Pure Wafer plc
Annual Report and
Financial Statements 
Year ended 30 June 2013
Registered number: 05289130 Corporate 
statement 
Pure Wafer plc is an industry-leading, global 
provider, of silicon wafer reclaim services.  Using 
leading-edge technologies, Pure Wafer cleans 
and polishes silicon wafers (“test wafers”) sent 
for reclaim by the majority of the world’s largest 
semiconductor manufacturers. Test wafers 
are an integral part of the semiconductor 
manufacturing process, facilitating quality 
assurance checks at any stage during a highly 
complex, costly and technologically demanding 
procedure of up to 400 individual process 
steps. 
Pure Wafer operates state-of-the-art foundries 
in the UK and the USA which have the capability 
to meet the stringent quality standards required 
by its customers.
Pure Wafer is also involved in the design, 
manufacture and installation of photovoltaic, 
solar panel systems in the UK.
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. Annual report and financial statements 2013  Pure Wafer plc       1
IFC Corporate statement 
01 Highlights
02 Chairman’s statement
04 Chief Executive’s review
06 Financial review
08 Board of Directors, senior 
management and advisers
10 Directors’ report 
16 Directors’ remuneration report
18 Statement of Directors’ 
responsibilities.
19 Independent auditors’ report to 
the members of Pure Wafer plc
20 Consolidated income statement
21 Consolidated statement of 
changes in equity
22 Consolidated balance sheet 
23 Consolidated statement of cash 
flows
24	 Notes	to	the	consolidated	financial	
statements
49 Company independent auditors’ 
report to the members of Pure 
Wafer plc
50 Company balance sheet
51	 Notes	to	the	Company	financial	
statements
56 Shareholder Information
Financial results
• Turnover (Group) $37.0m (2012: 
$35.8m)
• Turnover (Wafer reclaim) $36.1m 
(2012: $33.4m)
• EBITDA $6.3m (2012: $6.0m)
• Operating	profit	$3.1m	(2012:	$0.5m)
• Pre-tax	profit	$3.0m	(2012:	loss	of	
$0.7m)
• Net debt $1.6m (2012: $12.5m)
• Basic earnings per share 1.4c (2012: 
loss per share 0.2c) 
• Cash	inflow	from	operating	activities	
$5.9m (2012: $5.7m)
Operational
• Sales volumes have seen continued 
growth: 
- 300mm up by 21% when    
 compared to prior year 
- Strong increases in volumes in the  
 2nd half over 1st half
• Cost reductions continued leading 
to 4% reduction in cost per unit 
compared to prior year
• Record levels of productivity at both 
Swansea and Prescott sites
• Business now with low cost of 
manufacture, in a growing market, 
with	significant	installed	capacity	and	
planned capacity increases
• Successful Share Placing and Open 
Offer	in	November	2012	enabled	
group debt to be substantially 
reduced
• Re-banking of facilities with 
HSBC Bank plc in January 2013 at 
commercially competitive rates
Highlights 
Contents 2       Pure Wafer plc   Annual report and financial statements 2013
Introduction
The year to 30 June 2013 was a transformational one 
for Pure Wafer, and I am delighted to announce very 
encouraging	financial	results	which	move	the	Company	
firmly	back	into	pre-tax	profitability.	
The forecast global growth in the semiconductor 
industry was in evidence during the period, enabling 
Pure Wafer to continue to enjoy increasing and sustained 
demand for its wafer reclaim services, particularly in Asia 
and the United States.  These market conditions have 
enabled Pure Wafer to consolidate its position within 
the semiconductor industry as one of the leading wafer 
reclaim companies in the world.
I am also pleased to report that, once again both 
manufacturing sites in Swansea and Prescott have 
continued to run at record levels of productivity, which 
together with the ongoing close management of overall 
cost levels, has resulted in Pure Wafer’s cost per wafer 
running at an all-time low for the fourth successive 
year,	providing	further	confidence	in	the	strength	of	the	
business going forward. 
During the period we substantially reduced Group debt 
and changed our banking arrangements, negotiating 
favourable terms and facilities in the process, the 
combined	 effect	 of	 which	 has	 been	 to	 dramatically	
reduce	our	cost	of	finance	and	increase	free	cash	flow.	
This in turn has enabled us to announce our strategy 
of	investing	in	new	equipment	to	significantly	increase	
our manufacturing capacity at both the Swansea and 
Prescott, Arizona sites, allowing Pure Wafer to take 
full advantage of the well documented continued and 
sustained growth in our industry. 
The	 Group’s	 much	 improved	 financial	 performance	
and cash generation, combined with a very successful 
share	 placing	 and	 open	 offer	 last	 November,	 have	
helped to strengthen the balance sheet to such a degree 
that we were able to complete its restructure  by the 
cancellation of the share premium account. This will 
enable the payment of dividends in the future, provided 
that	 the	 Board	 is	 satisfied	 that	 such	 payments	 are	 in	
the best interests of the Company, taking into account 
all circumstances including the Company’s investment 
plans,	cash	flow	projections	and	continuing	compliance	
with its funding agreements.
During	 the	 financial	 year	 Pure	 Wafer’s	 solar	 business	
saw	a	significant	reduction	in	revenues	as	the	combined	
effect	 of	 UK	 Government	 indecision	 over	 the	 feed-
in-tariff	 and	 the	 influx	 of	 below	 cost	 Chinese	 imports	
resulted in an insecure market especially in the domestic 
sector. We therefore re-focused Pure Wafer’s solar 
division marketing strategy, targeting commercial and 
local authority clients and others with multiple buildings, 
which has shown a level of success.
The	key	financial	performance	indicators	monitored	by	
the Board are as follows:
• Turnover (Group) $37.0m (2012: $35.8m)
• Turnover (Wafer reclaim) $36.1m (2012: $33.4m)
• EBITDA $6.3m (2012: $6.0m)
• Operating	profit	$3.1m	(2012:	$0.5m)
• Pre-tax	profit	$3.0m	(2012:	loss	of	$0.7m)
• Net debt $1.6m (2012: $12.5m)
• Basic earnings per share 1.4c (2012: loss per share 
0.2c) 
• Cash	 inflow	 from	 operating	 activities	 $5.9m	 (2012:	
$5.7m)
Each	 of	 these	 key	 indicators	 show	 a	 significant	
improvement over the prior year, and the Board is 
encouraged by the actions of the management team 
during the period to take advantage of market conditions 
to maximise revenue whilst continuing to reduce costs 
across all sectors of the business. 
Chairman’s statement
2013 was a transformational year for Pure Wafer 
which	 moved	 the	 Company	 firmly	back into pre-tax 
profitability Annual report and financial statements 2013  Pure Wafer plc       3
Group funding
During the period, on the back of a continually improving 
trading performance and a positive long-term outlook 
for the semiconductor industry, we were able to 
complete	a	successful	share	placing	and	open	offer	last	 	
November which raised $7.5m before expenses. These 
funds were utilised to repay our asset funders Lloyds, 
GE and CIT in full and partially repay RBS and Citizens 
Bank, fully restructuring and strengthening our balance 
sheet.
Furthermore,	with	a	significantly	reduced	debt	position	
we	were	able	to	refinance	and	consolidate	our	remaining	
debts with HSBC by way of a $5.6m term loan over 4 
years.	 The	 facilities	 offered	 by	 HSBC	 also	 included	 a	
$1.6m revolving facility which is available to be drawn 
upon for any capital expenditure requirements.
In repaying the asset funders and banks from the 
proceeds	 of	 the	 placing	 and	 open	 offer	 and	 the	
refinancing,	 we	 negotiated	 certain	 discounts	 and	 fee	
waivers which resulted in savings of $1.0m and an annual 
cash	 flow	 benefit	 of	 $3.9m,	 a	 significant	 achievement	
which will contribute towards the long term stability of 
the Company.
This funding will allow additional investment in plant 
and equipment and has enabled the Company to revisit 
the	estimated	useful	lives	of	our	fixed	assets,	resulting	in	
a reduced annual depreciation charge of $2.3m.
I would like to thank shareholders for their continued 
support	which	enabled	this	financial	restructuring	to	be	
successfully completed, putting Pure Wafer in a much 
stronger	 financial	 position	 and,	 importantly,	 with	 the	
ability to invest for future success.
Management
I	would	also	like	to	thank	the	entire	staff	for	their	support	
and	efforts	during	a	year	in	which	volumes	have	shown	
continued growth,  productivity has reached record 
levels  and  further cost reductions have been achieved. 
These	efforts	are	reflected	in	the	strong	financial	results	
for the period.
Outlook
With industry analysts forecasting many years of 
sequential growth for the industry fuelled by the world’s 
ever increasing demand for technology advances, 
especially from the emerging economies, the outlook 
for	further	profitable	growth	is	encouraging.
With our installed capacity, our planned capacity 
increases,	our	market-leading	offering	and	our	low	cost	
of manufacturing, Pure Wafer is very well placed to take 
advantage of a stable and growing global market.
Since	 the	 year-end,	 demand	 for	 our	 product	 offering	
has remained strong with additional opportunities for 
profitable	 growth	 especially	 from	 Asia	 and	 the	 large	
foundry	 sector.	 We	 are	 confident	 that	 these	 levels	 of	
demand	will	continue	throughout	this	financial	year	and	
beyond.
We fully expect that Pure Wafer’s solar division will 
continue to produce results in line with management 
expectations during the current year despite the 
uncertainty	 over	 the	 UK	 Government’s	 long	 term	
position	 on	 feed-in-tariffs.	 	 The	 reputation	 that	 Pure	
Wafer has quickly gained in this sector has resulted in 
many orders being placed with a number of exciting 
opportunities in both commercial and public sector 
projects for the upcoming period.
The	 Board	 is	 confident	 that	 the	 Group	 will	 make	
further substantial progress in the current year. A 
much strengthened balance sheet, continued strong 
cash generation combined with stringent cost controls, 
investment to increase manufacturing capacity and a 
growing market together give Pure Wafer an excellent 
platform	for	further	growth	and	improved	profitability.
These factors give Pure Wafer a strong foundation on 
which to move forward, and build upon for further 
growth	and	improved	profitability.
Stephen Boyd
Chairman
1 October 2013 4       Pure Wafer plc   Annual report and financial statements 2013
Operational review
The	much	improved	financial	performance	for	the	year	to	30	
June	 2013	 demonstrates	 significant	progress	 has	 been	 achieved	
by Pure Wafer with further increases in revenue, EBITDA and 
a	 substantial	 return	 to	 pre-tax	 profitability.	 The	 period	 also	
presented Pure Wafer with the challenge of reclaiming record 
volumes of wafers both in Swansea and Prescott as the global 
semiconductor industry continued to grow.
Volume sales for the Group grew during the period, with 
300mm wafer reclaim up by 21% compared to the prior 
year.  Encouragingly, the second half of the year showed 
even stronger growth with 300mm volumes increasing a 
further	 7%	 over	 the	 first	 half,	 demonstrating	 a	 continuing	
growth pattern. Such increases in volumes in themselves 
present a real challenge to the operational teams in Swansea 
and Prescott. However, when coupled with industry analysts 
forecasting continued growth through 2015 and beyond, this 
would undoubtedly put a strain on our existing manufacturing 
capacities. 
Pure Wafer’s operations are currently running at high levels of 
utilisation, and whilst current demand can be accommodated 
within the existing facilities in Swansea and Prescott, forecast 
demand will exceed current capacity. Pure Wafer’s Board has 
therefore agreed a capital investment programme to increase 
300mm capacity by up to 40% across both manufacturing sites 
both to supplement the existing 300mm production lines and 
to enable us to meet continued and foreseeable demand. This 
additional capacity will be installed and partly utilised during 
the year ended 30 June 2014.
Following	 the	 successful	 Share	 Placing	 and	 Open	 Offer	 in	
November 2012 enabling Group debt to be substantially 
reduced and allowing the successful re-banking of our facilities 
at commercially competitive rates, Pure Wafer will be funding 
the capital expenditure for the increased capacity programme 
from our own cash generation.
