pure wafer plc
annual report and accounts 
2011 corporate statement
pure wafer is an industryleading 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 stateoftheart foundries in the uk and the 
usa which have the capability to meet the stringent 
quality standards required by its customers
pure wafer is listed on the alternative investment 
market aim of the london stock exchange  
headquartered in the uk it operates on a global basis 
through an international sales force throughout europe 
north america and south east asia annual report and accounts 2011  pure wafer plc       1
ifc corporate statement 
01 highlights
02 pure wafer at a glance
04 chairman’s statement
06 chief executive’s review
08 financial review
10 board of directors senior management and 
advisers
12 directors’ report 
17 directors’ remuneration report
20 consolidated statement of directors’ 
responsibilities
21 consolidated independent auditors’ report to the 
members of pure wafer plc
22 consolidated income statement
23 consolidated statement of comprehensive 
income
24 consolidated statement of changes in equity
25 consolidated balance sheet 
26 consolidated statement of cash flows
27 notes to the consolidated financial statements
48 company independent auditors’ report to the 
members of pure wafer plc
49 company balance sheet
50 notes to the company financial statements
55 notice of annual general meeting
financial results
•  turnover 297m 2010 248m
• ebitda 32m 2010 13m pre 
restructuring charges
• operating loss 38m 2010 
68m
• pretax loss 51m 2010 80m
• basic loss per share 36c 2010 
loss per share 51c 
operational
• sales volumes have seen 
continued growth
 • 300mm up by 27 and 
200mm up by 24 when 
compared to prior year
 • strong increases in volumes 
2nd half over 1st half
• selling price increases for 300mm 
customers
• cost reductions continued 
leading to a 10 reduction in cost 
per unit compared to prior year 
• microgeneration certification 
scheme mcs accreditation of 
our solar products allowing us to 
commence trading in 2012
• group banking arrangements have 
been restructured to ease working 
capital demands
 • asset based debt rescheduled 
over existing term including 
an initial six month capital 
moratorium
 • additional banking facilities 
of up to £17 million 
27million
• business now stabilised with low 
cost of manufacture in a growing 
market with significant installed 
capacity
highlights 2       pure wafer plc   annual report and accounts 2011
pure wafer at a glance
the company has an established 
track record two of the worlds most 
advanced wafer reclaim facilities and a 
blue chip customer base that includes 
the majority of the worlds 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 exacting 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
the group floated on aim in december 
2004 and february 2007 pure wafer 
completed the acquisition of a wafer 
reclaim facility in arizona us
our facilities
the uk business operates from a state of 
the art purpose built facility situated in 
a 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 4500m
2
 and includes over 2000m
2
 of 
production cleanrooms
the facility in prescott arizona was 
constructed in 1997 and has received 
in excess of 50m of investment since 
then the highvolume hightech fab 
was originally designed for 200mm and 
smaller diameter wafer reclaim services 
but following the acquisition by pure 
wafer in 2007 capability to reclaim 
300mm wafers has been installed
we have installed the latest generation 
of tools available on the market with 
the most advanced equipment as used 
by integrated chip ic and prime silicon 
producers with the highest technical 
specifications we are positioned to offer 
the most effective wafer reclaim services 
to our customers with minimal silicon 
removal this enables our customers to 
maximise the number of times a test 
wafer can be reclaimed
pure wafer is a worldwide leader in the provision of 300mm 
wafer reclaim services these services enable semiconductor 
manufacturers to gain efficiencies through the increased use 
of silicon test wafers within their production processes annual report and accounts 2011  pure wafer plc       3
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
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 transition to 300mm wafers in now 
well advanced 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 4       pure wafer plc   annual report and accounts 2011
chairman’s statement
introduction
the year to 30 june 2011 saw the 
semiconductor industry move from 
recovery to growth with pure wafer 
continuing to benefit from the additional 
volume business from all geographical 
areas in which we trade and with all 
customers across the various sectors of 
the industry 
the industry growth in general and the 
projected increasing worldwide demand 
for hand held devices and tablets also 
prompted some of our major customers 
to announce extensive capital expenditure 
plans for new 300mm manufacturing 
facilities coming on line between now and 
2014 both in asia and north america 
these announcements and actions give 
exciting long term prospects for pure 
wafer 
during the financial year as volume 
demand strengthened and the confidence 
in a period of sustained growth returned 
there has been an acceptance of selling 
