CORPORATE STATEMENT
Pure Wafer plc annual report and accounts 2006
Pure Wafer is an industry leading provider of silicon 
wafer reclaim services. Pure Wafer cleans and polishes 
silicon wafers sent for reclaim by many of the world’s 
largest semiconductor manufacturers. Pure Wafer 
operates a state of the art foundry which has the 
capability to meet the stringent standards of purity 
and flatness required by its customers.
Pure Wafer is listed on the Alternative Investment 
Market (AIM) of the London Stock Exchange. 
Headquartered in the UK, it operates on a global 
basis through an international sales force throughout 
Europe, North America and South East Asia.
 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
 13  CORPORATE GOVERNANCE REPORT
 15  REPORT OF THE REMUNERATION COMMITTEE
 18  STATEMENT OF DIRECTORS’ RESPONSIBILITIES
 19  INDEPENDENT AUDITORS’ REPORT
 20  CONSOLIDATED PROFIT AND LOSS ACCOUNT
 21  BALANCE SHEETS
 22  CONSOLIDATED CASH FLOW STATEMENT
 23  NOTES TO THE FINANCIAL STATEMENTS
 34  NOTICE OF ANNUAL GENERAL MEETING
Pure Wafer plc 
Central Business Park 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax:  +44 (0)1792 795 420 
Web: www.purewafer.com
Pure Wafer plc annual report and accounts 2006
_cover.indd   1 19/10/2006   13:50:47 CORPORATE STATEMENT
Pure Wafer plc annual report and accounts 2006
Pure Wafer is an industry leading provider of silicon 
wafer reclaim services. Pure Wafer cleans and polishes 
silicon wafers sent for reclaim by many of the world’s 
largest semiconductor manufacturers. Pure Wafer 
operates a state of the art foundry which has the 
capability to meet the stringent standards of purity 
and flatness required by its customers.
Pure Wafer is listed on the Alternative Investment 
Market (AIM) of the London Stock Exchange. 
Headquartered in the UK, it operates on a global 
basis through an international sales force throughout 
Europe, North America and South East Asia.
 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
 13  CORPORATE GOVERNANCE REPORT
 15  REPORT OF THE REMUNERATION COMMITTEE
 18  STATEMENT OF DIRECTORS’ RESPONSIBILITIES
 19  INDEPENDENT AUDITORS’ REPORT
 20  CONSOLIDATED PROFIT AND LOSS ACCOUNT
 21  BALANCE SHEETS
 22  CONSOLIDATED CASH FLOW STATEMENT
 23  NOTES TO THE FINANCIAL STATEMENTS
 34  NOTICE OF ANNUAL GENERAL MEETING
_cover.indd   1 19/10/2006   13:50:47 AT A GLANCE
Pure Wafer is a worldwide leader in the provision of 300mm wafer reclaim services. These services 
enable semiconductor manufacturers to gain efﬁciencies through the increased re-use of silicon test 
wafers within their production processes. 
The company has an established track record, one of the world’s most advanced wafer reclaim 
facilities and a blue chip customer base that includes some of the world’s largest semiconductor 
manufacturers and independent foundries. As a business partner, Pure Wafer works with its  
customers to design and develop a service that delivers reclaimed wafers to the exact 
speciﬁcations and high standards required by today’s leading semiconductor manufacturers.
our history
Pure Wafer was established in 2000 by a 
management team widely experienced in 
the semiconductor industry with the backing 
of strategic investment from Venture Capital 
and industry partners being IBM, HBOS 
and Apax. Grants were received from 
the Welsh Development Agency and 
Welsh Assembly Government. 
The company has since become an industry 
leading provider of wafer reclaim services.
our facilities
The company operates from a state of the art, 
purpose built facility situated in a new technology 
park in Swansea, Wales and is the 
most advanced plant of its kind in Europe. 
The size of the facility is in excess of 
4,500m
2
 and includes over 2,000m
2
 
of production cleanrooms. 
We have installed the latest generation of 
tools available on the market, with the most 
advanced equipment as used by IC and 
prime silicon producers. With the highest 
technical speciﬁcations, we are positioned 
to offer the most effective wafer reclaim 
service to our customers providing best in 
class product characteristics with minimal 
silicon removal. This enables our customers 
to maximise the number of times a test wafer 
can be reclaimed. 
T H E D E S I G N P O R T F O L I O
a member of the flathill communications group plc 
www.flathillplc.com
designed & produced by
_cover.indd   2 19/10/2006   13:51:33 wafer reclaim
During the many stages of the manufacturing 
process of semiconductors, large quantities 
of test wafers are used to check the accurate 
calibration of equipment. These test wafers 
are a key consumable in the manufacture of 
semiconductors and the ability to reclaim them 
through Pure Wafer’s advanced process 
provides manufacturers with the opportunity 
to reduce costs.
The semiconductor industry is currently 
seeing a rapid transition to 300mm wafers. 
In order for manufacturers to continue to 
increase functionality at a reduced cost, 
the industry has sought to increase the size 
of wafers on which semiconductors are 
manufactured. 300mm wafer processing 
now represents the fastest growing area 
of the semiconductor industry.
However, wafer reclaim is a highly specialised 
and technically sophisticated process. Only 
a few companies worldwide are able to 
meet the exacting standards required 
by semiconductor manufacturers for 
the reclaim of 300mm wafers, of which 
Pure Wafer is one.
our customers
Pure Wafer’s customers include producers 
of DRAM, logic device manufacturers, 
foundry chip producers and equipment 
manufacturers and leading research and 
development operations. We are proud to 
be supplying and working closely with many 
of the largest and technically advanced 
semiconductor companies in the world.
our process
At Pure Wafer, our process for reclaiming 
test wafers involves the following key stages: 
●  Inspection of the wafers for defects and 
classiﬁcation by type of contaminant to 
be removed 
●  Submersion in a precise mix of chemicals 
appropriate to remove the contaminant 
●  Assessment of ﬂatness and correction 
of defects using Pure Wafer’s advanced 
polishing processes 
● Cleaning and drying 
●  Final quality inspection and packaging 
for return to the customer
The company operates from a state of the art, 
purpose built facility situated in a new technology 
park in Swansea, Wales and is the 
most advanced plant of its kind in Europe. 
The size of the facility is in excess of 
4,500m
2
 and includes over 2,000m
2
 
of production cleanrooms. 
We have installed the latest generation of 
tools available on the market, with the most 
advanced equipment as used by IC and 
prime silicon producers. With the highest 
technical speciﬁcations, we are positioned 
to offer the most effective wafer reclaim 
service to our customers providing best in 
class product characteristics with minimal 
silicon removal. This enables our customers 
to maximise the number of times a test wafer 
can be reclaimed. 
T H E D E S I G N P O R T F O L I O
a member of the flathill communications group plc 
www.flathillplc.com
designed & produced by
_cover.indd   2 19/10/2006   13:51:33 01 Pure Wafer plc annual report and accounts 2006
HIGHLIGHTS
FINANCIAL
Turnover £14.52m (2005: £9.17m) up 58%
EBITDA £3.93m (2005: £1.38m) up 185%
Operating proﬁt £1.99m (2005: loss of £0.23m)
Pre-tax proﬁt £2.04m (2005: loss of £0.14m)
H2 proﬁt before tax £1.34m, 91% increase on H1
Adjusted diluted EPS of 7.63p (2005: loss per share of 0.58p) 
Diluted EPS of 14.73p (2005: loss per share of 0.58p)
Net cash inﬂow from operating activities of £2.68m 
(2005: outﬂow of £0.05m)
OPERATIONAL
Established as the leader in 300mm wafer reclaim outside of Japan
Qualiﬁcation achieved with further major semiconductor manufacturers
Increased 300mm capacity by 100% during the period through 
capital expenditure of £5.40m (2005: £1.97m)
_0_PUR_arf06.indd   1 19/10/2006   13:54:26 02 Pure Wafer plc annual report and accounts 2006
CHAIRMAN’S STATEMENT
❝
INTRODUCTION
It has been a very satisfactory year for the company as we report our 
second set of full year results since listing on AIM, and I am pleased 
that the management team has met expectations and delivered 
Pure Wafer’s ﬁrst full year proﬁt. 300mm wafer throughput has 
rapidly increased, generating a large increase in turnover leading 
to sustainable and increasing proﬁtability.
The success of the business was recently recognised when as a result 
of the company’s continuing growth and achievements we won the 
accolade of being named the Western Mail’s “Welsh Company 
of the Year 2006”.
FINANCIAL RESULTS
● Turnover £14.52m (2005: £9.17m) up 58%
● EBITDA £3.93m (2005: £1.38m) up 185% (see note 3)
● Operating proﬁt £1.99m (2005: loss of £0.23m)
● Pre-tax proﬁt £2.04m (2005: loss of £0.14m)
● H2 PBT £1.34m, 91% increase on H1
● Adjusted diluted EPS of 7.63p (2005: loss per share of 0.58p) 
● Diluted EPS of 14.73p (2005: loss per share of 0.58p)
●  Net cash inﬂow from operating activities of £2.68m 
(2005: outﬂow of £0.05m)
❞
We are now a leading market 
player in a consolidating 
global industry ensuring 
that we are well placed to 
capitalise on the growth 
opportunities as the market 
continues to develop.
Giles Clarke 
Chairman
_0_PUR_arf06.indd   2 19/10/2006   13:54:35 03 Pure Wafer plc annual report and accounts 2006
HIGHLIGHTS
The company has reported its ﬁrst full year proﬁt.
The management team has been further strengthened.
The company is well placed to capitalise on growth opportunities.
MANAGEMENT
We have continued to strengthen our management team during this 
ﬁnancial year with the appointment to the board of James Dearing 
(group ﬁnance director), and the management appointments of 
Professor Tony Peaker (chief scientiﬁc ofﬁcer) and Trevor Hoskins 
(operations director). These three appointments bring a wealth 
of experience and skills into the business to support our growth 
into the high volume manufacturing phase and solidify our new 
product introduction.
We have initiated a SAYE scheme during the period to incentivise 
our staff, aligning their interests with those of the shareholders. 
I would like to thank the entire team, led by Keith Baker for their 
hard work and congratulate them on their achievements.
OUTLOOK
We have built ourselves a valuable technology platform in the 
300mm wafer reclaim market which continues to grow quickly as 
our blue chip customers open new semiconductor fabs and convert 
existing 200mm production facilities to 300mm capable plants.