Once	again	our	operational	teams	met	the	significant	challenge	
of achieving increasing volumes whilst maintaining the cost 
reductions	and	benefits	gained	during	prior	periods,	not	least	
against a market backdrop where our major suppliers were 
seeking price increases for the majority of our consumable 
items.  I am therefore very pleased to report that we were able 
to build on our past successes and reduce costs per wafer 
even	further	which	fell	by	4%	compared	with	the	prior	financial	
year.  These cost savings were in part a result of economies of 
scale as well as successful engineering innovations introduced 
to reduce consumables usage and costs within our processes, 
all	without	affecting	the	quality	of	the	Group’s	product	offering.
As volumes increased our operational teams processed them 
with	 only	 a	 modest	 increase	 in	 headcount.	 	 Pure	 Wafer	 benefited	
from	 these	 cost	 efficiencies	 as	 record	 levels	 of	 productivity	
were once again achieved in both the Swansea and Prescott 
facilities.  I would like to thank all of our employees throughout 
the Group for their hard work and support during the year, 
enabling Pure Wafer to continue to trade competitively and 
profitably	throughout	this	period.
Highlights
• Sales volumes have seen continued growth 
- 300mm up by 21% when compared to prior year 
- Strong increases in volumes in the 2nd half over  
  1st half
• Cost reductions continued leading to 4% reduction in 
cost per unit compared to prior year
• Record levels of productivity at both Swansea and 
Prescott sites
• Business now with low cost of manufacture, in a 
growing	market,	with	significant	installed	capacity	and	
planned capacity increases
Chief Executive’s review
Capital investment to increase 300mm capacity 
across both sides will enable the Company to meet 
continued and foreseeable demand
FY13 FY12 FY11 FY10 FY09
10,000
15,000
20,000
25,000
30,000
35,000
40,000
REVENUE IN $'000
FY13 FY12 FY11 FY10 FY09
VOLUMES IN 300MM EQUIVALENTS
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY13 FY12 FY11 FY10 FY09
EBITDA IN $'000
 COST OF SALES PER 300MM 
EQUIVALENT
FY13 FY12 FY11 FY10 FY09 Annual report and financial statements 2013  Pure Wafer plc       5
Market
With the world’s insatiable appetite for faster, multifunctional 
hand held devices, especially from the heavily populated new 
and emerging economies, industry analysts are forecasting 
continued growth through to 2015 and beyond. Our major 
customers have committed and completed substantial new 
investment in 300mm silicon chip manufacturing facilities 
amounting to tens of billions of US Dollars, demonstrating 
their	own	confidence	in	sustainable	market	growth.	These	new	
manufacturing facilities give rise to further, very substantial 
wafer reclaim opportunities both currently and in the future 
and	support	our	confidence	in	the	exciting	long	term	growth	
prospects for Pure Wafer and upon which our strategy of 
increasing capacity is based.
Solar PV
Trading in our solar division proved to be challenging during 
the	period.	The	UK	Government	once	again	changed	the	levels	
of	the	Government	backed	feed-in	tariff,	which	had	an	adverse	
effect	 on	 orders	 from	 domestic	 customers	 as	 returns	 were	
perceived to become less attractive.
The	 change	 in	 market	 dynamics	 together	 with	 the	 influx	 of	
Chinese	solar	panels	and	solar	cells	into	the	UK	and	European	
market at selling prices below manufacturing costs has resulted 
in many corporate casualties in the industry throughout 
Europe.	 During	 the	 period	 we	 therefore	 significantly	 scaled	
back the solar headcount and operations.
We have also re-focused our marketing towards commercial, 
industrial and local authority customers who have high power 
usage during the daytime and other installations with double 
digit returns on investment and this strategy has resulted in a 
large enquiry list with a successful conversion rate into orders.  
Outlook
With the Group’s current and proposed capacity for 300mm 
and smaller diameter wafers, our leading-edge facilities in 
Swansea and Prescott, Arizona, together wih some of the 
lowest production costs per wafer in the industry, a much 
strengthened	financial	position	and	a	positive	market	outlook,	
the	Board	firmly	believes	that	the	Company	is	well	placed	for	
future growth.
Peter Harrington
Group Chief Executive
1 October 2013
FY13 FY12 FY11 FY10 FY09
10,000
15,000
20,000
25,000
30,000
35,000
40,000
REVENUE IN $'000
FY13 FY12 FY11 FY10 FY09
VOLUMES IN 300MM EQUIVALENTS
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY13 FY12 FY11 FY10 FY09
EBITDA IN $'000
 COST OF SALES PER 300MM 
EQUIVALENT
FY13 FY12 FY11 FY10 FY09 6       Pure Wafer plc   Annual report and financial statements 2013
Reporting currency
We continue to report in US dollars, the currency of the 
industry we operate in.  This alignment of functional 
currency and reporting currency 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. 
Revenue and volumes
Overall revenues grew by 3.4% year on year from 
$35.8m to $37.0m driven by increased volumes in the 
wafer reclaim business.
Wafer reclaim 
Volumes shipped based on 300mm equivalent wafers 
increased by 12.0% in the year.  As a result revenue for 
the year was $36.1m, an increase of 8.4% on last year 
(2012: $33.4m).  An analysis of turnover by origin and 
destination can be found in note 5.
Solar PV
Revenue	for	the	year	was	$0.8m,	(2012:	$2.4m);	reflecting	
the	impact	that	changes	in	the	UK	Government	backed	
feed-in	tariff	has	had	on	the	market.
Ebitda and cash generation
Increased sales volumes and steady selling prices, whilst 
reducing costs per wafer of production, have resulted in 
increased EBITDA and cash generation.  EBITDA for the 
year was $6.3m, an increase of 4.6% on last year (2012: 
$6.0m).	 	 This	 increased	 profit	 along	 with	 successful	
management of working capital has resulted in cash 
inflow	from	operating	activities	of	$5.9m,	an	increase	of	
3.3% on last year (2012: $5.7m).  
Gross profit
Gross	 profit	 increased	 from	 $11.5m	 to	 $12.1m,	 an	
increase of 5.4%, as a result of increased volumes 
processed and the cost saving initiatives implemented 
in	the	period.	Gross	profit	margin	also	increased	from	
32.1% to 32.8% year on year.
Administrative expenses
Administrative expenses decreased from $11.0m 
to	 $9.0m	 reflecting	 a	 reduction	 in	 depreciation	 and	
amortisation costs.
During the year the Directors reviewed the remaining 
useful	lives	of	all	fixed	assets,	which	resulted	in	a	$2.3m	
reduction in depreciation and amortisation when 
compared to the annual charge using the previous useful 
lives.	 Following	 the	 successful	 placing	 and	 open	 offer,	
which was completed during the year along with the new 
HSBC banking facilities, the Company now has increased 
funds available to invest in and maintain its property, 
plant and equipment. The Company’s maintenance and 
repair policy is one of the key factors that determine the 
estimated life of plant and equipment and as a result of 
this change the remaining life of many assets has been 
extended. 
Operating profit
Operating	 profit	 has	 increased	 from	 $0.5m	 to	 $3.1m	
as a result of increased revenue and a reduction in 
administrative expenses.
Interest
Net interest cost has decreased by $1.0m year on 
year.  Funds from the successful Share Placing and 
Open	Offer,	 which	was	completed	in	November	2012,	
were utilised to repay asset funders Lloyds, GE and 
CIT in full and partially repay RBS and Citizens Bank. 
The	 remaining	 debt	 was	 refinanced	 with	 HSBC	 on	 25	
January 2013 at more competitive rates. In repaying the 
asset funders and banks early the Company negotiated 
certain discounts and fee waivers, which resulted in cash 
savings of $1.0m, of which $0.6m resulted in a credit to 
the income statement in the year to 30 June 2013. The 
$0.6m credit has been presented as an exceptional item 
in the consolidated income statement.
Financial review
With a restructured balance sheet and consolidated 
debt position the Company has a long term stable 
platform to take advantage of strong demand and 
forecast growth Annual report and financial statements 2013  Pure Wafer plc       7
Profit before tax
Profit	 before	 tax	 increased	 from	 a	 loss	 of	 $0.7m	 to	 a	
profit	of	$3.0m.	
Foreign exchange
We continue to maintain as much of the cost base as 
possible in US Dollars in order to provide a natural 
hedge against the US Dollar revenue streams. 
Taxation
During the year the Group submitted a claim in respect 
of qualifying Research and Development, the amounts 
received are shown in note 11. 
The Directors have taken the decision to recognise a 
deferred tax asset representing available losses carried 
forward based on current budget and forecasts as they 
are expected to be utilised within the foreseeable future. 
The value of the remaining unrecognised deferred tax 
asset	relating	to	tax	losses	of	the	UK	business	at	30	June	
2013 is $7.0m (2012: $10.8m).
Funding arrangements
During the period the Company undertook a full 
restructure of its balance sheet following the successful 
Share	 Placing	 and	 Open	 Offer.	 The	 residual	 debt	 was	
refinanced	 with	 HSBC	 on	 25	 January	 2013.	 The	 new	
facilities consist of a $5.6m term loan repayable in 
equal installments over 4 years, and a $1.6m revolving 
credit facility which is available to be drawn down at 
any time during the 4 years for any capital expenditure 
requirements. These loans attract interest rates of 3% 
over Libor for all utilised funds.
Richard Howells
Chief Financial Officer
1 October 2013
FY13 FY12 FY11 FY10 FY09
10,000
15,000
20,000
25,000
30,000
35,000
40,000
REVENUE IN $'000
FY13 FY12 FY11 FY10 FY09
VOLUMES IN 300MM EQUIVALENTS
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY13 FY12 FY11 FY10 FY09
EBITDA IN $'000
 COST OF SALES PER 300MM 
EQUIVALENT
FY13 FY12 FY11 FY10 FY09
FY13 FY12 FY11 FY10 FY09
10,000
15,000
20,000
25,000
30,000
35,000
40,000
REVENUE IN $'000
FY13 FY12 FY11 FY10 FY09
VOLUMES IN 300MM EQUIVALENTS
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY13 FY12 FY11 FY10 FY09
EBITDA IN $'000
 COST OF SALES PER 300MM 
EQUIVALENT
FY13 FY12 FY11 FY10 FY09 8       Pure Wafer plc   Annual report and financial statements 2013
1. Peter Harrington
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 Operating Officer
Keith	Baker	is	a	co-founder	of	the	Company.	He	has	many	years’	
experience in the semiconductor industry, working for leading 
chip manufacturers such as Siemens Microelectronics and 
National	Semiconductor.		Keith	was	previously	vice	president	
of technology for Steag Microtech, where he played a key role 
in the early development of the 300mm wafer manufacturing 
processes.
3. Richard Howells ACA
Chief Financial Officer
Richard Howells joined the Board in January 2012.  He 
qualified	 as	 a	 chartered	 accountant	 in	 1999	 prior	 to	 joining	
KPMG’s	audit	division.		After	this	Richard	joined	Christie	Tyler,	
the	largest	manufacturer	of	upholstered	furniture	in	the	UK,	
before moving to Airborne Systems Group, a world leader 
in parachute design and manufacture.  Whilst at Airborne 
Systems Group, Richard held the position of interim Group 
CFO, was responsible for securing a multi-million banking 
facility in 2009, and was involved in the restructure of the 
Group following its acquisition in 2010.
4. Jerry Winters
US Operations Director
Jerry Winters has in excess of 30 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. 
Board of Directors,
senior management and advisers 
Executive Directors Annual report and financial statements 2013  Pure Wafer plc       9
5. Stephen Boyd
Non-Executive Chairman
Stephen Boyd joined the Board in October 2008. He is also 
Chairman of Pittards plc, and Non-Executive Director of The 
Mission Marketing Group plc.  He owns a number of private 
companies.
6. Dr Eurfyl ap Gwilym
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.
