Leaders in 
wafer services
Pure Wafer plc
Annual report and accounts 2010 Corporate statement
Pure Wafer is an industry-leading, provider 
of silicon wafer reclaim services. Pure Wafer 
cleans and polishes silicon wafers sent 
for reclaim by many of the world’s largest 
semiconductor manufacturers. Pure Wafer 
operates state-of-the-art foundries in the 
UK and the US which have the capability 
to meet the stringent quality standards 
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. 01 Annual report and accounts 2010  Pure Wafer plc
Highlights
› Turnover $24.8m (2009: $27.8m)
› EBITDA $1.0m (2009: $1.5m)
› 	 	 Significant	increase	in	EBITDA	from	first	half	
to	second	half	(H1:	($0.2m);	H2:	($1.2m)
› 	 Operating	loss	$6.8m	(2009:	$6.4m)
› 	 P re-tax	loss	$8.0m	(2009:	$7.8m)
› 	 	 P re-tax	loss	before	restructuring	costs	
and	other	losses	$7.2m	(2009:	$7.3m)
› 	 	 Basic	loss	per	share	5 .1c	(2009:	loss	per	
share	29.4c)
Financial Operational
›	 	 Sales 	 volumes 	 have 	 recovered, 	 with 	 stronger	
increases 	 in 	 second 	 half 	 over 	 first 	 half
› 	 	 N o 	 d o w n w a r d 	 p r e s s u r e 	 o n 	 s e l l i n g 	 p r i c e s	
in 	 second 	 half
› 	 	 Cost	reductions	contin ued	leading	to	20%	
reduction	in	cost	per	unit	compared	to	
prior	year	
› 	 	 Development	and	launch	of	our	UK	
manufactured,	lowest	carbon	footprint	
solar	products
› 	 	 Group	banking	arrangements	have	
been	restructured
› 	 	 Succ essful	placing	and	open	offer	of	
shares	raised	£1.99m,	before	costs,	for	
working	capital
› 	 	 Business	now	stabilised	with	low	cost	
of	manufacture,	in	a	recovering	mark et,	
with	significant	installed	capacity
 IFC Corporate statement 
01 Highlights
 02 Pure Wafer at a glance 
 04 Chairman’s statement 
06 Chief executive’s review 
 08 Financial review 
10  Board of directors, 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 and 
Consolidated statement of comprehensive income
 22 Consolidated statement of changes in equity
 23 Consolidated balance sheet
 24 	 Consolidated	cash	flow	statement
 25 	 Notes	to	the	consolidated	financial	statements
42 Company independent auditors’ report
 43 Company balance sheet
44 	 Notes	to	the	company	financial	statements	
48 Notice of Annual General Meeting 02 Pure Wafer plc  Annual report and accounts 2010
Pure Wafer at a glance
T h e 	 c o m p a n y 	 h a s 	 a n 	 e s t a b l i s h e d 	 t r a c k 	 r e c o r d ,	
two	of	the	world’s	most	advanced	wafer	
reclaim	facilities	and	a	blue	chip	customer	
b a s e 	 t h a t 	 i n c l u d e s 	 t h e 	 m a j o r i t y 	 o f 	 t h e 	 w o r l d ’ s	
l a r g e s t 	 s e m i c o n d u c t o r 	 m a n u f a c t u r e r s 	 a n d	
independent 	 foundries. 	 As 	 a 	 business 	 partner ,	
P u r e 	 W a f e r 	 w o r k s 	 w i t h 	 i t s 	 c u s t o m e r s 	 t o	
d e s i g n 	 a n d 	 d e v e l o p 	 a 	 s e r v i c e 	 t h a t 	 d e l i v e r s	
r e c l a i m e d 	 w a f e r s 	 t o 	 t h e 	 e x a c t 	 s p e c i fi c a t i o n s	
a n d 	 h i g h 	 s t a n d a r d s 	 r e q u i r e d 	 b y 	 t o d a y ’ s	
leading 	 semiconductor 	 manufacturers.
Our history
P ure	W afer	was	established	in	2000	by	
a	management	team	widely	experienced	
i n 	 t h e 	 s e m i c o n d u c t o r 	 i n d u s t r y 	 w i t h 	 t h e	
backing 	 of 	 strategic 	 investment 	 from	
V enture 	 Capital 	 and 	 Industr y 	 par tners.
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 	 F ebruar y 	 2007 	 P ure 	 W afer 	 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.
Our facilities
T h e 	 U K 	 b u s i n e s s 	 o p e r a t e s 	 f r o m 	 a 	 s t a t e	
of	the	ar t,	purpose	built	facility	situated	in	
a	technology	park	in	Swansea,	W ales	and	
is	the	most	advanced	plant	of	its	kind	in	
Europe.	The	size	of	the	facility	is	in	excess	
of	4,500m
2
	and	includes	over	2,000m
2
 
of	production	cleanrooms.
The	facility	in	P rescott,	Arizona	was	
constructed	in	1997	and	has	received	
in	excess	of	$50m	of	investment	since	
then .	This	high	volume	high-tech	fab
was	originally	designed	for	200mm	and	
smaller	diameter	wafer	reclaim	ser vices,	
but	following	the	acquisition	by	P ure	W afer	
i n 	 2 0 0 7 	 c a p a b i l i t y 	 t o 	 r e c l a i m 	 3 0 0 m m	
wafers	has	been	installed.
W e	have	installed	the	latest	generation	
of	tools	available	on	the	mark et,	with	the	
m o s t 	 a d v a n c e d 	 e q u i p m e n t 	 a s 	 u s e d 	 b y	
i n t e g r a t e d 	 c h i p 	 ( I C ) 	 a n d 	 p r i m e 	 s i l i c o n	
p r o d u c e r s . 	 W i t h 	 t h e 	 h i g h e s t 	 t e c h n i c a l	
specifications,	we	are	positioned	to	offer	
the	most	effective	wafer	reclaim	ser vices	
to	our	customers	with	minimal	silicon	
removal.	This	enables	our	customers	
to	maximise	the	number	of	times	
a	test	wafer	can	be	reclaimed.
Pure Wafer is a worldwide leader in the provision 
of 300mm wafer reclaim services. These services 
enable semiconductor manufacturers to gain 
efficiencies through the increased use of silicon 
test wafers within their production processes. 03 Annual report and accounts 2010  Pure Wafer plc
Our process
A t 	 P u r e 	 W a f e r 	 o u r 	 p r o c e s s 	 f o r 	 r e c l a i m i n g 	 t e s t	
wafers 	 involves 	 the 	 following 	 k ey 	 stages:
› 	 	 Inspection	of	the	wafers	for	defects	and	
classification	by	type	of	contaminant	to	
be	removed
› 	 	 Submersion	in	a	precise	mix	of	chemicals	
appropriate	to	remove	the	contaminant
› 	 	 Assessment	of	flatness	and	correction	
of	defects	using	P ure	W afer ’s	advanced	
polishing	processes
› 	 	 Cleaning	and	dr ying
› 	 	 F inal	quality	inspection	and	packaging	
for	return	to	the	customer
Wafer reclaim
D u r i n g 	 t h e 	 m a n y 	 s t a g e s 	 o f 	 t h e 	 m a n u f a c t u r i n g 	 p r o c e s s 	 o f	
semiconductors, 	 large 	 quantities 	 of 	 test 	 wafers 	 are 	 used 	 to 	 check	
t h e 	 a c c u r a t e 	 c a l i b r a t i o n 	 o f 	 e q u i p m e n t . 	 T h e s e 	 t e s t 	 w a f e r s 	 a r e 	 a 	 k e y	
c o n s u m a b l e 	 i n 	 t h e 	 m a n u f a c t u r e 	 o f 	 s e m i c o n d u c t o r s 	 a n d 	 t h e 	 a b i l i t y	
t o 	 r e c l a i m 	 t h e m 	 t h r o u g h 	 P u r e 	 W a f e r ’ s 	 a d v a n c e d 	 p r o c e s s 	 p r o v i d e s	
manufacturers 	 with 	 the 	 oppor tunity 	 to 	 reduce 	 costs.
The	semiconductor	industr y	transition	to	300mm	wafers	is	now	
well	advanced.	In	order	for	manufacturers	to	continue	to	increase	
functionality	at	a	reduced	cost,	the	industr y	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	
P ure	W afer	is	one. 04 Pure Wafer plc  Annual report and accounts 2010
Introduction
The year to 30 June 2010 started with the 
industry still struggling to recover from the 
worst downturn ever experienced in the 
semiconductor industry and the lasting effects 
of the worldwide economic recession. Whilst 
we saw some encouraging signs of recovery 
of volumes during our first half we were still 
experiencing price pressure from our customers, 
as competitors sought to gain volume sales.
During our second half, as the industry shook 
off the shackles of the downturn and confidence 
returned to the industry, volume recovery 
became stronger and downward price pressure 
stopped, albeit with pricing remaining at the 
level inherited from our first half.
During the period Sterling maintained its 
relatively weak position against the US Dollar 
(USD) which at least mitigated the effects of 
the depressed selling prices, when converted 
to Sterling. 
As the industry currency is USD and therefore 
the majority of our revenues and a large 
proportion of our costs are now denominated 
in USD, we have decided to switch our 
reporting currency away from Sterling to 
USD. This now matches our functional 
currency and allows us to produce accounts 
that are clearer and more transparent without 
the need for the large and numerous 
adjustments required where the functional 
and reporting currencies are different.
Financial results
› Turnover $24.8m (2009: $27.8m).
›  EBITDA pre restructuring costs $1.0m 
(2009: $1.5m).
›  Significant increase in EBITDA from first half 
to second half (H1: ($0.2m) H2: $1.2m).
› Operating loss $6.8m (2009: $6.4m).
› Pre-tax loss $8.0m (2009: $7.8m).
›  Pre-tax loss before restructuring costs 
and other losses $7.2m (2009: $7.3m).
›  Basic loss per share 5.1c (2009: loss per 
share 29.4c). 
Whilst the results are disappointing, the board is 
encouraged by the actions of the management team 
during the period to reduce the impact of the market 
conditions by significantly reducing costs across all 
sectors of the business as well as maximising 
revenue during a difficult trading period. The 
significant increase in EBITDA in the second half 
is a reflection of a recovery of volume sales 
together with the positive impact of our cost 
reduction activities.
Group funding
During the year we successfully completed 
negotiations with our bank and asset funders of 
a financial restructuring package. The financial 
agreements comprised of rescheduling all the 
company’s existing debt over a six year period 
which includes up to two years of capital 
repayment holiday together with an additional 
overdraft facility of up to £1.4m.
As a condition of the financial restructuring, 
and to demonstrate their commitment and 
confidence in the business, certain directors 
and senior management invested £0.3m of cash 
into the business by way of a placement 
of shares. The open offer to shareholders, 
which was circulated during August 2009, 
was well subscribed, raising £1.16m of funds. 
This together with the placing of excess shares, 
which raised £0.53m, resulted in a total 
of £1.99m of funds, before costs, being raised.
The financial restructuring and take up of the 
open offer and placement, demonstrates the 
commitment that the bank, asset funders, 
shareholders and management have to 
Pure Wafer and shows a confidence in the 
recovery of the business, and I would like 
to thank them for their support.
Management
In November 2009, we announced the 
appointment of Jerry Winters to the board 
as an executive director responsible for our 
US operations. Jerry, aged 51, has a Bachelor 
of Science Degree from the University of 
San Francisco and has 31 years’ experience 
in the semiconductor materials and Integrated 
Chip industry. I am pleased to welcome Jerry 
to the board of Pure Wafer plc. He has many 
years’ experience of manufacturing in the 
semiconductor industry and more specifically 
in the wafer reclaim sector. We see this as a 
strengthening of the board and a reflection of 
the growing importance of the US market to the 
Pure Wafer group and look forward to Pure Wafer 
receiving the benefits of his experience.
I would like to thank the entire team for their 
support and effort during what has been 
a turbulent and challenging year.
Chairman’s statement
With confidence having returned to the semiconductor 
industry, and the launch of our solar products, 
Pure Wafer is well positioned for growth. 05 Annual report and accounts 2010  Pure Wafer plc
Highlights
› Confidence has returned to the industry
› Volume recovery is becoming stonger
› Successful launch of our solar products
Outlook
The current year has commenced strongly 
with a continuation of volume growth, from all 
geographical regions. The recent news that one 
of our major competitors has announced that 
they will be exiting the wafer reclaim market, 
the seventh competitor since early 2009 to 
leave the industry, should redress the balance 
between supply and demand, and therefore 
help selling prices recover over time to a more 
normalised position.