price increases across the customer 
base and an acknowledgement that 
the low prices of previous periods were 
unsustainable for the industry the 
group has therefore been successful in 
implementing price increases across its 
customer base
the unfortunate events in japan following 
the tsunami in february resulted in 
additional business for pure wafer in 
our fourth quarter as our customers 
looked to ensure that their reclaim wafer 
supply was maintained as our japanese 
competitors struggled to maintain their 
service
during the financial year we saw the pure 
wafer solar panel business successfully 
achieve full accreditation under the 
microgeneration certification scheme 
mcs for all our solar products and 
our solar installations this enables 
our customers to take advantage of 
the uk government’s feedintariff the 
accreditation of our products provides us 
with a strong platform on which to build 
financial results
•  t urnover 297m 2010 248m
• ebitda 32m 2010 13m pre 
restructuring charges
• operating loss 38m 2010 68m
• pretax loss 51m 2010 80m
• basic loss per share 36c 2010 loss 
per share 51c 
the results show significant improvement 
on prior years and the board is 
encouraged by the actions of the 
management team during the period to 
take advantage of the market conditions 
to maximise revenue and to continue 
reducing costs across all sectors of the 
business 
group funding
during the period we successfully 
completed negotiations with our bank 
and asset funders of a further financial 
restructuring package which will assist 
the management of our working capital 
requirement arising from the increased 
volumes of wafer reclaim and the 
potential growth in our solar business 
the financial agreements comprise a 
further 6 months of capital payments 
holiday on the asset based debts and a 
rescheduling of the capital repayments 
over a 42 month period commencing on 
1st january 2012 and concluding by 30th 
june 2015 the agreement also includes 
an increased bank overdraft facility of up 
to £17million 27million 
the company’s existing bank debt 
continues to be repaid in accordance 
with the original restructuring agreement 
completed in august 2009
the latest financial restructuring 
agreement further demonstrates the 
commitment that the bank and asset 
funders have to pure wafer and shows 
a confidence in the recovery of the 
business and i would like to thank them 
for their support
management
i would like to thank the entire team for 
their support and efforts during a year 
in which activity levels increased and our 
solar products were accredited
outlook
the current period has commenced 
strongly with a continuation of high 
volumes enjoyed during our fourth 
quarter it is particularly pleasing that 
high and stable volumes are being seen 
from our customers in all geographical 
regions this together with the 300mm 
manufacturing facilities currently under 
construction by the semiconductor 
industry and in some cases nearing 
completion gives an optimistic long term 
outlook
on the flip side the worldwide fear of a 
second recession due to the uncertainty 
in the financial markets and the effect 
of this on consumer confidence has 
the semiconductor industry’s move from recovery 
to growth has been reflected in our results annual report and accounts 2011  pure wafer plc       5
prompted the industry to consider its 
levels of inventory many industry analysts 
are predicting a short term industry 
slowdown during our second quarter 
with full production returning during 
the beginning of the second half of our 
financial year 
the launch of our solar products is a 
very exciting time for pure wafer because 
we believe that the renewable energy 
market has massive potential growth both 
globally and significantly here in the uk 
underpinned by the introduction of the 
government backed feedintariff in april 
2010 the 2012 financial year has started 
well following successful accreditation 
of our products in 2011 a number of 
solar installations have been completed 
our order book is building with a mix 
of domestic and large commercial 
installations we have been successful 
in being awarded a contract for a local 
community housing scheme for rooftop 
solar pv systems with a potential value of 
up to £1million and are well placed to win 
other major solar contracts in the public 
sector all for completion this forthcoming 
financial year 
these factors together with our financial 
restructuring providing additional working 
capital gives pure wafer a strong 
foundation on which to move forward
stephen boyd
chairman
3 november 2011 6       pure wafer plc   annual report and accounts 2011
chief executive’s review
operational review
the financial year to june 2011 continued 
the upward trend that we enjoyed during 
last financial year with continued growth 
in volumes across all diameter sizes of 
wafers both in swansea and prescott as 
the semiconductor industry continued to 
grow 
volume sales for the group grew during 
the period with 300mm wafer reclaim 
up by 27 when compared to the prior 
year  and 200mm wafer reclaim up 24 
whilst we were encouraged by the volume 
sales for the first half of the year the 
second half of the year saw even stronger 
growth with increases on 300mm of 22 
when compared to the first half