Company Secretary and 
Registered Office
D R Howells
Pure Wafer plc
Central Business Park
Swansea Vale
Swansea SA7 0AB
Solicitors
Morgan Cole LLP
Conwy House
Castle Court
Phoenix Way
Swansea SA7 9LA
Bankers
HSBC Bank Plc
97 Bute Street
Cardiff	CF10	5NA
Nominated Advisers/Brokers
WH Ireland Limited
4 Colston Avenue
Bristol BS1 4ST 
Independent Auditors
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Llys Tawe
Kings	Road
Swansea SA1 8PG
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands B63 3DA
Public Relations
Winningtons Financial PR Limited
Quality Court
Chancery Lane
London WC2A 1HR 
Non-Executive Directors
Advisers 10       Pure Wafer plc   Annual report and financial statements 2013
Directors’ report
The	Directors	present	their	annual	report	and	the	audited	consolidated	financial	statements	of	the	Group	for	the	year	ended	30	
June 2013.
Principal activities 
The principal activity of the Group remains the reclaim of silicon test wafers.  The Group is also involved in the design, manufacture 
and	installation	of	photovoltaic	systems	in	the	UK.		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 20.
A	 review	 of	 developments	 affecting	 the	 Group	 during	 the	 year	 and	 its	 prospects	 for	 the	 future	 is	 set	 out	 in	 the	 Chairman’s	
statement,	Chief Executive’s	review	and	the	Financial	review.
Business review
A detailed review of the Group’s operations and key performance indicators is contained in the Chairman’s statement on pages 
2	and	3,	the Chief	Executive’s	review	on	pages	4	and	5	and	the	Financial	review	on	page	6	and	7.		Information	about	the	use	of	
financial	instruments	by	the	Company	and	its	subsidiaries	is	given	in	note	22	to	the	financial	statements.	
Changes to estimates
Following	the	successful	placing	and	open	offer,	which	was	completed	during	the	year	along	with	the	new	HSBC	banking	facilities,	
the Company now has increased funds available to invest in and maintain its property, plant and equipment. The Company’s 
maintenance and repair policy is one of the key factors that determine the estimated life of plant and equipment and as a result 
of this change the remaining life of many assets has been extended. This revision has reduced the depreciation and amortisation 
charge for the year to 30 June 2013 by $2.3m. 
Exceptional items
Funds	from	the	successful	placing	and	open	offer,	which	was	completed	in	November	2012,	were	utilised	to	repay	asset	funders	
Lloyds,	GE	and	CIT	in	full	and	partially	repay	RBS	and	Citizens	Bank.	The	remaining	debt	was	refinanced	with	HSBC	in	January	
2013. In repaying the asset funders and banks early we negotiated certain discounts and fee waivers, which resulted in a $0.6m 
credit to the income statement.
Dividends
The Directors do not recommend the payment of a dividend (2012: $nil).
Principal risks and uncertainties 
There are a number of potential risks and uncertainties which could have a material impact on the Group’s long-term performance.
Market risk
Volumes – there is a risk that sales volumes could decrease if the industry growth is not sustained.  However, given current trading 
conditions and management’s outlook, this risk is considered to be low.  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	could	fall,	affecting	our	gross	margin.	 	
We	mitigate	this risk	by	understanding	the	production	cost	for	each	wafer,	by	maintaining	the	quality	of	our	wafer	reclaim	services	
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	 could	 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.		When	appropriate,	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. Annual report and financial statements 2013  Pure Wafer plc       11
Principal risks and uncertainties  (continued)
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.
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	13.
Cancellation of Share Premium Account
The High Court in London passed a Court Order on 27th June 2013 granting the cancellation of the Company’s share premium 
account and the Court Order was duly registered by the Registrar of Companies on 28th June 2013.
The	cancellation	of	the	share	premium	account	will	eliminate	the	deficit	on	the	Company’s	profit	and	loss	account	and	enable	the	
payment of a dividend from distributable reserves should the Board decide to declare or recommend the payment of dividends 
in the future.
Merger reserve
The Group’s merger reserve arose on the acquisition of Pure Wafer International Limited, which involved a share for share 
exchange. During the year Pure Wafer International Limited also restructured its reserves, which resulted in its share premium 
account being cancelled and its share capital being reduced. The balance on the merger reserve of $58,826k has been cancelled 
and transferred to retained earnings.
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 2013 were equivalent to 42 days’ (2012: 53 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 and Deputy Chairman
P Dolan Non-Executive Director
P G Harrington Group Chief Executive
K	Baker Chief	Operating	Officer
D R Howells Chief	Financial	Officer
J Winters Director of US operations 12       Pure Wafer plc   Annual report and financial statements 2013
Directors’ report (continued)
Directors and their interests  (continued)
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
2013 2012 30 June 30 June
2p ordinary 2p ordinary 2013 2012
share share 2p ordinary 2p ordinary
warrants warrants shares shares
Number Number Number Number
S Boyd — 12,508,107 20,008,107 7,500,000
P G Harrington 4,065,135 4,065,135 2,355,495 1,784,066
K	Baker 3,127,027 3,127,027 1,698,727 1,413,012
D R Howells — — 285,715 —
P Dolan — — 1,304,600 1,065,000
E ap Gwilym — — 643,115 525,000
J Winters 2,345,270 2,345,270 1,148,415 937,500
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. 
As disclosed in note 23, on 26 July 2012 an option grant was made to employees of the Company. The options granted to the 
Directors of the Company are included within the Directors’ report.
30 June Granted during 30 June
2013 the year 2012
2p ordinary 2p ordinary 2p ordinary
Share Share Share
Options
number 
Options
number 
Options
Number
P G Harrington 3,750,000 750,000 3,000,000
K	Baker 1,875,000 375,000 1,500,000
D R Howells 500,000 250,000 250,000
J Winters 1,250,000 250,000 1,000,000
Substantial shareholders 
As	at	10	September	2013,	notifications	of	beneficial	interests	in	3%	or	more	of	the	Company’s	issued	share	capital	are	as	follows:
Ordinary 
shares
Number %
Blackrock Investment Management 31,608,674 11.8
Hargreave Hale Limited 20,397,004 7.6
Polar Capital European Forager Fund Ltd 20,382,736 7.6
Stephen Boyd 20,008,107 7.5
Knox	and	Wells	Holdings 14,366,000 5.4
Aviva 13,183,941 4.9
Throgmorton Trust Plc 12,283,007 4.6 Annual report and financial statements 2013  Pure Wafer plc       13
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 2013 AGM to be held on 27 November 2013.
Subsequent to the passing of these resolutions, the Directors will have the authority to allot shares up to an aggregate nominal 
amount of £1,787,386 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	£268,107.
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	2	and	3.	The	financial	position	of	the	Group,	its	cash	flows,	and	borrowing	facilities	are	
described	in	the	Finance	review	on	page	6	and	7.		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. 
With	the	facilities	that	are	currently	in	place,	the	Group	has	sufficient	headroom	above	its	forecast	cash	requirement,	which	will	
allow it to manage its business risks successfully. 
The	Directors	have	assessed	the	balance	sheet	and	likely	future	cash	flows	of	the	Company	and	Group	at	the	date	of	approving	
the accounts. This review considered detailed forecasts for the period to 30 June 2015. On this basis the Directors have concluded 
that	it	is	appropriate	to	prepare	the	financial	statements	on	a	going	concern	basis.	
Corporate governance
The	Company	is	listed	on	AIM	and	is	therefore	not	required	to	comply	with	the	provisions	of	the	UK	Corporate	Governance		Code.	
However,	the	Board	adopts	a	number	of	principles	of	the	UK	Corporate	Governance	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, four 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. 14       Pure Wafer plc   Annual report and financial statements 2013
Directors’ report (continued)
Board responsibilities (continued)
The Board considers the Chairman to be the Senior Independent Director and 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 is constituted with written terms of reference that are reviewed regularly to ensure that 
they remain appropriate.  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	and	interim	reports,	which	are	intended	for	publication.	
 Remuneration Committee
The Remuneration Committee comprises the Non-Executive Directors and the Chairman and meets at least once a year. During 
the	year,	the Committee	was	chaired	by	E	ap	Gwilym.		The	Committee	is	constituted	with	written	terms	of	reference	that	are	
reviewed regularly to ensure that they remain appropriate.  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.		The	Directors’	
remuneration report is set out on pages 16 to 17.
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 their	justification,	to	the	Board	as	quickly	as	practicable.
Board meetings
During the year to 30 June 2013, there were eleven Board meetings, three Audit Committee meetings and two Remuneration 
Committee meetings.  Attendance was as follows:
Board Audit Remuneration
meetings Committee Committee
S Boyd 8 1 1
P G Harrington 11 - -
K	Baker 10 - -
D R Howells 11 - -
P Dolan 10 3 2
E ap Gwilym 10 3 2
J Winters 10 - -
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 executive	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. Annual report and financial statements 2013  Pure Wafer plc       15
Risk management (continued)
In order to address risk management, a control framework is in place which aims, as best as practicable, to:
•	 safeguard Group assets;
•	 ensure proper accounting records are maintained; and
•	 provide	reliable	financial	information	for	internal	and	external	use.
Research and Development
The Company undertakes Research and Development activities to continue our process improvements.
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.
Independent 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.
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
1 October 2013 16       Pure Wafer plc   Annual report and financial statements 2013
Directors’ remuneration report
This report sets out Pure Wafer’s executive remuneration policy, structure and details of remuneration received by Directors in 
the year ended 30 June 2013. 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 twice during the year.
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 caliber it is 
necessary	to provide	a	competitive	market-based	remuneration	structure	which	rewards	Company	and	individual	performance.
Remuneration packages comprise:
•	 basic salary;
•	 annual performance related bonus;
•	 other	benefits;	and
•	 participation in share incentive plans.
Basic salary
Salaries	are	normally	reviewed	annually	and	any	changes	are	effective	 from	July	in	each	year.	Pay	reviews	take	into	account	
Company and individual performance. 
Performance related bonuses
Payments	under	the	scheme	to	Executive	Directors	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	allowance,	private	medical	insurance,	life	assurance	and	permanent	health	insurance	
for Executive Directors.
Share incentives
As discussed in note 23 the Company has an equity settled share based compensation plan for eligible employees. Annual report and financial statements 2013  Pure Wafer plc       17
Directors’ remuneration
Total Total
Salary Benefits Bonus Pension 2013 2012
Director $ $ $ $ $ $
S Boyd 42,167 - - - 42,167 42,589
P G Harrington 189,155 20,290 51,309 23,531 284,285 280,830
K	Baker 205,234 18,560 25,654 7,843 257,291 254,011
D R Howells 135,222 14,791 16,079 15,687 181,779 85,874
E ap Gwilym 34,877 - - - 34,877 35,227
P Dolan 40,603 - - - 40,603 41,009
J Winters 149,739 19,470 18,717 13,477 201,403 191,868
796,997 73,111 111,759 60,538 1,042,405 931,408
The remuneration disclosed above represents the US dollar (USD) equivalent of the amounts settled in sterling translated at a rate 
of $1.569:£1 (2012: $1.584:£1), with the exception of amounts paid to J Winters which were settled in USD. 
As disclosed in note 23, on 26 July 2012 an option grant was made to employees of the Company. The options granted to Directors 
of the Company are detailed within the Directors’ report.
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.	
D R Howells has a service agreement with the Company dated 21 December 2011, 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 twelve 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	twelve months	given	by	either	party.
E ap Gwilym has a letter of appointment with the Company dated 1 June 2006, which is subject to termination upon a notice 
period	of twelve months	given	by	either	party.
P Dolan has a letter of appointment with the Company dated 25 June 2007, which is subject to termination upon a notice period 
of twelve months	given	by	either	party.
Directors’ interest in shares
The	beneficial	interest	of	Directors	at	the	end	of	the	year	in	the	ordinary	share	capital	of	the	Company	is	set	out	in	the	Directors’	
report.
Eurfyl ap Gwilym
Non-Executive Director
1 October 2013 18       Pure Wafer plc   Annual report and financial statements 2013
Statement of Directors’ 
responsibilities
The	Directors	are	responsible	for	preparing	the	annual	report	and	the	financial	statements	in	accordance	with	applicable	law	and	
regulations. 