As well as the strong growth experienced in the expanding 
300mm marketplace, we are also experiencing good levels 
of demand from 200mm customers adopting our advanced 
high performance products. Management is therefore conﬁdent 
of another year of signiﬁcant growth.
We are now a leading market player in a consolidating global 
industry ensuring that we are well placed to capitalise on the growth 
opportunities as the market continues to develop.
GILES CLARKE
CHAIRMAN
18 SEPTEMBER 2006
_0_PUR_arf06.indd   3 19/10/2006   13:54:54 04 Pure Wafer plc annual report and accounts 2006
INTRODUCTION 
High quality wafer reclaim provides an opportunity for our 
semiconductor manufacturer customers to achieve signiﬁcant 
cost savings. As expected, the semiconductor industry’s transition 
to the larger 300mm wafers continues at pace, as 300mm is 
now providing the cost standard for the majority of high volume 
semiconductor devices including semiconductor memories and 
microprocessor devices.
During the period we have qualiﬁed with two more of the world’s 
leading semiconductor manufacturers and progressed a number 
of our existing relationships. We have doubled our 300mm wafer 
output whilst 200mm wafer output has remained stable. Total wafer 
output, revenue, and PBT all continue to increase month on month.
Signiﬁcant progress has been made this year on new technology 
development supported by the introduction to manufacturing 
of the most advanced particle metrology available. Our new 
50 nanometre product offering is now in production and is expected 
to deliver a signiﬁcant contribution to our growth next year.
MARKET DYNAMICS 
The fast take up of the semiconductor industry into 300mm 
manufacturing is conﬁrmed by the frequent announcement of new 
300mm fabs. There are currently 36 300mm fabs in the world, and 
the construction of another 29 fabs has already been announced, 
most expected to be operational by the end of 2008. With the majority 
of these new facilities owned by our existing customer base, we are 
extremely well positioned to expand our business in line with the 
growth in 300mm manufacturing sites.
As several of the leading semiconductor manufacturers embrace 
new technologies to improve the speed performance of their 
products, the demand for our new 50 nanometre products is 
expected to grow over the next year.
Our 300mm revenue, the main focus of our business, grew by 79% 
over the year. As capacity tightens on 200mm products we are 
experiencing a stabilisation of prices and increased demand in this 
market segment.
CHIEF EXECUTIVE’S REVIEW
Keith Baker 
Chief Executive
_0_PUR_arf06.indd   4 19/10/2006   13:55:12 05 Pure Wafer plc annual report and accounts 2006
CUSTOMERS
Important progress has been made with new customers during 
the period. We are now qualiﬁed with a signiﬁcant number of the 
world’s major semiconductor manufacturers outside of Japan, 
and our ﬁrst work has been carried out in the Chinese marketplace.
Qualiﬁcation of new customers occurred towards the end of the 
period. Volumes are ramping quickly with these new customers 
and we are continuing to make progress developing our more 
established customer relationships through our global sales network. 
NEW TECHNOLOGY
Whilst concentrating on our core business of wafer reclaim, through 
the appointment of Professor A R Peaker as chief scientiﬁc ofﬁcer 
we are exploring new products and markets for our advanced 
polishing and cleaning process which represent key enabling 
technologies for new electronic products.
The company has made some key advances in our new 
50 nanometre product development. This new process utilises 
more advanced technology than wafer reclaim, and does not 
relate to test wafers. As this new offering is substantially different to 
standard reclaim, the development costs incurred on this process 
during the year have been capitalised. These costs will be amortised 
over ﬁve years, following commencement of sales of the product.
STRATEGY FOR WAFER RECLAIM GROWTH
300mm wafer reclaim is our key focus, and we are well positioned 
in this segment that is growing as fast as had been anticipated. 
We plan to capitalise on our established position in the marketplace 
and ensure that we are able to beneﬁt from the continued strong 
growth in demand. We are also aiming to further develop the 
applications for our products to help our customers expand their use 
of wafer reclaim as a key part of their continual cost improvement 
programme. Our high performance products enable our customers 
to use reclaimed silicon in many new applications where historically 
lower quality reclaimed wafers would not be used.
200mm wafer reclaim is beginning to present some increasingly 
interesting opportunities for us. Following some price deﬂation in 
the ﬁrst half of 2005, pricing has remained stable and supply is now 
beginning to tighten in this segment. Some of our larger customers 
are keen to secure their long term supply of 200mm and 300mm 
wafers and are looking to Pure Wafer as a well invested global 
leader who can provide a reliable supply of both sizes. 
KEITH BAKER
CHIEF EXECUTIVE
18 SEPTEMBER 2006
HIGHLIGHTS
We have doubled our 300mm output in the year.
Signiﬁcant progress made on new 50nm product offering. 
Strong growth in 300mm reclaim is set to continue.
_0_PUR_arf06.indd   5 19/10/2006   13:55:30 06 Pure Wafer plc annual report and accounts 2006
FINANCIAL REVIEW
TURNOVER
Turnover for the period was £14.52m, an increase of 58% on last 
year (2005: £9.17m), with 300mm now comprising 88% of total 
group revenue (2005: 78%).
● Europe £4.27m up 41% (2005: £3.02m) 
● North America £6.51m up 134% (2005: £2.78m) 
● South East Asia & Middle East £3.73m up 10% (2005: £3.38m) 
 
● 300mm £12.76m up 79% (2005: £7.14m) 
● 200mm £1.77m down 13% (2005: £2.03m)
PROFIT BEFORE TAX
Proﬁt before tax was £2.04m (2005: loss of £0.14m). This improvement 
is a result of the ramped wafer throughput and the lower absorbed 
cost per wafer as a direct effect of our high operational gearing. 
Turnover for the period increased by 58%, with costs increasing 
by just 34%.  
The fast growth of the business can be seen by our strong second 
half performance which generated a proﬁt before tax of £1.34m, 
91% ahead of the ﬁrst half of £0.70m. 
Manufacturing efﬁciency remains a key focus for the business with 
wafer output per employee having increased in excess of 30% during 
the ﬁnancial year. The management team will continue to pursue 
cost reduction activities as the business grows, to reduce the unit 
cost of manufacture. 
❝
❞
The company is growing fast, 
generating proﬁts and in a 
positive cashﬂow position.
EBITDA by financial half year (£000)
H1 FY04 H2 FY04 H1 FY05 H2 FY05 H1 FY06 H2 FY06
(2,500)
(2,000)
(1,500)
(1,000)
1,000
0
1,500
2,000
2,500
Turnover by financial half year (£000)
H1 FY04 H2 FY04 H1 FY05 H2 FY05 H1 FY06 H2 FY06
0
1,000
2,000
3,000
5,000
4,000
6,000
7,000
8,000
9,000
James Dearing 
Finance Director
_0_PUR_arf06.indd   6 19/10/2006   13:55:39 07 Pure Wafer plc annual report and accounts 2006
HIGHLIGHTS
Turnover increased 58% year on year.
Continued beneﬁt of high operational gearing: 25% increase in turnover 
H206 vs H106, but 91% increase in PBT. 
First full year proﬁt and positive EPS reported.
FOREIGN EXCHANGE
Pure Wafer’s sales are predominantly US Dollar based, whilst the cost 
base is predominantly in Sterling. For the year to 30 June 2006, the 
average exchange rate achieved by Pure Wafer was £1 = US$1.77. 
Pure Wafer has a rolling 12 month hedging policy where a proportion 
of the forecast 12 monthly exposure is hedged.
CASH FLOW AND CAPITAL EXPENDITURE
Net cash inflow from operating activities was £2.68m 
(2005: outﬂow of £0.05m). Working capital net cash outﬂow 
was £1.25m. Included in this is the cash effect of an increase 
in stocks (£0.65m), reﬂecting a management decision to make 
more ﬂexible and efﬁcient the tooling procedures and process. 
During the period we acquired capital equipment with the value of 
£5.40m, primarily relating to manufacturing equipment, increasing 
our capacity in the last quarter of this ﬁnancial year. This expenditure 
has been partially funded through a ﬁnance leasing facility.
TAXATION
The group has reported its ﬁrst full year of taxable proﬁts, which have 
been relieved against brought forward tax losses. As the directors 
are conﬁdent of the trading and ﬁnancial prospects of the group, 
based upon short term forecasts a deferred tax asset has been 
recognised for part of the unutilised tax losses at 30 June 2006. 
The quantum of the deferred tax asset will be reassessed annually.
INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
The London Stock Exchange has conﬁrmed that companies listed 
on AIM will not have to apply IFRS until accounting periods commencing 
on or after 1 January 2007. Consequently, the ﬁrst set of IFRS 
ﬁnancial statements will not be required until the year ending 
30 June 2008. In the meantime the group will be appraising 
the impact of adopting IFRS and brieﬁng accordingly.
EARNINGS PER SHARE (EPS) AND DIVIDEND
Diluted EPS for the period was 14.73p (2005: loss per share of 0.58p), 
which included the effect of the recognition of the deferred tax asset. 
Excluding this impact, adjusted diluted EPS for the group was 7.63p 
(2005: loss per share of 0.58p).
The board does not recommend payment of a dividend this ﬁnancial 
year. The company is growing fast, generating proﬁts and in a positive 
cashﬂow position. Following the end of the ﬁnancial year Pure Wafer 
International Limited, the subsidiary trading company of the group, 
has begun the process of a capital reduction which would eliminate 
the brought forward losses in the proﬁt and loss reserve, and put 
the company in a position to be able to make distributions from 
any future proﬁts in coming years, when appropriate.
JAMES DEARING
GROUP FINANCE DIRECTOR
18 SEPTEMBER 2006
PBT by financial half year (£000)
H1 FY04 H2 FY04 H1 FY05 H2 FY05 H1 FY06 H2 FY06
(3,000)
(2,000)
0
1,000
2,000
3,000
(1,000)
_0_PUR_arf06.indd   7 19/10/2006   13:55:39 08 Pure Wafer plc annual report and accounts 2006
BOARD OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
EXECUTIVE DIRECTORS
KEITH BAKER
GROUP CHIEF EXECUTIVE
Keith Baker is a co-founder of the company. 
Keith has many years experience in the 
semiconductor industry, working for leading chip 
manufacturers such as Siemens Microelectronics 
and National Semiconductor. Keith was 
previously vice president of technology for 
Steag Microtech where he played a key role 
in the early development of the 300mm wafer 
manufacturing processes.