The launch of our solar products is a very 
exciting time for Pure Wafer, as we believe that 
the renewable energy market has a massive 
potential growth both globally but significantly 
here in the UK being underpinned by the 
introduction of the government backed 
feed-in-tariff in April 2010. Pure Wafer’s 
products include solar cells manufactured in 
the Swansea facility without the conventional 
heat process, which enables Pure Wafer to 
convert scrap from one industry, into an energy 
producing product for another industry, with the 
lowest carbon footprint. We have now added 
to this with the manufacturing of solar panels 
which means that we are positioned as the 
only manufacturer of solar cells and solar 
panels in the UK.
The aforementioned developments when taken 
together with our additional funding, gives 
Pure Wafer a strong foundation on which 
to move forward.
stePHen bO yd
non-executive chairman
28 October 2010 06 Pure Wafer plc  Annual report and accounts 2010
Operational review
The financial year to 30 June 2010 proved to 
be a period of recovery as the semiconductor 
industry shook off the burden of the deepest 
decline in its history, as the world economic 
turmoil eased. 
Volume sales recovered during the year 
with 300mm wafer reclaim up by 20% when 
compared to the prior year, and 200mm wafer 
reclaim up 11%. Whilst we were encouraged 
by the start to the year, the second half of the 
year saw an even stronger recovery with 
increases in both 300mm and 200mm 
volumes, compared to the first half, of 21% 
and 16% respectively.
We commenced the year with all employees 
on short time working for the first quarter, but 
volumes recovered sufficiently for full time and 
pay to be reinstated during the second quarter. 
I would like to thank all our employees for agreeing 
to support the short time working initiative, 
enabling Pure Wafer to continue to trade 
competitively throughout this difficult year, 
whilst retaining our staff.
Despite selling prices stabilising and downward 
pressure evaporating in the second half of the year, 
the brutal price reductions that we experienced 
during 2008 and 2009 meant that the year 
concluded with stable but low selling prices, 
which necessitated the company continuing 
to concentrate on reducing its cost base. 
As volumes recovered we have absorbed 
these without increasing headcount, thus 
benefiting from cost efficiencies through higher 
productivity. Our ongoing engineering led cost 
reduction activities have enabled us to reduce 
the consumable costs per wafer and certain 
fixed costs, all without affecting the quality 
of the group’s product offering. These activities 
have resulted in an overall reduction in the unit 
cost per wafer of 20% compared with the 
prior year.
Highlights
›  Sales volumes have recovered:
 –  300mm up by 20% and 200mm up 
by 11% when compared to prior year; and
 –  strong increases in volumes second half 
over first half.
›  No downward pressure on selling prices in 
second half.
›  Cost reductions continued leading to 20% 
reduction in cost per unit compared to 
prior year. 
›  Development and launch of our UK 
manufactured, lowest carbon footprint 
solar products.
›  Group banking arrangements have 
been restructured:
 –  existing debt rescheduled over 
a six year period including up 
to two year capital moratorium; and
 –  overdraft facilities of £1.4m agreed.
›  Successful placing and open offer of 
shares raised £1.99m, before costs, for 
working capital.
›  Business now stabilised with low cost 
of manufacture, in a recovering market, 
with significant installed capacity.
Market
We have made significant progress in increasing 
our 300mm wafer reclaim market share in the 
US, from our Prescott, Arizona facility, where 
we are actively engaged with every major 
300mm integrated chip manufacturer which 
has a manufacturing presence in the US. The 
Prescott facility is now fully equipped for large 
scale 300mm production, with the quality of 
offering equal to the stringent requirements of 
our blue chip customer base, and we envisage 
further significant market gains.
There have been some significant corporate 
failures within the competitive landscape, 
with competitors either voluntarily leaving 
the wafer reclaim market or through chapter 11 
arrangements. The effect of these changes, 
which have resulted in Pure Wafer having the 
only wafer reclaim facilities in both Europe and 
US with the capacity and capability to service 
Chief executive’s review
Pure Wafer is now stabilised with a lower cost of 
manufacture, in a recovering market, and with a 
significant installed capacity. 07 Annual report and accounts 2010  Pure Wafer plc
the high end blue chip customers, will certainly 
have a significant effect on the supply and 
demand balance worldwide. As customer 
specification requirements tighten, the capacity 
of high quality reclaim services is restricted still 
further to wafer reclaim companies who have 
both the technical know how and the relevant 
measurement equipment to produce an 
offering to the quality required.
With the group’s current installed capacity for 
300mm and smaller diameter wafers at Pure 
Wafer’s high quality facilities in Swansea and 
Prescott, Arizona, together with the reduced 
cost per wafer, the Board believe that the 
company is well placed for future growth.
new products
The development of our solar products, and 
the establishment of the manufacturing lines, 
are progressing well, with a great deal of 
interest for our lowest carbon, UK manufactured 
products. We have recently received confirmation 
that our products have performed well in the 
stringent testing requirements which are needed 
for Microgeneration Certification Scheme (MCS) 
certification, which is required for installations to 
qualify for the government backed feed-in-tariff. 
We see this as an exciting addition to our portfolio 
of products and are confident that it will provide 
significant revenue and profitability to the group.
Peter HarrInG tOn
Group chief executive
28 October 2010
Highlights
›  Successful cost reductions and productivity improvements 
leading to 20% reduction in unit costs
› Launch of our low carbon solar products
› Selling price pressure stopped 08 Pure Wafer plc Annual report and accounts 2010
r eporting currency
The currency of the industry we are in is 
USD and therefore the majority of our revenues 
and a large proportion of our costs are now 
denominated in USD, we have therefore 
decided to switch our reporting currency away 
from Sterling to USD. This now matches our 
functional currency and allows us to produce 
accounts that are clearer and more transparent 
without the need for the large and numerous 
adjustments required at the year end to deal 
with the difference between functional and 
reporting currencies. 
Volumes and r evenue
The volume of 300mm equivalent wafers 
processed at 958,000 (2009: 844,000) was 
an increase of 14% in the year. Revenue for the 
year was $24.8m, a decrease of 11% on last 
year (2009: $27.8m); reflecting the impact of 
price pressures. An analysis of turnover by origin 
and destination can be found in note 5.
Gross profit
Gross profit at $5.2m (2009: $6.5m), 
a reduction of 20%, was impacted by the 
reduction in average 300mm selling prices 
in the marketplace despite the increase in 
volumes, together with the reduction in 
scrap sales of $2.2m compared to prior 
year, as the value of scrap material fell 
dramatically. The low pricing for silicon 
scrap bodes well for our solar cell 
manufacturing division. The gross profit 
margin reduced accordingly to 21% 
(2009: 23%).
Operating loss
The operating loss of $6.8m (2009: loss 
of $6.2m) was achieved after incurring $0.8m 
(2009: $0.6m) of restructuring costs. 
administrative expenses
Administrative expenses of $11.2m 
(2009: $12.0m) for the group show 
a decrease on the prior year.
Loss before tax
The loss before tax was $8.0m (2009: $7.8m).
Foreign exchange
As over 95% of group revenue is in USD, 
revenue and margins are impacted by the 
movement in the currency. We continue to 
convert as much of the cost base as possible 
to USD in order to provide a natural hedge 
against the USD revenue streams. 
Cash flow and capital expenditure
Cash flow from operations this year showed a 
net outflow of $0.3m (2009: inflow $7.5m). 
The deterioration in cash flow stems from the 
normalisation of the company’s creditors after 
the refinancing of the business in the year.
taxation
There is no current tax charge across the group. 
During the year the group submitted claims in 
respect of qualifying Research and Development: 
the amounts recoverable are disclosed within 
debtors at year end and were received in full 
after the year end. Due to the losses incurred 
during the year, the board has taken the prudent 
decision not to recognise the deferred tax 
asset of $10.0m (2009: $9.6m) pertaining to 
accumulated losses, in the balance sheet, as it not 
expected to be utilised within the foreseeable future. 
LPs and dividend
Basic loss per share for the year was 
5.1c(2009: 29.4c), based on 126m shares 
(2009: 26m). 
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.
Capital
At 30 June 2009 the company was in negotiations 
with its existing lenders to restructure the capital 
repayment terms of bank loans, hire purchase 
and finance leases. Although these negotiations 
were very well advanced at 30 June 2009 they 
were not completely finalised until shortly after 
the year end. 
Financial review
The alignment of our reporting and functional 
currencies will further clarify our corporate reporting. 09 Annual report and accounts 2010  Pure Wafer plc
On 20 August 2009, the group reached 
an agreement with its lenders to restructure 
the capital repayment terms of bank loans, 
hire purchase and finance leases. 
In September 2009 the refinancing was 
completed. As a condition of the financial 
restructuring, and to demonstrate their 
commitment and confidence in the business, 
certain directors and senior management 
invested £0.3m of cash into the business 
by way of a placement of shares. The open 
offer to shareholders, which was circulated 
during August 2009, was well subscribed, 
raising £1.16m of funds. This, together with 
the placing of excess shares, which raised 
£0.53m resulted in a total of £1.99m of 
funds, before costs, being raised.
tIM LOWe
Group finance director
28 October 2010
 Year ended Year ended 
 30 June 30 June 
 2010 2009 
 $’000 $’000
Turnover 24,829 27,758
Gross profit 5,151 6,493
Operating (loss)/profit (6,841) (6,149)
(Loss)/profit before tax (8,021) (7,823)
Adjusted diluted EPS (3.7)c (29.4)c
  10 Pure Wafer plc  Annual report and accounts 2010
Board of directors, senior management and advisers
executive directors
1. 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.
2. KeItH BAKer
CHIeF oPerA tING 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.
3. tIM LoWe ACA
GrouP FINANCe DIreCtor
Tim Lowe qualified as a chartered accountant 
in 1988 with Touche Ross, and is an experienced 
public company finance director. Tim has held 
the position of group finance director of PKL 
Holdings plc (an AIM listed company) before 
joining Stradform Limited where he led the 
negotiations for the sale of the business to one 
of the largest contractors in Europe.
4. Jerr Y WINters
us oPerA tIoNs DIreCtor
Jerry Winters has 31 years’ experience in 
the semiconductor materials and Integrated 
Chip industry. He started his career with 
Fairchild’s Semiconductor in 1978 and during his 
nine years with that company, held positions 
in both engineering and operations management. 
In 1987 Jerry joined the Laporte/ Rockwood 
Specialties group where he was global operations 
manager of their US and European silicon wafer 
reclaim operations. In 2007 he joined the 
Pure Wafer organisation following the acquisition 
of Exsil from Rockwood Specialties, where he 
was an officer of Exsil.
1. 
2. 
3. 
4.  11 Annual report and accounts 2010  Pure Wafer plc
5. stePHeN BoYD
NoN-exeCutIve CHAIrMAN
Stephen Boyd has worked in a number of 
manufacturing industries, including five years 
as group chief executive of Capital Industries plc. 
Stephen currently sits on a number of boards 
of both public and private companies, mainly in 
the technology sector and is currently chairman 
of Pittards plc. Stephen joined the board on 
1 October 2008.
6. Dr eurFYL AP G WILYM
NoN-exeCutIve DIreCtor AND 
DePutY 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 advising a number 
of private companies. Eurfyl joined the board in 
November 2004. 
7. PAuL DoLAN FCA
NoN-exeCutIve DIreCtor
Paul Dolan spent many years as an audit partner 
at Deloitte, where his clients included several 
semiconductor and technology companies. Paul 
retired from Deloitte in 2004. In 2006, he took 
up the position of non-executive director at 
XP Power plc, and remained in this position until 
the relocation of XP Power plc to Singapore in 
2007. Paul joined the board of Pure Wafer plc 
in June 2007 and became chair of the audit 
committee on appointment to the board.
non-executive directors
CoMPANY seCret Ar Y  
AND reGIstereD oFFICe
t LoWe
Pure W AFer PLC
Central Business Park 
Swansea Vale 
Swansea SA7 0AB
soLICItors
MorGAN CoLe LLP
Llys Tawe 
Kings Road 
Swansea SA1 8PG
BANKers
roYAL BANK oF sCotLAND PLC
One Kingsway 
Cardiff CF10 3YB
NoMINAteD ADvIsers/BroKers
WH IreLAND
4 Colston Avenue 
Bristol BS1 4ST 
AuDItors
PrICeWA terHouseCooPers LLP
Llys Tawe 
Kings Road 
Swansea SA1 8PG
reGIstrArs
CAPIt A reGIstrArs
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
advisers
5. 7. 6.  12 Pure Wafer plc  Annual report and accounts 2010
The directors present their annual report and the audited financial statements of the group for the year ended 30 June 2010.
Principal activity 
The principal activity of the group remains the reclaim of silicon test wafers. The principal activity of the company is as a holding company 
and the provision of management services to the group’s trading subsidiaries.
The consolidated income statement is set out on page 21.