a significant challenge for our operational 
teams was to process the additional 
and growing volumes whilst maintaining 
the cost reductions and benefits gained 
during the prior periods in a market 
where our suppliers were requesting 
price increases for the majority of our 
consumable items i am very pleased to 
report that we managed to build on our 
past successes and reduce costs per 
wafer even further by 10 compared with 
the prior financial year  these cost savings 
were in part due to economies of scale 
but also due to successful engineering 
activities to reduce consumable usage 
and costs within our processes all 
without affecting the quality of the 
group’s product offering
the processing of the increased volumes 
was also achieved with a modest increase 
in headcount and thus pure wafer 
benefited from cost efficiencies as record 
levels of productivity were achieved in 
both the swansea and prescott facilities 
i would like to thank all our employees 
for their hard work and support during 
the year enabling pure wafer to continue 
to trade competitively throughout this 
period
highlights
• sales volumes have seen continued 
growth
 • 300mm up by 27 and 200mm  
 up by 24 when compared to  
 prior year
 • strong increases in volumes 2nd  
 half over 1st half
• selling price increases for 300mm 
customers
• cost reductions continued leading 
to a 10 reduction in cost per unit 
compared to prior year 
• microgeneration certification scheme 
mcs accreditation of our solar 
products allowing us to commence 
trading in 2012
• group banking arrangements have 
been restructured to ease working 
capital demands
 • asset based debt rescheduled  
 over existing term including  
 an initial six month capital  
 moratorium
 • additional banking facilities of  
 up to £17 million 27million
• business now stabilised with low cost 
of manufacture in a growing market 
with significant installed capacity
swansea site uk
the swansea site continued to see 
growing demand from our european and 
asian customers during the period with 
300mm volume sales growing by 28 
compared to the prior year and 200mm 
volume sales increasing by 15 the 
second half of the financial year showed 
strong growth compared to the first half 
for our 300mm volumes with a 26 
increase whilst the 200mm volumes 
dropped by 20 as one of our major 
customers completed their transition 
from 200mm to 300mm manufacturing 
prescott site arizona usa
the prescott arizona facility is now 
running large scale 300mm production 
and has made significant progress in 
increasing our 300mm wafer reclaim 
market share in the us where we are 
actively engaged with every major 
300mm integrated chip manufacturer 
who have a manufacturing presence in 
the us volume sales grew for the period 
with 300mm up by 23 when compared 
to the prior year and 200mm up by 29 
with the quality of our offering equal to 
the stringent requirements of our blue 
chip customer base we envisage further 
significant market gains
with the group’s current installed 
capacity for 300mm and smaller 
diameter wafers at pure wafer’s high 
quality facilities in swansea and prescott 
arizona together with the reduced cost 
per wafer  the board believe that the 
company is well placed for future growth
the increased volume sales has resulted in record 
levels of productivity and a further decrease in our 
costs per unit annual report and accounts 2011  pure wafer plc       7
solar pv
this was an exciting year for the pure 
wafer solar panel business during which 
we successfully achieved full accreditation 
of our solar products and our solar 
installations under the microgeneration 
certification scheme mcs following 
delays in the accreditation process due 
to a lack of testing facilities here in the 
uk with the mcs accreditation any 
installation by pure wafer or with pure 
wafer products enables our customers 
to take advantage of the government 
feedintariff we were also able to bed 
in our manufacturing lines the interest 
and uptake of our products has been 
strong and whilst revenue generation 
during this period has been negligible 
the foundations are now in place for 
substantial growth with the solar pv 
market being one of the fastest growing 
sectors in the uk currently we see this 
as a exciting addition to our portfolio 
of products and are confident that it 
will provide significant revenue and 
profitability to the group
peter harrington
group chief executive
3 november 2011 8       pure wafer plc   annual report and accounts 2011
financial review
reporting currency
this is the second year we have reported 
in dollars the currency of the industry 
we are in this alignment of functional 
currency and reporting currency allows 
us to produce accounts that are clearer 
and more transparent without the need 
for the large and numerous adjustments 
required at the year end to deal with 
the difference between functional and 
reporting currencies 
volumes and revenue
the volume of 300mm equivalent 
wafers processed at 1195000 2010 
959000 was an increase of 25 in the 
year   revenue for the year was 297m 
an increase of 20 on last year 2010 
248m reflecting the impact of 
increased volumes and increased selling 
prices an analysis of turnover by origin 
and destination can be found in note 5
gross profit
gross profit stood at 83m 2010 