PETER HARRINGTON
GROUP STRATEGIC 
PLANNING DIRECTOR
Peter Harrington is a co-founder of the 
company. Peter has over 30 years industry 
experience in commercial and project 
management roles. Peter was previously 
finance executive with Meissner+Wurst, 
one of the world’s leading constructors 
of semiconductor fabrication facilities.
JAMES DEARING
GROUP FINANCE DIRECTOR
James Dearing qualified as a chartered 
accountant with Deloitte, before moving 
to finance roles within DSG International plc 
and Imperial Tobacco Group plc. James 
joined Pure Wafer as group finance director 
in August 2005.
ADVISERS
COMPANY SECRETARY  
AND REGISTERED OFFICE
J J DEARING
PURE WAFER PLC
Central Business Park
Swansea Vale
Swansea SA7 0AB
SOLICITORS
MORGAN COLE 
Llys Tawe
Kings Road
Swansea SA1 8PG
BANKERS
ROYAL BANK OF SCOTLAND
One Kingsway
Cardiff CF10 3YB
NOMINATED ADVISERS/BROKERS
NUMIS SECURITIES LTD
Cheapside House
138 Cheapside
London EC2V 6LH
AUDITORS
PRICEWATERHOUSECOOPERS LLP
Princess House
Princess Way
Swansea SA1 5LH
NON-EXECUTIVE DIRECTORS
GILES CLARKE
NON-EXECUTIVE CHAIRMAN
Giles Clarke is chairman and majority 
shareholder of a number of private companies, 
including ATL Telecom, a designer of data 
transmission chips. He founded Majestic Wine 
in 1981 and co-founded Pet City in 1990. 
Giles is a National Council member of the 
Learning and Skills Council and is a director 
of the England and Wales Cricket Board. 
Giles joined the board in November 2004.
EURFYL AP GWILYM
NON-EXECUTIVE DIRECTOR
Eurfyl ap Gwilym has a wide experience 
of the technology industry, having served 
on the boards of many companies including 
Philips Electronics, GE Information Services 
and BIS Banking International. He is currently 
a non-executive director of a number of listed 
companies and the Principality Building Society. 
Eurfyl joined the board in November 2004.
JOHN SAMUEL
NON-EXECUTIVE DIRECTOR
John Samuel has held a number of senior 
finance positions in industry, including 
Ellis & Everard plc and Whessoe plc. 
He is currently chief executive officer 
of Mölnlycke Health Care Group AB. 
John was appointed to the board 
as a representative of Apax Partners.
_0_PUR_arf06.indd   8 19/10/2006   13:55:39 09 Pure Wafer plc annual report and accounts 2006
EXECUTIVE MANAGEMENT
DAVID MATERNAGHAN
SALES AND MARKETING DIRECTOR
David Maternaghan has held various senior 
management positions, responsible for 
business development, sales and marketing 
in worldwide markets supporting blue chip 
customers. He joined Pure Wafer from 
Rockwood Electronic Materials, a supplier 
of materials and services to the 
semiconductor industry.
DAVID LEWIS
TECHNICAL DIRECTOR
David Lewis is a co-founder of the company. 
David has many years experience within the 
semiconductor industry, with ST Microelectronics, 
Europe’s leading chip manufacturer. He also 
held a senior technical post with Steag Microtech 
during the development of the 300mm 
manufacturing process.
TREVOR HOSKINS
OPERATIONS DIRECTOR
Trevor Hoskins joined the company in 
August 2006. He has held several senior 
posts for global blue chip companies based 
in Japan, North America and South Africa 
and has a history of delivering profitable 
growth within manufacturing industries 
through successful implementation of lean 
manufacturing techniques.
MARK ROBERTS
QUALITY AND 
ENVIRONMENTAL MANAGER
Mark Roberts joined the company in 
2002 and brings considerable experience 
in quality, safety and environmental systems. 
Mark has held several key managerial 
positions in multinational companies such 
as Nortel plc, STC Defence Systems and 
Pirelli Telecom & Systems.
DARREN PRITCHARD
FINANCIAL CONTROLLER
Darren Pritchard is ACCA qualified, and 
has worked in various senior finance roles, 
including being the UK Industrial Finance 
Manager for Danone Water, a market 
leader in the bottled water industry. 
REGISTRARS
CAPITA REGISTRARS
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
PUBLIC RELATIONS ADVISERS
FINANCIAL DYNAMICS
Holborn Gate
26 Southampton Buildings
London WC2A 1PB
MARK SELWAY
BUSINESS PLANNING MANAGER
Mark Selway has held key managerial 
positions in supply chain and production 
management roles with GE and 
Hills Industries plc. Mark brings many 
years of manufacturing experience 
to his role of operations planning and 
control, logistics and sourcing activities. 
_0_PUR_arf06.indd   9 19/10/2006   13:55:40 10 Pure Wafer plc annual report and accounts 2006
INTRODUCTION
The directors present their annual report and audited ﬁnancial statements for the year ended 30 June 2006.
The accounts are the second for the Pure Wafer plc group. Prior year comparatives have been prepared on the basis of merger accounting.
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS
The principal activity for the group remains the reclaim of silicon test wafers.
The group proﬁt and loss account is set out on page 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 and 
the chief executive’s review.
DIVIDENDS
The directors do not recommend a dividend for the period.
RESEARCH AND DEVELOPMENT
The company has continued to invest in the ongoing continuous improvement of a proven process to reclaim silicon test wafers, together with 
complementary products. Costs attributable to the development of the wafer reclaim process have been charged to the proﬁt and loss account as 
incurred, although those attributable to the development of the group’s 50 nanometre process have been capitalised in accordance with SSAP 13.
DIRECTORS
The directors of the company, together with their dates of appointment and resignation, were as follows:
C G Clarke  non-executive chairman (appointed 24 November 2004)
K Baker   chief executive ofﬁcer (appointed 19 November 2004)
J J Dearing group ﬁnance director (appointed 22 August 2005)
P G Harrington strategic planning director (appointed 24 November 2004)
E ap Gwilym non-executive director (appointed 24 November 2004)
J A W Samuel non-executive director (appointed 19 November 2004)
DIRECTORS’ INTERESTS IN SHARES
The beneﬁcial interests of the directors in the ordinary share capital of the company are as follows:
       At 30 At 30  
       June 2006 June 2005 
       Number Number
C G Clarke       159,482 159,482
K Baker       120,921 170,921
P G Harrington       120,921 170,921
E ap Gwilym       25,000 25,000
J A W Samuel       3,448 3,448
During the year, K Baker and P G Harrington each sold 50,000 shares at 288p in order to satisfy repayments of personal loans taken out 
to fund the start up of the company.
Details of options over the company’s share capital held by the directors are set out in the report of the remuneration committee on page 15.
DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2006
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EMPLOYEES
The company’s employment policies are designed to attract, retain and motivate the very best staff for each role in the company, 
recognising that this can be achieved only through offering equal opportunities regardless of gender, race, religion or disability.
Regular meetings are held with employees to discuss the performance of the company as a whole, and the area in which they work. 
Financial and economic factors are dealt with in this context.
Information concerning employees and their remuneration is given in notes 4 and 5 to the accounts, and in the report of the remuneration committee.
SUPPLIER PAYMENT POLICY
The group’s policy in relation to the payment of its suppliers is to settle its terms of payment with each supplier when agreeing the terms 
of each business transaction. The supplier is made aware of the terms, which are detailed on the group’s purchasing orders. It is the 
group’s practice to abide by the agreed terms of payment. The company’s creditor payment period was 72 days (2005: 98 days) and 
the group’s creditor payment period was 78 days (2005: 98 days).
SUBSTANTIAL INTERESTS
As at 18 September 2006, the company had been notified, in accordance with Sections 198 to 209 of the Companies Act 1985, 
of the following substantial interests of 3% or more in the ordinary share capital of the company:
       Number % 
        of ordinary of ordinary  
       shares held shares held
Apax WW Nominees Limited       13,247,134 49.99
Merrill Lynch Investment Management       3,864,057 14.59
AXA Framlington       2,430,000 9.17
New Star Asset Management       1,132,970 4.27
AUTHORITY TO ISSUE AND ALLOT SHARES
The Companies Act 1985 contains restrictions on the power of the directors to allot a company’s shares. As a result, the directors 
may only issue the shares pursuant to the authority within the statutory terms given by shareholders’ resolutions or contained in the 
Articles of Association. Their power to issue equity shares for cash to persons other than the existing shareholders is similarly restricted.
Resolutions to confer these authorities were passed at the previous Annual General Meeting (AGM) not on incorporation. These authorities 
will expire at the conclusion of the 2006 AGM unless previously renewed, varied or revoked by the company in general meeting.
Resolutions to renew the authorities will be prepared at the AGM to be held on 14 November 2006.
Subsequent to the passing of these resolutions, the directors will have the authority to allot shares up to an aggregate nominal amount 
of £158,966 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 £52,989.
FINANCIAL RISK MANAGEMENT
The directors’ assessment of key ﬁnancial risks, and policies in place to mitigate those risks, is set out in note 18 to the ﬁnancial statements.
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 ISO14001 is met.
KEY PERFORMANCE INDICATORS
Commentary on key performance indicators are included in the ﬁnancial review on page 6.
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CHARITABLE AND POLITICAL DONATIONS
The group did not make any monetary charitable or political donations during the period. A non-monetary contribution of a by-product 
from the production process was made to the Prince’s Trust Community Project charity.
PROVISION OF INFORMATION TO AUDITORS
Each of the persons who is a director at the date of approval of this report conﬁrms that:
● so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and
●  the director has taken all the steps that he/she ought to have taken as a director in order to make himself 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 s234ZA of the Companies Act 1985.
GOING CONCERN
The directors are of the opinion that, at the time of approving the ﬁnancial statements, the company and the group as a whole have 
adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going 
concern basis in preparing the ﬁnancial statements.
AUDITORS
During the year the directors reappointed PricewaterhouseCoopers LLP as the auditors of the group.
A resolution to reappoint PricewaterhouseCoopers LLP as auditors to the group will be proposed at the AGM.
By order of the board
JAMES DEARING
COMPANY SECRETARY
18 SEPTEMBER 2006
DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
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The company is listed on AIM and is therefore not required to comply with the provisions of the Combined Code. However, the board 
adopts a number of principles of the Combined Code that it feels are relevant to a business of the size and complexity of Pure Wafer plc, 
as set out below.
During the year the board comprised a non-executive chairman, three executive directors and a further two non-executive directors who 
brought an independent judgement to the group. The roles of chairman and chief executive have been split.