A review of developments affecting the group during the year and its prospects for the future is set out in the Chairman’s statement, 
Chief executive’s review, and Financial review.
Business review
A detailed review of the group’s operations and key performance indicators is contained in the Chairman’s statement on pages 4 and 5, 
the Chief executive’s review on pages 6 and 7 and the Financial review on pages 8 and 9.
Information about the use of financial instruments by the company and its subsidiaries is given in note 22 to the financial statements. 
Dividends
The directors do not recommend the payment of a dividend (2009: $nil).
Risks and uncertainties 
There are a number of potential risks and uncertainties which could have a material impact on the company’s long-term performance.
Market risk
Volumes – in the current climate, there is a risk that sales volumes, whilst currently recovering, will decrease if the industry recovery is not 
sustained, leading to a reduction in market prices as our competitors compete for existing business. We mitigate the risk by maintaining our 
standards of quality and endeavouring to qualify to provide wafer reclaim services to as many of the major semiconductor manufacturers as 
we can.
Price – competitive pressures create a risk that the market price for wafer reclaim services will fall, affecting our gross margin. We mitigate 
this risk by understanding the production cost for each wafer and only tendering for work at rates that will achieve an acceptable return.
Credit risk
The group offers short-term credit to customers and there is a risk that customers will default on payments for services provided. The group 
manages the risk by trading with a wide range of customers in diverse geographical locations and monitoring the creditworthiness of customers, 
both before offering credit terms and during their relationship with Pure Wafer. 
Treasury risk
Interest rate – the group’s borrowings include variable rate term loans and fixed rate finance leases. We mitigate the risk associated with our 
variable rate loans by entering into interest rate swaps. 
Competitor risk
New entrants – the high level of investment required and the related cost of capital makes this unlikely in the current market conditions.
Technology risk
As the group operates in a technology sector, there is a risk that the process could be superseded and new capital investment required; however, 
the board feels that this is extremely unlikely in the current market and based on available knowledge of new product/technology developments.
Capital structure
Details of the authorised and issued share capital are shown in note 23. The company has one class of ordinary shares which carry no right 
to fixed income. Each share carries the right to one vote at general meetings of the company. 
There are no specific restrictions on the size of a holding or on the transfer of shares, which are both governed by the general provisions of the 
Articles of Association and prevailing legislation. The directors are not aware of any agreements between holders of the company’s shares that 
may result in restrictions on the transfer of securities or on voting rights. Substantial shareholders are listed in a separate section that follows.
In the year as part of the restructuring an additional 99.7m shares were issued at par. In addition as a condition of the restructuring, warrants 
were issued to investing shareholders. Further details are set out in note 23.
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 power of the directors is described 
in the corporate governance section of the Directors’ report on page 14.
Directors’ report  13 Annual report and accounts 2010  Pure Wafer plc
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 2010 
were equivalent to 60 days’ (2009: 65 days’) purchases, based on the average daily amount invoiced by suppliers during the year. 
Directors and their interests 
The directors of the company, who served throughout the financial year and up to the date of signing the financial statements unless stated 
otherwise, are as shown below: 
S Boyd non-executive chairman
E ap Gwilym non-executive director
P Dolan non-executive director
P G Harrington group chief executive
K Baker chief operating officer
T Lowe group finance director (appointed 21 August 2009)
J Winters director of US operations (appointed 13 November 2009)
C G Clarke non-executive director (resigned 15 December 2009)
The beneficial interests of the directors in the share capital of the company at the beginning and the end of the financial year were as follows:
        30 June 30 June 
        2010 2009 30 June 30 June 
        2p ordinary  2p ordinary 2010 2009 
        share share 2p ordinary 2p ordinary 
        warrants warrants shares shares 
        Number  Number  Number  Number
S Boyd        12,508,107 — 7,500,000 —
P G Harrington        4,065,135 — 1,784,066 159,066
K Baker        3,127,027 — 1,413,012 163,012
T Lowe        2,501,621 — 1,000,000 —
P Dolan        — — 1,065,000 65,000
E ap Gwilym        — — 525,000 25,000
J Winters        2,345,270 — 937,500 —
C G Clarke        — — 2,580,334 279,482
The directors held no shares in any other group company at any time during the financial year.
The warrants were issued by the company as part of certain directors and senior managers participation in the financial restructuring and placement 
of shares. They are not share options and have no performance criteria or necessitate continuing employment within the Pure Wafer Group. 
Details of the warrant issued to Royal Bank of Scotland plc are detailed in note 23. 
Substantial shareholders 
As at 15 October 2010, notifications of beneficial interests in 3% or more of the company’s issued share capital are as follows:
          Ordinary  
          shares 
          Number %
Blackrock Investment Management         25,637,696 20.3
AXA Framlington          13,341,293 10.6
Stephen Boyd          7,500,000 5.9
Aviva          6,755,369 5.4
Polar Capital European Forager Fund Ltd        6,057,748 4.8
Michinoko          5,921,440 4.7
Authority to issue and allot shares
The Companies Act 2006 contains restrictions on the power of the directors to allot a company’s shares. As a result, the directors may only 
issue the shares pursuant to the authority within the statutory terms given by shareholders’ resolutions or contained in the Articles of Association. 
Their power to issue equity shares for cash to persons other than the existing shareholders is similarly restricted.
Resolutions to confer these authorities were passed at the previous Annual General Meeting (AGM), not on incorporation. These authorities will 
expire at the conclusion of the next AGM unless previously renewed, varied or revoked by the company in general meeting.
Resolutions to renew the authorities will be prepared at the 2010 AGM to be held on 22 November 2010.
Subsequent to the passing of these resolutions, the directors will have the authority to allot shares up to an aggregate nominal amount 
of £757,816 and it will not be necessary for the directors to seek further approval from shareholders to issue shares for cash to persons, 
other than existing shareholders, up to an aggregate nominal amount of £126,303. 14 Pure Wafer plc  Annual report and accounts 2010
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 year.
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 Finance Review on pages 8 and 9. In addition, note 22 to the financial statements includes the group’s objectives, policies and 
processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and 
its exposures to credit risk and liquidity risk. 
The directors have assessed the balance sheet and likely future cash flows of the company and group at the date of signing the audit report. 
This review considered detailed forecasts for the period to 30 June 2013. On this basis the directors have concluded that it is appropriate to 
prepare the financial statements on a going concern basis.
As described in the Chairman’s statement on pages 6 and 7, the current environment is challenging. The group has recorded a pre-tax loss; 
however, as noted in the Chairman’s statement, the group successfully negotiated a financial restructuring package in August 2009. The 
financial agreements comprise the rescheduling of all the group’s existing debt over a six year period which includes up to two years of capital 
repayment holidays together with an overdraft facility of £1.4m. 
As a condition of the restructuring agreement the group undertook a share placement that resulted in a total of £1.99m of funds, before costs, 
being raised in September 2009. This gives the group significant headroom above its forecast cash requirement, which will allow it to manage its 
business risks successfully despite the current uncertain outlook. 
The key sensitivity in the forecasts includes the achievement of increased sales volumes. The business is beginning to see an upturn in demand and 
the directors believe that this will be sustained. Sales prices are assumed to remain largely unchanged.
After making enquiries, the directors have a reasonable expectation that the group and the company have adequate resources to continue in 
operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the annual report 
and financial statements.
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 three non-executive directors, meets regularly throughout the year. 
S Boyd, E ap Gwilym and P Dolan are considered by the board to be independent non-executive directors.
The board is responsible for overall group strategy, acquisition and investment policy, approval of major capital expenditure projects and consideration of 
significant financing matters. There is a formal schedule of matters specifically reserved to the board’s jurisdiction. It reviews the strategic direction of the 
group, its annual budgets, the progress towards achievement of those budgets, its forecasts and its capital expenditure programmes. In furtherance of 
their duties, there are agreed procedures for the directors to take independent advice, if necessary, at the company’s expense.
The board considers the chairman to be the main point of contact to whom concerns of whatever nature may be conveyed. In the event that an 
individual does not wish to raise a concern with him, the board has identified the deputy chairman as an independent member of the board to 
whom such concerns may be addressed.
Audit committee
The company has an audit committee comprising two non-executive directors and the chairman. During the year the committee was chaired by 
P Dolan. The committee provides a link between the board and the group’s auditors on matters falling within the scope of the group’s audit. 
These matters include accounting standards and policies, internal financial control procedures and the group’s statutory financial statements, 
which are intended for publication. 
Directors’ report 
continued 15 Annual report and accounts 2010  Pure Wafer plc
Remuneration committee
The remuneration committee comprises the non-executive directors and the chairman and meets at least once a year. During the year, 
the committee was chaired by E ap Gwilym. It is the remuneration committee’s role to establish a formal and transparent policy on 
executive remuneration and to set remuneration packages for individual directors.
Treasury committee
The treasury committee comprises the executive directors. The committee meets on an as-needed basis where speedy approval for treasury 
matters, particularly relating to foreign exchange, is required. The chairman of the committee, P G Harrington, reports any decisions taken, 
with justification, to the board as quickly as practicable.
Board meetings
During the year to 30 June 2010, there were eleven board meetings, four audit committee meetings and three remuneration committee meetings. 
Attendance was as follows:
         Board  Audit  Remuneration 
         meeting committee committee
S Boyd         11 3 3
P G Harrington         11 — —
K Baker         11 — —
T Lowe (appointed 21 August 2009)       11 4 —
P Dolan         11 4 3
E ap Gwilym         11 4 3
J Winters (appointed 13 November 2009)       9 — —
C G Clarke (resigned 15 December 2009)       1 — —
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.
Research and Development
The company undertakes Research and Development activities to continue our process improvements.
Employees
Issues affecting employees are communicated via the management structure to enable employees to be aware of the company’s performance, etc. 
This same method is also used to communicate to employees issues which are likely to affect their interests and where possible a full explanation 
will be given as to the reasons for the actions that are planned and the likely effect on the employees.
The company has a recruitment policy in which equal consideration is given to disabled applicants. Full consideration will be afforded to disabled 
applicants and where applicable expert advice and guidance will be sought to enable a disabled applicant to take up a position within their capabilities.
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 annual report 
is sent to shareholders. The annual report is accompanied by notice of the AGM of the company, at which the 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. 16 Pure Wafer plc  Annual report and accounts 2010
Directors’ report 
continued
Auditors
In the case of each of the persons who are directors of the company at the date when this report is approved:
›  so far as each of the directors is aware, there is no relevant audit information of which the company’s auditors are unaware; and
›  each of the directors has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit 
information and to establish that the company’s auditors are aware of that information. 
This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.
PricewaterhouseCoopers LLP were appointed to fill a casual vacancy as auditors during the year. A resolution to appoint PricewaterhouseCoopers LLP 
as auditors will be proposed at the forthcoming AGM.
Approved by the board of directors and signed on behalf of the board: 
PETER HARRinGTon
Group Chief executive
28 october 2010  17 Annual report and accounts 2010  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 2010. This report is un-audited.
Role of the remuneration committee
The remuneration committee is responsible for:
›  establishing and recommending to the board the policy for executive remuneration;
›  determining, on behalf of the board and shareholders, the level and structure of remuneration packages of the executive directors; and
›  reviewing and ensuring the alignment of executive remuneration with remuneration throughout the organisation, including company share schemes.
The remuneration of non-executive directors is determined by the board as a whole. No director is involved in discussions related to his 
own remuneration.
Membership and meetings
Members of the committee were E ap Gwilym, chair of the committee, S Boyd and P Dolan. All the members of the committee are non-executive 
directors. The committee met three times during the year with all the members attending the meeting.
Advisers
During the year, the remuneration committee received guidance from the chief executive officer and the company secretary, except on matters 
relating to their own remuneration.
Remuneration policy
The committee and board believe that in order to attract, motivate and retain a senior management team of the right calibre it is necessary 
to provide a competitive market-based remuneration structure which rewards company and individual performance.
Remuneration packages comprise:
›  basic salary;
›  annual performance related bonus;
›  other benefits; and
›  participation in share incentive plans.
Basic salary
Salaries are normally reviewed annually and any changes are effective from July in each year. Pay reviews take into account company and 
individual performance. In the year, directors took a reduction in remuneration.
Performance related bonuses
Payments under the scheme are based upon the achievement of financial targets for the company as set by the remuneration committee.
Benefits
Benefits in kind include the provision of a car or car allowance, a payment of private fuel, private medical insurance, life assurance and 
permanent health insurance.
