacturers	with	the	oppor tunity	to	reduce	costs.
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	industr y .	
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. 04 Pure Wafer plc  Annual report and accounts 2008
Introduction
The year to 30 June 2008, particularly the 
second half of the financial year, was one of the 
most challenging for Pure Wafer as the industry 
experienced a continued slowdown in the 
semiconductor market, cutbacks in capital 
spending, a steep decline in chip prices, 
a weak US dollar, record high oil prices 
and a tightening of the availability of credit. 
As these conditions deteriorated we saw 
increased competition, a marked reduction 
in wafer volume orders, intense pressure on 
our selling prices, increased freight costs and 
the adverse impact of a weak US Dollar.
A key fundamental of wafer reclaim as 
a cost-saving service to semiconductor 
manufacturers remains. Transition from 200mm 
to 300mm silicon wafers for the production of 
semiconductors going forward continues and 
bodes well for the future. However, it has 
become clear to us that the recovery in the 
industry is likely to take longer than first 
envisaged, a view shared by industry analysts.
Financial results
› Turnover £22.3m (2007: £22.3m)
› EBITDA £3.1m (2007: £5.8m)
› Operating profit £0.2m (2007: £3.5m)
› Pre-tax loss £0.8m (2007: £3.6m profit)
›  Pre-tax loss £0.1m before restructuring costs 
and other losses (2007: £3.2m profit)
›  Basic loss per share 23.1p (2007: earnings 
per share 10.5p) 
›  Net cash inflow from operating activities 
£1.7m (2007: £4.3m)
Whilst the results are disappointing following 
a satisfactory first half to the financial year, 
the board are encouraged by the actions of the 
management team during the second half to 
reduce the impact of the adverse market conditions.
Group funding
The current trading environment is challenging; 
however, to the date of approving the financial 
statements, the group has continued to meet its 
capital and interest repayments on all its debt. 
During the year, the group has recorded a 
pre-tax loss and has relied on waivers of 
loan covenant tests at 30 June 2008 and 
30 September 2008 in order to stay in line 
with banking facility arrangements. As we 
announced in June 2008, the board continues 
to be in discussions with its principal lenders. 
The current management forecasts for the 
remainder of the year to 30 June 2009 indicate 
that the company needs to reschedule the 
capital repayments of debt, including the letter 
of credit for $1.95m (being the final deferred 
consideration of the acquisition of the USA 
facility which falls due in February 2009), 
and may also need to obtain waivers of future 
covenant tests. The directors have instituted 
measures to preserve cash and continue to 
negotiate the rescheduling of our current 
debt obligations. 
Preliminary approach and strategic options
The board has received a preliminary 
indicative approach to acquire Pure Wafer plc. 
Whilst negotiations are in progress, there can 
be no certainty that an offer will be made. 
The directors are also pursuing alternative 
strategic options and sources of finance in 
the event that neither the offer for the business, 
nor a restructuring of existing borrowing 
facilities, can be arranged. No commitment 
has been secured to date and we will update 
shareholders when it is appropriate to do so.
Management
In November 2007, we announced that 
Keith Baker would be stepping down as 
group chief executive officer to take up his role 
as group chief operating officer to focus on the 
day-to-day running of the Swansea and Arizona 
sites. Peter Harrington, a co-founder of the business 
and formerly Strategic Developments director, 
replaced Keith as group chief executive officer.
We have further strengthened our board during 
the period with the addition of Stephen Young 
as interim group finance officer in April 2008, 
replacing James Dearing; he is a chartered 
management accountant (CIMA) and an 
experienced public company finance director, 
whose previous position was with British Biocell 
International (formerly BBI Holdings plc).
Following the period-end in July 2008, we 
announced that Giles Clarke would be stepping 
down from his position of non-executive chairman 
to deputy chairman; Eurfyl ap Gwilym was 
appointed as non-executive chairman in his place. 
Eurfyl has served on the Pure Wafer board since its 
IPO in December 2004 in the roles of non-executive 
director, chairman of the remuneration committee 
and deputy chairman of the board.
In October 2008 we announced the appointment 
of Stephen Boyd to the board as a non-executive 
director, effective from 1 October 2008. Stephen, 
aged 58, a chemical engineer by training, having 
gained a 1st class honours degree in chemical 
engineering at Imperial College, London, has 
Chairman’s statement
Pure Wafer has undertaken a full operational 
restructuring process to reflect the situation in 
the market; progress has been made to reduce 
costs and the business is now more efficiently 
structured to reflect current demand.  05 Annual report and accounts 2008  Pure Wafer plc
Highlights
›  Satisfactory first half financial year
›  Transition from 200mm to 300mm silicon wafers continues
›  Significant board changes
worked in a number of manufacturing industries 
including five years as group chief executive of 
Capital Industries plc. Stephen currently sits on 
a number of boards of both public and private 
companies, mainly in the technology sector, 
and is currently chairman of Pittards plc.
I would like to thank the entire team for their 
support and effort during the challenging year. 
Outlook
Trading for the first half of the 2009 financial year 
has been encouraging to date, although the 
outlook for the semiconductor industry remains 
difficult as the global economy continues to face 
turbulence and uncertainties. The downturn in 
the industry, coupled with an over-supply of wafer 
reclaim capacity, has continued to put pressure 
on pricing and volumes during the current 
financial year and we do not expect an early 
market-wide recovery in the industry.
Pure Wafer has undertaken a full operational 
restructuring process to reflect the situation in 
the market; progress has been made to reduce 
costs and the business is now more efficiently 
structured to reflect current demand. These actions, 
together with the 300mm capacity installed at 
both our facilities in the UK and the USA, put 
Pure Wafer in a good position to take advantage 
of the industry recovery going forward.
The US Dollar has significantly strengthened 
against Sterling since 30 June 2008 and, 
should this remain, will have a positive impact 
on revenue and cash flow going forward.
EUrFyl AP GWIlyM
Non-executive chairman
19 December 2008 06 Pure Wafer plc  Annual report and accounts 2008
Highlights:
›  UK site in Swansea has been 
operationally restructured
›  USA operation in Prescott, Arizona, 
has increased 300mm capacity and is 
in process of obtaining qualification to 
act as a supplier to the majority of US 
semiconductor manufacturers
›  The US Dollar remained weak against 
Sterling during the period; however, 
following period-end, Sterling has 
weakened against the US Dollar
›  Business now stabilised and, with spare 
capacity, is ready to take advantage of the 
upswing in the semiconductor market when 
it occurs
Operational review
The volumes for 200mm wafer reclaim for the 
full year to 30 June 2008 were up by 51% 
when compared with the prior year; this increase 
reflects the first set of results which include a 
full year performance of the Prescott, Arizona, 
acquisition. 300mm wafer reclaim for the year 
showed a slight decrease in volumes of 5% 
compared with the prior year, with all of this 
decrease experienced in the second half following 
stable volumes in the first half of the year. 
The slowdown in the industry and the 
increased competition from new Taiwanese 
competitors resulted in significant pressure 
on selling prices. Therefore, during the second 
half of the year, we undertook a full operational 
restructuring process during which we have 
driven efficiencies and realised cost savings 
across the business. These actions, together 
with the 300mm capacity installed at both 
Swansea and Prescott, put Pure Wafer in 
a good position to take advantage of the 
industry recovery going forward.
Prescott site, Arizona, USA
It has been a busy time for the site in Prescott, 
Arizona. The development of the site to install 
300mm wafer reclaim capacity and the transfer 
of the 300mm technology from our Swansea 
site were concluded early in the year, both on 
time and within budget. The qualification of 
the first 300mm customer was completed and 
the first revenue-bearing 300mm wafers were 
achieved in October 2007, just eight months 
after the acquisition. 
The site now has a 300mm line with an 
approximate capacity of 30,000 wafers per month 
and is in a position to take advantage of the 
significant US market.
During the period, the site engaged with nearly 
every North American semiconductor manufacturer 
and is currently qualified or in the qualification 
process with all of them. The ramp-up of 
volume sales continued during the period and 
the business is well placed to build upon this 
success. The Prescott site remains cash positive 
and profitable at an EBITDA level and the US 
remains a key market for us.
Swansea site, UK
The Swansea site undertook a significant 
operational restructuring process during the 
period, aimed at reducing the cost per wafer 
to enhance the competitiveness of our product 
without reducing quality. This process has 
been successful and we managed to achieve 
significant cost savings during the period, 
whilst maintaining our position at the leading 
edge of our industry.
Both 300mm and 200mm volumes remained 
relatively stable during the period, with a small 
decrease in volumes seen during the second 
half as the prolonged slowdown of the industry 
took hold. 
Market and new products
We continue to explore opportunities outside 
of wafer reclaim to enhance our portfolio of 
products, although we will only do so in areas 
where we have certainty of the end market and 
where we will not incur significant research and 
development costs. We are confident that we 
can deliver new product developments in areas 
of global growth, compatible with our existing 
core skills and world-class manufacturing 
equipment and facilities.
PEtEr HArrING tON
Group chief executive
19 December 2008
Chief executive’s review
The Prescott site remains cash positive 
and profitable at an EBITDA level and 
the US remains a key market for us. 07 Annual report and accounts 2008  Pure Wafer plc
Highlights
›  Further capacity increases underway
›  Arizona site performed in line with expectations
›  New customers on board
›  Market growth continues 08 Pure Wafer plc Annual report and accounts 2008
International Financial r eporting Standards (IFrS)
This annual report is the first delivered by the 
group under IFRS, therefore the prior year 
statement figures to 30 June 2007 have been 
restated accordingly. Comments on the group’s 
key performance indicators are presented below.
r evenue
Revenue for the period was £22.3m, a decrease 
of 0.4% on last year (2007: £22.3m); an analysis 
of turnover by origin and destination can be found 
in note 5.
Volumes
The volume of 300mm equivalent wafers at 
1,028,000 (2007: 898,000) was 14% up on 
the prior year. These figures include full year 
(2007: 4½ months) volumes from the business 
acquired in the USA. The 300mm equivalent 
volume is used as a constant measure to convert 
100mm, 125mm, 150mm and 200mm wafer 
sizes to the same surface area of that of a 
300mm wafer; volumes in the US are 
predominantly 200mm and below.
Gross profit
Gross profit at £6.2m (2007: £8.9m), a reduction 
of 30%, was impacted by the reduction in average 
300mm selling prices in the marketplace, which 
fell more quickly than management envisaged. 
The gross profit margin reduced accordingly to 
28% (2007: 40%).
Operating profit
The operating profit of £0.2m (2007: £3.5m) 
was achieved after incurring £0.4m (2007: £nil) 
of restructuring costs and a cost of £0.2m 
in relation to exiting an existing customer 
agreement, the latter cost being included 
in administration costs.
In addition, the depreciation and amortisation 
charge included in the operating profit was 
£2.9m (2007: £2.4m); after taking this 
into account, earnings before interest, 
tax, depreciation and amortisation (EBITDA) 
was £3.1m (2007: £5.8m).
Administrative expenses
Administrative expenses of £5.7m (2007: £5.5m) 
for the group remained broadly constant; 
however, this included a full year of cost from 
the acquisition of the Prescott, Arizona, facility 
of £1.4m (2007: £0.7m for 4½ months).
(Loss)/profit before tax
The loss before tax was £0.8m 
(2007: £3.6m profit).
Despite the challenges arising from the increase 
in customer specifications as the requirement 
for smaller and lower numbers of particles 
per wafer continues to progress, the 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.
Foreign exchange
As over 95% of group revenue is in US Dollars, 
revenue and margins are significantly impacted 
by the movement in this currency. 
We continue to convert as much of the cost 
base as possible to US Dollars in order to 
provide a natural hedge against the US Dollar 
revenue streams. 
Cash flow and capital expenditure
The group continues to be cash generative on 
an operating level, with a net cash inflow from 
operating activities of £1.7m (2007: £4.3m).
However, the financing structure of the group 
and the current schedule of debt repayment 
have resulted in a reduction of cash of £2.0m 
for the year, from £3.0m to £1.0m. As at 
30 June 2008, £3.9m of interest bearing loans 
were due for repayment within one year and 
the final tranche of deferred consideration for 
the US acquisition of £0.9m (or US$1.95m) 
is due for repayment in February 2009. 
During the period, capital equipment with the 
value of £5.0m was acquired, with £3.3m 
of this expenditure at the US site in relation 
to completion of the 300mm line.
taxation
There is no current tax charge across the group. 
Due to the losses incurred during the year, 
the board has taken the prudent decision to 
remove the deferred tax asset of £5.3m from 
the balance sheet, as it is not expected to 
be utilised within the foreseeable future. 
This generates a non cash deferred tax 
charge for the year of £5.3m.
Deferred consideration
The business in Prescott, Arizona, was 
purchased for US$11.2m, comprising a 
payment of US$7.5m on completion in 
February 2007, US$1.75m after 12 months 
in February 2008, and a further US$1.95m 
interest-free deferred consideration instalment 
falling due in February 2009.
Financial review
We continue to convert as much of the 
cost base as possible to US Dollars in 
order to provide a natural hedge against 
the US Dollar revenue streams.  09 Annual report and accounts 2008  Pure Wafer plc
The initial purchase payment of US$7.50m was 
funded through a four-year variable interest rate 
loan from Royal Bank of Scotland (“RBS”) that 
was fixed through an interest rate swap at the 
time of drawdown to a rate of 6.9% per annum. 
The US$1.75m deferred consideration was 
also funded through a four-year variable interest 
rate loan from RBS that was also fixed to 4.8% 
through an interest rate swap at the drawdown 
in February 2008. The final deferred consideration 
payment is not contingent and, accordingly, 
is backed by a letter of credit from RBS. 
The deferred consideration payment has been 
discounted to present value and is reflected in the 
accounts as a financial liability within net funds. 
As the amount has been discounted, an imputed 
non-cash interest charge is levied through the 
income statement each period until the deferred 
consideration is paid.
EPS and dividend
Basic loss per share for the period was 23.1p 
(2007: 10.5p earnings per share), which includes 
the effect of the provision against the UK deferred 
tax asset. Removing the impact of tax, the adjusted 
loss per share is 3.0p (2007: 13.6p earnings 
per share).
Due to the current economic climate, the cash 
constraints faced by the group moving forward 
and the lack of available distributable reserves 
the board is not able to recommend the 
payment of a dividend for this financial year.
StEPHEN y OUNG
Interim group finance officer
19 December 2008
   Year ended Year ended 
   30 June 31 June 
   2008 2007  
   £’000 £’000
Turnover   22,268 22,348
Gross profit   6,180 8,917
EBITDA   3,094 6,066
Operating profit   162 2,980
(Loss)/profit before tax   (799) 2,702
Adjusted diluted EPS   (23.1)p 11.11p
We continue to convert as much of the cost base as possible to US Dollars in order to provide 
a natural hedge against the US Dollar revenue streams. 
The table below shows, year-on-year, the average rate achieved by the group after taking into 
account the impact of hedging instruments.
   Year ended  Year ended 
   30 June 2008 31 June 2007
Opening rate £1 = US$   2.01 1.84
Average rate achieved (after hedging) £1 = US$  2.01 1.91
Closing rate £1 = US$   1.98 2.01 10 Pure Wafer plc  Annual report and accounts 2008
Board directors, senior management and advisers
1. Dr EUrFyl AP GWIlyM
Non-executive chairman
Eurfyl ap Gwilym has a wide experience of 
the technology industry, having served on 
the boards of many companies including 
Philips Electronics, GE Information Services 
and BIS Banking International. He is currently 
a non-executive director of a number of listed 
companies and the Principality Building Society. 
Eurfyl joined the board in November 2004. 
2. GIlES Cl ArKE dl Non-executive director and deputy 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 Chaco Resources plc. 
He joined the board in November 2004.
3. PAUl DOl AN fca Non-executive director
Paul Dolan spent many years as an audit partner 
at Deloitte, where his clients included several 
semiconductor and technology companies. 
Paul retired from Deloitte in 2004. In 2006, 
he took up the position of non-executive director 
at XP Power plc, and remained in this position 
until the relocation of XP Power plc to Singapore 
in 2007. Paul joined the board of Pure Wafer plc 
in June 2007 and became chair of the Audit 
Committee on appointment to the board.
StEPHEN BO yD
Non-executive director
Stephen Boyd has worked in a number of 
manufacturing industries, including five years 
as group chief executive of Capital Industries 
plc. Stephen currently sits on a number of 
boards of both public and private companies, 
mainly in the technology sector and is currently 
Chairman of Pittards plc. Stephen joined the 
board on 1 October 2008.
Non-executive directors
1. 
4. 
2. 
5. 
3.  11 Annual report and accounts 2008  Pure Wafer plc
4. PEtEr HArrING tON
Group chief executive
Peter Harrington is a co-founder of the company. 
He has over 30 years industry experience in 
commercial and project management roles. 
Peter was previously finance executive with 
Meissner+Wurst, one of the world’s leading 
constructors of semiconductor fabrication facilities.
5. KEItH BAKEr
Chief operating officer
Keith Baker is a co-founder of the company. 
He has many years experience in the 
semiconductor industry, working for leading 
chip manufacturers such as Siemens 
Microelectronics and National Semiconductor. 
Keith was previously vice president of 
technology for Steag Microtech, where he 
played a key role in the early development 
of the 300mm wafer manufacturing processes.
StEPHEN yOUNG
Interim group finance officer
Stephen Young is a chartered management 
accountant (CIMA) and an experienced public 
company finance director. Stephen has held the 
position of finance director at several technology 
companies, including the AIM listed British Biocell 
International (formerly BBI Holdings plc).
Executive directors
InTErIm COmPAnY SECrETAr Y  
And rEgISTErEd OffICE
S YOUng
PUrE W AfEr PlC
Central Business Park
Swansea Vale
Swansea SA7 0AB
SOlICITOrS
mOrgAn COlE 
Llys Tawe
Kings Road
Swansea SA1 8PG
BAnkErS
rOYAl BAnk Of SCOTl And
One Kingsway
Cardiff CF10 3YB
nOmInATEd AdvISErS/BrOkErS
Al TIUm
30 St James’s Square
London
SW1Y 4AL 
AUdITOrS
dEl OITTE llP
Blenheim House 
Fitzalan Court 
Newport Road 
Cardiff CF24 0TS
rEgISTrArS
CAPITA rEgISTrArS
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
PUBlIC rEl ATIOnS AdvISErS
fInAnCIAl dYnAmICS
Holborn Gate
26 Southampton Buildings
London WC2A 1PB
Advisers 12 Pure Wafer plc  Annual report and accounts 2008
The directors present their annual report and the audited financial statements of the group for the year ended 30 June 2008.
Principal activity 
The principal activity of the group remains the reclaim of silicon test wafers. The principal activity of the company is as a holding company 
and provision of management services to the group’s trading subsidiaries.
The consolidated income statement is set out on page 21.
A review of developments affecting the group during the year and its prospects for the future is set out in the Chairman’s statement and the 
Chief executive’s review.
Business review
A detailed review of the group’s operations and key performance indicators is contained in the Chairman’s statement on pages 4 and 5, the 
Chief executive’s review on pages 6 and 7 and the Financial review on pages 8 and 9.
Information about the use of financial instruments by the company and its subsidiaries is given in note 24 to the financial statements. 
Dividends
The directors do not recommend the payment of a dividend (2007: £nil).
Risks and uncertainties 
There are a number of potential risks and uncertainties which could have a material impact on the company’s long-term performance.
Liquidity and funding risk
The current environment is challenging; however, to the date of approving this financial statement the group has met its capital and interest 
repayments on all its debt. During the year, the group has recorded a pre-tax loss and has relied on waivers of loan covenant tests at 30 June 2008 
and 30 September 2008 in order to stay in line with banking facility arrangements. As we announced on 30 June 2008, the board continues to 
be in discussion with its principal lenders who remain supportive. The current management forecasts for the remainder of the year to 30 June 2009 
indicate that the company needs to reschedule the capital repayments of debt and may also need to obtain waivers of future loan covenant tests. 
The directors have instituted measures to preserve cash and reschedule the current debt repayment obligations.
The board has received an indicative preliminary approach to acquire Pure Wafer plc. Whilst negotiations are in progress, there can be no certainty 
that an offer will be made. If any sale is arranged, it is likely to include a cash injection which will be used to reduce the debt obligations of the 
group, but if not, the group will need to restructure the finance facilities such that the debt can be serviced from forecast levels of trading and 
cash flow.
The directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business nor a restructuring 
of existing facilities can be arranged. No commitment has been secured to date and we will update shareholders when it is appropriate to do so. 
Successful resolution of these matters is essential to be able to secure ongoing funding and continue trading. 
Market risk
Volumes – in the current climate, there is a risk that sales volumes will continue to decrease, leading to a reduction in market prices as our 
competitors compete for existing business. The possibility of temporary shutdown or closure of customers’ manufacturing facilities increases 
this risk. We mitigate the risk by maintaining our standards of quality and endeavouring to qualify to provide wafer reclaim services to as 
many of the major semiconductor manufacturers as we can.
Price – competitive pressures create a risk that the market price for wafer reclaim services will fall, affecting our gross margin. We mitigate 
this risk by understanding the production cost for each wafer and only tendering for work at rates that will achieve an acceptable return.
Credit risk
The group offers short term credit to customers and there is a risk that customers will default on payments for services provided. The group 
manages the risk by trading with a wide range of customers in diverse geographical locations and monitoring the creditworthiness of customers, 
both before offering credit terms and during their relationship with Pure Wafer. 
Treasury risk
Foreign exchange – the group’s sales are predominantly in US dollars, so the strong Pound against the US Dollar has reduced reported revenue. 
The group currently hedges a portion of this risk with forward exchange contracts, but also achieves natural hedges by incurring a proportion 
of the group’s operating costs and securing all of the loan finance in dollars.
Interest rate – the group’s borrowings include variable rate term loans and fixed rate finance leases. We mitigate the risk associated with our 
variable rate loans by entering into interest rate swaps to fix the interest rate for the duration of the loans. 
Competitor risks
New entrants – the high level of investment required and the related cost of capital makes this unlikely in the current market conditions.
Directors’ report  13 Annual report and accounts 2008  Pure Wafer plc
Technology risk
As the group operates in a technology sector, there is a risk that the process could be superseded and new capital investment required; however, 
the board feels that this is extremely unlikely in the current market and based on available knowledge of new product/technology developments.
Capital structure
Details of the authorised and issued share capital, together with details of the movements in the company’s issued share capital during the year, 
are shown in note 25. The company has one class of ordinary shares which carries no right to fixed income. Each share carries the right to one 
vote at general meetings of the company. 
There are no specific restrictions on the size of a holding or on the transfer of shares, which are both governed by the general provisions of the 
Articles of Association and prevailing legislation. The directors are not aware of any agreements between holders of the company’s shares that 
may result in restrictions on the transfer of securities or on voting rights. Substantial shareholders are listed in a separate section that follows.
Details of employee share schemes are set out in note 26. 
No person has any special right of control over the company’s share capital and all issued shares are fully paid.
With regard to the appointment and replacement of directors, the company is governed by its Articles of Association, the Companies Acts and 
related legislation. The Articles themselves may be amended by special resolution of the shareholders. The powers of directors are described 
in the Main Board Terms of Reference, copies of which are available on request, and the Corporate governance statement on page 15.
Under its Articles of Association, the company has authority to issue ordinary shares up to an aggregate nominal value equal to 5% of the 
aggregate nominal ordinary share capital as in issue immediately following admission.
Supplier payment policy 
The group’s policy is to settle terms of payment with suppliers when agreeing the terms of trade. Trade creditors of the group at 30 June 2008 
were equivalent to 67 days (2007: 81 days) purchases, based on the average daily amount invoiced by suppliers during the year. 
Directors and their interests 
The current directors of the company, who served throughout the financial year unless stated otherwise, are as shown below. 
C G Clarke non-executive director 
E ap Gwilym non-executive chairman
†
 