Company	law	requires	the	Directors	to	prepare	financial	statements	for	each	financial	year.	Under	that	law	the	Directors	have	
prepared	the	Group	financial	statements	in	accordance	with	International	Financial	Reporting	Standards	“IFRSs”	as	adopted	by	
the	European	Union,	and	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	financial	statements	unless	they	are	satisfied	that	they	give	a	true	and	fair	view	of	the	state	of	affairs	of	the	Group	
and	the	Company	and	of	the	profit	or	loss	of	the	Group	for	that	year.		
In	preparing	these	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	IFRSs	as	adopted	by	the	European	Union	and	applicable	UK	Accounting	Standards	have	been	followed,	
subject	to	any	material	departures	disclosed	and	explained	in	the	Group	and	Parent	Company	financial	statements	
respectively ;
•	 prepare	the	financial	statements	on	the	going	concern	basis	unless	it	is	inappropriate	to	presume	that	the	Company	will	
continue in business .
The	Directors	are	responsible	for	keeping	adequate	accounting	records	that	are	sufficient	to	show	and	explain	the	Company’s	
transactions	and	disclose	with	reasonable	accuracy	at	any	time	the	financial	position	of	the	Company	and	enable	them	to	ensure	
that	the	financial	statements	comply	with	the	Companies	Act	2006.	They	are	also	responsible	for	safeguarding	the	assets	of	the	
Company and the Group 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 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.   
On behalf of the Board
Peter Harrington
Group Chief Executive
1 October 2013 Annual report and financial statements 2013  Pure Wafer plc       19
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	 2013	 which	 comprise	 the	 Consolidated	
Income Statement, the Consolidated Statement of Changes in Equity, the Consolidated Balance Sheet, the Consolidated Statement 
of	Cash	Flows	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 Statement of Directors’ Responsibilities, 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	and	express	an	opinion	
on	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.	In	addition,	we	read	all	the	financial	and	non-financial	information	in	the	Annual	Report	
and	Financial	Statements	to	identify	material	inconsistencies	with	the	audited	financial	statements.	If	we	become	aware	of	any	
apparent material misstatements or inconsistencies we consider the implications for our report.
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	2013	and	of	its	profit	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 matter 
We	have	reported	separately	on	the	Parent	Company	financial	statements	of	Pure	Wafer	Plc	for	the	year	ended	30	June	2013.	
Jason Clarke (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Swansea
1 October 2013  20       Pure Wafer plc   Annual report and financial statements 2013
Consolidated income statement
year ended 30 June 2013
Registered number 05289130
2013 2012
Note $000 $000
Revenue 4, 5 36,984 35,751
Cost of sales (24,870) (24,254)
Gross profit 12,114 11,497
Other administrative expenses (5,783) (5,419)
Share option charge 23 (40) (64)
Earnings before interest, taxation, depreciation and amortisation 6,291 6,014
Depreciation and amortisation (net) 6, 27 (3,182) (5,553)
Operating profit 5, 6 3,109 461
Finance income - exceptional 8 592 -
Finance costs 9 (552) (1,014)
Other similar charges 10 (182) (122)
Profit/(loss) on ordinary activities before taxation 2,967 (675)
Tax	credit	on	profit/(loss)	on	ordinary	activities 11 123 384
Profit/(loss) for the financial year 3,090 (291)
Total comprehensive income for the year 3,090 (291)
Profit/(loss) per share
Basic profit/(loss) per share 12 1.44c (0.2)c
Diluted profit/(loss) per share 12 1.25c (0.2)c
The	notes	on	pages	24	to	48	are	an	integral	part	of	these	consolidated	financial	statements.	 Annual report and financial statements 2013  Pure Wafer plc       21
Consolidated statement of
changes in equity
year ended 30 June 2013
Share
Share premium Merger Retained Exchange Total
capital account reserve earnings Translation equity
Note $000 $000 $000 $000 $000 $000
Balance at 30 June 2011 4,317 24,857 58,826 (62,290) (2,825) 22,885
Comprehensive income
Loss	for	the	financial	year - - - (291) - (291)
Total comprehensive income - - - (291) - (291)
Transactions with owners
Share options - - - 64 - 64
Proceeds from issue of shares 23 - - - - 23
Total transactions with owners of the 
Parent, recognised directly in equity 23 - - 64 - 87
Balance at 30 June 2012 4,340 24,857 58,826 (62,517) (2,825) 22,681
Comprehensive income
Profit	for	the	financial	year - - - 3,090 - 3,090
Total comprehensive income - - - 3,090 - 3,090
Transactions with owners
Share options 23 - - - 40 - 40
Proceeds from issue of shares  23 4,479 3,057 - - - 7,536
Share issue costs  23 - (439) - - - (439)
Capital reduction 28 - (27,475) - 27,475 - -
Merger reserve restructure 29 - - (58,826) 58,826 - -
Total transactions with owners of the 
Parent, recognised directly in equity 4,479 (24,857) (58,826) 86,341 - 7,137
Balance at 30 June 2013 8,819 - - 26,914 (2,825) 32,908
The	notes	on	pages	24	to	48	are	an	integral	part	of	these	consolidated	financial	statements. 22       Pure Wafer plc   Annual report and financial statements 2013
Consolidated balance sheet
as at 30 June 2013
2013 2012
Note $000 $000
Non-current assets
Goodwill 13 6,630 6,630
Other intangible assets 13 356 1,132
Property, plant and equipment 14 23,787 25,054
Deferred income tax assets 30 4,037 -
34,810 32,816
Current assets
Inventories 15 2,521 2,267
Trade and other receivables 16 7,366 7,337
Cash and cash equivalents 16 3,406 2,043
13,293 11,647
Total assets 48,103 44,463
Current liabilities
Trade and other payables 17 (4,223) (5,478)
Interest-bearing loans and borrowings 19 (1,409) (6,778)
Derivative	financial	instruments 18 (20) -
(5,652) (12,256)
Non-current liabilities
Interest-bearing loans and borrowings 19 (3,559) (7,755)
Deferred income 21 (2,001) (1,771)
Deferred income tax liabilities 30 (3,983) -
(9,543) (9,526)
Total liabilities (15,195) (21,782)
Net assets 32,908 22,681
Equity
Ordinary shares 23 8,819 4,340
Share premium - 24,857
Merger reserve - 58,826
Retained earnings 26,914 (62,517)
Exchange translation reserve (2,825) (2,825)
Total equity 32,908 22,681
The	notes	on	pages	24	to	48	are	an	integral	part	of	these	consolidated	financial	statements.
The	financial	statements	on	pages	20	to	48	were	authorised	for	issue	by	the	Board	of	Directors	on	1	October	2013	and	were	
signed on its behalf by: 
Peter Harrington Richard Howells
Director Director Annual report and financial statements 2013  Pure Wafer plc       23
Consolidated statement of
cash flows
year ended 30 June 2013
2013 2012
Note $000 $000
Cash inflow from operating activities 25 5,905 5,717
Taxation :
Research and development tax credits 74 384
Net cash generated from operating activities 5,979 6,101
Investing activities 
Purchase of property, plant and equipment (1,303) (180)
Proceeds from disposal of property, plant and equipment - 108
Net cash used in investing activities (1,303) (72)
Financing activities 
Interest paid (873) (946)
Repayment of bank loans (3,929) (1,898)
Repayments	of	obligations	under	finance	leases (8,715) (1,442)
Proceeds from new bank loans 5,635 -
Transaction costs of new bank loans (166) -
Repayment of new bank loans (470) -
Proceeds from share issue (net of transaction costs) 7,097 23
Net cash used in financing activities (1,421) (4,263)
Net increase in cash and cash equivalents 3,255 1,766
Cash and cash equivalents at beginning of year 151 (1,615)
Cash and cash equivalents at end of year 16 3,406 151
The	notes	on	pages	24	to	48	are	an	integral	part	of	these	consolidated	financial	statements. 24       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated 
financial statements 
as at 30 June 2013
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	Group’s	operations	and	its	
principal	activities	are set	out	in	the	business	review	and	principal	activities	sections	on	page	10.	
Adoption of new and revised standards
The	financial	statements	have	been	prepared	in	accordance	with	International	Financial	Reporting	Standards	“IFRSs”	as	adopted	
by	the	European	Union	as	they	apply	to	the	financial	statements	of	the	Group	for	the	year	ended	30	June	2013	and	applied	in	
accordance	with	the	Companies	Act	2006.		The	financial	statements	have	been	prepared	in	accordance	with	the	historical	cost	
convention.
There	are	no	IFRSs	or	IFRIC	interpretations	that	are	effective	for	the	first	time	for	the	financial	year	beginning	1	July	2012	that	
would be expected to have a material impact on the Group.
A	number	of	new	standards,	amendments	to	standards	and	new	interpretations	are	effective	for	annual	periods	beginning	after	
1	July	2012,	and	have	not	been	early	adopted	in	preparing	these	financial	statements.	None	of	these	are	expected	to	have	a	
significant	effect	on	the	consolidated	financial	statements.
•	 IFRS	9	-	‘Financial	instruments	–	classification	of	financial	assets	and	financial	liabilities’	effective	for	periods	beginning	on	or	
after 1 January 2015.  The Group is yet to assess IFRS 9’s full impact however initial indications are that there will not be a 
material impact on adoption of the standard.
•	 IFRS	10	-	‘Consolidated	financial	statements’	effective	for	periods	beginning	on	or	after	1	January	2013.		This	standard	changes	
the	basis	of	including	companies	in	the	consolidated	financial	statements	but	is	not	expected	to	impact	the	Group	financial	
statements	significantly.
•	 IFRS	11	-	‘Joint	arrangements’	effective	for	periods	beginning	on	or	after	1	January	2013.		This	standard	significantly	amends	
the accounting treatment of joint arrangements but is not expected to impact the Group.
•	 IFRS	12	-	‘Disclosure	of	interests	in	other	entities’	effective	for	periods	beginning	on	or	after	1	January	2013.		This	alters	the	
disclosure requirements for companies holding investments in subsidiaries, joint arrangements and other entities.  It will 
amend	the	disclosures	of	the	Company	but	is	not	expected	to	have	a	significant	impact.
•	 IFRS	13	-	‘Fair	value	measurements’	effective	for	periods	beginning	on	or	after	1	January	2013.		This	standard	applies	to	all	fair	
value	amounts	and	disclosures	in	the	financial	statements	and	may,	therefore,	have	an	impact	on	the	Group.		The	Company	
has not yet assessed this potential impact.
•	 IAS 28 - ‘Investments in associates and joint ventures’ – This standard includes the requirements for joint ventures, as well as 
associates, to be equity accounted following the issue of IFRS 11. This standard is not expected to impact the Group.
2. Summary of significant accounting policies
The	principal	accounting	policies	of	these	financial	statements	are	set	out	below.	The	policies	have	been	applied	consistently	to	
all years presented.
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	2	and	3.		The	financial	position	of	the	Group,	its	cash	flows,	and	borrowing	facilities	are	
described	in	the	Finance	review	on	page	6	and	7.		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. 
With	the	facilities	that	are	currently	in	place,	the	Group	has	sufficient	headroom	above	its	forecast	cash	requirement,	which	will	
allow it to manage its business risks successfully. 
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 2015.  On this basis the Directors have concluded 
that	it	is	appropriate	to	prepare	the	financial	statements	on	a	going	concern	basis.	
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  Annual report and financial statements 2013  Pure Wafer plc       25
2. Summary of significant accounting policies (continued)
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 paid.  Acquisition costs incurred are expensed to the income statement.  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	Executive	Board	members	that	make	strategic	decisions.			
Foreign 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	 (exchange	
translation	reserve).		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.
The	following	exchange	rates	are	applicable	to	these	financial	statements:
US$ / GBP£ 2013 2012
Year end rate 1.5208 1.5615
Average rate for year 1.5687 1.5844
Financial 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	initially	measured	at	
fair	value	and	subsequently	held	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.