All the directors have access to the advice and services of the company secretary, who is responsible to the board for ensuring that board 
procedures are followed and compliance with applicable rules and regulations. If necessary, independent professional advice can be 
sought by all the directors of the company.
BOARD RESPONSIBILITIES
The board of directors, which includes three non-executive directors, meets regularly throughout the year. C G Clarke and E ap Gwilym are 
considered by the board to be independent non-executive directors. J A W Samuel is nominated as a director by Apax Partners. The board 
is responsible for overall group strategy, acquisition and investment policy, approval of major capital expenditure projects and consideration 
of signiﬁcant ﬁnancing matters. There is a formal schedule of matters speciﬁcally reserved to the board’s jurisdiction. It reviews the strategic 
direction of the group, its annual budgets, the progress towards achievement of those budgets, its forecasts and its capital expenditure 
programmes. In furtherance of their duties, there are agreed procedures for the directors to take independent advice, if necessary, 
at the company’s expense. 
The board considers the chairman to be the main point of contact to whom concerns of whatever nature may be conveyed. In the event 
that an individual does not wish to raise a concern with him, the board has identiﬁed E ap Gwilym, the lead non-executive director, 
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 J A W Samuel and provides a link between the board and the group’s auditors on matters falling within the scope of the group’s 
audit. These matters include accounting standards and policies, internal ﬁnancial control procedures and the group’s statutory ﬁnancial 
statements, which are intended for publication. 
REMUNERATION COMMITTEE
The remuneration committee comprises the two non-executive directors and the chairman and meets at least once a year. During the year 
the committee was chaired by E ap Gwilym. It is the remuneration committee’s role to establish a formal and transparent policy on executive 
remuneration and to set remuneration packages for individual directors.
TREASURY COMMITTEE
The treasury committee was appointed during the year and comprises the three executive directors and the group ﬁnancial controller. 
The committee meets on an as needed basis where speedy approval for treasury matters, particularly relating to foreign exchange, is required. 
The chairman of the committee, J J Dearing, reports any decisions taken, with justiﬁcation, to the board as quickly as practicable.
BOARD MEETINGS
There were seven board meetings during the period to 30 June 2006. 
CORPORATE GOVERNANCE REPORT
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RISK MANAGEMENT
The board of directors has overall responsibility for the group’s system of internal control and for reviewing its effectiveness, whilst the 
role of management is to implement board policies on risk and control. The system of internal control is designed to manage rather than 
eliminate the risk of failure of business objectives. In pursuing these objectives, internal controls can provide only reasonable and not 
absolute assurance against material misstatement or loss.
The key elements of this system are:
●  the audit committee;
●  a comprehensive budgeting system, with an annual budget approved by the group board;
●  detailed monthly reporting, including forecasting to the group board and comparison of results against budget, with performance 
monitoring and explanations provided for signiﬁcant variances; and
●  a deﬁned procedure for seeking and obtaining approval for major transactions.
In order to address risk management, a control framework is in place which aims, as best as practicable, to:
● safeguard group assets;
● ensure proper accounting records are maintained; and
● provide reliable ﬁnancial information for internal and external use.
DIALOGUE WITH SHAREHOLDERS
The company reports formally to the shareholders twice a year, when its half year and full year results are announced, and the interim report 
and annual report are sent to shareholders. The annual report is accompanied by notice of the AGM of the company, at which a presentation 
is given and directors are available to take questions, both formally during the meeting and informally after the meeting. The management 
is available for dialogue with major shareholders on the company’s plans and objectives and from time to time meets with them.
CORPORATE GOVERNANCE REPORT CONTINUED
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INTRODUCTION
This report sets out the Pure Wafer executive remuneration policy, structure and details of remuneration received by directors in the year 
ended 30 June 2006. The share incentives and directors remuneration sections of this report have been audited.
ROLE OF THE REMUNERATION COMMITTEE
The remuneration committee is responsible for:
●  establishing and recommending to the board the policy for executive remuneration;
●  determining, on behalf of the board and shareholders, the level and structure of remuneration packages of the executive directors; and
●  reviewing and ensuring the alignment of executive remuneration with remuneration throughout the organisation, including company 
share schemes.
The remuneration of non-executive directors is determined by the board as a whole. No director is involved in discussions related to his 
own remuneration.
MEMBERSHIP AND MEETINGS
Members of the committee were E ap Gwilym, chair of the committee, C G Clarke and J A W Samuel. All the members of the committee 
are non-executive directors. The committee met four times during the year and all the members attended all four meetings.
ADVISERS
During the year the remuneration committee received guidance from the non-executive chairman, the chief executive ofﬁcer and the 
company secretary, except on matters relating to their own remuneration. 
REMUNERATION POLICY
The committee and board believe that in order to attract, motivate and retain a senior management team of the right calibre it is necessary 
to provide a competitive market based remuneration structure which rewards company and individual performance.
Remuneration packages comprise:
●  basic salary;
●  annual performance related bonus;
●  other beneﬁts; and
●  participation in share incentive plans. 
BASIC SALARY
Salaries are normally reviewed annually and any changes are effective from July in each year. Pay reviews take into account company 
and individual performance.
PERFORMANCE RELATED BONUSES
Payments under the scheme are based upon the achievement of ﬁnancial targets for the company as set by the remuneration committee.
REPORT OF THE REMUNERATION COMMITTEE
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BENEFITS
Beneﬁts in kind include the provision of a car or car allowance, a payment of private fuel, private medical insurance, life assurance and 
permanent health insurance.
SHARE INCENTIVES (AUDITED)
A management incentive share scheme was established by Apax at the time of admission to AIM. 
Under the scheme Apax granted, for no consideration, unapproved options to D Lewis, D Maternaghan and the executive directors, over 
1,083,334 ordinary shares in aggregate held by or on behalf of Apax funds representing approximately 4.1% of the issued ordinary shares 
immediately following Admission. 
The executive directors’ interest in the Apax options are as follows:
 Date of   Options  Exercise   Expiry 
 grant  granted  price (£)   date
K Baker 20 December 2004 346,667 1.45 20 December 2009
P G Harrington 20 December 2004 314,167 1.45 20 December 2009
The exercise of the options is conditional upon satisfaction of the performance criterion. The performance criterion requires that Apax has realised 
a minimum of ¤23,299,144 in cash from sales of, and/or receipt of dividends in respect of its ordinary shareholding after Admission.
Following approval at the AGM, an executive share option scheme was established. Under this scheme members of the management team 
were awarded options over 191,482 shares, exercisable between three and ten years following grant at 2p subject to achievement of certain 
EPS performance criteria.
The executive directors’ interests in the options are as follows:
 Date of  Options  Exercise   Expiry 
 grant  granted  price (£)   date
K Baker 16 November 2005 63,829 0.02 15 November 2015
J J Dearing 16 November 2005 25,531 0.02 15 November 2015
P G Harrington 16 November 2005 25,531 0.02 15 November 2015
SHARE INCENTIVE SCHEMES (NON DIRECTORS)
The group also operates a share option scheme in relation to employees who are not directors.
The group had granted options over 138,621 shares during 2005. The exercise price of the options is £1.45 and the option can be exercised 
by the individuals at any point from two years from the date of issue, up to a period of ten years from the date of issue of the option. 
These options do not have any performance criteria.
SAYE SCHEME
Following approval at the AGM in November 2005 the group has established a SAYE scheme available to all employees. In total options 
over 88,272 shares were granted to approximately 40% of the workforce and are exercisable at £2.27 following completion of the SAYE scheme.
REPORT OF THE REMUNERATION COMMITTEE CONTINUED
_1_PUR_arb06.indd   7 19/10/2006   13:55:55 17 Pure Wafer plc annual report and accounts 2006
DIRECTORS’ REMUNERATION (AUDITED)
       Total Total  
  Salary Fees Beneﬁts Bonus Pension 2006 2005 
Director  £ £ £ £ £ £ £
C G Clarke  50,000 — — — — 50,000 31,250
K Baker  112,250 — 11,885 50,000 5,000 179,135 145,746
J J Dearing  60,868 — 2,268 20,000 3,333 86,469 —
P G Harrington  85,000 — 12,095 30,000 5,000 132,095 116,528
E ap Gwilym  30,000 — — — — 30,000 15,887
J A W Samuel  — 30,000 — — — 30,000 27,000
Figures for the comparative year for C G Clarke and E ap Gwilym include remuneration from date of appointment on 24 November 2004. 
Figures for J J Dearing represent remuneration from 23 August 2005.
SERVICE CONTRACTS FOR DIRECTORS
The two executive directors appointed during the previous year have service agreements with the company dated 9 December 2004, 
subject to termination upon twelve months’ notice given by either party, for K Baker, and subject to six months’ notice given by either party 
for P G Harrington. J J Dearing was appointed during the year and has a service agreement dated 25 July 2005, subject to termination 
upon six months’ notice given by either party.
LETTERS OF APPOINTMENT FOR NON-EXECUTIVE DIRECTORS
The three non-executive directors have letters of appointment with the company dated 30 June 2006. The appointment for C G Clarke is 
subject to termination upon a notice period of twelve months’ notice given by either party. The appointments for E ap Gwilym and J A W Samuel 
are subject to twelve months’ notice given by either party.
DIRECTORS’ INTEREST IN SHARES
The beneﬁcial interest of directors at the end of the year in the ordinary share capital of the company, is set out in the directors’ report.
EURFYL AP GWILYM
CHAIRMAN OF REMUNERATION COMMITTEE
18 SEPTEMBER 2006
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Company law requires the directors to prepare ﬁnancial statements for each ﬁnancial year that give a true and fair view of the state of affairs 
of the company and the group and of the proﬁt and loss of the group for that period. The directors are required to prepare the ﬁnancial 
statements on the going concern basis unless it is inappropriate to presume that the company and the group will continue in business.
The directors conﬁrm that suitable accounting policies have been used and applied consistently. They also conﬁrm that reasonable and 
prudent judgements and estimates have been made in preparing the ﬁnancial statements for the year ended 30 June 2006 and that 
applicable accounting standards have been followed.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the ﬁnancial 
position of the company and the group and enable them to ensure that the ﬁnancial statements comply with the Companies Act 1985. 
They are also responsible for safeguarding the assets of the 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 ensuring that the directors’ report and other information included in the annual report is prepared in 
accordance with company law in the United Kingdom. They are also responsible for ensuring that the annual report includes information 
required by the AIM Rules of the London Stock Exchange.