P Dolan non-executive director 
S Boyd non-executive director (appointed 1 October 2008) 
P Harrington group chief executive 
K Baker chief operating officer ** 
S Young interim group finance officer (appointed 23 June 2008) 
J J Dearing group finance director * (resigned 30 April 2008)
 * J J Dearing stood down as group finance director on 14 November 2007, and was replaced by P Dolan as interim group finance director until 23 June 2008.  
J J Dearing resigned from the board on 30 April 2008.
**K Baker stood down as group chief executive on 14 November 2007, and was replaced by P Harrington.
 †E ap Gwilym took over from C G Clarke as chairman on 10 July 2008.
The beneficial interests of the directors in the share capital of the company at the beginning and the end of the financial year were as follows:
        30 June 31 June  
        2008 2007 30 June 30 June 
        2p ordinary 2p ordinary 2008 2007 
        share share 2p ordinary 2p ordinary 
        options options shares shares 
        Number  Number  Number  Number
C G Clarke        — — 279,482 279,482
E ap Gwilym        — — 25,000 25,000
P Harrington        95,203 95,203 159,066 159,066
K Baker        158,911 158,911 163,012 163,012
P Dolan        — — 65,000 —
The directors held no shares in any other group company at any time during the financial year. 14 Pure Wafer plc  Annual report and accounts 2008
Substantial shareholders 
As at 8 December 2008, notifications of beneficial interests in 3% or more of the company’s issued share capital are as follows:
         Ordinary shares 
         Number %
Blackrock Investment Management         5,443,149 20.47
AXA Framlington          2,675,352 10.06
Goldman Sachs Group          2,111,883 7.94
Ellipsiz Ltd          2,000,500 7.52
Aviva          1,959,184 7.37
Noble Fund Managers          1,780,000 6.69
Polar Capital European Forager Fund Ltd        1,483,748 5.58
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
Jupiter Asset Management         1,027,126 3.86
Revera Asset Management         919,776 3.46
Standard Life Investments Ltd         800,000 3.02
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 next AGM unless previously renewed, varied or revoked by the company in general meeting.
Resolutions to renew the authorities will be prepared at the 2008 AGM to be held on 4 February 2009.
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.
Health and safety, environmental and social responsibility
The company has detailed health and safety guidelines which are communicated to all employees, and which are regularly reviewed for suitability 
in the context of the company’s activities.
The group is fully committed to protecting the environment in which we live and work, both ecologically and socially. A formal policy is in place 
with internal management control systems to ensure that this is achieved as best as is practicable, and to ensure that the international standard 
for environmental management ISO 14001 is met.
Charitable and political donations
The group did not make any monetary charitable or political donations during the period.
Going concern
The group’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the 
Chairman’s statement on pages 4 and 5. The financial position of the group, its cash flows, liquidity position and borrowing facilities are 
described in the Financial review on pages 8 and 9. In addition note 24 to the financial statements includes the group’s objectives, policies 
and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; 
and its exposures to credit risk and liquidity risk. The directors have assessed the balance sheet and likely future cash flows of the company 
and group at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the financial statements 
on a going concern basis. 
As described in the Chairman’s statement on pages 4 and 5, the current environment is challenging. The company has recorded a pre-tax loss 
and has relied on waivers of loan covenant tests at 30 June and 30 September 2008 in order to stay in line with banking facility arrangements. 
In forming the conclusion about the going concern basis, the directors have considered these factors together with the forecasts for the business 
for the period to 30 June 2010. The forecasts indicate that the company can continue to meet interest payments, but it needs to reschedule some 
of the capital repayments of debt and may also need to obtain waivers of future loan covenant tests. The company has met all capital and interest 
payments as they fell due up to the date of approving the financial statements. Whilst the directors have instituted measures to preserve cash and 
reschedule the current repayment obligations, these circumstances create material uncertainties over future cash flows and the availability of finance. 
Directors’ report 
continued 15 Annual report and accounts 2008  Pure Wafer plc
As explained in the Chairman’s statement on  pages 4 and 5, the board has received a preliminary indicative approach to acquire Pure Wafer plc. 
Whilst negotiations are progressing, there can be no certainty that an offer will be made. If any sale is arranged, it is likely to include a cash injection 
which will be used to reduce the debt obligations of the company, but if not, the group will need to restructure the finance facilities such that the 
debt can be serviced from forecasted levels of trading and cash flow.
The directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business, nor a restructuring 
of existing facilities, can be arranged. No commitment has been secured to date. 
The directors have concluded that the combination of circumstances represents a material uncertainty that casts significant doubt upon the group’s 
and the company’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities 
in the normal course of business. Nevertheless, after making enquiries, and considering the uncertainties described above, the directors have 
a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. 
For these reasons, they continue to adopt the going concern basis in preparing the annual report and financial statements. 
The financial statements do not include any adjustments that would result if the going concern assumption were not applicable. 
Corporate governance 
The company is listed on AIM and is therefore not required to comply with the provisions of the Combined Code. However, the board adopts a 
number of principles of the Combined Code that it feels are relevant to a business of the size and complexity of Pure Wafer plc, as set out below.
During the year the board comprised a non-executive chairman, three executive directors and a further 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 company.
Board responsibilities
The board of directors, which includes four non-executive directors, meets regularly throughout the year. 
C G Clarke, E ap Gwilym, S Boyd and P Dolan are considered by the board to be independent non-executive directors. Between 14 November 2007 
and 23 June 2008, P Dolan acted as interim finance director and was not considered independent during this period.
The board is responsible for overall group strategy, acquisition and investment policy, approval of major capital expenditure projects and consideration 
of significant financing matters. There is a formal schedule of matters specifically reserved to the board’s jurisdiction. It reviews the strategic 
direction of the group, its annual budgets, the progress towards achievement of those budgets, its forecasts and its capital expenditure 
programmes. In furtherance of their duties, there are agreed procedures for the directors to take independent advice, if necessary, at the 
company’s expense.
The board considers the chairman to be the main point of contact to whom concerns of whatever nature may be conveyed. In the event that 
an individual does not wish to raise a concern with him, the board has identified the deputy chairman as an independent member of the board 
to whom such concerns may be addressed.
Audit committee
The company has an audit committee comprising two non-executive directors and the chairman. Excepting the period between 14 November 2007 
and 23 June 2008, the committee was chaired by P Dolan. E ap Gwilym stood in as audit committee chair during those dates. The committee 
provides a link between the board and the group’s auditors on matters falling within the scope of the group’s audit. These matters include accounting 
standards and policies, internal financial control procedures and the group’s statutory financial statements, which are intended for publication. 
Remuneration committee
The remuneration committee comprises the 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 executive directors. 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, Peter Harrington, reports any decisions taken, 
with justification, to the board as quickly as practicable.
Board meetings
There were nine board meetings during the period to 30 June 2008. All board members attended every meeting that took place whilst they were 
a director. 16 Pure Wafer plc  Annual report and accounts 2008
Directors’ report 
continued
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 company reports formally to the shareholders twice a year, when its half-year and full-year results are announced, and the interim report and 
annual report are sent to shareholders. The annual report is accompanied by notice of the AGM of the company, at which a presentation is given 
and directors are available to take questions, both formally during the meeting and informally after the meeting. The management is available for 
dialogue with major shareholders on the company’s plans and objectives and from time to time meets with them.
Auditors
In the case of each of the persons who are directors of the company at the date when this report is approved:
›  so far as each of the directors is aware, there is no relevant audit information (as defined in the Companies Act 1985) of which the company’s 
auditors are unaware; and
›  each of the directors has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit 
information (as defined) and to establish that the company’s auditors are aware of that information. 
This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985.
Deloitte & Touche LLP were appointed as the company’s auditors during the year. On 1 December 2008, Deloitte & Touche LLP changed their 
name to Deloitte LLP and have indicated their willingness to continue in office. A resolution for their reappointment will be proposed at the 
forthcoming Annual General Meeting.
Approved by the board of directors and signed on behalf of the board 
PeTeR HARRinGTon
19 December 2008  17 Annual report and accounts 2008  Pure Wafer plc
Directors’ remuneration report 
introduction
This report sets out Pure Wafer’s executive remuneration policy, structure and details of remuneration received by directors in the year ended 
30 June 2008. This report is unaudited.
Role of the remuneration committee
The remuneration committee is responsible for:
›  establishing and recommending to the board the policy for executive remuneration;
›  determining, on behalf of the board and shareholders the level and structure of remuneration packages of the executive directors; and
›  reviewing and ensuring the alignment of executive remuneration with remuneration throughout the organisation, including company share schemes.
The remuneration of non-executive directors is determined by the board as a whole. No director is involved in discussions related to his own remuneration.
Membership and meetings
Members of the committee were E ap Gwilym, chair of the committee, C G Clarke and P Dolan. All the members of the committee are 
non-executive directors. The committee met three times during the year and all the members attended each meeting.
Advisers
During the year, the remuneration committee received guidance from the non-executive chairman, the chief executive officer and the company 
secretary, except on matters relating to their own remuneration.
Remuneration policy
The committee and board believe that in order to attract, motivate and retain a senior management team of the right calibre it is necessary 
to provide a competitive market-based remuneration structure which rewards company and individual performance.
Remuneration packages comprise:
›  basic salary;
›  annual performance related bonus;
›  other benefits; and
›  participation in share incentive plans.
Basic salary
Salaries are normally reviewed annually and any changes are effective from July in each year. Pay reviews take into account company and 
individual performance.
Performance related bonuses
Payments under the scheme are based upon the achievement of financial targets for the company as set by the remuneration committee.
Benefits
Benefits in kind include the provision of a car or car allowance, a payment of private fuel, private medical insurance, life assurance and 
permanent health insurance.
Share incentives
Under the executive share option scheme, members of the management team, including non-directors, have options over 414,697 shares 
(2007: 614,311), 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 lapsed Balance at  price at  Performance  
    1 July during 30 June  date of  Exercise period  
    2007  year  2008    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     
        