52m an increase of 60 as a result 
of increased volumes processed and the 
cost saving intitiatives implemented in the 
period 
operating loss
the operating loss of 38m 2010 loss 
of 68m was achieved after incurring no 
restructuring costs 2010 restructuring 
costs of 08m
administrative expenses
administrative expenses of 121m 
2010 112m for the group show an 
increase on the prior year this increase 
has been driven principally by rising staff 
costs
loss before tax
the loss before tax was 51m 2010 
80m 
foreign exchange
we continue to convert as much of the 
cost base as possible to us dollars in 
order to provide a natural hedge against 
the us dollar revenue streams 
cash flow
cash flow from operations this year 
showed a net inflow of 14m 2010 
outlow 03m 
the increased volume and reduced cost have 
delivered a gross margin of 83m up 60 annual report and accounts 2011  pure wafer plc       9
taxation
there is no current tax charge across 
the group during the year the group 
submitted a claim in respect of qualifying 
research and development the amounts 
received are shown in note 11 due to the 
losses incurred during the year  the board 
has taken the decision not to recognise 
the deferred tax asset of 93m 2010 
100m pertaining to accumulated 
losses in the uk as it is not expected to 
be utilised within the foreseeable future 
tim lowe
group finance director
3 november 2011 10       pure wafer plc   annual report and accounts 2011
board of directors senior management and advisers
executive directors
1 peter harrington
group chief executive
peter harrington is a cofounder of the 
company he has over 30 years’ industry 
experience in commercial and project 
management roles peter was previously 
finance executive with meissnerwurst 
one of the world’s leading constructors of 
semiconductor fabrication facilities
2 keith baker
chief operating officer
keith baker is a cofounder of the 
company he has many years’ experience 
in the semiconductor industry working 
for leading chip manufacturers such as 
siemens microelectronics and national 
semiconductor keith was previously 
vice president of technology for steag 
microtech where he played a key role 
in the early development of the 300mm 
wafer manufacturing processes
3 tim lowe aca
group finance director
tim lowe qualified as a chartered 
accountant in 1988 with touche ross 
and is an experienced public company 
finance director  tim has held the 
position of group finance director 
of pkl holdings plc an aim listed 
company before joining stradform 
limited where he led the negotiations 
for the sale of the business to one of the 
largest contractors in europe
4 jerry winters
us operations director
jerry winters has 31 years’ experience 
in the semiconductor materials and 
integrated chip industry he started his 
career with fairchild’s semiconductor 
in 1978 and during his nine years 
with that company held positions 
in both engineering and operations 
management in 1987 jerry joined 
the laporte rockwood specialties 
group where he was global operations 
manager of their us and european 
silicon wafer reclaim operations 
in 2007 he joined the pure wafer 
organisation following the acquisition of 
exsil from rockwood specialties where 
he was an officer of exsil
1 3 4
2 annual report and accounts 2011  pure wafer plc       11
nonexecutive directors
5 stephen boyd
nonexecutive chairman
stephen boyd has worked in a number 
of manufacturing industries including 
five years as group chief executive of 
capital industries plc stephen currently 
sits on a number of boards of both 
public and private companies mainly in 
the technology sector and is currently 
chairman of pittards plc stephen joined 
the board on 1 october 2008
6 dr eurfyl ap gwilym
nonexecutive director and deputy 
chairman
eurfyl ap gwilym has a wide experience of 
the technology industry having served on 
the boards of many companies including 
philips electronics ge information 
services and bis banking international 
he is currently advising a number of 
private companies eurfyl joined the 
board in november 2004
7 paul dolan fca
nonexecutive director
paul dolan spent many years as an audit 
partner at deloitte where his clients 
included several semiconductor and 
technology companies paul retired from 
deloitte in 2004 in 2006 he took up the 
position of nonexecutive director at xp 
power plc and remained in this position 
until the relocation of xp power plc to 
singapore in 2007 paul joined the board 
of pure wafer plc in june 2007 and 
became chair of the audit committee on 
appointment to the board
advisers
company secretary and 
registered office
t lowe
pure wafer plc
central business park
swansea vale
swansea sa7 0ab
solicitors
morgan cole llp
llys tawe
kings road
swansea sa1 8pg
bankers
royal bank of scotland plc
one kingsway
cardiff cf10 3yb
nominated advisersbrokers
wh ireland
4 colston avenue
bristol bs1 4st 
auditors
pricewaterhousecoopers llp
llys tawe
kings road
swansea sa1 8pg
registrars
capita registrars
the registry
34 beckenham road
beckenham
kent br3 4tu
5 7
6 12       pure wafer plc   annual report and accounts 2011
directors’ report
the directors present their annual report and the audited financial statements of the group for the year ended 30 june 2011
principal activity