The directors are responsible for the maintenance and integrity of the group’s website on which these ﬁnancial statements are published. 
The directors acknowledge that legislation in the United Kingdom governing the preparation and dissemination of the ﬁnancial information 
contained in the ﬁnancial statements may differ from legislation in other jurisdictions. The directors are aware that the uncertainties that exist 
are compounded as information published on the internet is accessible in many countries with different legal requirements relating to the 
preparation and dissemination of ﬁnancial statements.
JAMES DEARING
COMPANY SECRETARY
18 SEPTEMBER 2006
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
_1_PUR_arb06.indd   9 19/10/2006   13:55:55 19 Pure Wafer plc annual report and accounts 2006
We have audited the group and parent company ﬁnancial statements (the “ﬁnancial statements”) of Pure Wafer plc for the year ended 30 June 2006 
which comprise the group proﬁt and loss account, the group and company balance sheets, the group cash ﬂow statement, and the related notes. 
These ﬁnancial statements have been prepared under the accounting policies set out therein. We have also audited the information in the 
directors’ remuneration report that is described as having been audited.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors’ responsibilities for preparing the annual report and the ﬁnancial statements in accordance with applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the statement of directors’ responsibilities. 
The directors are also responsible for preparing the directors’ remuneration report.
Our responsibility is to audit the ﬁnancial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing 
(UK and Ireland). This report, including the opinion, has been prepared for and only for the company’s members as a body in accordance with Section 235 
of the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose 
or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and whether the ﬁnancial statements, and the part 
of the directors’ remuneration report to be audited, have been properly prepared in accordance with the Companies Act 1985. We report 
to you whether in our opinion the information given in the directors’ report is consistent with the ﬁnancial statements. We also report to you 
if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and explanations we require 
for our audit, or if information speciﬁed by law regarding directors’ remuneration and other transactions is not disclosed.
We read other information contained in the annual report, and consider whether it is consistent with the audited ﬁnancial statements. This other 
information comprises only the directors’ report, the chairman’s statement, the chief executive’s review, the ﬁnancial review and the unaudited part of 
the directors’ remuneration report. We consider the implications for our report if we become aware of any apparent misstatements or material 
inconsistencies with the ﬁnancial statements. Our responsibilities do not extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the ﬁnancial statements and the part 
of the directors’ remuneration report to be audited. It also includes an assessment of the signiﬁcant estimates and judgments made by the directors 
in the preparation of the ﬁnancial statements, and of whether the accounting policies are appropriate to the group’s and company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufﬁcient evidence to give reasonable assurance that the ﬁnancial statements and the part of the directors’ remuneration report to be 
audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated 
the overall adequacy of the presentation of information in the ﬁnancial statements.
OPINION
In our opinion:
●  the ﬁnancial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state 
of the group’s and the parent company’s affairs as at 30 June 2006 and of the group’s proﬁt and cash ﬂows for the year then ended;
●  the ﬁnancial statements and the part of the directors’ remuneration report to be audited have been properly prepared in accordance with 
the Companies Act 1985; and
● the information given in the directors’ report is consistent with the ﬁnancial statements.
PRICEWATERHOUSECOOPERS LLP
CHARTERED ACCOUNTANTS AND REGISTERED AUDITORS
SWANSEA
18 SEPTEMBER 2006
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF PURE WAFER PLC
_1_PUR_arb06.indd   10 19/10/2006   13:55:55 20 Pure Wafer plc annual report and accounts 2006
       2006 2005 
      Notes £000 £000
Turnover      2 14,521 9,171
Cost of sales       (8,136) (5,956)
Gross proﬁt       6,385 3,215
Administrative expenses       (4,400) (3,445)
Operating proﬁt/(loss)      3 1,985 (230)
Interest receivable       198 164
Interest payable and similar charges      6 (145) (76)
Proﬁt/(loss) on ordinary activities before taxation       2,038 (142)
Taxation      7 1,895 —
Proﬁt/(loss) for the ﬁnancial period      20 3,933 (142)
Earnings/(loss) per share
Basic      9 14.84p (0.59p) 
Basic diluted      9 14.73p (0.58p) 
Adjusted      9 7.69p (0.59p) 
Adjusted diluted      9 7.63p (0.58p)
The operating result stated above arose entirely from continuing activities.
The group has no recognised gains or losses other than those included in the result above and, therefore, no separate statement of total 
recognised gains or losses has been presented.
There is no difference between the result for the ﬁnancial period stated above and its historical cost equivalent. 
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 2006
_1_PUR_arb06.indd   11 19/10/2006   13:55:55 21 Pure Wafer plc annual report and accounts 2006
      Group Group Company Company 
      2006 2005 2006 2005 
    Notes £000 £000 £000 £000
Fixed assets
Intangible assets    10 261 — — —
Tangible assets    11 19,576 16,432 — —
Investments    12 — — 9,215 723
     19,837 16,432 9,215 723
Current assets    
Stock    13 1,065 420 — —
Debtors    14 4,700 3,624 944 9,177
Debtors – deferred taxation     1,895 — — —
Cash at bank and in hand     5,652 4,974 3,096 3,466
     13,312 9,018 4,040 12,643
Creditors: amounts falling due within one year    15 (4,029) (2,370) (110) (63)
Net current assets     9,283 6,648 3,930 12,580
Total assets less current liabilities     29,120 23,080 13,145 13,303
Creditors: amounts falling due after more than one year   16 (2,433) (12) — —
Deferred income    17 (3,175) (3,489) — —
Net assets     23,512 19,579 13,145 13,303
Capital and reserves    
Called up share capital    19 530 530 530 530
Share premium    20 12,644 12,644 12,644 12,644
Merger reserve    20 30,425 30,425 — —
Proﬁt and loss account    20 (20,087) (24,020) (29) 129
Shareholders’ funds    20 23,512 19,579 13,145 13,303
The ﬁnancial statements on pages 20 to 33 were approved by the board of directors on 18 September 2006 and were signed on its behalf by:
KEITH BAKER   JAMES DEARING
CHIEF EXECUTIVE  GROUP FINANCE DIRECTOR
18 SEPTEMBER 2006  18 SEPTEMBER 2006
BALANCE SHEETS AT 30 JUNE 2006
_1_PUR_arb06.indd   12 19/10/2006   13:55:56 22 Pure Wafer plc annual report and accounts 2006
        2006 2005 
       Notes £000 £000
Net cash inﬂow/(outﬂow) from operating activities      21 2,677 (52)
Returns on investments and servicing of ﬁnance   
Interest received       201 164
Interest paid       (127) —
Net cash inﬂow from returns on investments and servicing of ﬁnance     74 164
Taxation   
UK corporation tax        — —
Capital expenditure and ﬁnancial investment   
Grants received       — 200
Expenditure on intangible ﬁxed assets       (261) —
Purchase of tangible ﬁxed assets       (4,869) (1,703)
Net cash outﬂow on capital expenditure and ﬁnancial investment     (5,130) (1,503)
   
Net cash outﬂow before use of liquid funds and ﬁnancing      (2,379) (1,391)
   
Financing   
Funds received in relation to ordinary share capital       — 7,000
Expenses of issue of ordinary shares       — (1,247)
Drawdown of ﬁnance leases       3,488 —
Capital repayment of ﬁnance leases       (323) (9)
Cash inﬂow from ﬁnancing       3,165 5,744
Increase in cash in the year      22 786 4,353
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 2006
_1_PUR_arb06.indd   13 19/10/2006   13:55:56 23 Pure Wafer plc annual report and accounts 2006
1. PRINCIPAL ACCOUNTING POLICIES
The ﬁnancial statements have been prepared under the historical cost convention and in accordance with applicable Accounting Standards 
in the United Kingdom and with the provisions of the Companies Act 1985.
A summary of the more important accounting policies, which have been applied consistently, is set out below.
Basis of consolidation
The group accounts comprise the consolidation of the accounts of the company and all its subsidiary undertakings after eliminating 
inter-company transactions. As provided by Section 230 of the Companies Act 1985, a separate proﬁt and loss account for the company 
is not disclosed.
Merger accounting has been applied to the reconstruction of the former Pure Wafer Limited that took place during the ﬁnancial year to 
30 June 2005. In consequence, the results for that year are presented as if the Pure Wafer plc group had existed and traded in its present 
form for the entire year.
Tangible ﬁxed assets
The cost of ﬁxed assets is their purchase cost, together with any incidental costs of acquisition.
Depreciation is calculated so as to write off the cost, or valuation, of tangible ﬁxed assets, less their estimated residual values, on a 
straight line basis over the expected useful economic lives of the assets concerned. No depreciation is charged until the assets have 
been commissioned and are in use.
The principal rates used are as follows:
Leasehold buildings  15 years
Plant and machinery  10 years
Fixtures, ﬁttings and equipment 5 years
IT equipment   3 years
Impairment of ﬁxed assets
Impairment is calculated as the difference between the carrying value and the recoverable value of income-generating units. Recoverable 
value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents 
the present value of expected future discounted cash ﬂows. If incurred, impairment is recognised in the proﬁt and loss account.
Stocks and work in progress
Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on a ﬁrst in ﬁrst out 
basis and includes transport and handling costs; in the case of manufactured products, cost includes all direct expenditure and production 
overheads based on the normal level of activity. Net realisable value is the price at which stocks can be sold in the normal course of business 
after allowing for the costs of realisation and, where appropriate, the cost of conversion from their existing state to a ﬁnished condition. 
Provision is made where necessary for obsolete, slow-moving and defective stocks.
Taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where 
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred 
at the balance sheet date.
A net deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there 
will be suitable taxable proﬁts against which to recover carried forward tax losses and/or from which the future reversal of underlying timing 
differences can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected 
to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is 
measured on a non-discounted basis. 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006
_1_PUR_arb06.indd   14 19/10/2006   13:55:56 24 Pure Wafer plc annual report and accounts 2006
1. PRINCIPAL ACCOUNTING POLICIES CONTINUED
Government grants
Government grants in respect of capital expenditure are credited to a deferred income account which is released to the proﬁt and loss 
account over the expected lives of the assets concerned. All other grants are credited to the proﬁt and loss account on a receivable basis.
Translation of foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated to Sterling at the rate of exchange ruling at the balance 
sheet date, except where covered by forward currency transactions when they are translated at the contracted rates. Other assets 
are translated to Sterling at the rates of exchange ruling at the date of purchase or, where covered by forward currency transactions, 
at the contract rate.