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     
        
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
     —     
J Dearing resigned from the board on 30 April 2008 and all his options lapsed at this point.
No executive director schemes vested in the period. 18 Pure Wafer plc  Annual report and accounts 2008
Share incentive schemes (non-directors)
The group also operates a share option scheme in relation to employees who are not directors.
The group had granted options over 138,621 shares during 2006. The exercise price of the options is £1.45 and the option can be exercised by 
the individuals at any point from two years from the date of issue, up to a period of ten years from the date of issue of the option. These options 
do not have any performance criteria. There remain 22,398 share options under the scheme that have not yet been exercised or lapsed.
SAYe Scheme
Each year a SAYE scheme is set up for the benefit of all employees.
Directors’ remuneration
         Compensation 
         for loss Total Total 
     Salary Benefits Bonus Pension of office 2008 2007 
Director     £ £ £ £ £ £ £
C G Clarke     75,000 — — — — 75,000 100,000
K Baker     119,400 21,492 42,000 5,000 — 187,892 191,145
J Dearing*     61,500 671 29,300 4,583 48,450 144,504 117,728
P Harrington     108,488 12,701 33,800 5,000 — 159,989 148,328
E ap Gwilym     31,350 — — — — 31,350 31,350
P Dolan**     80,000 — — — — 80,000 575
J Samuel     — — — — — — 23,513
     475,738 34,864 105,100 14,583 48,450 678,735 612,629
 * To date of resignation on 30 April 2008.
** Salary includes elements which relate to non-executive director role and as interim group finance director between 14 November 2007 and 23 June 2008.
Service contracts for directors
K Baker has a service agreement with the company dated 9 December 2004, subject to termination upon twelve month’s notice given by either 
party.
P Harrington has a service agreement with the company dated 9 December 2004 subject to termination upon six month’s notice given by either party. 
Letters of appointment for non-executive directors
C G Clarke has a letter of appointment with the company dated 1 June 2006, which is subject to termination upon a notice period 
of twelve months’ given by either party
E ap Gwilym has a letter of appointment with the company dated 1 June 2006, which is subject to termination upon a notice period 
of twelve months’ given by either party.
P Dolan has a letter of appointment with the company dated 25 June 2007, which is subject to termination upon a notice period 
of twelve months’ given by either party.
Directors’ interest in shares
The beneficial interest of directors at the end of the year in the ordinary share capital of the company is set out in the directors’ report.
euRfYL AP GWiLYM
Chairman of Remuneration Committee
19 December 2008 19 Annual report and accounts 2008  Pure Wafer plc
Consolidated statement of directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements. The directors have prepared the financial statements 
for the group in accordance with International Financial Reporting Standards (IFRSs). Company law requires the directors to prepare such 
financial statements in accordance with IFRSs, the Companies Act 1985 and Article 4 of the IAS Regulation.
International Accounting Standard 1 requires that financial statements present fairly for each financial year the company’s financial position, 
financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions 
in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting 
Standards Board’s ‘Framework for the preparation and Presentation of Financial Statements’. In virtually all circumstances, a fair presentation 
will be achieved by compliance with all applicable International Financial Reporting Standards. Directors are also required to:
› properly select and apply accounting policies;
›  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; and 
›  provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand 
the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance. 
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the company, for safeguarding the assets, for taking reasonable steps for the prevention and detection of fraud and other irregularities and 
for the preparation of the directors’ report which comply with the requirements of the Companies Act 1985. 
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing 
the preparation and dissemination of financial statements differs from legislation in other jurisdictions. 20 Pure Wafer plc  Annual report and accounts 2008
Consolidated independent auditors’ report 
to the members of Pure Wafer plc
We have audited the group financial statements of Pure Wafer Plc for the year ended 30 June 2008 which comprise the consolidated income 
statement, the consolidated statement of changes in equity, the consolidated balance sheet, the consolidated cash flow statement and the related 
notes 1 to 30. These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and 
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the 
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the consolidated financial statements in accordance with applicable law and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the statement of directors’ responsibilities.
Our responsibility is to audit the consolidated financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the consolidated financial statements give a true and fair view and are 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 
consolidated financial statements. 
In addition we report to you if, in our opinion, the group 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 the Chairman’s Report, Chief Executive’s Report, Business Review, Directors’ Report and Directors’ Remuneration Report and consider 
whether they are consistent with the audited consolidated financial statements. We consider the implications for our report if we become aware 
of any apparent misstatements or material inconsistencies with the consolidated financial statements. Our responsibilities do not extend to any 
further information outside the annual report. 
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 consolidated financial statements. 
It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the consolidated financial 
statements, and of whether the accounting policies are appropriate to the group’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 consolidated financial statements 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 consolidated financial statements.
opinion
In our opinion:
›  the financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the group’s 
affairs as at 30 June 2008 and of its loss for the year then ended;
›  the financial statements have been properly prepared in accordance with the Companies Act 1985, and Article 4 of the IAS regulations; and 
›  the information given in the Directors’ Report is consistent with the financial statements.
emphasis of matter – going concern
Without qualifying our opinion, we draw attention to the disclosures made in note 2 of the financial statements concerning the group’s ability 
to continue as a going concern. The group has relied on waivers of loan covenant tests at 30 June and 30 September 2008 in order to stay 
in line with banking facility arrangements and needs to reschedule its capital repayments of debt. These conditions, along with other matters 
as set forth in note 2, indicate the existence of a material uncertainty which may cast significant doubt about the group’s ability to continue 
as a going concern. The financial statements do not include the adjustments that would result if the group were unable to continue as a 
going concern as it is not practicable to determine or quantify them.
DeLoiTTe LLP
Chartered Accountants and Registered Auditors
Cardiff, united Kingdom
19 December 2008 21 Annual report and accounts 2008  Pure Wafer plc
Consolidated income statement
year ended 30 June 2008
      2008 2007 
     Note £’000 £’000
Revenue     4 22,268 22,348
Cost of sales      (16,088) (13,431)
Gross profit      6,180 8,917
Depreciation and amortisation      (2,932) (2,387)
Share-based payment credit/(charge)      426 (379)
Other administrative expenses      (3,157) (2,690)
Total administrative expenses      (5,663) (5,456)
Restructuring costs      (355) —
Earnings before interest, tax, depreciation and amortisation      3,094 5,848
Depreciation and amortisation      (2,932) (2,387)
Operating profit     6 162 3,461
Investment revenue     8 182 149
Finance costs      9 (777) (427)
Other (losses)/gains         10 (366) 412
(Loss)/profit on ordinary activities before taxation      (799) 3,595
Tax on (loss)/profit on ordinary activities     11 (5,331) (810)
(Loss)/profit for the financial year      (6,130) 2,785
     