Share incentives
The group currently has no active share incentive schemes. Each year consideration is given to setting up a SAYE scheme for the benefit 
of all employees. 18 Pure Wafer plc  Annual report and accounts 2010
Directors’ remuneration report 
continued
Directors’ remuneration
          Total Total 
      Salary Benefits Bonus Pension 2010 2009 
Director      $ $ $ $ $ $
S Boyd      56,963 — — — 56,963 52,878
P Harrington      192,706 21,901 — 7,911 222,518 208,336
K Baker      192,706 27,123 — 7,911 227,741 222,876
T Lowe*      134,496 17,270 — 15,823 167,589 39,903
E ap Gwilym      49,605 — — — 49,605 51,330
P Dolan      55,381 — — — 55,381 50,944
J Winters*      135,903 8,757 — 6,380 151,040 —
S Young      — — — — — 83,796
C G Clarke**      24,803 — —  24,803 47,909
      842,563 75,051 — 38,025 955,639 757,972
*  From date of appointment as director
** To date of resignation as director
The remuneration disclosed above represents the US dollar (USD) equivalent of the amounts settled in sterling translated at a rate of $1.582:£1, 
with the exception of amounts paid to J Winters which were settled in USD. There have been no pay increases in the period, any movements are 
derived from translation differences in conversion to dollars and short time working with reduced salary.
Service contracts for directors
K Baker has a service agreement with the company dated 9 December 2004, subject to termination upon twelve months’ notice given 
by either party.
P G Harrington has a service agreement with the company dated 9 December 2004 subject to termination upon twelve months’ notice given 
by either party. 
T Lowe has a service agreement with the company dated 6 April 2009, subject to termination upon six months’ notice given by either party.
J Winters has a service agreement with the company dated 12 February 2007, subject to termination upon six months’ notice given by either party.
Letters of appointment for non-executive directors
S Boyd has a letter of appointment with the company dated 1 October 2008, which is subject to termination upon a notice period of 
three months given by either party.
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 GWiL yM
non-executive director
28 october 2010  19 Annual report and accounts 2010  Pure Wafer plc
Consolidated 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 are required to prepare 
the group financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and 
have elected to prepare the parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they 
are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that year. 
In preparing the parent company financial statements, the directors are required to:
›  select suitable accounting policies and then apply them consistently;
›  make judgements and accounting estimates that are reasonable and prudent;
›  state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the 
financial statements; and
›  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
In preparing the group financial statements, International Accounting Standard 1 requires that directors:
›  properly select and apply accounting policies;
›  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; 
›  provide additional disclosures when compliance with the specific requirements in IFRS are insufficient to enable users to understand 
the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance; and
›  make an assessment of the company’s ability to continue as a going concern.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and 
disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements 
comply with the Companies Act 2006 and, as regards the group financial statements, Article 4 of the IAS Regulation. They are also responsible 
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website 
www.purewafer.com. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions.
By order of the board
P G HARRinGTon
Group Chief executive
28 october 2010  20 Pure Wafer plc  Annual report and accounts 2010
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 2010 which comprise the Consolidated Income 
Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Balance 
Sheet, the Consolidated Statement of Cash Flows, the Accounting Policies and the related notes. The financial reporting framework that has been 
applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial statements 
and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical 
Standards for Auditors.
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 
16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other 
purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent 
in writing.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that 
the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the 
accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements 
In our opinion the group financial statements: 
› give a true and fair view of the state of the group’s affairs as at 30 June 2010 and of its loss and cash flows for the year then ended;
› have been properly prepared in accordance with IFRSs as adopted by the European Union; and 
› have been prepared in accordance with the requirements of the Companies Act 2006.
opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the group financial statements are prepared is 
consistent with the group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 
› certain disclosures of directors’ remuneration specified by law are not made; or 
› we have not received all the information and explanations we require for our audit.
other matters 
We have reported separately on the parent company financial statements of Pure Wafer plc for the year ended 30 June 2010. 
JASon CLARkE (SEnioR STATuToRy AuDiToR) 
foR AnD on BEHALf of PRiCEWATERHouSECooPERS LLP
Chartered Accountants and Statutory Auditors 
Swansea 21 Annual report and accounts 2010  Pure Wafer plc
Consolidated income statement
year ended 30 June 2010
      2010 2009 
     Note $000 $000
Revenue     4 24,827 27,758
Cost of sales      (19,676) (21,265)
Gross profit      5,151 6,493
Depreciation and amortisation      (7,087) (7,042)
Other administrative expenses      (4,140) (5,005)
Total administrative expenses      (11,227) (12,047)
Restructuring costs      (765) (595)
Operating loss     6 (6,841) (6,149)
Finance income     8 37 64
Finance costs      9 (1,407) (1,593)
Other gains and losses     10 190 (145)
Loss on ordinary activities before taxation      (8,021) (7,823)
Tax on loss on ordinary activities     11 1,478 —
Loss for the financial year      (6,543) (7,823)
Loss per share       
Basic loss per share     12 (5.1)c (29.4)c
Diluted loss per share     12 (3.7)c (29.4)c
All activities derive from continuing operations.
The notes on pages 25 to 41 are an integral part of these consolidated financial statements.
The company has elected to take exemption under Section 408 of the Companies Act 2006 to not present the parent company profit 
and loss account.
The loss for the parent company for the year was $1,170k (2009: loss of $2,137k).
          2010 2009 
          $000 $000
Loss for the year          (6,543) (7,823)
Other comprehensive income:   
Net loss on translation of subsidiaries with foreign functional currency      (1,148) (1,493)
Total comprehensive income for the year        (7,691) (9,316)
The notes on pages 25 to 41 are an integral part of these consolidated financial statements
Registered number 05289130
Consolidated statement of comprehensive income
year ended 30 June 2010 22 Pure Wafer plc  Annual report and accounts 2010
Consolidated statement of changes in equity
year ended 30 June 2010
   Share   Exchange  
  Share premium Merger Retained translation Total 
  capital account reserve earnings reserve equity 
  $000 $000 $000 $000  $000 $000
Balance at 1 July 2008   1,029 24,857 58,826 (43,447) (184) 41,081
Comprehensive income      
Loss for the financial year  — — — (7,823) — (7,823)
Other comprehensive income      
Net loss on translation of subsidiaries with foreign functional currency   — — — — (1,493) (1,493)
Balance at 30 June 2009  1,029 24,857 58,826 (51,270) (1,677) 31,765
Comprehensive income      
Loss for the financial year  — — — (6,543) — (6,543)
Other comprehensive income      
Net loss on translation of subsidiaries with foreign functional currency   — — — — (1,148) (1,148)
Transactions with owners      
Proceeds from issue of shares  3,288 — — — — 3,288
Balance at 30 June 2010  4,317 24,857 58,826 (57,813) (2,825) 27,362
The notes on pages 25 to 41 are an integral part of these consolidated financial statements. 23 Annual report and accounts 2010  Pure Wafer plc
      2010 2009 
     Note $000 $000
Non-current assets   
Goodwill     13 6,630 6,630
Other intangible assets     13 537 191
Property, plant and equipment     14 38,236 45,687
      45,403 52,508
Current assets   
Inventories     15 1,920 3,122
Trade and other receivables     16 6,882 5,100
Cash and cash equivalents excluding bank overdrafts     16 311 2,660
      9,113 10,882
Total assets      54,516 63,390
Current liabilities   
Trade and other payables     17 (4,872) (5,393)
Interest-bearing loans and borrowings     19 (3,601) (22,095)
Derivative financial instruments     18 (55) (531)
      (8,528) (28,019)
Non-current liabilities   
Interest-bearing loans and borrowings     19 (16,098) —
Deferred income     21 (2,528) (3,606)
      (18,626) (3,606)
Total liabilities      (27,154) (31,625)
Net assets      27,362 31,765
Equity   
Ordinary shares     23 4,317 1,029
Share premium       24,857 24,857
Merger reserve       58,826 58,826
Retained earnings      (57,813) (51,270)
Exchange translation reserve      (2,825) (1,677)
Total equity      27,362 31,765
The notes on pages 25 to 41 are an integral part of these consolidated financial statements.
The financial statements on pages 21 to 41 were authorised for issue by the board of directors on 28 October 2010 and were signed on its 
behalf by: 
PETER HARRinGTon TiM LoWE
Director Director
Consolidated balance sheet
30 June 2010 24 Pure Wafer plc  Annual report and accounts 2010
Consolidated statement of cash flow
year ended 30 June 2010
      2010 2009 
     Note $000 $000
Net cash (outflow)/inflow from operating activities      25 (308) 7,524
Investing activities    
Interest received      37 64
Purchase of property, plant and equipment       (1,163) (2,476)
Proceeds from disposal of property, plant and equipment      331 —
Acquisition of subsidiaries – deferred consideration payments      — (1,547)
Net cash used in investing activities       (795) (3,959)
Financing activities    
Interest paid      (1,407) (1,593)
Repayment of bank loans      (45) (1,030)
Repayments of obligations under finance leases      (45) (3,827)
Proceeds from share issue      3,288 —
Increase in borrowings      — 1,547
Net cash generated/(used) from financing activities       1,791 (4,903)
Net increase/(decrease) in cash and cash equivalents       688 (1,338)
Cash and cash equivalents at beginning of year       (915) 1,919
Exchange losses on translation       (1,148) (1,496)
Cash and cash equivalents at end of year      (1,375) (915)
The notes on pages 25 to 41 are an integral part of these consolidated financial statements. 25 Annual report and accounts 2010  Pure Wafer plc
Notes to the consolidated financial statements 
year ended 30 June 2010
1. General information
Pure Wafer plc is a company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is 
Pure Wafer plc, Central Business Park, Swansea Vale, Swansea SA7 0AB. The nature of the UK group’s operations and its principal activities 
are set out in the business review and principal activity section on page 12. 
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 2010 and applied in accordance with the Companies Act 
2006. The financial statements have been prepared in accordance with the historical cost convention.
In the current year, the following new standards and amendments are effective. These are: IFRS 3 (revised) ‘Accounting for Business Combinations’; 
IAS 31 ‘Interests in Joint Ventures’ and IAS 27 (revised) ‘Transactions with non controlling interests’. The adoption of these new standards and 
amendments has not led to any changes in the group’s accounting policies.
IFRS 2 (amended), IFRS 5 (amended), IFRS 9 (revised), IAS 24 (amended), IAS 32 (amended), and IFRIC Interpretations 12, 15, 16, 17, 
18 and 19 were in issue but not yet effective as at the year end, and have not been applied in the preparation of the financial statements. 
The directors do not anticipate that the adoption in future periods of these standards and interpretations will have a material impact on the 
financial statements of the Group.
2. Summary of significant 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 Finance review on pages 8 and 9. The key business risks faced are described in the Directors’ report on page 12. 
In addition note 22 to the financial statements includes the group’s objectives, policies and processes for managing its capital; its financial 
risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk. 
The directors have assessed the balance sheet and likely future cash flows of the company and group at the date of signing the audit report. 
This review considered detailed forecasts for the period to 30 June 2013. On this basis the directors have concluded that it is appropriate 
to prepare the financial statements on a going concern basis.
As described in the Chairman’s statement on page 4, the current environment is challenging. The group has recorded a pre-tax loss, however 
as noted in the Chairman’s statement the group successfully negotiated a financial restructuring package in August 2009. The financial 
agreements comprise of rescheduling all of the group’s existing debt over a six year period which includes up to two years of capital repayment 
holidays together with an overdraft facility of £1.4m. 
As a condition of the agreement the group undertook a share placement that resulted in a total of £1.99m of funds before costs being raised 
in September 2009. This gives the group significant headroom above its forecast cash requirement, which will allow it to manage its business 
risks successfully despite the current uncertain outlook.
The key sensitivity in the forecasts includes the achievement of increased sales volumes and the forward US Dollar (USD) rate. The business 
is beginning to see an upturn in demand and the directors believe that this will be sustained. Sales prices are assumed to remain largely unchanged.
After making enquiries, the directors have a reasonable expectation that the group and the company have adequate resources to continue in 
operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the annual report 
and financial statements.
Transition to reporting in uS dollars
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 (USD). The functional currency of Pure Wafer plc is sterling.
The group’s transactions are predominantly denominated in USD. Whilst the functional currency of the group has been USD for some time; the 
results of the group have for presentational purposes historically been presented in sterling. 
In order to align the presentational currency of the group with its functional currency, the presentational currency of the group was changed from 
sterling to USD with effect from the 1 July 2009. Comparative figures for the year-ended 30 June 2009 and the year-ended 30 June 2008 
(where applicable) have been re-presented in US dollars.
The change of the group’s presentation currency and that of the company’s functional currency were accounted for in accordance with IAS 21 
“The Effects of Changes in Foreign Exchange Rates”.