Research and development expenditure
All research and development costs are written off in the year in which they are incurred, with the exception of certain major product development 
projects relating to new products or processes where reasonable certainty exists, as regards technical and commercial viability. Such expenditure 
is capitalised and amortised over the expected product life commencing in the year when sales of the product are made for the ﬁrst time.
Leased assets
Where assets are ﬁnanced by leasing agreements which give substantially the same rights as ownership (“ﬁnance leases”) the assets are 
treated as if they had been purchased outright at the capital value of the assets and the corresponding leasing commitments are shown 
as obligations to the lessor. The capital element of lease payments is applied to reduce the outstanding obligations and the interest is 
charged to the proﬁt and loss account over the period of the lease. Other rentals are charged wholly to the proﬁt and loss account.
Financial instruments
The only derivative instruments utilised by the group are forward exchange contracts. Forward exchange contracts are used for hedging 
purposes to alter the risk proﬁle of an existing underlying exposure of the group in line with the group’s risk management policies.
Turnover
Turnover, which represents the value of goods and services supplied, excluding value added tax, trade discounts and commissions paid, 
is recognised on despatch of goods sold.
Pension scheme arrangements
The group makes contributions on behalf of its employees into deﬁned contribution pension arrangements. Contributions are charged 
to the proﬁt and loss account as incurred.
2. TURNOVER
The group’s activities and turnover consist solely of the reclamation and reprocessing of silicon test wafers, in the UK for external customers.
The group’s turnover is analysed by geographical territory of destination as follows:
       2006 2005 
       £000 £000
Europe       4,274 3,019
North America       6,514 2,775
South East Asia and Middle East       3,733 3,377
       14,521 9,171
The group’s turnover is analysed by product variant as follows:
       2006 2005 
       £000 £000
200mm wafer reclaim       1,763 2,034
300mm wafer reclaim       12,758 7,137
       14,521 9,171
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
_1_PUR_arb06.indd   15 19/10/2006   13:55:56 25 Pure Wafer plc annual report and accounts 2006
3. OPERATING PROFIT/(LOSS)
Operating proﬁt/(loss) is stated after charging:
       2006 2005 
       £000 £000
Depreciation:
– Owned assets       1,971 1,900
– Leased assets       284 4
Hire of assets:
– Land and building       91 33
– Equipment       145 73
– Other       31 20
Research and development written off to the proﬁt and loss account      260 285
Auditors’ remuneration:
– Statutory audits (company: £10,000)       22 20
– Audit related regulatory reporting       8 6
– Tax compliance and other       55 24
And after crediting:
– Release of grants (note 17)       (314) (292)
In addition to the above, the group incurred charges during 2005 from its auditors of £272,000 for due diligence and regulatory work 
in relation to the group’s AIM listing. This amount was capitalised.
Of the research and development charge in the year, £nil (2005: £nil) relates to amortisation of deferred expenditure. In addition to the 
research and development written off to the proﬁt and loss account, a further £261,000 was capitalised during the year.
Reconciliation of operating proﬁt/(loss) for the year to EBITDA
       2006 2005 
       £000 £000
Operating proﬁt/(loss) for the period       1,985 (230)
Depreciation       2,255 1,904 
Release of deferred capital grant       (314) (292)
Earnings before interest, tax, depreciation and amortisation (EBITDA)     3,926 1,382 
4. DIRECTORS’ EMOLUMENTS
The remuneration paid to the directors was:
        2006 2005 
       £000 £000
Amounts paid to third parties for services of directors       30 27
Aggregate emoluments (including beneﬁts in kind)       464 299
       494 326
Pension contributions to a money purchase pension scheme      13 10
The pension contributions to the money purchase pension scheme are in relation to three (2005: two) directors.
Highest paid director:
        2006 2005 
       £000 £000
Aggregate emoluments (including beneﬁts in kind)       174 141
Pension contributions to a money purchase pension scheme      5 5
Further details regarding directors’ emoluments are set out in the report of the remuneration committee.
_1_PUR_arb06.indd   16 19/10/2006   13:55:56 26 Pure Wafer plc annual report and accounts 2006
5. EMPLOYEE INFORMATION
The average monthly number of persons employed by the group (including directors) during the period was as follows:
       2006 2005 
       Number Number
Production       139 106
Sales and administration       19 14
       158 120
The staff costs in respect of these employees were as follows:
       2006 2005 
       £000 £000
Salaries and wages       3,870 2,954
Social security costs       401 289
Pension costs       94 83
       4,365 3,326
6. INTEREST PAYABLE AND SIMILAR CHARGES
       2006 2005 
       £000 £000
Bank loans       — 17
Other loans       — 59
Finance leases       145 —
       145 76
7. TAXATION
       2006 2005 
       £000 £000
United Kingdom corporation tax at 30% (2005: 30%)       — —
United Kingdom deferred tax credit       1,895 —
       1,895 —
Tax assessed for the period is different to the standard rate of corporation tax in the UK of 30% (2005: 30%). The differences are analysed below:
Tax reconciliation
       2006 2005 
       £000 £000
Proﬁt/(loss) before taxation       2,038 (142)
Proﬁt/(loss) on ordinary activities multiplied by 30%       611 (42)
Tax impact of:
Accelerated capital allowances and other timing differences      (346) 26
Expenses not deductible for tax purposes       10 16
Utilisation of losses brought forward       (283) —
Tax losses not utilised       8 —
Tax charged to the proﬁt and loss account       — —
Deferred taxation
The group has reported its ﬁrst full year of taxable proﬁts, which have been relieved against brought forward tax losses. As the directors are conﬁdent 
of the trading and ﬁnancial prospects of the group, based upon short term forecasts a deferred tax asset has been recognised for part of the unutilised 
tax losses at 30 June 2006 to the extent the asset is regarded as recoverable. The quantum of the deferred tax asset will be reassessed annually.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
_1_PUR_arb06.indd   17 19/10/2006   13:55:56 27 Pure Wafer plc annual report and accounts 2006
7. TAXATION CONTINUED
Deferred taxation continued
The Pure Wafer group, headed by Pure Wafer plc, has approximately £25.1m (2005: £26.6m) of taxation losses. Of this, £5.1m (2005: £4.5m) 
has been utilised to eliminate the requirement for a deferred tax liability, £6.3m (2005: nil) has been recognised as a deferred tax asset 
(tax value of £1.9m) and £13.7m (2005: £22.1m) was carried forward not yet recognised as a deferred tax asset (tax value of £4.1m).
       2006 2005 
       £000 £000
Tax effect of timing differences due to:
Excess of tax allowances over depreciation       1,550 1,437
Other timing differences       (19) (76)
Losses       (1,531) (1,361)
       — —
Recognition of deferred tax asset in the year       1,895 —
Deferred tax asset       1,895 —
8. PROFIT/(LOSS) FOR THE FINANCIAL YEAR
As permitted by Section 230 of the Companies Act 1985, the company’s proﬁt and loss account has not been included in these ﬁnancial 
statements. Of the proﬁt for the year, a loss of £158,000 (2005: proﬁt of £129,000) is dealt with in the entity accounts of Pure Wafer plc.
9. EARNINGS PER SHARE
The basic earnings per share is calculated by dividing proﬁt attributable to ordinary shareholders by the weighted average number of ordinary 
shares in issue during the year. The calculation for 2005 is based upon the number of shares in issue at the date of group reconstruction.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive 
potential ordinary shares.
Earnings/(loss) per share have been calculated as follows:
       2006 2005 
       ‘000 ‘000
Weighted average number of ordinary shares:  
– In issue during the year       26,494 24,206
– Fully diluted       26,699 24,279
Unadjusted earnings/(losses)       £3,933 £(142)
Less: recognition of deferred tax asset       £(1,895) —
Adjusted earnings/(losses)       £2,038 £(142)
 
10. INTANGIBLE FIXED ASSETS
Group        £000
Cost
At 1 July 2005        —
Incurred during the year        261
At 30 June 2006        261
Net book value
At 30 June 2006        261
At 1 July 2005        —
Intangible ﬁxed assets comprise expenditure made on a 50 nanometre process developed within Pure Wafer. This new process utilises more 
advanced technology than wafer reclaim, and does not relate to test wafers. The expenditure on the project meets the guidelines within SSAP13 
for capitalisation so management has capitalised this development work in order to match the costs incurred to the associated revenue 
in the following years. The intangible asset will be amortised over ﬁve years.
The company does not have any intangible ﬁxed assets. 
_1_PUR_arb06.indd   18 19/10/2006   13:55:56 28 Pure Wafer plc annual report and accounts 2006
11. TANGIBLE FIXED ASSETS
     Long  Plant  Fixtures,  
     leasehold land and  ﬁttings and  
      and buildings machinery equipment Total 
Group     £000 £000 £000 £000
Cost     
At 1 July 2005     10,329 15,327 366 26,022
Additions     5 5,303 91 5,399
Disposals     — (73) — (73)
At 30 June 2006     10,334 20,557 457 31,348
Depreciation    
At 1 July 2005     2,577 6,703 310 9,590
Charge for the year     689 1,521 45 2,255
Disposals     — (73) — (73)
At 30 June 2006     3,266 8,151 355 11,772
Net book value    
At 30 June 2006     7,068 12,406 102 19,576
At 30 June 2005     7,752 8,624 56 16,432
Plant and machinery includes assets held under ﬁnance leases with a net book value of £4,601,000 (2005: £29,000).
The depreciation charge on these assets amounted to £284,000 (2005: £4,000).
The company does not have any tangible ﬁxed assets.
12. INVESTMENTS
        Shares in 
        subsidiary  
        undertakings 
Company        £000
At 1 July 2005        723
Additions        8,492
At 30 June 2006        9,215
Pure Wafer plc owns 100% of the issued ordinary shares of 10p each of Pure Wafer International Limited a company registered in England 
and Wales. The principal activity of Pure Wafer International Limited is the reclamation and reprocessing of silicon test wafers for fabrication 
plants that manufacture silicon chips or integrated circuits.
During the year, Pure Wafer International Limited issued a further 8,491,980 10p shares at a price of £1 to Pure Wafer plc. This increased 
the equity held in the subsidiary company.