Financial liabilities and issue costs
All borrowings are initially stated at the fair value of the consideration received after deduction of issue costs and subsequently 
held	at	amortised	cost.	Issue	costs	are	charged	as	a	finance	charge	to	the	income	statement	on	a	constant	yield	basis	over	the	
term of the borrowings. 
In	repaying	borrowings	as	part	of	the	refinance	in	the	year,	certain	early	settlement	discounts	and	waivers	have	resulted	in	a	
finance	income	credit,	which	has	been	shown	as	an	exceptional	item	in	the	income	statement. 26       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
2. Summary of significant accounting policies (continued)
Revenue recognition
Revenue, which represents the fair value of the consideration receivable for services supplied, excluding value added tax and 
trade discounts, is recognised on completion of the service. 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.  In the case of Solar products, 
revenue is recognised when installation works at customer sites have been completed. 
Share based payments
The Company operates an equity-settled, share-based compensation plan.  The fair value of the employee services received in 
exchange for the grant of the options is recognised as an expense.  The total amount to be expensed over the vesting period is 
determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (for 
example,	profitability	and	sales	growth	targets).		
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share 
premium when the options are exercised.
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 expensed 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.
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.  Any gain or 
loss arising is included in the income statement.
During the year the estimated useful lives of certain assets have been changed as follows:
2013
Years
2012
Years
Long leasehold buildings 20 - 25 15
Fixtures	and	fittings 5 5
Plant and machinery 4–20 4–10
Computer equipment 3 3
This change has resulted in a $3.0m decrease in the depreciation charge for the year.
Assets under construction are not depreciated until brought into use.
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	staff	costs,	the	deferred	income	is	released	over	the	monitoring	period	of	the	
grant	offer.	For	grants	in	respect	of	the	purchase	of	property,	plant	and	equipment,	the	deferred	income	is	released	over	the	life	
of the related assets.  
Where the estimated useful lives of the related assets are revised, the release of deferred income will also be adjusted. 
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 reviewed for impairment at least annually or more frequently if events or changes in circumstances indicate a potential 
impairment. Goodwill is 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.  Annual report and financial statements 2013  Pure Wafer plc       27
2. Summary of significant accounting policies (continued)
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 measured at cost less accumulated amortisation and impairment losses. These assets 
are	amortised	on	a	straight	line	basis	over	their	useful	lives,	which	range	from	five	to	ten	years.		Where	no	internally-generated	
intangible asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred.
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, by the Directors, at each balance sheet date. 
During the year the useful lives of some intangible assets were adjusted. 
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	and	depreciation	are	reviewed	for	impairment	whenever	events	or	changes	in	circumstances	indicate	that	
the carrying amount may not be recoverable. An impairment loss is recognised in the income statement for the amount by which 
the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of the fair value less costs 
to sell and the value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are 
separately	identifiable	cash	flows	(cash-generating	units).
Inventories
Inventories	are	stated	at	the	lower	of	cost	and	net	realisable	value.		Cost	is	determined	using	the	first-in,	first-out	(FIFO)	method.	 	
The	cost	of	finished	goods	and	work	in	progress	comprises	raw	materials,	direct	labour,	other	direct	costs	and	related	production	
overheads	(based	on	normal	operating	capacity)	but	excludes	borrowing	costs.	Work	in	progress	is	valued	to	reflect	the	historical	
yield from the reclaim process.  Net realisable value is the estimated selling price in the ordinary course of business, less the 
estimated costs of completion and selling expenses.
Leasing
Assets	held	under	finance	leases	are	recognised	as	assets	of	the	Group	at	their	fair	value,	or,	if	lower,	at	the	present	value	of	the	
minimum lease payments, each determined at the inception of the lease.  The corresponding liability to the lessor is included in 
the	balance	sheet	as	a	finance	lease	obligation.		Lease	payments	are	apportioned	between	finance	charges	and	reduction	of	the	
lease obligation so as to achieve a constant rate of interest on the remaining liability.  Finance charges are charged directly against 
income.
Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.
Benefits	received	and	receivable	as	an	incentive	to	enter	into	an	operating	lease	are	also	spread	on	a	straight	line	basis	over	the	
lease term.
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 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.
Deferred	tax	assets	and	liabilities	are	offset	when	there	is	a	legally	enforceable	right	to	offset	current	tax	assets	against	current	tax	
liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on 
either	the	taxable	entity	or	different	taxable	entities	where	there	is	an	intention	to	settle	the	balances	on	a	net	basis.
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. 28       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
2. Summary of significant accounting policies (continued)
Share capital and share premium
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,	which	is	shown	as	share	premium.	
Merger reserve
The Group’s merger reserve arose on the acquisition of Pure Wafer International Limited in 2005, which involved a share for share 
exchange. During the year Pure Wafer International Limited also restructured its reserves, which resulted in its share premium 
account being cancelled and its share capital being reduced. The balance on the merger reserve of $58,826k has been cancelled 
and transferred to retained earnings.
Exceptional items
Items that are material either because of their size or their nature or that are non-recurring are considered as exceptional items 
and are presented within the line items to which they best relate.
Pensions
The Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or 
voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are 
recognised	as	an	employee	benefit	expense	when	they	are	due.	
3. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 2, the Directors are required to make judgements, 
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.  
The estimates and associated assumptions are based on historical experience and other factors that are considered to be 
relevant.	Actual	results	may	differ	from	these	estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised 
in	the	period	in	which	the	estimate	is	revised	if	the	revision	affects	only	that	period,	or	in	the	period	of	the	revision	and	future	
periods	if	the	revision	affects	both	current	and	future	periods.
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	three	separate	CGUs,	
representing	the	UK	and	US	wafer	reclaim	businesses	and	the	UK	solar	business.		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 $23.8m at the balance sheet 
date. 
The	Group	prepares	cash	flow	forecasts	derived	from	the	most	recent	financial	budgets	approved	by	management	for	the	first	
two	years	assuming	growth	based	on	detailed	sales	and	cost	forecasts.		The	cash	flows	are	extrapolated	over	the	life	of	the	assets	
assuming a 2.25% growth rate representing the Directors’ estimate of the average long-term growth rate for the markets in which 
the	Group	operates.		The	rate	used	to	discount	the	forecast	cash	flows	of	each	of	the	CGUs	as defined	above	was	based	on	the	
Group’s pre-tax weighted average cost of capital of 11.75%. 
For all CGUs, the key sensitivity in the impairment assessment is the forecast level of sales. Sales are planned to increase as demand 
continues to grow through the two year forecast period. The impairment assessment shows there is substantial headroom even 
with the sensitivities applied to sales prices and volumes. Therefore no reasonable change in sales would be expected to give rise 
to impairment.
Based on the assumptions made by the Directors, no impairment has been booked.
Deferred tax
The Directors have taken the decision to recognise a deferred tax asset representing available losses carried forward based 
on current budget and forecasts as they are expected to be utilised within the foreseeable future. The value of the remaining 
unrecognised	deferred	tax	asset	relating	to	tax	losses	of	the	UK	business	at	30	June	2013	is	$7.0m	(2012:	$10.8m). Annual report and financial statements 2013  Pure Wafer plc       29
3. Critical accounting judgements and key sources of estimation uncertainty (continued)
Useful life of property, plant and equipment
The Group’s plant and machinery is depreciated over a period of four to twenty 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. The Group’s maintenance and repair policy is also a key factor in determining the useful life of property, 
plant and equipment. 
Following	the	successful	placing	and	open	offer,	which	was	completed	during	the	year	along	with	the	new	HSBC	banking	facilities,	
the Group now has increased funds available to invest in and maintain its property, plant and equipment. Due to this change the 
remaining life of many assets has been extended, which resulted in a $3.0m decrease in the depreciation charge for the year. 
4. Revenue
An analysis of the Group’s revenue is as follows:
2013 2012
$000 $000
Continuing operations 36,984 35,751
5. Business and geographical segments 
Business and geographical segments are reported in a manner consistent with internal reporting provided to the Chief Operating 
Decision-Maker,	which	has	been	identified	as	the	Executive	Directors	of	the	Pure	Wafer	plc	Board.
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.  The Group is also involved in the design, manufacture and installation of photovoltaic systems in the 
UK.
For management purposes, the Group is organised into three 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
Wafers
America
Wafers
UK
Solar Consolidated
Year ended 30 June 2013 $000 $000 $000 $000
Revenue 20,282 15,857 845 36,984
Inter-segment sales are charged at prevailing market prices.
Segment result
Operating	profit	/	(loss)	before	depreciation	and	amortisation	 3,685 3,314 (171) 6,828
Depreciation (1,632) (938) - (2,570)
Amortisation of government grants 164 - - 164
Amortisation of intangibles - - (776) (776)
Segment result 2,217 2,376 (947) 3,646
Unallocated corporate expenses (537)
Operating profit 3,109
Finance income 592
Finance costs (552)
Other gains and losses (182)
Profit before tax 2,967
Tax 123
Profit for the financial year 3,090 30       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
5. Business and geographical segments (continued)
North
UK America Eliminations Consolidated
Year ended 30 June 2013 $000 $000 $000 $000
Balance sheet
Assets
Segment assets 41,841 21,736 (16,310) 47,267
Unallocated corporate assets 836
Consolidated total assets 48,103
Liabilities
Segment liabilities (5,964) (25,426) 16,310 (15,080)
Unallocated corporate liabilities (115)
Consolidated total liabilities (15,195)
Management	information	does	not	separately	analyse	the	UK	assets	and	liabilities	between	the	UK	wafer	reclaim	and	UK	solar	
businesses.		Assets	and	liabilities	of	the	solar	business	are	not	considered	to	be	material	in	the	overall	context	of	the	UK	business.	
North
UK
Wafers
America
Wafers
UK
Solar Consolidated
Year ended 30 June 2012 $000 $000 $000 $000
Revenue 18,093 15,258 2,400 35,751
Inter-segment sales are charged at prevailing market prices.
Segment result
Operating	profit	before	depreciation	and	amortisation 3,372 3,236 202 6,810
Depreciation (4,102) (1,868) - (5,970)
Amortisation of government grants 543 - - 543
Amortisation of intangibles - - (126) (126)
Segment result (187) 1,368 76 1,257
Unallocated corporate expenses (796)
Operating profit 461
Finance costs (1,014)
Other gains and losses (122)
Loss before tax (675)
Tax 384
Loss for the financial year (291) Annual report and financial statements 2013  Pure Wafer plc       31
5. Business and geographical segments (continued)
North
UK America Eliminations Consolidated
Year ended 30 June 2012 $000 $000 $000 $000
Balance sheet
Assets
Segment assets 39,471 19,638 (14,661) 44,448
Unallocated corporate assets 15
Consolidated total assets 44,463
Liabilities
Segment liabilities (10,869) (25,169) 14,661 (21,377)
Unallocated corporate liabilities (405)
Consolidated total liabilities (21,782)
Management	information	does	not	separately	analyse	the	UK	assets	and	liabilities	between	the	UK	wafer	reclaim	and	UK	solar	
businesses.		Assets	and	liabilities	of	the	solar	business	are	not	considered	to	be	material	in	the	overall	context	of	the	UK	business.