the principal activity of the group remains the reclaim of silicon test wafers the principal activity of the company is as a holding 
company and the provision of management services to the group’s trading subsidiaries
the consolidated income statement is set out on page 22
a review of developments affecting the group during the year and its prospects for the future is set out in the chairman’s statement 
chief executive’s review and the financial review
business review
a detailed review of the group’s operations and key performance indicators is contained in the chairman’s statement on pages 
4 and 5 the chief executive’s review on pages 6 and 7 and the financial review on page 8information about the use of financial 
instruments by the company and its subsidiaries is given in note 22 to the financial statements 
dividends
the directors do not recommend the payment of a dividend 2010 nil
risks and uncertainties 
there are a number of potential risks and uncertainties which could have a material impact on the company’s longterm 
performance
market risk
volumes – in the current climate there is a risk that sales volumes may decrease if the industry growth is not sustained leading to 
a reduction in market prices as our competitors compete for existing business we mitigate the risk by maintaining our standards of 
quality and endeavouring to qualify to provide wafer reclaim services to as many of the major semiconductor manufacturers as we 
can
price – competitive pressures create a risk that the market price for wafer reclaim services will fall affecting our gross margin 
we mitigate this risk by understanding the production cost for each wafer and only tendering for work at rates that will achieve an 
acceptable return
credit risk
the group offers shortterm credit to customers and there is a risk that customers will default on payments for services provided 
the group manages the risk by trading with a wide range of customers in diverse geographical locations and monitoring the 
creditworthiness of customers both before offering credit terms and during their relationship with pure wafer 
treasury risk
interest rate – the group’s borrowings include variable rate term loans and fixed rate finance leases we mitigate the risk associated 
with our variable rate loans by entering into interest rate swaps 
competitor risk
new entrants – the high level of investment required and the related cost of capital makes this unlikely in the current market 
conditions
technology risk
as the group operates in a technology sector there is a risk that the process could be superseded and new capital investment 
required however the board feels that this is extremely unlikely in the current market and based on available knowledge of new 
producttechnology developments
capital structure
details of the authorised and issued share capital are shown in note 23 the company has one class of ordinary shares which carry 
no right to fixed income each share carries the right to one vote at general meetings of the company 
there are no specific restrictions on the size of a holding or on the transfer of shares which are both governed by the general 
provisions of the articles of association and prevailing legislation the directors are not aware of any agreements between holders 
of the company’s shares that may result in restrictions on the transfer of securities or on voting rights substantial shareholders are 
listed in a separate section that follows
no person has any special right of control over the company’s share capital and all issued shares are fully paid
with regard to the appointment and replacement of directors the company is governed by its articles of association the companies 
acts and related legislation the articles themselves may be amended by special resolution of the shareholders the power of the 
directors is described in the corporate governance section of the directors’ report on page 15 annual report and accounts 2011  pure wafer plc       13
supplier payment policy 
the group’s policy is to settle terms of payment with suppliers when agreeing the terms of trade trade creditors of the group at 30 
june 2011 were equivalent to 48 days’ 2010 60 days’ purchases based on the average daily amount invoiced by suppliers during 
the year  
directors and their interests 
the directors of the company who served throughout the financial year and up to the date of signing the financial statements unless 
stated otherwise are as shown below 
s boyd  nonexecutive chairman 
e ap gwilym nonexecutive director 
p dolan  nonexecutive director 
p harrington group chief executive 
k baker  chief operating officer 
t lowe  group finance director 
j winters director of us operations 
  
the beneficial interests of the directors in the share capital of the company at the beginning and the end of the financial year were 
as follows
30 june 
2011 
2p ordinary 
share 
warrants 
number
30 june 
2010 
2p ordinary 
share 
warrants 
number
30 june 
2011 
2p ordinary 
shares 
 number
30 june 
2010 
2p ordinary 
shares 
 number
s boyd 12508107 12508107 7500000 7500000
p harrington 4065135 4065135 1784066 1784066
k baker 3127027 3127027 1413012 1413012
t lowe 2501621 2501621 1000000 1000000
p dolan   1065000 1065000
e ap gwilym   525000 525000
j winters 2345270 2345270 937500 937500
c g clarke   2580334 2580334
the directors held no shares in any other group company at any time during the financial year 