(Loss)/earnings per share     12  
Basic      (23.1)p 10.5p
Diluted      (23.1)p 10.3p
     
All activities derive from continuing operations. 22 Pure Wafer plc  Annual report and accounts 2008
Statement of changes in equity
year ended 30 June 2008
          Exchange  
      Share Premium  Merger  Retained  translation  Total 
      capital  account  reserve earnings  reserve  equity 
      £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 July 2006 – as restated   530 12,644 30,425 (18,072) — 25,527
Net loss on translation of subsidiaries with foreign functional currency   — — — — (1,774) (1,774)
Profit for the financial year  — — — 2,785 — 2,785
New shares issued  2 139 — — — 141
Equity-settled share-based payments  — — — 300 — 300
Balance at 30 June 2007  532 12,783 30,425 (14,987) (1,774) 26,979
Net gain on translation of subsidiaries with foreign functional currency   — — — — 140 140
Loss for the financial year  — — — (6,130) — (6,130)
Equity-settled share-based payments  — — — (386) — (386)
Balance at 30 June 2008  532 12,783 30,425 (21,503) (1,634) 20,603 23 Annual report and accounts 2008  Pure Wafer plc
      2008 2007 
      Note £’000 £’000
Non-current assets     
Goodwill     13 3,348 3,297
Other intangible assets     13 146 185
Property, plant and equipment     14 24,254 22,136
      27,748 25,618
Current assets     
Inventories     15 3,311 2,812
Trade and other receivables     16 5,177 7,438
Derivative financial instruments     19 50 33
Deferred taxation asset     22 — 5,334
Assets held for sale     17 735 —
Cash and cash equivalents      962 2,976
      10,235 18,593
Total assets      37,983 44,211
     
Current liabilities     
Trade and other payables     18 (3,541) (5,590)
Interest-bearing loans and borrowings     20 (3,894) (2,326)
Deferred consideration     23 (943) (834)
Derivative financial instruments     19 (150) (15)
Current tax liabilities      — (15)
      (8,528) (8,780)
     
Non-current liabilities     
Interest-bearing loans and borrowings     20 (6,912) (5,456)
Deferred income      (1,940) (2,129)
Deferred consideration     23 — (867)
      (8,852) (8,452)
Total liabilities      (17,380) (17,232)
Net assets      20,603 26,979
Equity     
Share capital     25 532 532
Share premium account      12,783 12,783
Merger reserve       30,425 30,425
Retained earnings      (21,503) (14,987)
Exchange translation reserve      (1,634) (1,774)
Total equity      20,603 26,979
These financial statements were approved by the board of directors on 19 December 2008 and signed on its behalf by
PeTeR HARRinGTon  STePHen YounG
Chief executive  Interim group finance officer
19 December 2008   19 December 2008
Consolidated balance sheet
30 June 2008 24 Pure Wafer plc  Annual report and accounts 2008
Consolidated cash flow statement
year ended 30 June 2008
      2008 2007 
      Note £’000 £’000
Net cash inflow from operating activities      28 1,733 4,259
Investing activities      
Interest received      182 149
Purchase of property, plant and equipment       (4,964) (7,927)
Acquisition of subsidiary      — (3,846)
Acquisition of subsidiaries – deferred consideration payments     23 (857) —
Net cash used in investing activities       (5,639) (11,624)
Financing activities      
Interest paid      (777) (347)
Repayment of bank loans      (1,002) 
Repayments of obligations under finance leases      (1,645) 
Increase in borrowings      5,547 5,087
Proceeds on issue of shares      — 141
Net cash used in financing activities       2,123 4,881
Net decrease in cash and cash equivalents       (1,782) (2,484)
Cash and cash equivalents at beginning of year       2,976 5,652
Exchange losses on translation       (231) (192)
Cash and cash equivalents at end of year      962 2,976 25 Annual report and accounts 2008  Pure Wafer plc
Notes to the consolidated financial statements 
year ended 30 June 2008
1. General information
Pure Wafer plc is a company incorporated in the United Kingdom under the Companies Act 1985. The address of the registered office is Pure Wafer plc, 
Central Business Park, Swansea Vale, Swansea, SA7 0AB. The nature of the UK group’s operations and its principal activities are set out in the 
Financial review and principal activity section on pages 1 to 10.
Adoption of new and revised standards
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union 
as they apply to financial statements of the group for the year ended 30 June 2008 and applied in accordance with the Companies Act 1985.
The financial statements for the year ended 30 June 2008 are the group’s first consolidated financial statements prepared under IFRS, with 
a transition date of 1 July 2006. Consequently, the comparative figures for 2007 have been restated in accordance with the accounting policies 
set out below. IFRS 1 allows certain exemptions from retrospective application of IFRS in the opening balance sheet at 1 July 2006. Where these 
have been used, they are explained in the relevant policy below. The financial statements have been prepared in accordance with the historical 
cost convention.
The effect of adopting IFRS on the opening and comparative balance sheet is disclosed in note 30.
At the date of authorisation of these consolidated financial statements, the following Standards and Interpretations which have not been applied 
in these consolidated financial statements were in issue but not yet effective:
IAS 23  (Revised) Borrowing Costs  
IFRS 3  Business combinations (revised) 
IFRS 8 Segment Reporting and the Ongoing Need for Country by Country Reporting 
IFRIC 12  Service Concession Arrangements 
IFRIC 13 Customer Loyalty Programmes 
IFRIC 14  IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 
IFRIC 15 Agreements for the Construction of Real Estate 
IFRIC 16 Hedges in the Net Investment of a Foreign Operation
The directors do not anticipate that the adoption of these Standards and Interpretations in future periods will have a material impact on the financial 
statements except for additional segmental disclosures when IFRS 8 comes into effect for periods commencing on or after 1 January 2009.
2. Accounting policies
Basis of preparation
These accounting policies are based on the IFRS, IAS and IFRIC Interpretations as adopted by the EU (collectively “IFRS”). 
Going concern
The group’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the 
Chairman’s statement on pages 4 and 5. The financial position of the group, its cash flows, liquidity position and borrowing facilities are 
described in the Financial review on pages 8 and 9. In addition note 24 to the financial statements includes the group’s objectives, policies and 
processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its 
exposures to credit risk and liquidity risk. The directors have assessed the balance sheet and likely future cash flows of the company and group 
at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the financial statements on a going 
concern basis. 
As described in the Chairman’s statement on pages 4 and 5, the current environment is challenging. The company has recorded a pre-tax loss and 
has relied on waivers of loan covenant tests at 30 June and 30 September 2008 in order to stay in line with banking facility arrangements. In 
forming the conclusion about the going concern basis, the directors have considered these factors together with the forecasts for the business for 
the period to 30 June 2010. The forecasts indicate that the company can continue to meet interest payments, but it needs to reschedule some 
of the capital repayments of debt and may also need to obtain waivers of future loan covenant tests. The company has met all capital and interest 
payments as they fell due up to the date of approving the financial statements. Whilst the directors have instituted measures to preserve cash and 
reschedule the current repayment obligations, these circumstances create material uncertainties over future cash flows and the availability of finance. 
As explained in the Chairman’s statement on pages 4 and 5, the board has received a preliminary indicative approach to acquire Pure Wafer plc. 
Whilst negotiations are progressing, there can be no certainty that an offer will be made. If any sale is arranged, it is likely to include a cash injection 
which will be used to reduce the debt obligations of the company, but if not, the group will need to restructure the finance facilities such that the 
debt can be serviced from forecasted levels of trading and cash flow.
The directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business, nor a restructuring 
of existing facilities, can be arranged. No commitment has been secured to date. 
The directors have concluded that the combination of circumstances represents a material uncertainty that casts significant doubt upon the group’s 
and the company’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities 
in the normal course of business. Nevertheless, after making enquiries, and considering the uncertainties described above, the directors have 
a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. 
For these reasons, they continue to adopt the going concern basis in preparing the annual report and financial statements. 
The financial statements do not include any adjustments that would result if the going concern assumption were not applicable.  26 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
2. Accounting policies continued
Basis of consolidation
The consolidated financial statements comprise Pure Wafer plc (the company) and its subsidiary undertakings, Pure Wafer International Limited 
and Pure Wafer, Inc.
Subsidiaries are those entities controlled by the company. Control exists when the company has the power to govern the financial and operating 
policies of an enterprise taking into account any potential voting rights. The financial statements of subsidiaries are included in the consolidated 
financial statements from the date that control commences until the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured at the fair value 
of the consideration plus costs directly attributable to the acquisition. The excess of the cost of the acquisition over the group’s share of the fair 
value of the net identifiable assets of the subsidiary acquired is recorded as goodwill. Intragroup transactions, balances and unrealised gains on 
transactions between group companies are eliminated; unrealised losses are also eliminated unless costs cannot be recovered. Where necessary, 
accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the group.
f oreign currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in 
which the entity operates (the functional currency). For the group’s two operating subsidiaries, Pure Wafer International Limited and Pure Wafer Inc, 
this has been determined to be US Dollars. Pure Wafer plc as an individual entity has a Sterling functional currency.
The income and cash flow statements of non-Sterling denominated group entities are translated to Sterling (the group’s presentation currency) 
at average rates of exchange in each period. Assets and liabilities of these undertakings are translated at rates of exchange ruling at the balance 
sheet date. The differences between retained profits and losses translated at average and closing rates are taken to reserves, as are differences 
arising on the retranslation to Sterling of non-Sterling denominated group entity net assets at the beginning of the year.
Any translation differences that have arisen since 1 July 2006 are presented as a separate component of equity. As permitted by IFRS 1, 
any differences prior to this date are not included in this separate component of equity. 
Foreign currency transactions are initially recorded at the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses 
resulting from the settlement of such transactions and from the translation at exchange rates ruling at the balance sheet date of monetary assets 
and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying net 
investment hedges.
Revenue recognition
Revenue, which represents the value of goods and services supplied, excluding value added tax and trade discounts, is recognised on completion 
of the service or despatch of goods sold. In respect of the provision of wafer reclaim services, the service is deemed to be complete at the point 
that the wafers are despatched for return to the customer. If entitlement to revenue is subject to the customer’s use of reclaimed wafers, the 
revenue is deferred until the point at which the wafer is utilised by the customer and revenue is earned.
f inancial instruments
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the relevant instrument. 
Financial assets are derecognised when the rights to receive benefits have expired or been transferred, and the group has transferred substantially 
all risks and rewards of ownership. Financial liabilities are derecognised when the obligation is extinguished.
Non-derivative financial assets are classified as either receivables or cash and cash equivalents. They are stated at amortised cost using the 
effective interest method, subject to reduction for allowances for estimated irrecoverable amounts. A provision for impairment of trade receivables 
is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of those 
receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, 
and is recognised in the income statement. For interest-bearing assets, their carrying value includes accrued interest receivable.
Cash and cash equivalents include cash in hand and deposits held on call, together with other short-term highly liquid investments. 
Non-derivative financial liabilities are stated at amortised cost using the effective interest method. For borrowings, their carrying value 
includes accrued interest payable, as well as any unamortised issue costs.
The group transacts derivative financial instruments to manage the underlying exposure to foreign exchange and interest rate risks. The group 
does not transact derivative financial instruments for trading purposes. However, as the group has decided not to hedge account for its derivative 
financial instruments as permitted under IAS 39, they are accounted for through the income statement. Derivative financial assets and liabilities 
are stated at fair value, which includes accrued interest receivable and payable where relevant. Changes in fair values are recognised in the 
income statement in the period in which they arise.
Provisions
A provision is recognised in the balance sheet when the group has a legal or constructive obligation as a result of a past event, where it is more 
likely than not that an outflow of resources will be required to settle that obligation, and a reliable estimate of the amount can be made.
A provision for restructuring is recognised when the group has approved a detailed and formal restructuring plan, and the restructuring has either 
commenced or has been publicly announced. Future operating losses are not provided for.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the 
class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same 
class of obligations may be small. 27 Annual report and accounts 2008  Pure Wafer plc
2. Accounting policies continued
Property, plant and equipment
Property, plant and equipment are shown in the balance sheet at their historical cost less accumulated depreciation and impairment. Historical cost 
includes expenditure that is directly attributable to the acquisition and installation of the items. Subsequent costs are included in the assets’ 
carrying amounts or recognised as a separate asset as appropriate only when it is probable that future economic benefits associated with them 
will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement 
as incurred.
Depreciation is provided so as to write off the initial cost of each asset to its residual value on a straight-line basis over its estimated useful life 
as follows:
Long leasehold buildings 15 years
Fixtures and fittings 5 years
Plant and equipment 7–10 years
Computer equipment 3 years
Motor vehicles 5 years
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet date. Where the carrying amount 
of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on 
disposals are determined by comparing proceeds with carrying amounts. These are included in the income statement.
non-current assets held for sale
Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets are 
classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is 
regarded as being met only when the sale is highly probable and the asset is available for immediate sale in its present condition. Management 
must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification.
Government grants
Government grants are recorded initially as deferred income and recognised in the income statement in line with the expense to which they 
contribute. For grants in respect of the purchase of property, plant and equipment, the deferred income is released over the life of the related 
assets. For grants in respect of staff costs, the deferred income is released over the monitoring period of the grant offer.
intangible assets – goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets and liabilities acquired, both tangible 
and intangible.
Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. Any impairment is recognised 
immediately in the income statement and cannot be subsequently reversed. Goodwill is allocated to groups of cash-generating units for the 
purpose of impairment testing. Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 
internally generated intangible assets – research and development
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the group’s development is recognised only if all of the following conditions are met: an asset 
is created that can be separately identified; it is probable that the asset created will generate future economic benefits; and the development cost 
of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their useful lives. Where no internally-generated intangible asset 
can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.
intangible assets – other
These consist mainly of process development costs capitalised. The assets are amortised on a straight-line basis over the expected useful 
economic life of five years.
impairment of assets
Assets that have an indefinite life are not subject to amortisation and are tested at least annually for impairment. Assets that are subject to 
amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 
An impairment loss is recognised in the income statement for the amount by which the carrying amount of the asset exceeds its recoverable 
amount. The recoverable amount is the higher of the fair value less costs to sell and the value in use. For the purpose of assessing impairment, 
assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).
inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished 
goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating 
capacity) but excludes borrowing costs. Work is progress is valued to reflect the historical yield from the reclaim process. Net realisable value is the 
estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. 28 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
2. Accounting policies continued
Leasing
Assets held under finance leases are recognised as assets of the group at their fair value, or, if lower, at the present value of the minimum lease 
payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance 
lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate 
of interest on the remaining liability. Finance charges are charged directly against income.
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
Restructuring costs
Certain costs are classified as relating to restructuring where they relate to the incremental cost of undertaking a significant changes to the 
operations or staff structure of the business.
Operating profit
Operating profit is stated after charging restructuring costs, but before investment income, finance costs and foreign exchange.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take 
a substantial period of time to get ready for their intended use or sale, are added to the costs of those assets, until such time as the assets 
are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from 
the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the income statement in the period in which they are incurred.
The group has chosen to adopt the revised version of IAS 23 Borrowing Costs early and has taken advantage of the transitional provision 
included within that standard not to capitalise interest on qualifying assets that arose prior to the date of transition to IFRS on 1 July 2006.
Taxes
Tax on the profit or loss for the year comprises current and deferred tax.
Current tax is the expected tax payable on the taxable income for the year, using tax rates substantially enacted at the balance sheet date, 
and any adjustments to tax payable in respect of previous years.
Deferred tax is provided in full on temporary differences between the carrying amount of assets and liabilities in the financial statements, 
and the tax base. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against 
which the temporary differences can be utilised. Deferred tax assets and liabilities are not discounted.
Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date, and are expected 
to apply when the deferred tax liability is settled or the deferred tax asset is realised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal 
of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future.
Tax is recognised in the income statement, except where it relates to items recognised directly in equity, in which case it is recognised in equity.
Share-based payments
In accordance with IFRS 2 Share-Based Payments, the fair value of equity-settled share-based payments to employees is determined at the date 
of grant and is expensed on a straight-line basis over the vesting period based on the company’s estimate of shares or options that will eventually 
vest. Where the estimate of the number of options vesting due to achievement of performance conditions is revised, the change to the share-based 
payments cost is adjusted prospectively, leading to a share-based payments credit in periods where the performance criteria that were historically 
expected to be achieved are determined to be unlikely to be met. Fair value of new options granted is measured by a Black-Scholes pricing model.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a 
deduction, net of tax, from the proceeds.  29 Annual report and accounts 2008  Pure Wafer plc
3. Critical accounting judgements and key sources of estimation uncertainty 
Critical accounting judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, which are described in note 2, the directors are required to make judgements, estimates 
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and 
associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from 
these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in 
which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both 
current and future periods.
Critical judgements in applying the group’s accounting policies
The following critical judgement has been made in the process of applying the group’s accounting policies. Judgements involving estimations 
are dealt with separately below.
Going concern
The directors’ report and the going concern section of note 2 describes the material uncertainty over the ability of the group to meet the 
contractual capital repayment obligations of its current finance facilities in the next 12 months. In preparing the financial statements, the 
directors have concluded that the group is a going concern and have assumed that it will be able to continue to trade in line with its business 
plan, realising the value of assets and liabilities in the normal course of business. 
This judgement has significant impact on the valuation and presentation of the balance sheet as, if the group were no longer a going concern, 
the carrying value would need to be restated to market value for assets and settlement values for liabilities. Significant items affected would 
include non-current assets, inventory, loans, finance leases and deferred income.
Share-based payments
The group has two share option schemes that vest contingently upon the achievement of certain earnings per share targets in the years ending 
30 June 2008 and 30 June 2009. In preparing the financial statements, the directors have concluded that the 2008 scheme will not vest 
(based on actual numbers) and also that the 2009 scheme will not vest, based on an assessment of trading to the date of signing the financial 
statements and estimates of results for the remainder of the year. As a result of this judgement, share-based payment charges recognised in 
2006 and 2007 have been reversed, leading to a credit of £426,000 in the income statement for 2008. 
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
impairment of non-current assets
Determining whether goodwill, property, plant and equipment, or intangible assets are impaired requires an estimation of the value in use of the 
cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows 
expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill 
was £3.3 million and property plant and equipment was £24.2 million at the balance sheet date. Based on the assumptions made by the 
directors, no impairment has been booked. Details of the impairment review, including sensitivity to key assumptions, are given in note 13. 
Fair value of derivatives and other financial instruments
As described in note 24, the directors use their judgement in selecting appropriate valuation techniques for financial instruments not quoted 
on an active market. Valuation techniques commonly used by market practitioners are applied. For derivative financial instruments, assumptions 
are made based on quoted market rates adjusted for specific features of the instrument. Other financial instruments are valued using a discounted 
cash flow analysis based on the assumptions supported, where possible, by observable market prices or rates. The fair value of financial 
instruments at the balance sheet date was a net liability of £100,000. 
Deferred tax
The group has tax losses of some £18 million available for offset against future taxable profits. In determining the value of the deferred tax asset that 
can be attributed to these losses, the directors have to estimate likely future taxable profits and the period over which the asset may be recovered. 
The directors consider the most up-to-date forecasts for the business and assess the risks inherent in achieving those forecasts. At the balance 
sheet date, no deferred tax asset has been recorded, after recognising a write off of deferred tax of £5.3 million during 2008. The deferred tax 
asset may be recognised again in future if there is an improvement in the forecast taxable profits. 
useful life of property plant and equipment
The group’s plant and machinery is amortised over a period of seven to ten years. In estimating the life of the equipment, the directors have 
to consider the likely period over which the technology will be used in the market and the ability of the business to maintain the equipment 
to an appropriate condition for use. Were the technology to be superseded in a much shorter timeframe than this, the carrying value would 
need to be depreciated over a shorter timeframe, resulting in an increase in the annual depreciation charge.
4. Revenue
An analysis of the group’s revenue is as follows:
          2008 2007 
          £’000 £’000
Continuing operations          22,268 22,348
Financial income          182 149
          22,450 22,497 30 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
5. Business and geographical segments 
The group’s activities and turnover primarily consist of the reclamation and reprocessing of silicon test wafers, in the UK and US, for external customers. 
For management purposes, the group is organised into two operating divisions based on the geographical territory of origin. These divisions are 
the basis which the group reports its primary segment information.
Segment information is presented below:
          North 
         UK America Consolidated 
Year ended 2008         £’000 £’000 £’000
Revenue         16,926 5,342 22,268
Inter-segment sales are charged at prevailing market prices.
Result      
Segment result         514 411 925
Unallocated corporate expenses          (763)
Operating profit           162
Investment revenues           182
Finance costs           (777)
Other losses           (366)
Loss before tax           (799)
Tax           (5,331)
Loss for the financial year           (6,130)
         North 
        UK America Eliminations Consolidated 
Year ended 2008        £’000 £’000 £’000 £’000
Capital additions        1,596 3,368 — 4,964
Deprecation and amortisation       2,543 389 — 2,932
Impairment losses recognised in income      
Balance sheet      
Assets      
Segment assets        27,195 11,750 (5,044) 33,901
Unallocated corporate assets          4,082
           37,983
Liabilities      
Segment liabilities        (8,882) (11,961) (5,044) (15,799)
Unallocated corporate liabilities          (1,581)
Consolidated total liabilities          (17,380)
          North 
         UK America Consolidated 
Year ended 2007         £’000 £’000 £’000
Revenue         20,310 2,038 22,348
Inter-segment sales are charged at prevailing market prices.
Result        
Segment result         4,106 92 4,198
Unallocated corporate expenses          (737)
Operating profit           3,461
Investment revenues           149
Finance costs           (427)
Other gains           412
Profit before tax           3,595
Tax           (810)
Profit for the financial year          2,785 31 Annual report and accounts 2008  Pure Wafer plc
5. Business and geographical segments continued 
        UK America Eliminations Consolidated 
Year ended 2007        £’000 £’000 £’000 £’000
Capital additions        5,783 3,671 — 9,454
Deprecation and amortisation       2,246 141 — 2,387
      