Analysis by-product
The revenue by-product variant was as follows:
2013 2012
$000 $000
150mm wafers 835 923
200mm wafers 9,592 9,876
300mm wafers 25,634 22,193
Other wafers 78 359
Solar 845 2,400
36,984 35,751
Analysis by destination 
The revenue by destination was as follows:
2013 2012
$000 $000
Europe 5,788 8,403
United States of America 17,853 16,761
Asia 13,343 10,587
36,984 35,751
Within the wafer reclaim business are revenues from two of the Group’s largest customers of $4,682k (2012: $2,369k) and $4,342k 
(2012: $5,431k). There are no other customers who represent more than 10% of the Group’s total revenue.  32       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
6. Operating profit 
Operating	profit	has	been	arrived	at	after	(crediting)/charging: 2013 2012
$000 $000
Government grants (164) (543)
Depreciation of property, plant and equipment (see note 14) 2,570 5,970
Hire of assets 779 740
Profit	on	disposal	of	property,	plant	and	equipment - (47)
Amortisation of intangible assets (see note 13) 776 126
Staff	costs	(see	note	7) 11,871 12,081
Auditors’ remuneration 
2013 2012
$000 $000
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 9 9
Fees payable to the Company’s auditors for other services to the Group:
– audit of the Company’s subsidiaries pursuant to legislation 51 61
Total audit fees 60 70
Other services:
– tax compliance services 23 15
– other - 11
Total non-audit fees 23 26
7. Information regarding Directors and employees
2013 2012
$000 $000
Directors’ emoluments
Aggregate	emoluments	(including	benefits	in	kind) 981 997
Contributions to money purchase pension schemes 61 46
1,042 1,043
2013
$000
2012
$000
Highest paid Director
Aggregate	emoluments	(including	benefits	in	kind) 260 273
Contributions to money purchase pension schemes 24 8
284 281
2013
No.
2012
No.
Number	of	Directors	in	defined	contribution	pension	scheme 3 3
2013 2012
No. No.
Average number of persons employed (including Directors)
Production 209 207
Sales and administration 29 29
238 236 Annual report and financial statements 2013  Pure Wafer plc       33
7. Information regarding Directors and employees (continued)
2013
$000
2012
$000
Staff costs during the year (including Directors)
Wages and salaries 9,761 9,994
Social security costs 1,655 1,685
Cost of employee share schemes (see note 23) 40 64
Pension costs 415 338
11,871 12,081
8. Exceptional items 
2013 2012
$000 $000
Finance income
– early settlement discounts 592 -
592 -
Items that are material either because of their size or their nature, or that are non-recurring are considered as exceptional items 
and are presented within the line items to which they best relate. During the year the following exceptional items have been 
credited within the income statement:
Funds	from	the	successful	placing	and	open	offer,	which	was	completed	in	November	2012,	were	utilised	to	repay	asset	funders	
Lloyds,	GE	and	CIT	in	full	and	partially	repay	RBS	and	Citizens	Bank.	The	remaining	debt	was	refinanced	with	HSBC	in	January	
2013. In repaying the asset funders and banks early the Company negotiated certain discounts and fee waivers, which resulted in 
a $592k credit to the income statement.
9. Finance costs 
2013 2012
$000 $000
Interest on bank loans 248 337
Interest	on	obligations	under	finance	leases	and	hire	purchase	contracts 304 677
552 1,014
10. Other similar charges
2013 2012
$000 $000
Foreign exchange losses (162) (127)
Derivative	financial	instruments (20) 5
(182) (122)
11. Tax on profit/(loss) on ordinary activities
2013 2012
$000 $000
Current taxation
Current tax on income for the year at 33% (2012: 26%) 6 -
Adjustments in respect of prior years (Research and Development tax credits) (75) (384)
Total current tax (69) (384)
Deferred taxation
Origination	and	reversal	of	timing	differences 1,233 -
Adjustment in respect of previous years (1,292)
Effect	of	changes	in	tax	rates 5
Total credit for the year (123) (384) 34       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
11. Tax on profit/(loss) on ordinary activities (continued)
The	difference	between	the	total	tax	shown	above	and	the	amount	calculated	by	applying	the	weighted	average	tax	rate	
applicable	to the	profit/(loss)	before	tax	of	each	consolidated	entity	is	as	follows:
2013 2012
$000 $000
Profit/(loss)	on	ordinary	activities	before	tax 2,967 (675)
Tax	on	profit/(loss)	on	ordinary	activities	before	tax	at	33%	(2012:	26%) 967 (176)
Factors affecting charge for the year
Expenses not deductible for tax purposes 521 -
Income not taxable for tax purposes (494) -
Capital allowances in excess of depreciation (42) -
Movement	in	short	term	timing	differences 7 -
Utilisation of tax losses carried forward (1,007) -
Non-recognition of deferred tax asset for losses carried forward - 176
Adjustments in respect of prior periods (Research and Development tax credit) (75) (384)
Total tax credit for the year (123) (384)
Credit adjustments to tax in respect of prior years’ relate to Research and Development tax credits.
Finance Act 2012, which passed into law on 3 July 2012, included legislation to reduce the main rate of corporation tax from 24% to 
23%	with	effect	from	1	April	2013.	In	addition	to	the	changes	in	rates	of	corporation	tax	disclosed	above	further	changes	to	the	UK	
Corporation tax rates were substantively enacted as part of the Finance Bill 2013 on 2 July 2013. These include reductions to the 
main rate to reduce the rate to 21% from 1 April 2014 and to 20% from 1 April 2015.  As the changes had not been substantively 
enacted	at	the	balance	sheet	date	their	effects	are	not	included	in	these	financial	statements.	The	overall	effect	of	these	changes,	
if they had applied to the deferred tax balance at the balance sheet date, would be to reduce the deferred tax asset by $136k, the 
deferred tax liability by $136k and the tax credit for the period by $nil.
12. Profit/(loss) per share
The	calculation	of	the	basic	and	diluted	profit/(loss)	per	share	is	based	on	the	following	data:
2013 2012
Earnings/(losses)
Profit/(loss)	for	the	year	($000) 3,090 (291)
Number of shares
Weighted	average	number	of	ordinary	shares	for	the	purpose	of	basic	profit/(loss)	per	share(‘000) 214,500 127,003
Effect	of	dilutive	potential	ordinary	shares:
– share warrants 33,492 57,215
Dilutive weighted average number of shares 247,992 184,218
Profit/(loss) per ordinary share – basic 1.44c (0.2)c
Profit/(loss) per ordinary share – diluted 1.25c (0.2)c Annual report and financial statements 2013  Pure Wafer plc       35
13. Goodwill and other intangible fixed assets
Other
Goodwill intangibles Total
$000 $000 $000
Cost 
At 1 July 2011 6,630 1,659 8,289
Additions - 65 65
At 1 July 2012 6,630 1,724 8,354
At 30 June 2013 6,630 1,724 8,354
Amortisation 
At 1 July 2011 - 466 466
Charge for the year - 126 126
At 1 July 2012 - 592 592
Charge for the year - 776 776
At 30 June 2013 - 1,368 1,368
Carrying amount 
At 30 June 2013 6,630 356 6,986
At 30 June 2012 6,630 1,132 7,762
Goodwill, which relates to the February 2007 acquisition of the Group’s US business, is denominated in US Dollars (USD) and is 
considered to represent a single cash generating unit (CGU).
Goodwill is reviewed annually or when other events or changes in circumstance indicate that the carrying amount may not be 
fully recoverable.
The recoverable amount of this CGU is determined from value in use calculations.  The key assumptions for the value in use 
calculation are those regarding the discount rate, growth rate and expected changes to sales volumes and prices. 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	CGU.		The growth	rates	are	based	on	industry	growth	forecasts.	Changes	in	selling	prices	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	the	Board	for	the	first	
two	years	assuming	growth	based	on	detailed	sales	and	cost	forecasts.	The	cash	flows	are	then	extrapolated	over	the	life	of	the	
assets assuming a 2.25% growth rate which the Directors’ believe represents the long term average growth rate for this CGU and 
the	market	in	which	it	operates.		The	rate	used	to	discount	the	forecast	cash	flows	is	based	on	a	pretax	weighted	average	cost	of	
capital	of	11.75%	which	reflects	the	overall	business	risks	associated	with	this	CGU.
The key sensitivity in the impairment assessment is the forecast level of sales. Sales are planned to increase as demand continues 
to grow through the two year forecast period. The impairment assessment shows there is substantial headroom even with the 
sensitivities applied to sales prices and volumes. Therefore no reasonable change in sales would be expected to give rise to 
impairment.
Other intangibles
Other intangibles represent costs associated with process development.  With the exception of Solar development costs, 
capitalised	costs	are	amortised	over	their	useful	economic	life	which	is	estimated	at	five	years.	
Solar development costs are being amortised on a straight line basis over their estimated useful lives, which are estimated to 
range	from	two	to	five	years.	During	the	year	the	useful	lives	of	these	assets	were	reviewed	and	changed.	This	has	resulted	in	a	
$0.7m increase in the amortisation charge for the year. 36       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
14. Property, plant and equipment 
Long leasehold 
buildings
Fixtures 
and
fittings
Plant and
machinery
Computer
equipment
Motor
vehicles
Assets under 
construction Total
$000 $000 $000 $000 $000 $000 $000
Cost
At 1 July 2011 17,123 722 61,863 710 22 - 80,440
Additions 9 3 71 32 - - 115
Disposals - - (1,196) - - - (1,196)
At 1 July 2012 17,132 725 60,738 742 22 - 79,359
Additions - 1 501 23 - 778 1,303
At 30 June 2013 17,132 726 61,239 765 22 778 80,662
Depreciation
At 1 July 2011 10,188 631 37,951 682 18 - 49,470
Charge for the year 1,144 63 4,740 19 4 - 5,970
Eliminated on disposal - - (1,135) - - - (1,135)
At 30 June 2012 11,332 694 41,556 701 22 - 54,305
Charge for the year 398 16 2,131 25 - - 2,570
At 30 June 2013 11,730 710 43,687 726 22 - 56,875
Carrying amount
At 30 June 2013 5,402 16 17,552 39 - 778 23,787
At 30 June 2012 5,800 31 19,182 41 - - 25,054
Included	within	the	net	book	value	of	plant	and	machinery	there	were	no	assets	held	under	finance	lease	agreements	(2012:	net	
book value of $4,240k). 
15. Inventories
2013 2012
$000 $000
Raw materials 1,606 1,420
Work in progress 571 653
Finished goods 344 194
2,521 2,267
16. Other financial assets
Trade and other receivables
2013 2012
$000 $000
Trade receivables 6,000 5,847
Prepayments 463 509
Other receivables 117 68
Accrued income 786 913
7,366 7,337 Annual report and financial statements 2013  Pure Wafer plc       37
16. Other financial assets (continued)
Trade receivables 
Total trade receivables (net of allowances) held by the Group at 30 June 2013 amounted to $6,000k (2012: $5,847k). 
The average credit period taken on sale of goods is 57 days (2012: 60 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,	$981k	(2012:	$1,154k),	$813k	
(2012: $308k), $700k (2012: $495k) and $635k (2012: $810k) are due from the Group’s four largest customers. 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 receivables with a carrying amount of $1,113k (2012: $1,023k) 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 126 days (2012: 98 days).
Ageing of past due but not impaired receivables
2013 2012
$000 $000
Less than three months 1,008 954
More than three months 105 69
1,113 1,023
Movement in the allowance for doubtful debts
2013 2012
$000 $000
Balance at beginning of the year 76 184
Amounts	written	off	as	uncollectable (76) (38)
Provision	against	specific	customers 34 (70)
Balance at end of the year 34 76
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
2013 2012
$000 $000
Current - 76
60–90 days - -
120+ days 34 -
34 76
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. For banks and institutions, only independent parties with a minimum rating of ‘A’ are accepted. 38       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
17. Other financial liabilities
Trade and other payables
2013 2012
$000 $000
Current liabilities
Trade payables 2,217 2,567
Corporation tax payable 5 -
Other taxation and social security 180 138
Accruals 1,657 2,215
Other creditors 164 558
4,223 5,478
The Directors consider that the carrying amount of trade payables approximates their fair value.
18. Derivative financial instruments 
2013 2012
$000 $000
Current liabilities
Currency rate forward contracts 20 -
Further	details	pertaining	to	financial	instruments	are	provided	in	note	22.