the warrants were issued by the company as part of certain directors and senior managers participation in the financial 
restructuring and placement of shares they are not share options and have no performance criteria or necessitate continuing 
employment within the pure wafer group 
details of the warrant issued to royal bank of scotland plc are detailed in note 23 
as disclosed in note 23 on 21 april 2011 an option grant was made to employees of the company the options granted to the 
directors of the company are summarised below
30 june
2011
2p ordinary
share
options
number
30 june
2010
2p ordinary
shares
options
number
p harrington 1500000 
k baker 750000 
t lowe 750000 
j winters 750000  14       pure wafer plc   annual report and accounts 2011
substantial shareholders 
as at 31 october 2011 notifications of beneficial interests in 3 or more of the company’s issued share capital are as follows
ordinary 
shares
number 
blackrock investment management 17038059 135
polar capital european forager fund ltd 8058748 64
knox and wells holdings 7760000 61
stephen boyd 7500000 59
aviva 6755369 54
michinoko 5921440 47
authority to issue and allot shares
the companies act 2006 contains restrictions on the power of the directors to allot a company’s shares as a result the directors 
may only issue the shares pursuant to the authority within the statutory terms given by shareholders’ resolutions or contained in 
the articles of association their power to issue equity shares for cash to persons other than the existing shareholders is similarly 
restricted
resolutions to confer these authorities were passed at the previous annual general meeting agm not on incorporation these 
authorities will expire at the conclusion of the next agm unless previously renewed varied or revoked by the company in general 
meeting
resolutions to renew the authorities will be prepared at the 2011 agm to be held on 14 december 2011
subsequent to the passing of these resolutions the directors will have the authority to allot shares up to an aggregate nominal 
amount of £757816 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 £126303
health and safety environmental and social responsibility
the company has detailed health and safety guidelines which are communicated to all employees and which are regularly reviewed 
for suitability in the context of the company’s activities
the group is fully committed to protecting the environment in which we live and work both ecologically and socially a formal policy 
is in place with internal management control systems to ensure that this is achieved as best as is practicable and to ensure that the 
international standard for environmental management iso 14001 is met
charitable and political donations
the group did not make any monetary charitable or political donations during the year 
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are 
set out in the chairman’s statement on pages 4 and 5 the financial position of the group its cash flows liquidity position and 
borrowing facilities are described in the finance review on page 8  in addition note 22 to the financial statements includes the 
group’s objectives policies and processes for managing its capital its financial risk management objectives details of its financial 
instruments and hedging activities and its exposures to credit risk and liquidity risk 
the group has recorded a pretax loss however  given the facilities that are currently in place the group has significant headroom 
above its forecast cash requirement which will allow it to manage its business risks successfully despite the current uncertain 
outlook 
the directors have assessed the balance sheet and likely future cash flows of the company and group at the date of approving the 
accounts this review considered detailed forecasts for the period to 30 june 2013 on this basis the directors have concluded that it 
is appropriate to prepare the financial statements on a going concern basis
the key sensitivity in the forecasts includes the achievement of increased sales volumes the business has experienced an upturn in 
demand for its services and the directors believe that this will be sustained sales prices are assumed to remain largely unchanged 
after making enquiries the directors have a reasonable expectation that the group and the company have adequate resources 
to continue in operational existence for the foreseeable future for this reason they continue to adopt the going concern basis in 
preparing the annual report and financial statements
directors’ report
continued annual report and accounts 2011  pure wafer plc       15
corporate governance
the company is listed on aim and is therefore not required to comply with the provisions of the uk corporate governance code 
however  the board adopts a number of principles of the uk corporate governance code that it feels are relevant to a business of 
the size and complexity of pure wafer plc as set out below
during the year the board comprised a nonexecutive chairman four executive directors and a further two nonexecutive 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 nonexecutive directors meets regularly throughout the year 
s boyd e ap gwilym and p dolan are considered by the board to be independent nonexecutive directors