13. STOCK
     Group Group Company Company 
     2006 2005 2006 2005 
     £000 £000 £000 £000
Raw materials     789 384 — —
Work in progress     247 — — —
Finished goods     29 36 — —
     1,065 420 — —
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
_1_PUR_arb06.indd   19 19/10/2006   13:55:57 29 Pure Wafer plc annual report and accounts 2006
14. DEBTORS
     Group Group Company Company 
     2006 2005 2006 2005 
     £000 £000 £000 £000
Amounts falling due within one year:   
Trade debtors     3,207 2,790 — —
Accrued income     779 276 — —
Other debtors and prepayments     714 558 61 23
Amounts falling due after more than one year:   
Due from subsidiary company     — — 883 9,154
     4,700 3,624 944 9,177
Interest is charged to the subsidiary, Pure Wafer International Limited, at a rate of 1% (2005: 2%) above Bank of England base rate. 
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
     Group Group Company Company 
     2006 2005 2006 2005 
     £000 £000 £000 £000
Trade creditors     1,561 772 — 15
Capital creditors     1,087 847 — —
Obligations under ﬁnance leases     655 9 — —
Corporation tax     15 15 — —
Payroll, other taxation and social security     253 108 97 9
Accruals     362 547 13 2
Other creditors     96 72 — 37
     4,029 2,370 110 63
16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
     Group Group Company Company 
     2006 2005 2006 2005 
     £000 £000 £000 £000
Obligations under ﬁnance leases     2,433 12 — —
Obligations under ﬁnance leases
The obligations under ﬁnance leases fall due as follows:
     Group Group Company Company 
     2006 2005 2006 2005 
     £000 £000 £000 £000
Amounts falling due:   
– In less than one year     655 9 — —
– In one to two years     1,391 9 — —
– In two to ﬁve years     1,042 3 — —
     3,088 21 — —
All ﬁnance leases are secured on speciﬁc items of plant and machinery.
17. DEFERRED INCOME
Deferred income comprises the unreleased balance of Regional Selective Assistance grants received to date:
       2006 2005 
Group       £000 £000
As at 1 July 2005       3,489 3,581
Further instalment received        — 200
Amount credited to proﬁt and loss account in the period       (314) (292)
As at 30 June 2006       3,175 3,489
The company does not have any deferred income.
_1_PUR_arb06.indd   20 19/10/2006   13:55:57 30 Pure Wafer plc annual report and accounts 2006
18. FINANCIAL INSTRUMENTS
Policy
The role that ﬁnancial instruments have had during the period in creating or changing the risks that the group faces in its activities is 
summarised below. This note also sets out details of the objective and policies for holding or issuing ﬁnancial instruments and similar 
contracts. Details are also set out of the strategies for achieving these objectives that have been followed during the year.
The numerical disclosures in this note deal with the ﬁnancial assets and ﬁnancial liabilities as deﬁned in Financial Reporting Standard 13: 
Derivatives and other Financial Instruments (“FRS13”). For this purpose, certain ﬁnancial assets such as investments in subsidiary companies 
are excluded from the scope of these disclosures.
As permitted by FRS13, short term debtors and creditors have been excluded from the disclosures, other than currency disclosures. 
(a) Objectives, policies and strategies
Introduction
The group’s ﬁnancial instruments, other than derivatives, comprise borrowings, some cash and various items such as trade debtors and 
trade creditors, which arise directly from its operations. 
The group also enters into forward foreign currency transactions, the purpose of which is to manage the currency risks arising from the 
group’s operations.
It is, and has been throughout the period, the group’s policy that no trading in ﬁnancial instruments is undertaken.
The group’s only signiﬁcant borrowings are ﬁnance leases held in US Dollars. Interest is charged on these at a rate ﬁxed on the date 
of drawdown. Accordingly the group is not subject to interest rate risk on existing borrowings.
The main risks arising from the group’s ﬁnancial instruments are foreign currency risk and liquidity risk. The board reviews and agrees 
policies for managing these risks, as summarised below.
Foreign currency risk
Over 90% of the group’s sales are invoiced in US Dollars and most of the remaining sales in Euros. The great majority of the group’s costs 
are incurred in Sterling. The group uses forward currency contracts, based on the forecast exposure for each quarter, to manage the risk.
Liquidity risk
The group constantly reviews its borrowing requirements to ensure adequate funds are available for ongoing operations. This is achieved 
through the preparation of cash ﬂow forecasts with comparison to actual performance.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
_1_PUR_arb06.indd   21 19/10/2006   13:55:57 31 Pure Wafer plc annual report and accounts 2006
18. FINANCIAL INSTRUMENTS CONTINUED
Policy continued
(b) Summary of ﬁnancial instruments
Short term debtors and creditors are excluded from the disclosures at (b) to (g), except for the currency proﬁle at (c) below.
       2006 2005 
       £000 £000
Summary of ﬁnancial instruments
Financial assets
– Cash at bank       5,652 4,974
Financial liabilities
– Obligations under ﬁnance leases      (i) (3,088) (21)
(i) Finance leases
The ﬁnance lease in existence at the start of the year relates to funding for the purchase of an item of machinery on which the supplier has 
provided the company with four years interest free credit.
The new ﬁnance leases in the year have been used to fund purchases of ﬁxed assets. The leases are in US Dollars and are repayable 
over four years, with interest rates ﬁxed on the date of drawdown. The blended interest rate achieved on interest bearing ﬁnance leases 
outstanding on 30 June 2006 is 8.1% per annum.
(c) Currency proﬁle of ﬁnancial assets and liabilities
The functional currency of all of the group’s operations is Sterling.
The net amount of monetary assets and liabilities denominated in currencies other than Sterling as at each balance sheet date covered 
by this report was as follows:
       2006 2005 
       £000 £000
US Dollars       1,611 3,366
Euro       (161) (316)
Yen       (8) (7)
       1,442 3,043
(d) Maturity proﬁle of ﬁnancial assets and liabilities
At 30 June 2006 the group had bank and cash deposits of £5,652,000 (2005: £4,974,000) available on demand. 
Borrowings were repayable as follows:
       2006 2005 
       £000 £000
In one year or less, or on demand:  
– Obligations under ﬁnance leases       (655) (9)
In more than one year but not more than two years:  
– Obligations under ﬁnance leases       (1,391) (9)
In more than two years but not more than ﬁve years:  
– Obligations under ﬁnance leases       (1,042) (3)
Total       (3,088) (21)
_1_PUR_arb06.indd   22 19/10/2006   13:55:57 32 Pure Wafer plc annual report and accounts 2006
18. FINANCIAL INSTRUMENTS CONTINUED
Policy continued
(e) Fair value of ﬁnancial assets and liabilities
The fair value of the group’s cash at bank and in hand and its ﬁnance leases as at 30 June 2006 and 30 June 2005 is considered by the 
directors not to be signiﬁcantly different to the book value.
(f) Hedging 
The group has, on occasion, entered into forward foreign currency contracts to hedge against the currency exposures that arise on sales 
denominated in foreign currencies. Changes in the fair value of instruments used as hedges are not recognised in the ﬁnancial statements 
until the hedged position matures. 
At 30 June 2006, the fair value of unrealised gains on these ﬁnancial instruments amounted to £10,000 (2005: loss of £124,000) of which 
gains of £106,000 (2005: loss of £121,000) were carried forward in the balance sheet pending their recognition in the proﬁt and loss account 
in the year to 30 June 2006, as the losses on the net assets which they are hedging are realised.
(g) Borrowing facilities
Aside from headroom within the ﬁnance leasing facilities, the group did not have any unutilised borrowing facilities at 30 June 2006.
19. CALLED UP SHARE CAPITAL
       2006 2005 
       £000 £000
Authorised  
50,000,000 ordinary shares of 2p each       1,000 1,000
       1,000 1,000
Allotted and fully paid  
26,494,269 ordinary shares of 2p each       530 530
       530 530
Issue of shares during 2005 
The company issued 21,666,683 ordinary shares of 2p each to the shareholders of Pure Wafer Limited as part of the group reconstruction. 
In addition, the company placed 4,827,586 ordinary shares of 2p each at £1.45 per share (gross of expenses) as part of the AIM listing.
The group reconstruction and issue of shares occurred in order to raise additional funds for the group. 
20. MOVEMENT IN SHAREHOLDERS’ FUNDS
   Share Share Merger Proﬁt and Total Total 
   capital premium reserve loss account 2006 2005 
Group   £000 £000 £000 £000 £000 £000
Beginning of the year   530 12,644 30,425 (24,020) 19,579 7,270
Net proceeds of new shares   — — — — — 5,753
Issue of shares for debt   — — — — — 6,698
   530 12,644 30,425 (24,020) 19,579 19,721
Proﬁt/(loss) for the period   — — — 3,933 3,933 (142)
End of year   530 12,644 30,425 (20,087) 23,512 19,579
In the year ended 30 June 2005, the application of merger accounting principles to the group reconstruction which involved the creation 
of a holding company gave rise to a difference which fell to be accounted as a merger difference and included within the merger reserve.
    Share Share Proﬁt and Total Total 
    capital premium loss account 2006 2005 
Company    £000 £000 £000 £000 £000
Beginning of the year    530 12,644 129 13,303 —
Share for share exchange with Pure Wafer International Limited   — — — — 433
Net proceeds of new shares    — — — — 6,043
Issue of shares for debt    — — — — 6,698
    530 12,644 129 13,303 13,174
(Loss)/proﬁt for the period    — — (158) (158) 129
End of year    530 12,644 (29) 13,145 13,303
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
_1_PUR_arb06.indd   23 19/10/2006   13:55:57 33 Pure Wafer plc annual report and accounts 2006
21. CASH FLOW FROM OPERATING ACTIVITIES
       2006 2005 
       £000 £000
Operating proﬁt/(loss)       1,985 (230)
Depreciation of tangible ﬁxed assets       2,255 1,904
Release of deferred income       (314) (292)
Increase in debtors       (1,369) (1,423)
Increase in stocks       (645) (212)
Increase in creditors       765 201
Net cash inﬂow/(outﬂow) from operating activities       2,677 (52)
22. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
       Non-cash  
     At    ﬂow and At 
     1 July Cash   foreign  30 June 
     2005 ﬂow exchange 2006 
     £000 £000 £000 £000
Cash at bank     4,974 786 (108) 5,652
Finance leases     (21) (3,165) 98 (3,088)
Net funds     4,953  (2,379) (10) 2,564
23. FINANCIAL COMMITMENTS
At 30 June 2006, the company has placed contracts for future capital expenditure for a total of £2,354,000 (2005: £1,138,000).