19. Interest-bearing loans and borrowings
2013 2012
$000 $000
Current liabilities
Overdrafts - 1,892
Bank loans 1,409 1,898
Hire	purchase	and	finance	lease	agreements - 2,988
1,409 6,778
Non-current liabilities
Bank loans 3,559 1,702
Hire	purchase	and	finance	lease	agreements - 6,053
3,559 7,755 Annual report and financial statements 2013  Pure Wafer plc       39
19. Interest-bearing loans and borrowings (continued)
Bank	loans,	hire	purchase	and	finance	lease	obligations	are	repayable	as	follows:
2013 2012
$000 $000
Bank loans
Within one year 1,409 1,898
Between one and two years 1,409 1,702
Between	two	and	five	years 2,150 -
4,968 3,600
Hire purchase contracts and finance leases
Within one year - 2,988
Between one and two years - 3,079
Between	two	and	five	years	 - 2,974
- 9,041
The bank loans are secured on the assets and undertakings of the Group.
The	fair	value	of	the	Group’s	loan,	finance	leases	and	hire	purchase	obligations	approximates	to	their	carrying	amount.
On	25	January	2013	the	Group	refinanced	its	debt	with	HSBC.	The	refinancing	is	in	the	form	of	a	$5,635k	term	loan	repayable	in	
equal installments over 4 years, and a $1,620k revolving credit facility which is available to be drawn down at any time during the 
4 years for any capital expenditure requirements. These loans attract interest rates of 3% over Libor for all utilised funds, with a 
one-off	arrangement	fee	of	$126k.	Total	costs	associated	with	the	debt	refinance	amounted	to	$220k.
20. Obligations under finance leases 
Minimum lease payments
2013 2012 
$000 $000
Amounts	payable	under	finance	leases:
– within one year - 3,521
–	in	the	second	to	fifth	years	inclusive - 6,675
Total value of lease obligations - 10,196
Less:	future	finance	charges - (1,155)
Present value of lease obligations - 9,041
Following	the	successful	placing	and	open	offer	completed	in	November	2012	and	the	refinancing	of	the	Group’s	debt	with	HSBC	
in	January	2013,	all	finance	leases	were	repaid	during	the	current	year.	
For	the	year	ended	30	June	2012,	the	average	effective	borrowing	rate	was	6.1%.		Interest	rates	were	fixed	at	the	contract	date.	 	
All leases	were	on	a	fixed	repayment	basis	and	no	arrangements	have	been	entered	into	for	contingent	rental	payments.		 40       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
21. Deferred income
2013 2012
$000 $000
Unamortised grant income:
– included within current liabilities (other payables) 164 558
– included within non-current liabilities 2,001 1,771
Balance at 30 June 2,165 2,329
$164k was released to the income statement in the year (2012: $543k).
Deferred income includes the unreleased balance of Regional Selective Assistance grants received to date.
2013
$000
2012
$000
As at 1 July 2,329 2,872
New	grants	recognised	in	the	financial	year - -
Amount	credited	to	the	income	statement	in	the	financial	year (164) (543)
As at 30 June 2,165 2,329
During the year the Directors reviewed the remaining useful lives of property, plant and equipment, which resulted in the life 
of many assets being extended. The amortisation of the grants relating to these assets also had to be amended in line with the 
revision of useful lives. 
22. Financial risk management
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to 
provide	returns	for	shareholders	and	benefits	for	other	stakeholders	and	to	maintain	an	optimal	capital	structure	to	minimise	
the cost of capital.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 19, 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.	
The Group monitors capital on the basis of the gearing ratio.  This ratio is calculated as net debt divided by equity.  Net debt 
comprises the borrowings disclosed in note 19 less cash and cash deposits.  Equity comprises issued capital, reserves and retained 
earnings	as	disclosed	in	the	statement	of changes	in	equity.
The gearing ratios at the year end is as follows: 2013 2012
$000 $000
Debt (4,968) (12,641)
Cash and cash equivalents including overdrafts 3,406 151
Net debt (1,562) (12,490)
Equity 32,908 22,681
Net debt to equity ratio 1:21.07 1:1.82 Annual report and financial statements 2013  Pure Wafer plc       41
22. Financial risk management (continued)
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.
2013 2012
$000 $000
Financial assets
Loans and receivables: 
– cash and cash equivalents 3,406 2,043
– trade receivables (note 16) 6,000 5,847
– prepayments (note 16) 463 509
– other receivables (note 16) 117 68
– accrued income (note 16) 786 913
10,772 9,380
Financial liabilities 
Fair	value	through	profit	or	loss	(FVTPL)	derivative	instruments: 20 -
Amortised cost:
– overdrafts - 1,892
– bank loans 4,968 3,600
–	finance	leases - 9,041
– trade payables (note 17) 2,217 2,567
– accruals 1,657 2,215
– deferred income 2,165 2,329
11,027 21,644
Financial risk management objectives
The	Group’s	financial	instruments	comprise	bank	loans,	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.		
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.  42       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
22. Financial risk management (continued)
Foreign currency risk management 
The	Group	undertakes	certain	transactions	denominated	in	foreign	currencies.		Hence,	exposures	to	exchange	rate	fluctuations	
arise.  Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts. 
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting 
date are as follows:
2013 2012
$000 $000
Monetary assets
Euro 478 440
Sterling 999 131
Yen 135 86
Monetary liabilities
Euro 172 115
Sterling 1,690 3,659
Yen 6 -
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	market	risk	management	
section of this note. 
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.	 Annual report and financial statements 2013  Pure Wafer plc       43
22. Financial risk management (continued)
Liquidity and interest risk tables
The	following	tables	detail	the	Group’s	remaining	contractual	maturity	for	its	non-derivative	financial	liabilities.	The	tables	have	
been	drawn	up	based	on	the	undiscounted	cash	flows	of	financial	liabilities	based	on	the	earliest	date	on	which	the	Group	can	
be required to pay.
Weighted
average 
effective
interest rate
Less than
6 months
$000
6 months
–1 year
$000
1–2
Years
$000
2–5
years
$000
Total
$000
2013
Variable interest rate instruments (bank loans) 3.2% 704 705 1,409 2,150 4,968
2012
Variable interest rate instruments (overdraft) 4.5% 1,892 - - - 1,892
Variable interest rate instruments (bank loans) 4.9% 949 949 2,274 - 4,172
Fixed	interest	rate	instruments	(finance	leases) 5.2% 812 813 1,625 1,796 5,046
Variable	interest	rate	instruments	(finance	leases) 7.2% 674 689 1,454 1,714 4,531
5.6% 4,327 2,451 5,353 3,510 15,641
Note 19 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.	
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. Share capital 
2013 2012
$000 $000
Authorised
350,000,000 (2012: 200,000,000) ordinary shares of 2 pence each 10,646 6,246
2013 2012
$000 $000
Called up, issued and fully paid
268,107,925 (2012: 127,002,693) ordinary shares of 2 pence each 8,819 4,340
During the year the Company issued a total of 141,105,232 Ordinary Shares of 2 pence each for a cash consideration of $7,536k.
On	15	November	the	Company	issued	128,397,125	Ordinary	Shares	of	2	pence	as	a	result	of	a	successful	Placing	and	Open	Offer	
to Qualifying Shareholders at a price of 3.5 pence per share. 44       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
23. Share capital (continued)
On 20 November the Company issued 12,508,107 Ordinary Shares of 2 pence as a result of Stephen Boyd, Non-Executive 
Chairman exercising Placee Warrants at a price of 2 pence per ordinary share.
The Company incurred legal and professional fees totaling $439k in relation to the shares issued on 15 and 20 November 2012.
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 2	pence	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 (exercised during current year) 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 3 pence. 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 
During the year the RBS Warrant was amended as part of the Fundraising and complete repayment of RBS and Citizens. The RBS 
Warrant gives RBS or its assignees the right to subscribe in cash at 2 pence per share for 29,419,346 Ordinary Shares. The RBS 
Warrant may be exercised at any time up until 18 December 2034.  Annual report and financial statements 2013  Pure Wafer plc       45
23. Share capital (continued)
Share based payments
Pure Wafer plc has an Enterprise Management Incentive Share Option Scheme (EMI Scheme).
During the year, 2,850,000 options to subscribe for Ordinary Shares have been granted to Directors and to selected employees 
under the EMI Scheme.
The exercise price of granted options is set out below:
Granted 2013
Options at
exercise price
of £0.04
Granted 2012
Options at
exercise price
of £0.02 
Number of options 2,850,000 5,175,000
Exercisable from 1 November 2013 1 November 2012
Options are conditional on the employee remaining within the employment of the Group on the exercise date (the vesting period).  
The options issued under the EMI scheme are exercisable as follows:
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
Average exercise
Per share
Options
Number
At 1 July 2012 10,025,000
Granted – 26 July 2012 2,850,000
Exercised £0.02 (200,000)
Lapsed (150,000)
At 30 June 2013 12,525,000
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Expiry date
Exercise price
Per share
Options
Number
2021 – expiry date 21 April 2 pence 4,650,000
2022 – expiry dated 3 January
2022 – expiry dated 26 July 
2 pence
4 pence
5,075,000
2,800,000
The	weighted	average	fair	value	of	the	options	with	an	exercise	price	of	2.0	pence	granted	on	21 April	2011,	determined	using	
the	Black-Scholes	valuation	model,	was	3.0	pence	per	option.		The	significant	inputs	into	the	model	were	weighted	average	share	
price of 3.9 pence at the grant date, exercise price of 2.0 pence, volatility of 50%, risk free rate of 3.60 % and a dividend stream of 
nil.  
The weighted average fair value of the options with an exercise price of 2.0 pence granted on 3 January 2012, determined using 
the	Black-Scholes	valuation	model,	was	2.0	pence	per	option.	The	significant	inputs	into	the	model	were	weighted	average	share	
price of 2.0 pence at the grant date, exercise price of 2.0 pence, volatility of 50%, risk free rate of 3.60 % and a dividend stream of 
nil.  
The weighted average fair value of the options with an exercise price of 4.0 pence granted on 26 July 2012, determined using the 
Black-Scholes	valuation	model,	was	5.2	pence	per	option.	The	significant	inputs	into	the	model	were	weighted	average	share	price	
of 4.5 pence at the grant date, exercise price of 4.0 pence, volatility of 50%, risk free rate of 0.01 % and a dividend stream of nil.  
The charge to the income statement arising in respect of share options amounted to $40k (2012: $64k). 46       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
24. Operating lease arrangements 
2013 2012
$000 $000
Minimum lease payments under operating leases recognised as an expense in the year 779 737
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:
2013 2012
$000 $000
Land and buildings
– within one year 11 95
– between one and two years - -
–	between	two	and	five	years 2,842 -
–	more	than	five	years 4,787 7,684
7,640 7,779
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.
2013 2012
$000 $000
Equipment 
– within one year 4 2
– between one and two years 6 -
–	between	two	and	five	years - 10
–	more	than	five	years 50
60 12
2013 2012
$000 $000
Other 
– within one year 7 8
– between one and two years 41 14
–	between	two	and	five	years - 67
48 89 Annual report and financial statements 2013  Pure Wafer plc       47
25. Notes to the consolidated cash flow statement
2013 2012
$000 $000
Profit/(loss) for the period 3,090 (291)
Adjustment for:
– taxation credit (123) (384)
–	finance	income (592) -
–	finance	costs 552 1,014
– share options charge 40 64
– other non-cash gains and losses 156 (5)
–	profit	on	sale	of	fixed	assets - (47)
– depreciation and amortisation charges (net) 3,182 5,553
Operating	cash	flows	before	movement	in	working	capital 6,305 5,904
Increase in receivables (29) (90)
Decrease in payables (117) (24)
Increase in inventory (254) (73)
Net cash inflow from operating activities 5,905 5,717
26. Related party transactions
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, excluding share option charge, who are key management personnel of the Group is set out 
in note 7.
27. Changes to estimates
2013 2012
$000 $000
Depreciation and amortisation (net) 
–	review	of	fixed	asset	useful	lives 2,344 -
2,344 -
During	the	year	the	Directors	reviewed	the	remaining	useful	lives	of	all	fixed	assets,	which	resulted	in	a	$2,344k	reduction	in	
depreciation and amortisation. 