On the change of the group’s presentation currency, comparative figures previously reported in sterling were translated into US dollars as follows:
› income and expenses were translated at the average exchange rate for the relevant period;
› monetary assets and liabilities were translated at the closing exchange rate on the relevant balance sheet date; and,
› equity items and fixed assets were translated at historical exchange rates. 26 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
Transition to reporting in uS dollars continued
The exchange rates used were as follows:
         2010 2009 2008 
         £1=$ £1=$ £1=$
Average rate         1.582 1.611 2.001
Closing rate         1.507 1.640 2.003
As a result of the change of the group’s presentation currency, a currency translation difference of $184k was recognised in equity as at 
30 June 2008 which represented the difference between the group’s assets and liabilities translated from sterling into US dollars at the closing 
exchange rate on that date of £1=$2.003 and the equity items recognised in the consolidated financial statements that were translated from 
sterling into US dollars at historical exchange rates.
Basis of consolidation
The consolidated financial statements comprise Pure Wafer plc (the company) and its subsidiary undertakings, Pure Wafer International Limited 
and Pure Wafer, Inc.
Subsidiaries are those entities controlled by the company. Control exists when the company has the power to govern the financial and operating 
policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated 
financial statements from the date that control commences until the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured at the fair value 
of the consideration plus costs directly attributable to the acquisition. The excess of the cost of the acquisition over the group’s share of the fair 
value of the net identifiable assets of the subsidiary acquired is recorded as goodwill. Intra-group 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.
Segmental reporting
Operational segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief 
operating decision maker, who is responsible for allocating resources and assessing the performance of operating segments, has been identified 
as the board members that make strategic decisions.
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 USD. Pure Wafer plc is also reported in USD.
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. 
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.
f inancial liabilities and issue costs
All borrowings are initially stated at the fair value of the consideration received after deduction of issue costs. Issue costs are charged as a finance 
charge to the income statement on a constant yield basis over the term of the borrowings.  27 Annual report and accounts 2010  Pure Wafer plc
2. Summary of significant accounting policies continued
Provisions
A provision is recognised in the balance sheet when the group has a legal or constructive obligation as a result of a past event, where it is more 
likely than not that an outflow of resources will be required to settle that obligation, and a reliable estimate of the amount can be made.
A provision for restructuring is recognised when the group has approved a detailed and formal restructuring plan, and the restructuring has either 
commenced or has been publicly announced. Future operating losses are not provided for.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the 
class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same 
class of obligations may be small.
Property, plant and equipment
Property, plant and equipment are shown in the balance sheet at their historical cost less accumulated depreciation and impairment. Historical 
cost includes expenditure that is directly attributable to the acquisition and installation of the items. Subsequent costs are included in the assets’ 
carrying amounts or recognised as a separate asset as appropriate only when it is probable that future economic benefits associated with them 
will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement 
as incurred.
Depreciation is provided so as to write off the initial cost of each asset to its residual value on a straight line basis over its estimated useful life as follows:
Long leasehold buildings 15 years
Fixtures and fittings  5 years
Plant and machinery 4–10 years
Computer equipment 3 years
Motor vehicles   5 years
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, by the directors, 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.
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. The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, by the directors, at each 
balance sheet date.
impairment of assets
Assets that have an indefinite life are not subject to amortisation and are tested at least annually for impairment. Assets that are subject 
to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be 
recoverable. An impairment loss is recognised in the income statement for the amount by which the carrying amount of the asset exceeds its 
recoverable amount. The recoverable amount is the higher of the fair value less costs to sell and the value in use. For the purpose of assessing 
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished 
goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal 
operating capacity) but excludes borrowing costs. Work in progress is valued to reflect the historical yield from the reclaim process. Net realisable 
value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. 28 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
2. Summary of significant 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 change to the 
operations or staff structure of the business.
operating loss
Operating profit is stated after charging restructuring costs, but before investment income, finance costs and foreign exchange gains and losses.
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.
Cash and cash equivalents
In the consolidated statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at all banks and bank overdrafts. 
In the consolidated balance sheet, bank overdrafts are shown within borrowings in current liabilities.
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 substantively 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 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. 
Pensions
The company operates a defined contribution scheme that is available to all staff upon the completion of any probationary period. 29 Annual report and accounts 2010  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.
key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
impairment of non-current assets
Determining whether goodwill, property, plant and equipment, or intangible assets are impaired requires an estimation of the value in use 
of the cash generating units (CGUs) to which those assets are allocated. The group has two separate CGUs, representing the UK and the US 
businesses. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and 
a suitable discount rate in order to calculate present value. The carrying amount of goodwill was $6.63m and property plant and equipment was 
$38.24m at the balance sheet date. 
The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the first three years 
assuming growth based on detailed sales and cost forecasts. The cash flows are extrapolated in perpetuity assuming 2.258% growth. 
This rate does not exceed the average long-term growth rate for the UK. The rate used to discount the forecast cash flows of each of the CGUs 
as defined above was based on the group’s weighted average cost of capital 8.9%. 
For both CGUs, the impairment review is sensitive to the forecast level of sales. Sales are planned to increase as demand returns to the market 
through the three year forecast period. The impairment review includes significant headroom, particularly for the US CGU, to address this. 
There is a risk of impairment if sales were to fall well below expectation.
The review of the UK CGU is also sensitive to discount rate and the forward USD rate. Were the discount rate to increase to above 11% or the 
long-term USD forward rate to rise above $1.65, there would be a risk of impairment.
Based on the assumptions made by the directors, no impairment has been booked.
Fair value of derivatives and other financial instruments
As described in note 22, 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 $55,000 (2009: $531,000). 
Deferred tax
The group has tax losses of some $45m available for offset against future taxable profits. In determining the value of the deferred tax asset that 
can be attributed to these losses, the directors have to estimate likely future taxable profits and the period over which the asset may be recovered. 
The directors consider the most up-to-date forecasts for the business and assess the risks inherent in achieving those forecasts. At the balance 
sheet date, no deferred tax asset has been recorded. The deferred tax asset may be recognised again in future if there is an improvement in the 
forecast taxable profits. 
useful life of property, plant and equipment
The group’s plant and machinery is amortised over a period of seven to ten years. In estimating the life of the equipment, the directors have to 
consider the likely period over which the technology will be used in the market and the ability of the business to maintain the equipment to an 
appropriate condition for use. Were the technology to be superseded in a much shorter timeframe than this, the carrying value would need to 
be depreciated over a shorter timeframe, resulting in an increase in the annual depreciation charge. 30 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
4. Revenue
An analysis of the group’s revenue is as follows:
          2010 2009 
          $000 $000
Continuing operations          24,827 27,759
5. Business and geographical segments 
The group’s activities and turnover primarily consist of the reclamation and reprocessing of silicon test wafers, in the UK and the US, for external customers. 
For management purposes, the group is organised into two operating divisions based on the geographical territory of origin. These divisions are 
the basis on which the group reports its primary segment information.
Segment information is presented below:
          North 
         UK America Consolidated 
Year ended 30 June 2010         $000 $000 $000
Revenue         14,247 10,553 24,827
Inter-segment sales are charged at prevailing market prices.        
Result           
Segment result         (4,612) (681) (5,293)
Unallocated corporate expenses          (1,548)
Operating loss           (6,841)
Investment revenues           37
Finance costs           (1,407)
Other gains and losses           190
Loss before tax           (8,021)
Tax           1,487
Loss for the financial year           (6,543)
         North 
        UK America Eliminations Consolidated 
Year ended 30 June 2010        $000 $000 $000 $000
Balance sheet           
Assets           
Segment assets        40,463 22,348 (8.306) 54,505
Unallocated corporate assets          11
Consolidated total assets          54,516
Liabilities           
Segment liabilities        (12,248) (22,688) 8,306 (26,630)
Unallocated corporate liabilities          (524)
Consolidated total liabilities           (27,154) 31 Annual report and accounts 2010  Pure Wafer plc
5. Business and geographical segments continued
          North 
         UK America Consolidated 
Year ended 30 June 2009         $000 $000 $000
Revenue         17,761 9,997 27,758
Inter-segment sales are charged at prevailing market prices.   
Result   
Segment result         (4,072) (466) (4,538)
Unallocated corporate expenses          (1,611)
Operating loss           (6,149)
Investment revenues           64
Finance costs           (1,593)
Other gains and losses           (145)
Loss before tax           (7,823)
Tax           —
Loss for the financial year           (7,823)
         North 
        UK America Eliminations Consolidated 
Year ended 30 June 2009        $000 $000 $000 $000
Balance sheet   
Assets   
Segment assets        47,647 22,990 (7,270) 63,367
Unallocated corporate assets          23
Consolidated total assets          63,390
Liabilities   
Segment liabilities        15,545 21,815 (7,270) (30,090)
Unallocated corporate liabilities          (1,535)
Consolidated total liabilities          31,625
Analysis by-product
The revenue by-product variant was as follows:
          2010 2009 
          $000 $000
150mm wafers          911 1,208
200mm wafers          8,909 8,103
300mm wafers          14,352 15,612
Other, including scrap sales         655 2,835
          24,827 27,758
Analysis by destination 
The revenue by destination was as follows:
          2010 2009 
          $000 $000
Europe           6,948 4,838
United States of America         12,115 12,488
Asia           5,764 10,432
          24,827 27,758 32 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
6. operating loss
Operating loss has been arrived at after charging/(crediting):
          2010 2009 
          $000 $000
Government grants           (547) (851)
Depreciation of property, plant and equipment:   
– owned assets           6,792 5,982
– leased assets           1,048 962
Hire of assets:  
– land and buildings          626 588
– equipment          101 316
– other          21 15
Restructuring costs          765 595
Amortisation of intangible fixed assets         98 98
Staff costs (see note 7)          9,783 10,122
Restructuring costs relate to renegotiation of the group’s borrowing facilities. Costs in 2009 related to changes in the operational and staff 
structure of the group.
Auditors’ remuneration 
          2010 2009 
          $000 $000
Fees payable to the company’s auditors for the audit of the company’s annual accounts     9 13
Fees payable to the company’s auditors for other services to the group:  
– audit of the company’s subsidiaries pursuant to legislation       50 52
Total audit fees          59 65
Other services:  
– tax services          57 10
Total non-audit fees          57 10
Fees payable to PricewaterhouseCoopers LLP 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
          2010 2009 
          $000 $000
Directors’ emoluments  
Aggregate emoluments (including benefits in kind)       917 751
Contributions to money purchase pension schemes       38 21
          955 772
 
          $000 $000
Highest paid director  
Aggregate emoluments (including benefits in kind)       220 219
Contributions to money purchase pension schemes       8 8
          228 227
          No. No.
Number of directors in defined contribution pension scheme       3 3
          2010 2009 
          No. No.
Average number of persons employed (including directors)  
Production          180 178
Sales and administration         29 37
          209 215
          $000 $000
Staff costs during the year (including directors)  
Wages and salaries          8,141 8,640
Social security costs          1,316 1,153
Pension costs          326 329
          9,783 10,122 33 Annual report and accounts 2010  Pure Wafer plc
8. f inance income 
          2010 2009 
          $000 $000
Interest on bank deposits         37  64
9. f inance costs 
          2010 2009 
          $000 $000
Interest on bank loans          243 190
Interest on obligations under finance leases and hire purchase contracts      1,164 1,403
          1,407 1,593
10. other gains and losses
          2010 2009 
          $000 $000
Foreign exchange losses         (286) 177
Derivative financial instruments         476 (322)
          190 (145)
11. Tax on loss on ordinary activities
          2010 2009 
          $000 $000
Current taxation  
Current tax on income for the year at 28% (2009: 28%)       — —
Adjustments in respect of prior years        (1,478) —
Total current tax          (1,478) —
Deferred taxation  
Origination and reversal of temporary differences       — —
Total credit for the year          (1,478) —
The difference between the total tax shown above and the amount calculated by applying the standard rate of United Kingdom corporation tax 
to the loss before tax is as follows:
          2010 2009 
          $000 $000
Loss on ordinary activities before tax        (8,021) (7,823)
Tax on loss on ordinary activities before tax at 28% (2009: 28%)      (2,246) (2,190)
Factors affecting charge for the year  
Non-recognition of deferred tax asset for losses carried forward      2,246 2,190
Adjustments in respect of prior periods        (1,478) —
Total tax credit for the year          (1,478) —
12. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
          2010 2009
Earnings  
Loss for the year ($000)         (6,543) (7,823)
Number of shares
Weighted average number of ordinary shares for the purpose of basic loss per share (‘000)    126,303 26,591
Effect of dilutive potential ordinary shares:  
– share warrants          48,778 —
Dilutive weighted average number of shares        175,081 26,591
Loss per ordinary share – basic         (5.1)c (29.4)c
Loss per ordinary share – diluted         (3.7)c (29.4)c 34 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
13. Goodwill and other intangible fixed assets
          Development 
         Goodwill costs Total 
         $000 $000 $000
Cost    
At 1 July 2008 and 1 July 2009        6,630 474 7,104
Additions          — 444 444
At 30 June 2010         6,630 918 7,548
Amortisation    
At 1 July 2008         — 185 185
Charge for the year          — 98 98
At 1 July 2009         — 283 283
Charge for the year          — 98 98
At 30 June 2010         — 381 381
Carrying amount    
At 30 June 2010         6,630 537 7,167
At 30 June 2009         6,630 191 6,821
Goodwill relates to the February 2007 acquisition of the group’s US business, is denominated in USD, and is considered to represent a single 
cash generating unit (CGU).