The company has the following annual commitments under non-cancellable operating leases:
   Land and buildings  Equipment  Other
   2006 2005 2006 2005 2006 2005 
   £000 £000 £000 £000 £000 £000
Expiring in:    
Less than one year   — — 61 79 — —
One to two years   — — — — 7 —
Two to ﬁve years   54 — 8 — 28 —
More than ﬁve years   37 37 — — — —
   91 37 69 79 35 —
24. PENSIONS
The group makes contributions on behalf of its employees into a deﬁned contribution pension scheme. Contributions are charged to the 
proﬁt and loss account as incurred and the charge in the year amounted to £94,000 (2005: £83,000).
Outstanding pension contributions at 30 June 2006 amounted to £13,000 (2005: £14,000). 
25. RELATED PARTY TRANSACTIONS
Transactions with directors and between group companies
Directors’ remuneration is disclosed in Note 4 to the ﬁnancial statements. The parent company has taken advantage of the exemptions 
available under FRS8 not to disclose transactions with other group companies as more than 90% of voting rights of the company is held 
within the group.
Fees for directors’ services provided by third parties
A total of £90,000 is owed to Apax Partners Limited at 30 June 2006 (2005: £102,000) in respect of the services of a director for the 
periods prior to listing. The group was also charged £30,000 (2005: £27,000) by Jadegate Consultancy Limited in respect of the services 
of non-executive director J A W Samuel. A total of £2,500 is owed to Jadegate Consultancy Limited at 30 June 2006 (2005: £10,000).
_1_PUR_arb06.indd   24 19/10/2006   13:55:57 34 Pure Wafer plc annual report and accounts 2006
Notice is given that the 2006 Annual General Meeting of Pure Wafer plc (“company”) will be held at 3pm on 14 November 2006 
at Pure Wafer plc, Central Business Park, Swansea Vale, Swansea SA7 0AB for the following purposes:
RESOLUTIONS
To consider and, if thought ﬁt, pass the following resolutions. Resolutions 1 to 6 will be proposed as ordinary resolutions and resolutions 
7 and 8 will be proposed as special resolutions.
1.  To receive the directors’ report and the company’s annual accounts for the year ended 30 June 2006, together with the auditors’ report 
on those accounts.
2. To reappoint C G Clarke as a director of the company.
3. To reappoint J J Dearing as a director of the company.
4.  To reappoint PricewaterhouseCoopers LLP as auditors of the company to hold ofﬁce from the conclusion of the meeting until 
the conclusion of the next general meeting of the company at which accounts are laid.
5.  To authorise the directors to ﬁx the remuneration of the auditors.
6. That the directors of the company be and are hereby generally and unconditionally authorised to issue and allot: 
 6.1  ordinary shares to be issued upon valid exercise of any share options granted to employees of the company in accordance with 
the terms of the company’s 2005 Performance Share Plan and 2005 SAYE Option Plan; and
 6.2  relevant securities (within the meaning of section 80 of the Companies Act 1985 (“ Act”)) up to an aggregate nominal amount of £158,966
  provided that (unless previously revoked, varied or renewed) this authority shall expire at the conclusion of the next AGM of the company after 
the passing of this resolution, save that the company may make an offer or agreement before the expiry of this authority which would or 
might require relevant securities to be allotted after such expiry and the directors may allot relevant securities pursuant to any such offer 
or agreement as if the authority conferred by this resolution had not expired.
7.  That, subject to the passing of resolution 6, pursuant to section 95 of the Act in substitution for all existing authorities under that section, 
the directors be and are generally empowered to allot equity securities (within the meaning of section 94(2) of the Act) for cash pursuant 
to the authority conferred by resolution 6 as if section 89(1) of the Act did not apply to any such allotment, provided that this power 
shall be limited to:
 7.1  the allotment of equity securities in connection with an offer (whether by way of a rights issue, open offer or otherwise) to holders 
of ordinary shares in the capital of the company in proportion (as nearly as practicable) to the respective numbers of ordinary 
shares held by them, subject to such exclusions or other arrangements as the directors may deem necessary or expedient in 
relation to fractional entitlements or any legal or practical problems under the laws of any territory or the requirements of any 
regulatory body or stock exchange;
 7.2  the allotment of equity securities to be issued pursuant to any share options granted to employees of the company in accordance 
with the terms of the company’s 2005 Performance Share Plan and 2005 SAYE Option Plan; and
 7.3  the allotment of equity securities for cash (otherwise than pursuant to paragraphs 7.2 and 7.3 above) up to an aggregate nominal 
amount of £52,989
  and (unless previously revoked, varied or renewed) shall expire at the conclusion of the next AGM of the company after the passing of this 
resolution, save that the company may make an offer or agreement before the expiry of this power which would or might require equity 
securities to be allotted for cash after such expiry and the directors may allot equity securities for cash pursuant to any such offer or 
agreement as if the power conferred by this resolution had not expired.
NOTICE OF ANNUAL GENERAL MEETING
_1_PUR_arb06.indd   25 19/10/2006   13:55:57 35 Pure Wafer plc annual report and accounts 2006
RESOLUTIONS CONTINUED
8.  That, pursuant to section 166 of the Act, the company be and is generally and unconditionally authorised to make market purchases 
(within the meaning of section 163 of the Act) of ordinary shares of 2p each in the capital of the company (“Shares”), provided that:
 8.1 the maximum number of Shares which may be purchased is 2,649,427
 8.2 the minimum price (exclusive of expenses) which may be paid for a Share is 2p
 8.3  the maximum price (exclusive of expenses) which may be paid for a Share is an amount equal to 105% of the average of the middle 
market quotations for the Shares as derived from the Daily Ofﬁcial List of the London Stock Exchange for the ﬁve business days 
immediately preceding the day on which the purchase is made
  and (unless previously revoked, varied or renewed) shall expire at the conclusion of the next annual general meeting of the company after 
the passing of this resolution, save that the company may enter into a contract to purchase Shares before the expiry of this authority 
under which such purchase will or may be completed or executed wholly or partly after such expiry and may make a purchase 
of Shares pursuant to any such contract as if the authority conferred by this resolution had not expired.
By order of the board
JAMES DEARING REGISTERED OFFICE
COMPANY SECRETARY PURE WAFER PLC
18 OCTOBER 2006 CENTRAL BUSINESS PARK
 SWANSEA VALE
 SWANSEA SA7 0AB
_1_PUR_arb06.indd   26 19/10/2006   13:55:58 36 Pure Wafer plc annual report and accounts 2006
NOTES
1.  Only those members registered in the register of members of the company as at 3pm on 12 November 2006 or, in the event that 
the meeting is adjourned, in the register of members 48 hours before the time of any adjourned meeting shall be entitled to attend 
or vote at the meeting in respect of the number of shares registered in their name at that time. Changes to entries in the register 
of members after 3pm on 12 November 2006 or, in the event that the meeting is adjourned, after 48 hours before the time of any 
adjourned meeting shall be disregarded in determining the rights of person to attend or vote at the meeting.
2.  A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and, on a poll, to vote instead of him/her. 
A proxy need not be a member of the company. A proxy may not speak at the meeting, except with the permission of the chairman of 
the meeting. The appointment of a proxy will not preclude a member from attending and voting in person at the meeting if he or she 
so wishes.
3.  A form of proxy is enclosed. To be valid, it must be deposited at the ofﬁces of the company’s registrars, Capita Registrars, The Registry, 
34 Beckenham Road, Kent BR3 4TU, by 3pm on 12 November 2006 (or, in the event that the meeting is adjourned, no later than 
48 hours before the time of any adjourned meeting).
4.  The register of interests of directors and their connected persons in the share capital of the company is available for inspection during 
normal business hours at the registered ofﬁce of the company (excluding weekends and public holidays). It will also be available for 
inspection at the place of the Annual General Meeting from 1pm on the day of the meeting until the conclusion of the meeting.
NOTICE OF ANNUAL GENERAL MEETING CONTINUED
_1_PUR_arb06.indd   27 19/10/2006   13:55:58 During the many stages of the manufacturing 
process of semiconductors, large quantities 
of test wafers are used to check the accurate 
calibration of equipment. These test wafers 
are a key consumable in the manufacture of 
semiconductors and the ability to reclaim them 
through Pure Wafer’s advanced process 
provides manufacturers with the opportunity 
to reduce costs.
The semiconductor industry is currently 
seeing a rapid transition to 300mm wafers. 
In order for manufacturers to continue to 
increase functionality at a reduced cost, 
the industry has sought to increase the size 
of wafers on which semiconductors are 
manufactured. 300mm wafer processing 
now represents the fastest growing area 
of the semiconductor industry.
However, wafer reclaim is a highly specialised 
and technically sophisticated process. Only 
a few companies worldwide are able to 
meet the exacting standards required 
by semiconductor manufacturers for 
the reclaim of 300mm wafers, of which 
Pure Wafer is one.
Pure Wafer’s customers include producers 
of DRAM, logic device manufacturers, 
foundry chip producers and equipment 
manufacturers and leading research and 
development operations. We are proud to 
be supplying and working closely with many 
of the largest and technically advanced 
semiconductor companies in the world.
At Pure Wafer, our process for reclaiming 
test wafers involves the following key stages: 
●  Inspection of the wafers for defects and 
classiﬁcation by type of contaminant to 
be removed 
●  Submersion in a precise mix of chemicals 
appropriate to remove the contaminant 
●  Assessment of ﬂatness and correction 
of defects using Pure Wafer’s advanced 
polishing processes 
● Cleaning and drying 
●  Final quality inspection and packaging 
for return to the customer
The company operates from a state of the art, 
purpose built facility situated in a new technology 
park in Swansea, Wales and is the 
most advanced plant of its kind in Europe. 
The size of the facility is in excess of 
4,500m
2
 and includes over 2,000m
2
 
of production cleanrooms. 
We have installed the latest generation of 
tools available on the market, with the most 
advanced equipment as used by IC and 
prime silicon producers. With the highest 
technical speciﬁcations, we are positioned 
to offer the most effective wafer reclaim 
service to our customers providing best in 
class product characteristics with minimal 
silicon removal. This enables our customers 
to maximise the number of times a test wafer 
can be reclaimed. 
T H E D E S I G N P O R T F O L I O
a member of the flathill communications group plc 
www.flathillplc.com
designed & produced by
_cover.indd   2 19/10/2006   13:51:33 Pure Wafer plc 
Central Business Park 
Swansea SA7 0AB
Tel: +44 (0)1792 311 200 
Fax:  +44 (0)1792 795 420 
Web: www.purewafer.com
Pure Wafer plc annual report and accounts 2006
_cover.indd   1 19/10/2006   13:50:47