Following	the	successful	placing	and	open	offer,	which	was	completed	during	the	year	along	with	the	new	HSBC	banking	facilities,	
the Company now has increased funds available to invest in and maintain its property, plant and equipment. The Company’s 
maintenance and repair policy is one of the key factors that determine the estimated life of plant and equipment and as a result of 
this change the remaining life of many assets has been extended. The amortisation of the grants relating to some of these assets 
also had to be amended in line with the revision of useful lives. 48       Pure Wafer plc   Annual report and financial statements 2013
Notes to the consolidated financial 
statements as at 30 June 2013 (continued)
28. Share premium account
The High Court in London passed a Court Order on 27th June 2013 granting the cancellation of the Company’s share premium 
account and the Court Order was duly registered by the Registrar of Companies on 28th June 2013. As a result the balance on the 
share premium account of $27,475k was cancelled and transferred to distributable reserves.
29. Merger reserve
The Group’s merger reserve arose on the acquisition of Pure Wafer International Limited in 2005, which involved a share for share 
exchange. During the year Pure Wafer International Limited also restructured its reserves, which resulted in its share premium 
account being cancelled and its share capital being reduced. The balance on the merger reserve of $58,826k has been cancelled 
and transferred to retained earnings.
30. Deferred taxation
The analysis of deferred tax assets and deferred tax liabilities is as follows:
2013 2012
$000 $000
Deferred tax assets:
– Deferred tax assets to be recovered after 12 months (2,951) -
– Deferred tax assets to be recovered within 12 months (1,086) -
(4,037) -
2013 2012
$000 $000
Deferred tax liabilities:
– Deferred tax liabilities to be recovered after 12 months 3,983 -
– Deferred tax liabilities to be recovered within 12 months - -
3,983 -
The Board has taken the decision to recognise a deferred tax asset representing available losses carried forward based on current 
budget and forecasts as they are expected to be utilised within the foreseeable future.
The	value	of	the	remaining	unrecognised	deferred	tax	asset	relating	to	tax	losses	of	the	UK	business	at	30	June	2013	is	$7.0m	
(2012: $10.8m). Annual report and financial statements 2013  Pure Wafer plc       49
Independent auditors’ report t o 
the members of Pure Wafer plc 
We	have	audited	the	Parent	Company	financial	statements	of	Pure	Wafer	plc	for	the	year	ended	30	June	2013	which	comprise	the	
Balance	Sheet	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 Statement of Directors’ Responsibilities, 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	and	
express	an	opinion	on	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.	In	addition,	we	read	all	the	financial	and	non-financial	information	in	the	
Annual	Report	and	Financial	Statements	to	identify	material	inconsistencies	with	the	audited	financial	statements.	If	we	become	
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
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	2013;
•	 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 matter
We	have	reported	separately	on	the	Group	financial	statements	of	Pure	Wafer	plc	for	the	year	ended	30	June	2013.	
Jason Clarke (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Swansea,  50       Pure Wafer plc   Annual report and financial statements 2013
Company balance sheet
as at 30 June 2013
Registered number 05289130
2013 2012
Note $000 $000
Fixed assets
Investments 3 17,922 17,922
Current assets
Debtors 4 8,815 2,476
Cash at bank and in hand 356 2
Total current assets 9,171 2,478
Creditors: amounts falling due within one year 5 (95) (407)
Net current assets 9,076 2,071
Total assets less current liabilities 26,998 19,993
Net assets 26,998 19,993
Capital and reserves
Called up share capital 7 8,819 4,340
Share premium account 8 - 24,857
Profit	and	loss	account 8 19,334 (8,049)
Exchange translation reserve 8 (1,155) (1,155)
Total shareholders’ funds 8 26,998 19,993
The	notes	on	pages	51	to	55	are	an	integral	part	of	these	Company	financial	statements.
The	financial	statements	on	pages	51	to	55	were	authorised	for	issue	by	the	Board	of	Directors	on	1	October	2013
and were signed on its behalf by: 
Peter Harrington Richard Howells
Director Director Annual report and financial statements 2013  Pure Wafer plc       51
Notes to the Company 
financial statements 
as at 30 June 2013
1. Accounting policies – company
The	financial	statements	have	been	prepared	under	the	going	concern	basis	and	in	accordance	with	the	Companies	Act	2006.	
The	particular	accounting	policies	adopted,	which	have	been	applied	consistently	throughout	the	current	and	the	prior	financial	
year, are described below.
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.
Share based payments
The Company operates an equity-settled, share-based compensation plan.  The fair value of the employee services received in 
exchange for the grant of the options is recognised as an expense.  The total amount to be expensed over the vesting period is 
determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (for 
example,	profitability	and	sales	growth	targets).		
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share 
premium when the options are exercised.
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.
Foreign currency
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.
Pensions
The Company pays contributions to privately administered pension insurance plans on a mandatory, contractual or voluntary 
basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as 
an	employee	benefit	expense	when	they	are	due.	
2. 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	2013	of	$132k	(2012:	loss	of	$833k).
Auditors’ remuneration for audit services for the Company was $9k (2012: $9k). Auditors’ remuneration for non-audit services for 
the Company was $nil (2012: $nil).  52       Pure Wafer plc   Annual report and financial statements 2013
Notes to the Company financial statements 
as at 30 June 2013 (continued)
3. Investments
Investment in
subsidiaries
$000
Cost and net book value
At 1 July 2012 and 30 June 2013 17,922
The Company’s investments in Group companies relate to:
Subsidiaries Holding 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
The Directors believe the carrying value of the investments is supported by their underlying net assets.
4. Debtors
2013 2012
$000 $000
Amounts owed by Group undertakings 8,614 2,461
Amortised	finance	costs 198 -
Other debtors and prepayments 3 15
8,815 2,476
5. Creditors: amounts falling due within one year 
2013 2012
$000 $000
Bank loans and overdraft (note 7) - 372
Other creditors and accruals 95 35
95 407
At the year end the Company had an open forward currency contract with a negative value of $20k (2012: $nil).
6. Borrowings 
2013 2012
$000 $000
Overdraft
Within one year - 372
- 372 Annual report and financial statements 2013  Pure Wafer plc       53
7. Share capital
2013 2012
$000 $000
Authorised
350,000,000 (2012: 200,000,000) ordinary shares of 2 pence each 10,646 6,246
2013 2012
$000 $000
Called up, allotted and fully paid
268,107,925 (2012: 127,002,693) ordinary shares of 2p each 8,819 4,340
During the year the Company issued a total of 141,105,232 Ordinary Shares of 2 pence each for a cash consideration of $7,536k.
On	15	November	the	Company	issued	128,397,125	Ordinary	Shares	of	2	pence	as	a	result	of	a	successful	Placing	and	Open	Offer	
to Qualifying Shareholders at a price of 3.5 pence per share.
On 20 November the Company issued 12,508,107 Ordinary Shares of 2 pence as a result of Stephen Boyd, Non-Executive 
Chairman exercising Placee Warrants at a price of 2 pence per ordinary share.
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 2	pence	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 (exercised during current year) 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 3 pence. 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 
During the year the RBS Warrant was amended as part of the Fundraising and complete repayment of RBS and Citizens. The RBS 
Warrant gives RBS or its assignees the right to subscribe in cash at 2 pence per share for 29,419,346 Ordinary Shares. The RBS 
Warrant may be exercised at any time up until 18 December 2034.  54       Pure Wafer plc   Annual report and financial statements 2013
Notes to the Company financial statements 
as at 30 June 2013 (continued)
7. Share capital (continued)
Share based payments
Pure Wafer plc has an Enterprise Management Incentive Share Option Scheme (EMI Scheme).
During the year, 2,850,000 options to subscribe for Ordinary Shares have been granted to Directors and to selected employees 
under the EMI Scheme.
The exercise price of granted options is set out below:
Granted 2013
Options at
exercise price
of £0.04
Granted 2012
Options at
exercise price
of £0.02 
Number of options 2,850,000 5,175,000
Exercisable from 1 November 2013 1 November 2012
Options are conditional on the employee remaining within the employment of the Group on the exercise date (the vesting period).
The options issued under the EMI scheme are exercisable as follows:
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
Average exercise
Per share
Options
Number
At 1 July 2012 10,025,000
Granted – 26 July 2012 2,850,000
Exercised £0.02 (200,000)
Lapsed (150,000)
At 30 June 2013 12,525,000
Share options outstanding at the end of the year have the following expiry date and exercise prices:
Expiry date
Exercise price
Per share
Options
Number
2021 – expiry date 21 April 2 pence 4,650,000
2022 – expiry dated 3 January
2022 – expiry dated 26 July 
2 pence
4 pence
5,075,000
2,800,000
 
The	weighted	average	fair	value	of	the	options	with	an	exercise	price	of	2.0	pence	granted	on	21 April	2011,	determined	using	
the	Black-Scholes	valuation	model,	was	3.0	pence	per	option.		The	significant	inputs	into	the	model	were	weighted	average	share	
price of 3.9 pence at the grant date, exercise price of 2.0 pence, volatility of 50%, risk free rate of 3.60 % and a dividend stream of 
nil.  
The weighted average fair value of the options with an exercise price of 2.0 pence granted on 3 January 2012, determined using 
the	Black-Scholes	valuation	model,	was	2.0	pence	per	option.	The	significant	inputs	into	the	model	were	weighted	average	share	
price of 2.0 pence at the grant date, exercise price of 2.0 pence, volatility of 50%, risk free rate of 3.60 % and a dividend stream of 
nil.  
The weighted average fair value of the options with an exercise price of 4.0 pence granted on 26 July 2012, determined using the 
Black-Scholes	valuation	model,	was	5.2	pence	per	option.	The	significant	inputs	into	the	model	were	weighted	average	share	price	
of 4.5 pence at the grant date, exercise price of 4.0 pence, volatility of 50%, risk free rate of 0.01 % and a dividend stream of nil.  
The charge to the income statement arising in respect of share options amounted to $40k (2012: $64k). Annual report and financial statements 2013  Pure Wafer plc       55
8. 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 2013 2012
$000 $000 $000 $000 $000 $000
At the beginning of the year 4,340 24,857 (8,049) (1,155) 19,993 20,739
Loss	for	the	financial	year - - (132) - (132) (833)
Share options - - 40 - 40 64
Issue of share capital 4,479 2,618 - - 7,097 23
Capital reduction - (27,475) 27,475 - - -
At the end of the year 8,819 - 19,334 (1,155) 26,998 19,993
The High Court in London passed a Court Order on 27th June 2013 granting the cancellation of the Company’s share premium 
account and the Court Order was duly registered by the Registrar of Companies on 28th June 2013. As a result the balance on the 
share premium account of $27,475k was cancelled and transferred to distributable reserves.
9. Related party transactions
Under Financial Reporting Standard 8, the Company is not required to disclose transactions with entities, 100% of whose voting 
rights are controlled within the Group. 56       Pure Wafer plc   Annual report and financial statements 2013
Shareholder information
Company registered number: 05289130 (In England and Wales)
Company Secretary: D R Howells
Registered office: Pure Wafer plc 
 Central Business Park 
 Swansea Vale 
 Swansea 
 SA7 0AB
Company website:  www.purewafer.com
Enquiries: info@purewafer.com
If you have an enquiry about the Company (other than queries which are dealt with by Neville Registrars Limited as the registrar), 
you	should	contact	the	Company	Secretary	by	letter	to	the	Company’s	registered	office	or	by	e-mail	to	info@purewafer.com.
Daily share price listings: The Financial Times - AIM
Share register maintained by: Neville Registrars Limited 
 Neville House 
 18 Laurel Lane 
 Halesowen 
 West Midlands 
 B63 3DA
If you have any questions about your personal holding of the Company’s shares, please contact Neville Registrars Limited
Nominated advisor/broker: WH Ireland Limited 
 4 Coleston Avenue 
 Bristol 
 BS1 4ST
Financial calendar
Annual General Meeting 27 November 2013
ººExpected announcement of results for the year ending 30 June 2014:
•	 Half year announcement March 2014
•	 Full year preliminary announcement October 2014  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