The group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations are 
those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the period. Management estimates 
discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. 
The growth rates are based on industry growth forecasts. Changes in selling prices and direct costs are based on past practices and expectations 
of future changes in the market.
The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the first three years 
assuming growth based on detailed sales and cost forecasts. The cash flows are extrapolated in perpetuity assuming a 2.25% growth rate. 
This rate does not exceed the average long-term growth rate for the UK. The rate used to discount the forecast cash flows of each of the CGUs 
as defined above was based on the group’s weighted average cost of capital of 8.9%. 
The impairment review is sensitive to the forecast level of sales. Sales are planned to increase as demand returns to the market through the three 
year forecast period. The impairment review includes significant headroom to address this, but there is a risk of impairment if sales were to fall 
well below expectation.
Development costs
Development costs represent costs associated with process development. The costs capitalised are amortised over their useful economic life 
which is estimated at five years. Solar development costs totalling $444k were capitalised in the period, these have not yet been amortised to 
date as the solar division has not yet commenced trading.  35 Annual report and accounts 2010  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 2008      16,687 700 57,611 666 22 75,686
Additions      429 — 2,041 6 — 2,476
Transfer from inventory*     — — 1,775 — — 1,775
At 1 July 2009      17,116 700 61,427 672 22 79,937
Additions      — — 706 13 — 719
Disposals      — — (457) — — (457)
At 30 June 2010      17,116 700 61,676 685 22 80,199
Depreciation           
At 1 July 2008      6,675 287 19,816 524 4 27,306
Charge for the year      1,228 150 5,472 89 5 6,944
At 1 July 2009      7,903 437 25,288 613 9 34,250
Charge for the year      1,142 101 6,537 55 5 7,840
Disposals      — — (127) — — (127)
At 30 June 2010      9,045 538 31,698 668 14 41,963
Carrying amount           
At 30 June 2010      8,071 162 29,978 17 8 38,236
At 30 June 2009      9,213 263 36,139 59 13 45,687
*  On 30 June 2009 carriers used in the reclamation process with a value of $1,775,000 were transferred from inventory to plant and machinery. This move reflects a change 
in the way the carriers are used allowing them to be refurbished and reused rather than disposed of after a short period of use. 
Included within the net book value of plant and machinery are assets with a net book value of $6,182,000 (2009: $7,230,000) as assets held 
under finance lease agreements. 
15. inventories
          2010 2009 
          $000 $000
Raw materials          1,246 1,923
Work in progress          599 657
Finished goods          75 542
          1,920 3,122
The directors do not consider the carrying value of inventory to be significantly different to the market value of stock.
16. Other financial assets
Trade and other receivables
          2010 2009 
          $000 $000
Trade receivables          3,871 3,325
Other receivables and prepayments         612 971
Accrued income          921 804
Corporation tax recoverable (Research and Development tax credit)      1,478 —
          6,882 5,100
Trade receivables 
Total trade receivables (net of allowances) held by the group at 30 June 2010 amounted to $3,871k (2009: $3,325k). 
The average credit period taken on sale of goods is 61 days (2009: 36 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, $526k (2009: $336k) 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 $161k (2009: $552k) which are past due at the reporting 
date for which the group has not provided as there has not been a significant change in the credit quality and the amounts are still considered 
recoverable. The group does not hold any collateral over these balances. The average age of these receivables is 90 days (2009: 90 days). 36 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
16. Other financial assets continued
Ageing of past due but not impaired receivables
          2010 2009 
          $000 $000
Less than three months         137 808
More than three months         24 97
          161 905
Due to the losses incurred during the current and prior years, the board has taken the prudent decision to fully provide against the deferred tax 
asset for losses carried forward, as they are not expected to be utilised within the foreseeable future. At 30 June 2010 the directors do not 
consider there is sufficient evidence to support recognition of this asset.
The value of the unrecognised deferred tax asset at 30 June 2010 is $10.0m (2009: $9.6m).
Movement in the allowance for doubtful debts
          2010 2009 
          $000 $000
Balance at beginning of the year         818 374
Amounts written off as uncollectable        (806) (451)
Provision against specific customers        104 895
Balance at end of the year         116 818
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
          2010 2009 
          $000 $000
Current          17 2
60–90 days          30 21
90–120 days          — 5
120+ days          69 790
          116 818
The directors consider that the carrying amount of trade and other receivables approximates to 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 to their fair value.
17. Other financial liabilities
Trade and other payables
          2010 2009 
Current liabilities          $000 $000
Trade accounts payable         2,086 2,855
Other taxation and social security         689 1,372
Accruals and other creditors         2,097 1,166
          4,872 5,393
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for 
trade purchases is 60 days (2009: 65 days). The group endeavours to settle outstanding payables within the credit time frame while managing 
available working capital. 
The directors consider that the carrying amount of trade payables approximates their fair value.
18. Derivative financial instruments 
          2010 2009 
          $000 $000
Current assets  
Forward foreign exchange contracts         — (236)
Current liabilities  
Interest rate swap           (55) (295)
Further details pertaining to financial instruments are provided in note 22. 37 Annual report and accounts 2010  Pure Wafer plc
19. interest-bearing loans and borrowings
          2010 2009 
          $000 $000
Current liabilities  
Overdrafts          1,686 3,575
Bank loans          1,915 7,703
Hire purchase and finance lease agreements        — 10,817
          3,601 22,095
Non-current liabilities  
Bank loans          5,426 —
Hire purchase and finance lease agreements        10,672 —
          16,098 —
Overdrafts are repayable on demand. Bank loans, hire purchase and finance lease obligations are repayable as follows:
          2010 2009 
          $000 $000
Bank loans  
Within one year           1,915 7,703
Between one and two years         1,915 —
Between two and five years         3,511 —
          7,341 7,703
Hire purchase contracts and finance leases  
Within one year          — 10,817
Between one and two years         2,681 —
Between two and five years          7,991 —
After five years          — —
          10,672 10,817
Obligations under finance lease and hire purchase contracts are secured on the related assets. See note 20 for further detail on finance lease 
contracts. The bank loans are secured on the assets and undertakings of the group.
On 20 August 2009 the group reached an agreement with its lenders to restructure the capital repayment terms of bank loans, hire purchase 
and finance leases. At 30 June 2009 all loans were shown as immediately repayable on demand reflecting the fact that the banking covenants 
that existed at that time had been breached. The covenants pertaining to these borrowings were removed as part of the refinancing. 
The fair value of the group’s loan, finance leases and hire purchase obligations approximates to their carrying amount. 
20. Obligations under finance leases 
       Minimum lease payments
          2010  2009 
          $000 $000
Amounts payable under finance leases:  
– within one year          — 10,817
– in the second to fifth years inclusive        12,705 —
– after five years          — —
Total value of lease obligations          12,705 10,817
Less: future finance charges         (2,033) —
Present value of lease obligations         10,672 10,817
It is the group’s policy to lease certain plant and machinery under finance leases. 
The contractual payments in respect of finance leases based on the undiscounted cash flows and the earliest date on which the group and 
company can be required to pay are shown above. 
For the year ended 30 June 2010, the average effective borrowing rate was 7.4% (2009: 7.4%). Interest rates are fixed at the contract date. 
All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The carrying amount 
of the borrowings approximates their fair value.
All lease obligations are denominated in USD. The fair value of the group’s lease obligations approximates to their carrying amount. The group’s 
obligations under finance leases are secured by the lessors’ rights over the leased assets. 38 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
21. Deferred income
          2010 2009 
          $000 $000
Unamortised grant income:  
– included within current liabilities         531 547
– included within non-current liabilities        2,528 3,059
Balance at 30 June           3,059 3,606
$547,000 was released to the income statement in the year (2009: $549,000).
22. f inancial instruments
Capital risk management
The capital structure of the group consists of debt, which includes the borrowings disclosed in note 20, cash and cash equivalents and equity 
directly attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the statement 
of changes in equity. 
Gearing ratio
The gearing ratio at the year end is as follows:
          2010 2009 
          $000 $000
Debt          (18,013) (18,520)
Cash and cash equivalents including overdrafts        (1,375) (915)
Net debt          (19,388) (19,435)
Equity          27,362 31,765
Net debt to equity ratio          1:1.41 1:1.63
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.
          2010 2009 
          $000 $000
Financial assets  
Loans and receivables:   
– cash and cash equivalents         311 2,660
– trade receivables (note 16)         3,871 3,325
          4,182 5,985
Financial liabilities   
Fair value through profit or loss (FVTPL) derivative instruments      55 295
Amortised cost:  
– overdrafts          1,686 3,575
– bank loans          7,341 7,703
– finance leases          10,672 10,817
– trade creditors          2,086 2,855
– deferred consideration         — —
          21,840 25,245
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:
› 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.  39 Annual report and accounts 2010  Pure Wafer plc
22. f inancial instruments continued
f oreign currency risk management continued
The carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
          2010 2009 
          $000 $000
Monetary assets  
Euro          48 106
Sterling          — —
Monetary liabilities  
Euro          100 887
Sterling          1,844 7,306
Yen          110 277
interest rate risk management
The group is exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates. The risk is managed by the 
group maintaining an appropriate mix between fixed and floating rate borrowings, by the use of interest rate swap contracts to fix the interest rate 
on the floating rate loans. 
The group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note. 
interest rate swap contracts
Under interest rate swap contracts, the group agrees to exchange the difference between fixed and floating rate interest amounts calculated on 
agreed notional principal amounts. Such contracts enable the group to mitigate the risk of higher interest rates on the fair value of issued fixed 
rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value of interest rate swaps at the reporting date 
is determined by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract, and is 
disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year. The current contracts were 
matched to the original payment profiles for the group debt, with the financial restructuring package that has taken place after the year end 
these are no longer matched. The directors will consider the impact of the mismatch in evaluating the interest rate strategy going forward.
The group has entered into interest rate swap agreements in respect of the bank loans. 
The company has two interest rate swap contracts. The first expires on 12 February 2011; the fair value of the interest rate swap on 30 June 2010 
was a liability of $35,093 (2009: $239,440). The second expires on 12 February 2012; the fair value of the contract as at 30 June 2010 was a 
liability of $20,158 (2009: $55,760). 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. 
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
2010           
Non-interest bearing      0.0% 2,775 — — — 2,775
Variable interest rate instruments (bank loans)   6.4% 958 957 1,915 3,828 7,658
Fixed interest rate instruments (finance leases)   5.4% — — 1,409 4,253 5,662
Variable interest rate instruments (finance leases)   7.0% — — 1,272 3,838 5,110
      5.4% 3,733 957 4,596 11,919 21,205
2009      
Non-interest bearing      0.0% 4,227 — — — 4,227
Variable interest rate instruments (bank loans)    6.4% 7,703 — — — 7,703
Fixed interest rate instruments (finance leases)    5.4% 5,687 — — — 5,687
Variable interest rate instruments (finance leases)   7.0% 5,130 — — — 5,130
      5.0% 22,747 — — — 22,747
Note 20 describes that the majority of the group’s interest bearing debt is denominated in USD.
With the exception of financial assets as disclosed in note 16, financial assets are current and are non interest bearing.  40 Pure Wafer plc  Annual report and accounts 2010
Notes to the consolidated financial statements 
year ended 30 June 2010 continued
22. f inancial instruments continued
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. 
23. Called up share capital 
          2010 2009 
          $000 $000
Called up, allotted and fully paid  
126,302,693 (2009: 26,591,182) ordinary shares of 2p each      4,317 1,029
Share issue
As part of the restructuring exercise undertaken in September 2009 the company issued 99.7m shares at par. The gross proceeds derived from 
the share issue amounted to £1.99m.