Balance sheet      
Assets      
Segment assets        33,924 8,244 (2,017) 40,151
Interests in associates           —
Unallocated corporate assets          4,060
           44,211
      
Liabilities      
Segment liabilities        (10,774) (8,327) 2,017 (17,084)
Unallocated corporate liabilities          (148)
Consolidated total liabilities          (17,232
Analysis by product
The revenue by product variant was as follows:
          2008 2007 
          £’000 £’000
150mm wafers          963 424
200mm wafers          5,194 3,389
300mm wafers          14,287 17,262
Other, including scrap sales         1,824 1,273
          22,268 22,348
Analysis by destination 
The revenue by destination was as follows:
          2008 2007 
          £’000 £’000
Europe           5,939 7,509
United States of America         8,133 9,319
Asia           8,196 5,520
          22,268 22,348
6. Operating profit
          2008 2007 
          £’000 £’000
This has been arrived at after charging/(crediting)     
Government grants           (271) (172)
Depreciation of property, plant and equipment:         
– owned assets           2,293 1,804
– leased assets           593 535
Hire of assets:     
– land and buildings          289 175
– equipment          236 141
– other          34 33
Amortisation of intangible fixed assets         46 48
Research and development costs          279 434
Staff costs (see note 7)          6,629 6,862
Auditors’ remuneration – audit services         38 40
Auditors’ remuneration – non-audit services         27 20
     32 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
6. Operating profit continued
Auditors’ remuneration 
          2008 2007 
          £’000 £’000
Fees payable to the company’s auditors for the audit of the company’s annual accounts     8 12
Fees payable to the company’s auditors for other services to the group:    
– audit of the company’s subsidiaries pursuant to legislation       30 28
Total audit fees          38 40
Other services:    
– other services pursuant to legislation        24 9
– tax services          3 11
Total non-audit fees          27 20
Fees payable to Deloitte LLP and their associates for non-audit services to the company are not required to be disclosed because the financial 
statements are required to disclose such fees on a consolidated basis. 
7. information regarding directors and employees
          2008 2007 
          £’000 £’000
Directors’ emoluments    
Aggregate emoluments (including benefits in kind)       664 598
Contributions to money purchase pension schemes       15 15
          679 613
    
          2008 2007 
          £’000 £’000
Highest paid director    
Aggregate emoluments (including benefits in kind)       183 186
Contributions to money purchase pension schemes       5 5
          188 191
    
          2008 2007 
          Number Number
Number of directors in pension scheme        3 3
    
          2008 2007 
          Number Number
Average number of persons employed (including directors)    
Production          237 200
Sales and administration         31 26
          268 226
    
          2008 2007 
          £’000 £’000
Staff costs during the year (including directors)    
Wages and salaries          6,169 5,739
Social security costs          672 575
Equity-settled share-based payments (note 26)*       (426) 379
Pension costs          214 169
          6,629 6,862
* Includes related National Insurance.
8. investment revenue 
          2008 2007 
          £’000 £’000
Interest on bank deposits         182 149 33 Annual report and accounts 2008  Pure Wafer plc
9. f inance costs 
          2008 2007 
          £’000 £’000
Interest on bank loans          385 96
Interest on obligations under finance leases and hire p urchase contracts      293 286
Deferred consideration finance charges (note 23)       99 45
          777 427
     
10. other (losses)/gains
          2008 2007 
          £’000 £’000
Foreign exchange losses         (248) 408
Derivative financial instruments         (118) 4
          (366) 412
 
11. Tax on (loss)/profit on ordinary activities
          2008 2007 
          £’000 £’000
Current taxation    
United Kingdom corporation tax:    
Current tax on income for the year at 30%/28% (2007: 30%)      — —
Deferred tax    
Origination and reversal of timing differences        — 810
Valuation provision recognised against deferred tax asset       5,331 —
Total charge for the year          5,331 810
    