Warrants
As part of the restructuring exercise undertaken in September 2009 the company created the right for each of the Placees to subscribe in cash 
at 2p per share (Subscription Price) for such number of New Ordinary Shares pro rata to their participation in the Placing which taken together 
with New Ordinary Shares issued pursuant to the Placing (but excluding 2,500,000 New Ordinary Shares being subscribed for by Stephen Boyd 
and Existing Ordinary Shares already held by the Placees) will result in the Placees increasing their holding of Ordinary Shares to the following 
percentages of the company’s fully diluted share capital immediately following Admission:
Placee            Percentage
Stephen Boyd            10.00
Peter Harrington            3.25
Keith Baker            2.50
Tim Lowe            2.00
Jerry Winters            1.88
Jeffrey Whitlock            0.63
Marilyn Bollengier            1.25
Mark Selway            1.50
The Warrants are not transferable in whole or in part. The rights to subscribe under the Placee Warrants may be exercised at any time.
The right to subscribe is conditional on the middle market price (Minimum Market Price) quoted by the London Stock Exchange for the Ordinary 
Shares as at close of trading on the Business Day prior to the date of exercise being not less than 3p. A Placee Warrant is deemed to be exercised 
immediately prior to a sale of the entire issued ordinary Share capital of the company.
The Subscription Price and Minimum Market Price will be subject to adjustment in the event of any reconstruction, merger, sale on a share for 
share basis or the like.
Royal Bank of Scotland plc (RBS) Warrant 
The company created the right for RBS to subscribe in cash at 2p per share for such number of Ordinary Shares as in aggregate equals 
10 per cent. of the fully diluted equity share capital of the company immediately after exercise of such right. The RBS Warrant may be exercised 
at any time until 31 December 2029. The RBS Warrant is deemed to be exercised immediately prior to a sale of the entire issued share capital 
of the company. The RBS Warrant is transferable in whole or part provided that the transfer does not trigger a requirement to make an offer 
under Rule 9 of the Code. 41 Annual report and accounts 2010  Pure Wafer plc
24. operating lease arrangements 
          2010 2009 
          $000 $000
Minimum lease payments under operating leases recognised as an expense in the year     750 918
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:
          2010 2009 
          $000 $000
Land and buildings  
– within one year          644 615
– between one and two years         594 583
– between two and five years         1,666 1,543
– more than five years          6,085 6,634
          8,989 9,375
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.
          2010 2009 
          $000 $000
Equipment   
– within one year          14 92
– between one and two years         10 19
– between two and five years         — 15
          24 126
          $000 $000
Other   
– within one year          20 5
– between one and two years         14 5
– between two and five years         10 11
– more than five years          — 2
          44 23
25. Notes to the consolidated cash flow statement
          2010 2009 
          $000 $000
Loss for the period          (6,543) (7,823)
Adjustment for:  
– taxation           (1,478) —
– finance expense          1,407 1,593
– finance income          (37) (64)
– other non-cash gains and losses         (476) 733
– depreciation and amortisation         7,938 7,042
Operating cash flows before movement in working capital       811 1,481
(Increase)/decrease in receivables         (721) 6,443
(Decrease) in payables          (1,599) (1,781)
(Decrease) in inventory         1,201 1,381
Net cash (outflow)/inflow from operating activities       (308) 7,524
26. 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. 42 Pure Wafer plc  Annual report and accounts 2010
Independent auditors’ report 
to the members of Pure Wafer plc
We have audited the parent company financial statements of Pure Wafer plc for the year ended 30 June 2010 which comprise the Balance 
Sheet, the Combined Reconciliation of Movements in Shareholders’ Funds and Statement of Movements on Reserves, the Accounting Policies 
and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the parent company 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the parent company financial 
statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply 
with the Auditing Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of 
Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other 
purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent 
in writing.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that 
the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the 
accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements 
In our opinion the parent company financial statements: 
› give a true and fair view of the state of the company’s affairs as at 30 June 2010;
› have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 
› have been prepared in accordance with the requirements of the Companies Act 2006.
opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the parent company financial statements are prepared 
is consistent with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 
›  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or 
› the parent company financial statements are not in agreement with the accounting records and returns; or 
› certain disclosures of directors’ remuneration specified by law are not made; or 
› we have not received all the information and explanations we require for our audit.
other matters
We have reported separately on the group financial statements of Pure Wafer plc for the year ended 30 June 2010. 
JASon CLARkE (SEnioR STATuToRy AuDiToR) 
foR AnD on BEHALf of PRiCEWATERHouSECooPERS LLP
Chartered Accountants and Statutory Auditors 
Swansea  43 Annual report and accounts 2010  Pure Wafer plc
Company balance sheet
30 June 2010
      2010 2009 
     Note $000 $000
Fixed assets   
Investments     4 17,922 17,922
Current assets   
Debtors     5 4,112 2,393
Cash at bank and in hand      — 1,062
      4,112 3,455
Creditors: amounts falling due within one year     6 (456) (1,535)
Net current assets      3,656 1,171
Total assets less current liabilities      21,578 1,920
Net assets      21,578 19,842
Capital and reserves   
Called up share capital     8 4,317 1,029
Share premium account     9 24,857 24,857
Profit and loss account     9 (6,441) (5,271)
Exchange translation reserve      (1,155) (773)
Shareholders’ funds     9 21,578 19,842
The notes on pages 44 to 47 are an integral part of these company financial statements.
The financial statements on pages 43 to 47 were authorised for issue by the board of directors on 28 October 2010 and were signed on its 
behalf by: 
PETER HARRinGTon TiM LoWE
Director Director
Registered number 05289130 44 Pure Wafer plc  Annual report and accounts 2010
Notes to the company financial statements
year ended 30 June 2010
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 company’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 company, its cash flows, liquidity position and borrowing facilities are 
described in the finance review on pages 8 and 9. The key business risks faced are described in the directors’ report on page 11. In addition 
note 22 to the financial statements includes the company’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 company at the date of signing the audit report. 
This review considered detailed forecasts for the period to 30 June 2013. On this basis the directors have concluded that it is appropriate to 
prepare the financial statements on a going concern basis.
As described in the chairman’s statement on page 4, the current environment is challenging. The company has recorded a pre-tax loss, however 
as noted in the chairman’s statement the company successfully negotiated a financial restructuring package in August 2009. The financial 
agreements comprise of rescheduling all of the company’s existing debt over a six year period which includes up to two years of capital 
repayment holidays together with an overdraft facility of £1.4m. 
As a condition of the agreement the company undertook a share placement that resulted in a total of £1.99m of funds before costs being raised 
in September 2009. This gives the company significant headroom above its forecast cash requirement, which will allow it to manage its business 
risks successfully despite the current uncertain outlook.
The key sensitivity in the forecasts includes the achievement of increased sales volumes and the forward US Dollar rate. The business is beginning 
to see an upturn in demand and the directors believe that this will be sustained. Sales prices are assumed to remain largely unchanged.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for 
the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Transition to reporting in uS dollars
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 (USD). The functional currency of Pure Wafer plc is sterling.
The group’s transactions are predominantly denominated in USD. Whilst the functional currency of the group has been USD for some time; the 
results of the group have for presentational purposes historically been presented in sterling. 
In order to align the presentational currency of the group with its functional currency, the presentational currency of the group was changed from 
sterling to USD with effect from the 1 July 2009. Comparative figures for the year-ended 30 June 2009 and the year-ended 30 June 2008 
(where applicable) have been re-presented in US dollars.
The change of the group’s presentation currency and that of the company’s functional currency were accounted for in accordance with IAS 21 
“The Effects of Changes in Foreign Exchange Rates”.
On the change of the company’s presentation currency, comparative figures previously reported in sterling were translated into US dollars as follows:
› income and expenses were translated at the average exchange rate for the relevant period;
› monetary assets and liabilities were translated at the closing exchange rate on the relevant balance sheet date; and,
› equity items and fixed assets were translated at historical exchange rates.
The exchange rates used were as follows:
         2010 2009 2008  
         £1=$ £1=$ £1=$
Average rate         1.582 1.611 2.001
Closing rate         1.507 1.640 2.003
As a result of the change of the company’s presentation currency, a currency translation difference of $1,848k was recognised in equity as at 
30 June 2008 which represented the difference between the Group’s assets and liabilities translated from sterling into US dollars at the closing 
exchange rate on that date of £1=$2.003 and the equity items recognised in the consolidated financial statements that were translated from 
sterling into US dollars at historical exchange rates. 45 Annual report and accounts 2010  Pure Wafer plc
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 No. 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.
2. information regarding directors and employees
          2010 2009 
          $000 $000
Directors’ emoluments  
Aggregate emoluments (including benefits in kind)       834 750
Contributions to money purchase pension schemes       32 21
          866 771
          $000 $000
Highest paid director  
Aggregate emoluments (including benefits in kind)       240 219
Contributions to money purchase pension schemes       8 8
          248 227
          No. No.
Number of directors in defined contribution pension scheme       3 3
          No. No.
Average number of persons employed (including directors)  
Sales and administration         6 7
          2010 2009 
          $000 $000
Staff costs during the year (including directors)  
Wages and salaries          731 693
Social security costs          79 74
Pension costs          32 21
          842 788
3. Loss for the year
As permitted by Section 408 of the Companies Act 2006, the company has elected not to present its own profit and loss account for the year. 
Pure Wafer plc reported a loss for the financial year ended 30 June 2010 of $1,170k (2009: $2,137k).
Auditors’ remuneration for audit services for the company was $9,000 (2009: $13,000). Auditors’ remuneration for non-audit services for the 
company was $nil (2009: $nil).  46 Pure Wafer plc  Annual report and accounts 2010
Notes to the company financial statements
year ended 30 June 2010 continued
4. investments
           Investment in 
           subsidiaries 
           $000
Cost and net book value          
At 1 July 2009 and 30 June 2010          17,922
The company’s investments in group companies relate to:
 Holding 
Subsidiaries (£1 ordinary shares) Activity Country of 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
Pure Wafer Solar Limited 100% Dormant United Kingdom
5. Debtors
          2010 2009 
          $000 $000
Amounts owed by group undertakings         4,102 2,376
Other debtors and prepayments         10 17
          4,112 2,393
6. Creditors: amounts falling due within one year 
          2010 2009 
          $000 $000
Bank loans and overdraft (note 7)         362 1,421
Other creditors and accruals         94 114
          456 1,535
7. Borrowings 
          2010 2009 
          $000 $000
Overdraft  
Within one year          362 —
Bank loans  
Within one year          — 1,421
Between one and two years         — —
Between two and five years         — —
          362 1,421
8. Called up share capital
          2010 2009 
          $000 $000
Called up, allotted and fully paid  
126,302,693 (2009: 26,591,182) ordinary shares of 2p each      4,317 1,029 47 Annual report and accounts 2010  Pure Wafer plc
8. Called up share capital continued
Share issue
As part of the restructuring exercise undertaken in September 2009 the company issued 99.7m shares at par. The gross proceeds derived from 
the share issue amounted to £1.99m.
Warrants
As part of the restructuring exercise undertaken in September 2009 the company created the right for each of the Placees to subscribe in cash 
at 2p per share (‘‘Subscription Price’’) for such number of New Ordinary Shares pro rata to their participation in the Placing which taken together 
with New Ordinary Shares issued pursuant to the Placing (but excluding 2,500,000 New Ordinary Shares being subscribed for by Stephen Boyd 
and Existing Ordinary Shares already held by the Placees) will result in the Placees increasing their holding of Ordinary Shares to the following 
percentages of the company’s fully diluted share capital immediately following Admission:
Placee            Percentage
Stephen Boyd            10.00
Peter Harrington            3.25
Keith Baker            2.50
Tim Lowe            2.00
Jerry Winters            1.88
Jeffrey Whitlock            0.63
Marilyn Bollengier            1.25
Mark Selway            1.50
The Warrants are not transferable in whole or in part. The rights to subscribe under the Placee Warrants may be exercised at any time.
The right to subscribe is conditional on the middle market price (‘‘Minimum Market Price’’) quoted by the London Stock Exchange for the Ordinary 
Shares as at close of trading on the Business Day prior to the date of exercise being not less than 3p. A Placee Warrant is deemed to be exercised 
immediately prior to a sale of the entire issued ordinary share capital of the company.
The Subscription Price and Minimum Market Price will be subject to adjustment in the event of any reconstruction, merger, sale on a share for 
share basis or the like.
Royal Bank of Scotland plc (RBS) Warrant 
The company created the right for RBS to subscribe in cash at 2p per share for such number of Ordinary Shares as in aggregate equals 10 per cent. 
of the fully diluted equity share capital of the company immediately after exercise of such right. The RBS Warrant may be exercised at any time until 
31 December 2029. The RBS Warrant is deemed to be exercised immediately prior to a sale of the entire issued share capital of the company. The 
RBS Warrant is transferable in whole or part provided that the transfer does not trigger a requirement to make an offer under Rule 9 of the Code.