The difference between the total tax shown above and the amount calculated by applying the standard rate of United Kingdom corporation tax 
to the (loss)/profit before tax is as follows:
          2008 2007 
          £’000 £’000
(Loss)/profit on ordinary activities before tax        (606) 3,595
Tax on (loss)/profit on ordinary activities before tax at 30%/28% (2007: 30%)     (131) 810
Factors affecting charge for the year    
Expenses not deductible for tax purposes        — 10
Accelerated capital allowances and other timing differences       — (206)
Utilisation of losses brought forward        — (594)
Origination and reversal of timing differences        — 1,059
Valuation provision recognised against deferred tax asset for losses carried forward     (5,462) —
Total tax charge for the year          (5,331) (810)
The tax rate is a blended rate, of 30% to 31 March 2008 and 28% from 1 April 2008. 
12. (Loss)/earnings per share  
The calculation of the basic and diluted (loss)/earnings per share is based on the following data:
          2008 2007
Earnings     
(Loss)/profit for the year (£’000)         (6,130) 2,785
Number of shares     
Weighted average number of ordinary shares for the purpose of basic (loss)/earnings per share (‘000)   26,591 26,524
Effect of dilutive potential ordinary shares:     
– Share options          — 487
Dilutive weighted average number of shares        26,591 27,011
(Loss)/earnings per ordinary share – basic        (23.1)p 10.5p
(Loss)/earnings per ordinary share – dilutive        (23.1)p 10.3p
Diluted loss per share for the year ended 30 June 2008 is the same as basic since, for a loss making period, all share options are anti-dilutive 
and their exercise would improve the loss per share figure. 438,000 such share options were in issue at 30 June 2008. 34 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
13. Goodwill and other intangible fixed assets
          Process  
         Goodwill developments Total 
         £’000 £’000 £’000
Cost       
At 1 July 2006         — 253 253
Additions         3,417 — 3,417
Foreign exchange differences        (120) (22) (142)
At 1 July 2007         3,297 231 3,528
Foreign exchange differences        51 9 60
At 30 June 2008         3,348 240 3,588
Amortisation       
At 1 July 2006         — — —
Charge for the year          — 48 48
Foreign exchange differences        — (2) (2)
At 1 July 2007         — 46 46
Charge for the year          — 46 46
Foreign exchange differences        — 2 2
At 30 June 2008         — 94 94
Carrying amount       
At 30 June 2008         3,348 146 3,494
At 30 June 2007         3,297 185 3,482
Goodwill relates to the February 2007 acquisition of the group’s US business, is denominated in US Dollars, and is considered to represent 
a single cash generating unit.
The group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations are 
those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the period. Management estimates 
discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. The growth 
rates are based on industry growth forecasts. Changes in selling prices and direct costs are based on past practices and expectations of future 
changes in the market.
The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the two years assuming 
no growth in the first year and 10% growth in the second year. The cash flows are extrapolated for the following eight years assuming no growth. 
This rate does not exceed the average long-term growth rate for the relevant markets. The rate used to discount the forecast cash flows of each 
of the CGUs as defined above was based on the group’s weighted average cost of capital 7.5%. 
The impairment review is sensitive to the selection of discount rate. The calculation demonstrates that there is headroom of £1.0 million over 
the carrying value of the goodwill. If, as a result of renegotiation of the group’s banking arrangements, the group’s cost of capital were to increase 
above 9%, there is a risk of impairment in future. 
Process development 
Process development costs are amortised over their useful economic life which is estimated at five years.  35 Annual report and accounts 2008  Pure Wafer plc
14. Property, plant and equipment 
      Long  
      leasehold Fixtures and Plant and Computer  Motor 
      buildings fittings machinery equipment vehicles Total 
      £’000 £’000 £’000 £’000 £’000 £’000
Cost      
At 1 July 2006      8,105 148 17,437 232 — 25,922
Additions      731 164 8,436 112 11 9,454
Foreign exchange differences     (672) (18) (1,695) (22) — (2,407)
At 1 July 2007      8,164 294 24,178 322 11 32,969
Additions      145 54 4,756 9 — 4,964
Transfer to assets held for sale – see note 17    — — (726) — — (726)
Transfer from inventory*     — — 413 — — 413 
Foreign exchange differences     126 5 420 5 — 556
At 30 June 2008      8,435 353 29,041 336 11 38,176
 
Depreciation      
At 1 July 2006      2,560 110 6,473 178 — 9,321
Charge for the year      517 23 1,764 35 — 2,339
Foreign exchange differences     (223) (10) (579) (15) — (827)
At 1 July 2007      2,854 123 7,658 198 — 10,833
Charge for the year      522 44 2,260 57 3 2,886
Foreign exchange differences     50 2 147 4 — 203
At 30 June 2008      3,426 169 10,065 259 3 13,922
      
Carrying amount      
At 30 June 2008      5,009 184 18,976 77 8 24,254
At 31 June 2007      5,310 171 16,520 124 11 22,136
*  During the period, it was determined that spares for the group’s plant and machinery were held as consumables within inventory. Certain spares are used infrequently or can 
be refurbished and have the characteristics of fixed assets. They have been transferred to fixed assets at 30 June 2008.
Included within the net book value of plant and machinery are assets with a net book value of £3,744,000 (2007: £3,564,000) as assets held 
under finance lease agreements. 
15. inventories
          2008 2007 
          £’000 £’000
Raw materials           2,472 2,043
Work in progress          555 615
Finished goods          284 154
          3,311 2,812
      36 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
16. Other financial assets
Trade and other receivables
          2008 2007 
          £’000 £’000
Trade receivables          3,707 4,317
Other receivables and prepayments         1,053 1,436
Accrued income          417 1,685
          5,177 7,438
     
Trade receivables 
Total trade receivables (net of allowances) held by the group at 30 June 2008 amounted to £3,707,000 (2007: £4,317,000). 
The average credit period taken on sale of goods is 71 days (2007: 77 days). The group has provided fully for all receivables which are considered 
impaired. Management performs a detailed review of the trade receivables ledger across the group at least twice annually to assess receivables 
that are past due and not recoverable. 
Before accepting any new customer, the group uses an external credit scoring system to assess the potential customer’s credit quality and defines 
credit terms by customer. Of the trade receivables balance at the end of the year, £593,000 (2007: £588,000) is due from the group’s largest 
customer. There are no other customers who represent more than 10% of the total balance of trade receivables. 
Included in the group’s trade receivables balance are debtors with a carrying amount of £1,348,000 (2007: £1,343,000) which are past due at 
the reporting date for which the group has not provided as there has not been a significant change in the credit quality and the amounts are still 
considered recoverable. The group does not hold any collateral over these balances. The average age of these receivables is 110 days (2007: 100).
Ageing of past due but not impaired receivables
          2008 2007 
          £’000 £’000
Less than three months         1,168 1,101
More than three months         180 242
          1,348 1,343
Movement in the allowance for doubtful debts
          2008 2007 
          £’000 £’000
Balance at beginning of the year         114 76
Provision acquired with business combination        — 13
Amounts written off as uncollectible        (21) 25
Provision against specific customer following contract termination       135 —
Balance at the end of the year         228 114
In determining the recoverability of a trade receivable, the group considers any change in the credit quality of the trade receivable from the date 
credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. 
Accordingly, the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts. 
Ageing of impaired trade receivables
          2008 2007 
          £’000 £’000
Current          135 —
60–90 days          — —
90–120 days          — —
120+ days          93 114
          228 114
The directors consider that the carrying amount of trade and other receivables approximates their fair value. 
Cash and cash equivalents
These comprise cash in hand and deposits held at call with banks. The carrying amount of these assets approximates their fair value.
17. Assets held for sale
A machine was acquired during the year ended 30 June 2007 to service a specific customer. The agreement with the customer was terminated 
during 2008 and, as a result, the customer agreed to buy back the asset for £735,000. The purchase was completed after 30 June 2008. 
Accordingly, the asset has been transferred from property, plant and equipment to assets held for sale at the balance sheet date.  37 Annual report and accounts 2008  Pure Wafer plc
18. Other financial liabilities
Trade and other payables
          2008 2007 
Current liabilities          £’000 £’000
Trade accounts payable         1,911 3,846
Other taxation and social security         342 619
Accruals and other creditors         1,288 1,125
          3,541 5,590
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for 
trade purchases is 67 days (2007: 81 days). In light of the constraints around the availability of finance outlined in the “Going concern” section 
of the Directors’ report, and note 2, the group endeavours to settle outstanding payables within the credit time frame while managing available 
working capital. 
The directors consider that the carrying amount of trade payables approximates their fair value.
19. Derivative financial instruments 
Derivative financial instruments
          2008 2007 
          £’000 £’000
Current assets     
Forward foreign exchange contracts         50 33
Current Liabilities     
Interest rate swap           (150) (15)
Further detail of financial instruments is provided in note 24.
20. interest-bearing loans and borrowings
          2008 2007 
          £’000 £’000
Current liabilities     
Bank loans          2,077 942
Hire purchase and finance lease agreements        1,817 1,384
          3,894 2,326
Non-current liabilities     
Bank loans          4,709 2,590
Hire purchase and finance lease agreements        2,203 2,866
          6,912 5,456
     
          2008 2007 
          £’000 £’000
Bank loans     
Within one year           2,077 942
Between one and two years         2,052 943
Between two and five years         2,657 1,647
          6,786 3,532
     
The hire purchase and finance lease obligations are repayable as follows:
          2008 2007 
          £’000 £’000
Hire purchase contracts and finance leases     
Within one year          1,817 1,384
Between one and two years         1,425 1,418
Between two and five years         778 1,448
          4,020 4,250
Obligations under finance lease and hire purchase contracts are secured on the related assets. See note 21 for further detail on finance lease contracts.  38 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
20. interest-bearing loans and borrowings continued
In determining the presentation of loan balances, the directors have considered the uncertainty relating to going concern outlined in the 
directors’ report on page 14 and note 3. The group was able to stay within the terms of the bank loan agreements due to waivers of covenant 
tests at 30 June 2008 and has received similar waivers post year end. Were the group not able to meet the conditions of the loan agreements, 
the debt would be reclassified as due within one year.
On the assumption that the group is a going concern, the fair value of the group’s loan, finance leases and hire purchase obligations approximates 
their carrying amount. If the group were no longer to be a going concern, the settlement figure for these loans may be different to the figures presented. 
The principal features of the group’s bank loans, which were used to finance the acquisition and development of the US business are as follows:
›  A loan for US$7.5 million (£3.7 million) was taken out in May 2007 with a variable interest rate based on US LIBOR. It is repayable 
in quarterly instalments commencing three months after the first drawdown and is due to be fully repaid in February 2011.
›  A loan for US$1.75 million (£0.9 million) was taken out in May 2008 with a variable interest rate based on US LIBOR. It is repayable 
in quarterly instalments commencing three months after the first drawdown and is due to be fully repaid in February 2012.
›  A loan for US$7.0 million (£3.5 million) was drawn down during 2008 with an effective fixed interest rate of 5.4%. It is repayable 
in quarterly instalments commencing in 2008 and is due to be fully repaid in May 2012.
21. Obligations under finance leases 
       Minimum  
       lease payments 
          2008 2007 
          £’000 £’000
Amounts payable under finance leases:      
Within one year          1,908 1,585
In the second to fifth years inclusive        2,435 3,107
Total value of lease obligations          4,343 4,692
Less: future finance charges         (323) (442)
Present value of lease obligations         4,020 4,250
It is the group’s policy to lease certain plant and machinery under finance leases. The average remaining lease term is four years. For the year 
ended 30 June 2008, the average effective borrowing rate was 7.4% (2007: 7.8%). Interest rates are fixed at the contract date. All leases are 
on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The carrying amount of the borrowings 
approximates their fair value.
The contractual payments in respect of finance leases based on the undiscounted cash flows and the earliest date on which the group and 
company can be required to pay are shown above. 
All lease obligations are denominated in US dollars. The fair value of the group’s lease obligations approximates their carrying amount. 
The group’s obligations under finance leases are secured by the lessors’ rights over the leased assets.
22. Deferred tax asset
          2008 2007 
          £’000 £’000
Balance at 1 July           5,334 5,334
Deferred tax asset provided against during the year        (5,334) —
Balance at 30 June           — 5,334
    
The amounts of deferred taxation asset/(liability) recorded in the financial statements are as follows:
          2008 2007 
          £’000 £’000
Accelerated capital allowances         — (1,417)
Short-term timing differences         — 139
Tax losses           — 6,612
          — 5,334 39 Annual report and accounts 2008  Pure Wafer plc
23. Deferred consideration
          2008 2007 
          £’000 £’000
Current liabilities     
Deferred consideration          943 834
Non-current liabilities     
Deferred consideration          — 867
          2008 2007 
          £’000 £’000
Deferred consideration     
Within one year          943 834
Between one and two years         — 867
          943 1,701
     
          2008 2007 
          £’000 £’000
Movement in deferred consideration     
At 1 July          1,701 —
Acquisitions          — 1,709
Payment          (857) —
Discounting (note 9)          99 45
Foreign exchange differences         — (53)
At 30 June          943 1,701
24. f inancial instruments
Capital risk management
The capital structure of the group consists of debt, which includes the borrowings disclosed in note 20, cash and cash equivalents and equity 
directly attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the statement of 
changes in equity. Comments regarding the uncertainty around the continued availability of debt finance and the impact this has on the going 
concern basis of preparing the group financial statements are given in the directors’ report and in note 2.
Gearing ratio
The gearing ratio at the year end is as follows:
          2008 2007 
          £’000 £’000
Debt          (10,806) (7,782)
Cash and cash equivalents         962 2,976
Net debt          (9,844) (4,806)
Equity          20,603 26,979
Net debt to equity ratio          1:2.09 1:5.61
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis 
on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed 
in note 2 to the financial statements.
          2008 2007 
          £’000 £’000
Financial assets     
Fair value through profit or loss (FVTPL) derivative instruments       50 33
Loans and receivables:      
– Cash and cash equivalents         962 2,976
– Trade receivables          3,707 4,317
          4,719 7,326
Financial liabilities      
Fair value through profit or loss (FVTPL) derivative instruments      150 15
Amortised cost:     
– Bank loans          6,786 3,532
– Finance leases          4,020 4,250
– Trade creditors          1,911 3,846
– Deferred consideration         943 1,701
          13,810 13,344
  40 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
24. f inancial instruments continued
f inancial risk management objectives
The group’s financial instruments comprise bank loans, finance leases, derivative financial instruments and trade receivables and trade payables 
that arise already from its operations. The purpose of the instruments is to raise finance for group activities. 
The group seeks to minimise the effects of financial risks by using derivative financial instruments to hedge known exposures. The interest rates 
on bank loans are managed through the use of interest rate swaps and interest on the remaining financial liabilities are fixed. The use of financial 
derivatives is governed by the group’s policies approved by the board of directors, which provide written principles on foreign exchange risk, 
interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. 
The group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
Market risk
The group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The group enters 
into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency risk, including:
›  forward foreign exchange contracts to hedge the exchange rate risk arising on the sale of services by the UK trading subsidiary in US Dollars; and 
›  interest rate swaps to mitigate the risk of rising interest rates.
f oreign currency risk management 
The group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate fluctuations arise. 
Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts. 
The carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
          2008 2007 
          £’000 £’000
Monetary assets     
Euro          171 181
Sterling          24 14
Monetary liabilities     
Euro          1,650 1,476
Sterling          1,401 2,225
Yen          369 188
US dollar          737 —
f oreign currency sensitivity analysis 
The group is mainly exposed to fluctuations in the US Dollar. 
The following table details the group’s sensitivity to a 20% decrease in the Sterling against the relevant foreign currencies. 20% is the sensitivity 
rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably 
possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and 
adjusts their translation at the period end for a 20% change in foreign currency rates. The sensitivity analysis includes external loans as well 
as loans to foreign operations within the group where the denomination of the loan is in a currency other than the currency of the lender or 
the borrower. The table below indicates the impact of a reduction in the US Dollar rate from $2.00, as at year end to $1.60.
       US Dollar currency impact
          2008 2007 
          £’000 £’000
Reduction in profit/increase in loss         (1,435) (1,379)
Gain on translation of subsidiaries         5,232 5,639
Total net assets impact          3,797 4,260 41 Annual report and accounts 2008  Pure Wafer plc
24. f inancial instruments continued
f orward foreign exchange contracts
It is the policy of the group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts within 
50% to 75% of the exposure generated. The group also enters into forward foreign exchange contracts to manage the risk associated with 
anticipated sales and purchase transactions out to six months within 50% to 75% of the exposure generated. Basic adjustments are made 
to the carrying amounts of non-financial hedged items when the anticipated sale or purchase transaction takes place.
The following table details the forward foreign currency contracts outstanding as at 30 June 2008.
    Fair value at  
    30 June 2008  
Buy amount Sell amount Rate Date mature £’000
GBP 5,377,721 USD 10,500,003 1.95 11 December 2009 (1)
USD 1,500,000 GBP 768,246 1.95 11 December 2008 9
GBP 8,120,650 USD 15,750,000 1.94 11 June 2009 31
USD 2,250,000 GBP 1,160,093 1.94 11 December 2008 11
    50
The following table details the forward foreign currency contracts outstanding as at 30 June 2007.
    Fair value at  
    30 June 2007  
Buy amount Sell amount Rate Date mature £’000
USD 1,250,000 GBP 635,001 1.97 16 July 2007 11
USD 1,250,000 GBP 634,840 1.97 15 August 2007 11
USD 1,250,000 GBP 634,517 1.97 17 September 2007 11
    33
These contracts have been valued at fair value, calculated as the difference between the Sterling value of the year end calculated using mark to market 
off spot rate at close of business on 30 June 2008, and the rate contracted at maturity and included as financial instruments on balance sheet. 
The bank has an option to extend the 2008 foreign exchange contracts beyond initial contracted dates. The option was valued as a liability 
of £29,000 at 30 June 2008, within the value disclosed above, and has not yet been exercised post year. 
The contracts are net settled. 
interest rate risk management
The group is exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates. The risk is managed 
by the group by maintaining an appropriate mix between fixed and floating rate borrowings, by the use of interest rate swap contracts to fix 
the interest rate on the floating rate loans. 
The group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note. 
interest rate swap contracts
Under interest rate swap contracts, the group agrees to exchange the difference between fixed and floating rate interest amounts calculated on 
agreed notional principal amounts. Such contracts enable the group to mitigate the risk of higher interest rates on the fair value of issued fixed 
rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value of interest rate swaps at the reporting date is 
determined by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract, and is 
disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year.
The group has entered into interest rate swap agreements in respect of the bank loans. 
The company has two interest rate swap contracts. The first expires on 12 February 2011; the fair value of the interest rate swap on 30 June 2008 
was a liability of £159,234 (2007: £15,248). The second expires on 12 February 2012; the fair value of the contract as at 30 June 2008 was 
an asset of £9,004 (2007: £nil), this contract was taken up during the year. The contracts are net settled. 
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. The group has 
adopted a policy of only dealing with creditworthy counterparties. The group only transacts with major high street banks. 
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on 
the financial condition of accounts receivable. The group does not have any significant credit risk exposure to a single counterparty (the details 
are disclosed in note 16). 
Liquidity risk management
The group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring 
forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. At the date of approving the financial statements 
a material uncertainty exists over the ability of the group to service loan facilities going forward and the directors are in discussion with the banks 
to agree appropriate revisions to loan capital repayments. Further detail is given in the going concern section of the Directors’ report and in note 2.  42 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
24. f inancial instruments continued
Liquidity and interest risk tables
The following tables detail the group’s remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up 
based on the undiscounted cash flows of financial liabilities based on the earliest date on which the group can be required to pay. The table 
includes both interest and principal cash flows.
      Weighted  
      average Less than 6 months  1 – 2  2 – 5  
      effective 6 months  – 1 year years years  Total 
      interest rate £’000 £’000 £’000 £’000 £’000
2008       
Non-interest bearing      0.0% 2,253 943 — — 3,196
Variable interest rate instruments     6.4% 689 1,613 1,283 1,140 4,725
Fixed interest rate instruments     5.4% 529 534 1,024 1,650 3,737
Finance lease liability      7.0% 1,398 890 1,373 594 4,255
      5.0% 4,869 3,980 3,680 3,384 15,913
2007       
Non-interest bearing      0.0% 4,465 871 970 — 6,306
Variable interest rate instruments     6.9% 601 585 1,086 1,746 4,018
Finance lease liability      7.8% 801 801 1,601 1,522 4,725
      4.3% 5,867 2,257 3,657 3,268 15,049
Note 20 describes that the majority of the group’s interest bearing debt is denominated in US Dollars. The above table presents the group’s 
liabilities at the year end exchange rate, which was $1.98 at 30 June 2008 (2007: $2.01). At the date of approving the financial statements, 
the US$ rate has reduced to $1.56, which would increase the Sterling value of payments by 27%.
With the exception of financial assets as disclosed in note 16, financial assets are current and are non interest bearing. 
Fair value of financial instruments
The fair values of financial assets and financial liabilities are determined as follows:
›  foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates 
matching maturities of the contracts;
›  interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves 
derived from quoted interest rates; and
›  the carrying amount of financial assets and financial liabilities recorded at amortised cost approximates to their fair value. 
The applicability of these models is dependent on the group being able to continue as a going concern, as set out in the directors’ report on page 14. 
If the group was no longer able to adopt the going concern basis, the valuation of financial instruments would need to reflect the settlement 
values for the instruments and may be different from the figures presented. 
25. Called up share capital 
          2008 2007 
          £’000  £’000
Authorised     
50,000,000 (2007: 50,000,000) ordinary shares of 2p each      1,000 1,000
     
Called up, allotted and fully paid     
26,591,182 (2007: 26,591,182) ordinary shares of 2p each      532 532
     
26. Share-based payments 
The group has two types of share option schemes:
›  Save as you earn schemes which are available to all employees of the group. Options are exercisable at a price equal to the average quoted 
market price of the company’s share on the date of grant. The average remaining vesting period for options which are not exercisable is 1.5 years. 
The options are exercisable in the year of vesting and are forfeited if the employee leaves the group before the options vest. 
›  Performance related schemes which are available to certain employees of the group. Options vest based on the achievement of EPS criteria 
for financial years ending 30 June 2008 and 2009. Options are exercisable at 2p per share. The average remaining vesting period for options 
which have not vested is 1.5 years. If the options remain unexercised after a period of ten years from the date of grant, the options expire. 
Options are forfeited if the employee leaves the group before the options vest. 
The fair values of services received in return for share options granted to employees are measured by reference to the fair value of share options 
granted. The estimate of the fair value of the services received is measured based on a Black-Scholes model (with the expectations of early 
exercise incorporated into the model). 43 Annual report and accounts 2008  Pure Wafer plc
26. Share-based payments continued
Details of the share options outstanding during the year were as follows: 
     2008  2007
         Weighted   Weighted 
        Number of  average Number of  average 
        share  exercise share  exercise 
        options price (p) options price (p)
Outstanding at beginning of year       731,484 35 390,186 95
Granted during the year       — — 446,659 10
Lapsed/forfeited during the year       (293,905) 67 (8,448) 197
Exercised during the year       — — (96,913) 145
Outstanding at the end of the year       437,579 14 731,484 35
Exercisable at the end of the year       22,398 145 22,398 145
The options outstanding at 30 June 2008 had a weighted average remaining contractual life of 1.6 years. In the year ended 30 June 2008, no options 
were granted (2007: 446,659). The aggregate of the estimated fair values of the options granted on those dates is £nil (2007: £1,060,000). 
As no new options were granted, no information regarding the inputs to the Black Scholes model has been presented. With regards to the options 
granted in earlier periods, expected volatility was determined by reference to the historical volatility of listed competitors’ share prices. The expected 
life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and 
behavioural considerations.
The group’s income statement includes a credit of £386,000 (2007: expense of £300,000) related to equity-settled, share-based payment 
transactions during the year. 
27. operating lease arrangements 
          2008 2007 
          £’000  £’000
Minimum lease payments under operating leases recognised as an expense in the year     467 349
At the balance sheet date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases 
in respect of office properties which fall due as follows:
          £’000  £’000
Land and buildings:     
– Within one year          280 282
– Between one and two years         280 235
– Between two and five years         750 706
– More than five years          4,011 4,246
          5,411 5,469
The operating leases greater than five years relate to a 99 year lease of land at the Swansea premises that expires in 2099, and the lease of land 
and buildings in Prescott, Arizona expiring in December 2017. None of the figures in the above table have been discounted to present value.
          2008 2007 
          £’000  £’000
Equipment:      
– Within one year          88 73
– Between one and two years         5 8
– Between two and five years         3 8
– More than five years          — —
          96 89
          2008 2007 
          £’000  £’000
Other:      
– Within one year          25 34
– Between one and two years         10 34
– Between two and five years         2 15
– More than five years          — —
          37 83 44 Pure Wafer plc  Annual report and accounts 2008
Notes to the financial statements 
for the year ended 30 June 2008 continued
28. Notes to the consolidated cash flow statement
          2008 2007 
          £’000  £’000
(Loss)/profit for the period         (6,130) 2,785
Adjustment for:     
– Taxation           5,331 810
– Finance expense          777 427
– Finance income          (182) (149)
– Other non-cash gains and losses         (386) (76)
– Depreciation and amortisation         2,932 2,387
– Non-monetary foreign exchange translation on assets/liabilities      (322) (197)
Operating cash flows before movement in working capital       2,020 5,987
(Increase)/decrease in receivables         2,261 (1,933)
(Decrease)/increase in payables         (2,049) 1,630
Increase in inventory          (499) (1,425)
Net cash inflow from operating activities        1,733 4,259
     