9. Combined reconciliation of movement in shareholders’ funds and statement of movements on reserves
       Share  Exchange   
      Share premium Profit and translation Total Total 
      capital account loss account reserve 2010 2009 
      $000 $000 $000 $000 $000 $000
At the beginning of the year      1,029 24,857 (5,271) (773) 19,842 21,979
Loss for the financial year     — — (1,170) (382) (1,552) (2,137)
Issue of share capital      3,288 — — — 3,288 —
At the end of the year       4,317 24,857 (6,441) (1,155) 21,578 19,842
10. Related party transactions
Under Financial Reporting Standard 8, the company is not required to disclose transactions with entities, 100% or more of whose voting rights 
are controlled within the group. 48 Pure Wafer plc  Annual report and accounts 2010
Notice of Annual General Meeting 
Notice is given that the 2010 AGM of Pure Wafer plc (company) will be held at 11.00am on 22 November 2010 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 inclusive and resolution 8 and 9 will be proposed as ordinary 
resolutions and resolutions 7 and 10 will be proposed as special resolutions.
1.  To receive the Directors’ report and the company’s annual accounts for the year ended 30 June 2010, together with last directors report, the 
last directors remuneration report and the auditors’ report on those accounts, and the auditable part of the directors remuneration report and 
on the directors report
2. To reappoint S Boyd as a director of the company.
3. To reappoint J Winters as a director of the company
4.  To reappoint PricewaterhouseCoopers LLP as auditors of the company to hold office from the conclusion of the meeting until the conclusion 
of the next general meeting of the company at which accounts are laid.
5. To authorise the directors to fix the remuneration of the auditors.
6.  That the directors of the company be and are hereby generally and unconditionally authorised, for the purposes of section 551 of the 
Companies Act 2006 (the Act), to issue and allot: 
 6.1  ordinary shares of 2p each in the capital of the company (ordinary shares) to be issued upon valid exercise of any share options 
granted to employees of the company in accordance with the terms of the company’s 2005 Performance Share Plan and 2005 SAYE 
Option Plan; 
 6.2  ordinary shares pursuant to the warrants granted to Royal Bank of Scotland plc and certain executives of the company as described 
in the Circular sent to shareholders on 21 August 2009 (as subsequently amended); and
 6.3 shares in the company up to an aggregate nominal amount of £842,018
  provided that (unless previously revoked, varied or renewed) this authority shall expire at the conclusion of the next AGM of the company after the 
passing of this resolution, save that the company may make an offer or agreement before the expiry of this authority which would or might require 
relevant securities to be allotted after such expiry and the directors may allot relevant securities pursuant to any such offer or agreement as if the 
authority conferred by this resolution had not expired. This authority shall be in substitution for any such authority previously given.
7.  That, subject to the passing of resolution 6 pursuant to section 570 of the Act and in substitution for all existing authorities under that 
section or under section 95 of the Companies Act 1985, the directors be and are generally empowered to allot equity securities (within the 
meaning of section 560 of the Act) for cash, either pursuant to the authority conferred by resolution 6 or by way of a sale of shares held in 
treasury, as if section 561 of the Act did not apply to any such allotment, provided that this power shall be limited to:
 7.1  the allotment of equity securities in connection with an offer of ordinary shares up to an aggregate nominal value of £842,018 
(whether by way of a rights issue, open offer or otherwise) to holders of ordinary shares 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 treasury shares, fractional entitlements, record dates or any legal or practical problems under the 
laws of any territory or the requirements of any regulatory body or stock exchange;
 7.2  the allotment of equity securities to be issued pursuant to any share options granted to employees of the company in accordance with 
the terms of the company’s 2006 Performance Share Plan and 2005 SAYE Option Plan; 
 7.3  the allotment of ordinary shares pursuant to the warrants granted to Royal Bank of Scotland plc and certain executives of the company 
as described in the Circular sent to shareholders on 21 August 2009 (as subsequently amended); and
 7.4  the allotment of equity securities for cash (otherwise than pursuant to paragraphs 7.1 to 7.3 above) up to an aggregate nominal amount 
of £126,303
  and (unless previously revoked, varied or renewed) shall expire at the conclusion of the next AGM of the company after the passing of this 
resolution, save that the company may make an offer or agreement before the expiry of this power which would or might require equity 
securities to be allotted for cash after such expiry and the directors may allot equity securities for cash pursuant to any such offer or agreement 
as if the power conferred by this resolution had not expired.  49 Annual report and accounts 2010  Pure Wafer plc
8.  To authorise the directors to make such amendments to the rules of the company’s existing SAYE and/or employee share option plans as may 
be necessary or expedient (other than as regards the number of shares which may be offered where the current limits on individual and 
overall participation contained in the rules will continue in force) to provide the company with a structure to operate a cost effective all-
employee sharesave plan including creating a sub-plan or schedule to an existing plan and obtaining or refreshing 
HM Revenue & Customs approval where such plans may be administered as tax approved employee share plans.
9.  To authorise the directors, subject to the passing of resolution 8, to establish an employee benefit trust, if appropriate, to administer the 
company’s sharesave plan including the provision of shares, interests in shares, loans or cash payments as may be required under such 
plan and to set up a subsidiary company to act as corporate trustee in relation to the trust.
10.  That, pursuant to section 701 of the Act, the company be and is generally and unconditionally authorised to make market purchases 
(within the meaning of section 693(4) of the Act) of ordinary shares of 2p each in the capital of the company (Shares), provided that:
 10.1 the maximum number of Shares which may be purchased is 12,630,269.
 10.2 the minimum price (exclusive of expenses) which may be paid for a Share is 2p.
 10.3 the maximum price (exclusive of expenses) which may be paid for a Share is an amount equal to the higher of:
   (i)  105% of the average of the closing middle market quotations for the Shares as quoted on the AIM market operated by the London 
Stock Exchange (AIM) for the five business days immediately preceding the day on which the purchase is made; and
   (ii)  the value of a Share calculated on the basis of the higher of the price quoted for: 
    (a)  the last independent trade of; and
    (b)  the highest current independent bid for,
 any number of Shares on AIM
  and (unless previously revoked, varied or renewed) shall expire at the conclusion of the next AGM of the company after the passing of this 
resolution, save that the company may enter into a contract to purchase Shares before the expiry of this authority under which such purchase 
will or may be completed or executed wholly or partly after such expiry and may make a purchase of Shares pursuant to any such contract as 
if the authority conferred by this resolution had not expired.
By order of the board
TiM LoWE  REGiSTERED offiCE
Company Secretary  Pure Wafer plc
28 october 2010  Central Business Park
  Swansea Vale
  Swansea SA7 0AB 50 Pure Wafer plc  Annual report and accounts 2010
Notice of Annual General Meeting 
continued
notes 
Entitlement to attend and vote
1. Only those members registered on the company’s register of members at:
 ›  6.00pm on 20 November 2010; or,
 ›  if this Meeting is adjourned, at 6.00pm on the day two days prior to the adjourned meeting,
 shall be entitled to attend and vote at the Meeting.
Website giving information regarding the Meeting
2.  Information regarding the Meeting, including the information required by section 311A of the Companies Act 2006, is available from 
www.purewafer.com.
Attending in person
3.  If you wish to attend the Meeting in person, you will need to bring with you a form of formal identification which includes your photograph, 
such as a passport or a picture driving licence.
Appointment of proxies
4.  If you are a member of the company at the time set out in note 1 above, you are entitled to appoint a proxy to exercise all or any of your rights 
to attend, speak and vote at the Meeting and you should have received a proxy form with this notice of meeting. You can only appoint a proxy 
using the procedures set out in these notes and the notes to the proxy form.
5.  A proxy does not need to be a member of the company but must attend the Meeting to represent you. Details of how to appoint the Chairman 
of the Meeting or another person as your proxy using the proxy form are set out in the notes to the proxy form. If you wish your proxy to speak 
on your behalf at the Meeting you will need to appoint your own choice of proxy (not the Chairman) and give your instructions directly to 
them.
6.  You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. You may not appoint more 
than one proxy to exercise rights attached to any one share. To appoint more than one proxy, please complete and return the enclosed form of 
proxy and return it to Capita Registrars, The Registry, 34 Beckenham Road, Kent BR3 4TU in accordance with the instructions thereon.
7.  A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the resolution. 
If no voting indication is given, your proxy will vote or abstain from voting at his or her discretion. Your proxy will vote (or abstain from voting) 
as he or she thinks fit in relation to any other matter which is put before the Meeting.
Appointment of proxy using hard copy proxy form
8. The notes to the proxy form explain how to direct your proxy to vote on each resolution or withhold their vote.
 To appoint a proxy using the proxy form, the form must be:
 ›  completed and signed;
 ›  sent or delivered to Capita Registrars, The Registry, 34 Beckenham Road, Kent BR3 4TU in accordance with the instructions thereon; and
 ›  received by Capita Registrars (at the above address) no later than 11.00am on 20 November 2010.
  In the case of a member which is a company, the proxy form must be executed under its common seal or signed on its behalf by an officer of 
the company or an attorney for the company.
  Any power of attorney or any other authority under which the proxy form is signed (or a duly certified copy of such power or authority) must 
be included with the proxy form. 51 Annual report and accounts 2010  Pure Wafer plc
notes continued
Appointment of proxy by joint members
9.    In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the 
most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the company’s 
register of members in respect of the joint holding (the first-named being the most senior).
Changing proxy instructions
10.  To change your proxy instructions simply submit a new proxy appointment using the methods set out above. Note that the cut-off time for 
receipt of proxy appointments (see above) also applies in relation to amended instructions; any amended proxy appointment received after 
the relevant cut-off time will be disregarded.
   Where you have appointed a proxy using the hard-copy proxy form and would like to change the instructions using another hard-copy proxy 
form, please contact Capita Registrars on 0871 664 0300 (calls cost 10p per minute plus network extras. Lines are open 8.30am to 
5.30pm Monday-Friday).
   If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will 
take precedence.
Termination of proxy appointments
11. In order to revoke a proxy instruction you will need to inform the company using the following method:
  ›  By sending a signed hard copy notice clearly stating your intention to revoke your proxy appointment to Capita Registrars, The Registry, 
34 Beckenham Road, Kent BR3 4TU. In the case of a member which is a company, the revocation notice must be executed under its 
common seal or signed on its behalf by an officer of the company or an attorney for the company. Any power of attorney or any other 
authority under which the revocation notice is signed (or a duly certified copy of such power or authority) must be included with the 
revocation notice.
  The revocation notice must be received by Capita Registrars no later than 11.00am on 20 November 2010.
  If you attempt to revoke your proxy appointment but the revocation is received after the time specified, then, subject to the paragraph directly  
  below, your proxy appointment will remain valid.
  Appointment of a proxy does not preclude you from attending the Meeting and voting in person. If you have appointed a proxy and attend the  
  Meeting in person, your proxy appointment will automatically be terminated.
Corporate representatives
12.  A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all its powers 
as a member provided that no more than one corporate representative exercises powers over the same share.
issued shares and total voting rights
13.  As at 12:00 noon on 27 October 2010, the company’s issued share capital comprised 126,302,693 ordinary shares of 2p each. 
Each ordinary share carries the right to one vote at a general meeting of the company and, therefore, the total number of voting rights 
in the company as at 12:00 noon on 27 October 2010 is 126,302,693.
  The website referred to in note 2 will include information on the number of shares and voting rights. 52 Pure Wafer plc  Annual report and accounts 2010
Questions at the Meeting
14.  Under section 319A of the Companies Act 2006, the company must answer any question you ask relating to the business being dealt with 
at the meeting unless:
  › answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information;
  › the answer has already been given on a website in the form of an answer to a question; or
  › it is undesirable in the interests of the company or the good order of the meeting that the question be answered.
Voting
15.  Voting on all resolutions will be conducted by way of a poll rather than on a show of hands so that the votes of all shareholders attending in 
person or by proxy are properly taken into account. 
Documents on display
16.  The following documents will be available for inspection at the offices of the company, Central Business Park, Swansea Vale, Swansea SA7 0AB 
from 19 November 2010 until the time of the Meeting and for at least 15 minutes prior to the Meeting until the end of the Meeting:
  › Copies of the service contracts of executive directors of the company.
  › Copies of the letters of appointment of the non-executive directors of the company.
Communication
17.  Except as provided above, members who have general queries about the Meeting should use the following means of communication 
(no other methods of communication will be accepted):
  › in writing to Tim Lowe, Pure Wafer plc, Central Business Park, Swansea Vale, Swansea SA7 0AB.
  You may not use any electronic address provided either:
  › in this notice of annual general meeting; or 
  › any related documents (including the chairman’s letter and proxy form),
  to communicate with the company for any purposes other than those expressly stated.
Notice of Annual General Meeting 
continued  Pure Wafer plc
Central Business Park 
Swansea Vale 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax: +44 (0)1792 795 420 
Web: www.purewafer.com