29. Related party transactions
The ultimate controlling party of the group is Pure Wafer plc.
Transactions between the company and its subsidiaries, which are related parties of the company, have been eliminated on consolidation and are 
not disclosed in this note. 
The remuneration of the directors who are key management personnel of the group is set out in note 7 and in the directors’ remuneration report.
30. Reconciliation of ifRS comparatives from previously unpublished UK GAAP financial information
In 2007, the group prepared its consolidated financial statements under UK GAAP . With effect from 1 July 2007, the group is required to 
prepare its consolidated financial statements in accordance with IFRS. See below for summary reconciliation to IFRS from reported UK GAAP 
comparative information.
Year ended 30 June 2007
       Functional Adoption  
      As reported currency of IAS 39     
      under change of (financial Reclass-  As reported  
      UK GAAP subsidiary* instruments)** ification Taxation† under IFRS  
      £’000 £’000 £’000 £’000 £’000 £’000
Revenue      22,348 — — — — 22,348
Operating profit      2,980 513 — (32) — 3,461
Profit before tax      2,702 895 (2) — — 3,595
Profit for the period      5,562 895 (2) — (3,670) 2,785
Non-current assets      29,487 (3,869) — — — 25,618
Current assets      17,981 — 33 — 579 18,593
Current liabilities      (8,765) — (15) — — (8,780)
Non-current liabilities      (9,188) 736 —- — — (8,452)
Equity      29,515 (3,133) 18 — 579 26,979
At 30 June 2006
Non-current assets      19,837 (2,847) — — — 16,990
Current assets      13,312 — 22 — 4,249 17,583
Current liabilities      (4,029) — — — — (4,029)
Non-current liabilities      (5,608) 591 — — — (5,017)
Equity      23,512 (2,256) 22 — 4,249 25,527
 *   Under IFRS, each of the directors is required to assess which currency is the functional currency for each subsidiary. The directors have deemed that Pure Wafer plc (the holding 
company) remains a Sterling denominated company, Pure Wafer, Inc (the US subsidiary) remains a US Dollar denominated company and Pure Wafer International Limited 
(the UK trading entity) has a functional currency of US Dollars. The change of the functional currency in Pure Wafer International Limited impacts non-monetary assets and 
liabilities that were acquired in earlier periods and held at historical cost Sterling amounts, such as fixed assets which decrease in value by £3.9m (2006: £2.8m) and 
deferred grant income which decreases by £0.7m (2006: £0.6m). The impact on the income statement is to reduce depreciation and grant income by £0.5m net and 
introduce a foreign exchange gain of £0.4 million arising on translation of Sterling monetary items to the functional currency. 
** IAS 39 requires a valuation of all derivatives not subject to hedge accounting to be included in the balance sheet.
 †   Under the IFRS taxation standard, IAS 12, deferred tax is calculated as the tax effect of the difference between the tax carrying value and the book value of the group’s 
assets and liabilities. The above changes represent the impact on deferred tax of the other IFRS transition adjustments, plus a recalculation of the opening deferred tax 
asset at 1 July 2006 under IFRS. Under UK GAAP , a valuation allowance had been included against the deferred tax asset, which the directors feel would not have 
been required under the IFRS rules at that date. 45 Annual report and accounts 2008  Pure Wafer plc
Company statement of directors’ responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare 
the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 
and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the 
profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
›  select suitable accounting policies and then apply them consistently;
›  make judgements and estimates that are reasonable and prudent;
›  state whether applicable UK Accounting Standards have been followed; and
›  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position 
of the company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for 
safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 46 Pure Wafer plc  Annual report and accounts 2008
Company independent auditors’ report 
to the members of Pure Wafer plc
We have audited the financial statements of Pure Wafer Plc for the year ended 30 June 2008 which comprise the company balance sheet 
and the related notes 1 to 11. These parent company financial statements have been prepared under the accounting policies set out therein. 
We have reported separately on the group financial statements of Pure Wafer Plc for the year ended 30 June 2008. 
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company 
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing 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.
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 report to you our opinion as to whether the parent company financial statements give a true and fair view and whether the parent company 
financial statements 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.
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 the directors’ report and consider whether it is consistent with the audited parent company financial statements. We consider the 
implications for our report if we become aware of any apparent misstatements or material inconsistencies with the parent company financial 
statements. Our responsibilities do not extend to any further information outside the annual report. 
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 parent company financial statements. 
It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the parent company 
financial statements, and of whether the accounting policies are appropriate to the 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 parent company financial statements 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 parent company financial statements.
opinion
In our opinion:
›  the parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, 
of the state of the company’s affairs as at 30 June 2008; 
›  the parent company financial statements have been properly prepared in accordance with the Companies Act 1985; and
›  the information given in the directors’ report is consistent with the parent company financial statements.
emphasis of matter – going concern
Without qualifying our opinion, we draw attention to the disclosures made in note 1 of the financial statements concerning the company’s ability 
to continue as a going concern. The group has relied on waivers of loan covenant tests at 30 June and 30 September 2008 in order to stay in 
line with banking facility arrangements and needs to reschedule its capital repayments of debt. These conditions, along with other matters as set 
forth in note 1, indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a 
going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going 
concern as it is not practicable to determine or quantify them.
DeLoiTTe LLP
Chartered Accountants and Registered Auditors
Cardiff, united Kingdom
19 December 2008 47 Annual report and accounts 2008  Pure Wafer plc
Company balance sheet
30 June 2008
      2008 2007 
     Note £’000 £’000
Fixed assets     
Investments     4 9,215 9,215
     
Current assets     
Debtors     5 4,082 6,713
Cash at bank and in hand      — 2,001
      4,082 8,714
     
Creditors: amounts falling due within one year     6 (978) (1,923)
Net current assets      3,104 6,791
Total assets less current liabilities      12,319 16,006
Creditors: amounts falling due after more than one year     7 (607) (3,457)
Net assets      11,712 12,549
     
Capital and reserves     
Called up share capital     9 532 532
Share premium account     10 12,783 12,783
Profit and loss account     10 (1,603) (766)
Shareholders’ funds     10 11,712 12,549
     
These financial statements were approved by the board of directors on 19 December 2008.
Signed on behalf of the board of directors
PeTeR HARRinGTon  STePHen YounG
Chief executive  Interim group finance officer
19 December 2008   19 December 2008 48 Pure Wafer plc  Annual report and accounts 2008
Notes to the company financial statements
Year ended 30 June 2008
1. Accounting policies – company
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular accounting policies 
adopted, which have been applied consistently throughout the current and the prior financial year, are described below.
Going concern
The group’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the 
Chairman’s statement on pages 4 and 5. The financial position of the group, its cash flows, liquidity position and borrowing facilities are 
described in the Chief executive’s review on pages 6 and 7. In addition note 24 to the financial statements includes the group’s objectives, 
policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging 
activities; and its exposures to credit risk and liquidity risk. The directors have assessed the balance sheet and likely future cash flows of the 
company and group at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the financial 
statements on a going concern basis. 
As described in the Chairman’s statement on pages 4 and 5, the current environment is challenging. The company has recorded a pre-tax loss and 
has relied on waivers of loan covenant tests at 30 June and 30 September 2008 in order to stay in line with banking facility arrangements. In 
forming the conclusion about the going concern basis, the directors have considered these factors together with the management forecasts for the 
business for the period to 30 June 2010. The forecasts indicate that the company can continue to meet interest payments, but it needs to 
reschedule some of the capital repayments of debt and may also need to obtain waivers of future loan covenant tests. The company has met all 
capital and interest payments as they fell due up to the date of approving the financial statements. Whilst the directors have instituted measures 
to preserve cash and reschedule the current repayment obligations, these circumstances create material uncertainties over future cash flows 
and the availability of finance. 
As explained in the Chairman’s statement on pages 4 and 5, the board has received a preliminary indicative approach to acquire Pure Wafer Plc. 
Whilst negotiations are progressing, there can be no certainty that any offer will be made. If a sale is arranged, it is likely to include a cash 
injection which will be used to reduce the debt obligations of the company, but if not, the group will need to restructure the finance facilities 
such that the debt can be serviced from forecasted levels of trading and cash flow.
The directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business, nor a restructuring 
of existing facilities, can be arranged. No commitment has been secured to date. 
The directors have concluded that the combination of circumstances represents a material uncertainty that casts significant doubt upon the group’s 
and the company’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in 
the normal course of business. Nevertheless, after making enquiries, and considering the uncertainties described above, the directors have a 
reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. 
For these reasons, they continue to adopt the going concern basis in preparing the annual report and financial statements. 
The financial statements do not include any adjustments that would result if the going concern assumption were not applicable. 
Accounting convention
The financial statements are prepared under the historical cost convention. 
investments
Investments in subsidiaries and associates are held as fixed assets and are stated at cost less provision for any impairment
Cash flow statement
Under Financial Reporting Standard 1 (revised 1996), the company is not required to prepare a cash flow statement as a group cash flow 
statement has been included in the financial statements of the group. 
Taxation
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively 
enacted at the balance sheet date. 
Deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less 
tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion 
of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and 
liabilities are not discounted. 49 Annual report and accounts 2008  Pure Wafer plc
2. information regarding directors and employees
          2008 2007 
          £’000 £’000
Directors’ emoluments    
Aggregate emoluments (including benefits in kind)       664 598
Contributions to money purchase pension schemes       15 15
          679 613
    
          2008 2007 
          £’000 £’000
Highest paid director    
Aggregate emoluments (including benefits in kind)       183 186
Contributions to money purchase pension schemes       5 5
          188 191
    
          2008 2007 
          Number Number
Number of directors in pension scheme        3 3
    
          2008 2007 
          Number Number
Average number of persons employed (including directors)    
Sales and administration         7 7
    
          2008 2007 
          £’000 £’000
Staff costs during the year (including directors)    
Wages and salaries          636 573
Social security costs          76 72
Pension costs          14 15
          726 660
    
3. Loss for the year
As permitted by Section 230 of the Companies Act 1985, the company has elected not to present its own profit and loss account for the year. 
Pure Wafer plc reported a loss for the financial year ended 30 June 2008 of £837,000 (2007: £737,000). 
Auditors’ remuneration for audit services for the company was £8,000 (2007: £12,000). Auditors’ remuneration for non-audit services for the 
company was £20,000 (2007: £9,000). 
4. investments
           Investment in  
           subsidiaries 
           £’000
Cost and net book value     
At 1 July 2007 and 30 June 2008          9,215
The company’s investments in group companies relate to:
   Holding 
   ($1 ordinary  Country of  
Subsidiaries   shares) Activity  incorporation
Pure Wafer International Limited  100% Reclamation and reprocessing of silicon test wafers  United Kingdom
Pure Wafer, Inc   100% Reclamation and reprocessing of silicon test wafers United States
5. Debtors
          2008 2007 
          £’000 £’000
Amounts owed by group undertakings         4,016 6,645
Other debtors and prepayments         66 68
          4,082 6,713
  50 Pure Wafer plc  Annual report and accounts 2008
Notes to the company financial statements
Year ended 30 June 2008 continued
6. Creditors: amounts falling due within one year 
          2008 2007 
          £’000 £’000
Bank loans and overdraft (note 8)         978 942
Other taxation and social security         — 147
Deferred consideration          — 834
          978 1,923
     
7. Creditors: amounts falling due after more than one year 
          2008 2007 
          £’000 £’000
Bank loans           607 2,590
Deferred consideration          — 867
          607 3,457
     
8. Borrowings 
          2008 2007 
          £’000 £’000
Overdraft      
Within one year          757 —
     
Bank loans      
Within one year          221 942
Between one and two years         221 943
Between two and five years         386 1,647
          828 3,532
     
Deferred consideration     
Within one year          — 834
Between one and two years         — 867
          — 1,701
In February 2008, the company restructured its borrowing facilities. The outstanding balance on the US$7.0 million term loan taken out in 2007 
(carrying value at 30 June 2007: £3,532,000) was transferred to the company’s subsidiary, Pure Wafer, Inc. On the same date, a new loan 
was taken out for US$1.75 million
9. Called up share capital
          2008 2007 
          £’000 £’000
Authorised     
50,000,000 ordinary shares of 2p each        1,000 1,000
Called up, allotted and fully paid     
26,591,182 (2007: 26,591,182) ordinary shares of 2p each      532 532
          532 532
     
10. Combined reconciliation of movement in shareholders’ funds and statement of movements on reserves
        Share Profit  
       Share premium and loss Total  Total 
       capital account account  2008 2007 
       £’000  £’000  £’000  £’000  £’000
At the beginning of the year       532 12,783 (766) 12,549 13,145
Loss for the financial year      — — (837) (837) (737)
Proceeds from issue of new shares      — — — — 141
At the end of the year        532 12,783 (1,603) 11,712 12,549
     
11. Related party transactions
Under Financial Reporting Standard 8, the company is not required to disclose transactions with entities, 90% or more of whose voting rights are 
controlled within the group. 51 Annual report and accounts 2008  Pure Wafer plc
Notice is given that the 2008 Annual General Meeting of Pure Wafer plc (“company”) will be held at 10.00am on 4 February 2009 
at Pure Wafer plc, Central Business Park, Swansea Vale, Swansea SA7 0AB for the following purposes:
Resolutions
To consider and, if thought fit, pass the following resolutions. Resolutions 1 to 6 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 2008, together with the auditors’ report 
on those accounts.
2. To reappoint E ap Gwilym as a director of the company.
3. To reappoint P Harrington as a director of the company.
4. To reappoint S Boyd as a director of the company.
5.  To reappoint Deloitte LLP as auditors of the company to hold office from the conclusion of the meeting until the conclusion of the next 
general meeting of the company at which accounts are laid.
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 52 Pure Wafer plc  Annual report and accounts 2008
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 2,652,435.
 9.2  the minimum price (exclusive of expenses) which may be paid for a Share is 2p
  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 annual general meeting of the company after the 
passing of this resolution, save that the company may enter into a contract to purchase Shares before the expiry of this authority under which 
such purchase will or may be completed or executed wholly or partly after such expiry and may make a purchase of Shares pursuant to any 
such contract as if the authority conferred by this resolution had not expired.
By order of the board
STePHen Y ounG ReGiSTeReD offiCe
Company Secretary Pure Wafer plc
19 December 2008 Central Business Park
 Swansea Vale
 Swansea SA7 0AB
 
notes
1.  Only those members registered in the register of members of the company as at 10.00am on 2 February 2009 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 10.00am on 2 February 2009 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 person 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. A proxy may not speak at the meeting, except with the permission of the chairman of the 
meeting. 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 10.00am on 2 February 2009 (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 Annual General Meeting from 11.00am on the day of the meeting until the conclusion of the meeting.
Notice of Annual General Meeting 
continued