the board is responsible for overall group strategy acquisition and investment policy approval of major capital expenditure projects 
and consideration of significant financing matters there is a formal schedule of matters specifically reserved to the board’s 
jurisdiction it reviews the strategic direction of the group its annual budgets the progress towards achievement of those budgets 
its forecasts and its capital expenditure programmes in furtherance of their duties there are agreed procedures for the directors to 
take independent advice if necessary at the company’s expense
the board considers the chairman to be senior independent director and the main point of contact to whom concerns of whatever 
nature may be conveyed in the event that an individual does not wish to raise a concern with him the board has identified the 
deputy chairman as an independent member of the board to whom such concerns may be addressed
audit committee
the company has an audit committee comprising two nonexecutive directors and the chairman during the year the committee was 
chaired by p dolan the committee provides a link between the board and the group’s auditors on matters falling within the scope 
of the group’s audit these matters include accounting standards and policies internal financial control procedures and the group’s 
statutory financial statements which are intended for publication
remuneration committee
the remuneration committee comprises the nonexecutive directors and the chairman and meets at least once a year  during the 
year the committee was chaired by e ap gwilym it is the remuneration committee’s role to establish a formal and transparent 
policy on executive remuneration and to set remuneration packages for individual directors
treasury committee
the treasury committee comprises the executive directors the committee meets on an asneeded basis where speedy approval for 
treasury matters particularly relating to foreign exchange is required the chairman of the committee p harrington reports any 
decisions taken with justification to the board as quickly as practicable
board meetings
during the year to 30 june 2011 there were eleven board meetings three audit committee meetings and two remuneration 
committee meetings attendance was as follows
board 
meeting
audit 
committee
remuneration 
committee
s boyd 11 1 2
p harrington 11  
k baker 10  
t lowe 11 3 
p dolan 11 3 2
e ap gwilym 11 3 2
j winters 11   16       pure wafer plc   annual report and accounts 2011
risk management
the board of directors has overall responsibility for the group’s system of internal control and for reviewing its effectiveness whilst 
the role of management is to implement board policies on risk and control the system of internal control is designed to manage 
rather than eliminate the risk of failure of business objectives in pursuing these objectives internal controls can provide only 
reasonable and not absolute assurance against material misstatement or loss
the key elements of this system are
• the audit committee
• a comprehensive budgeting system with an annual budget approved by the group board
• detailed monthly reporting including forecasting to the group board and comparison of results against budget with   
 performance monitoring and explanations provided for significant variances and
• a defined procedure for seeking and obtaining approval for major transactions
in order to address risk management a control framework is in place which aims as best as practicable to
• safeguard group assets
• ensure proper accounting records are maintained and
• provide reliable financial information for internal and external use
research and development
the company undertakes research and development activities to continue our process improvements
employees
issues affecting employees are communicated via the management structure to enable employees to be aware of the company’s 
performance etc this same method is also used to communicate to employees issues which are likely to affect their interests 
and where possible a full explanation will be given as to the reasons for the actions that are planned and the likely effect on the 
employees
the company has a recruitment policy in which equal consideration is given to disabled applicants full consideration will be 
afforded to disabled applicants and where applicable expert advice and guidance will be sought to enable a disabled applicant to 
take up a position within their capabilities
dialogue with shareholders
the company reports formally to the shareholders twice a year when its half year and full year results are announced and the 
annual report is sent to shareholders the annual report is accompanied by notice of the agm of the company at which the 
directors are available to take questions both formally during the meeting and informally after the meeting the management is 
available for dialogue with major shareholders on the company’s plans and objectives and from time to time meets with them
auditors
in the case of each of the persons who are directors of the company at the date when this report is approved
• so far as each of the directors is aware there is no relevant audit information of which the company’s auditors are unaware and
• each of the directors has taken all the steps that they ought to have taken as a director to make themselves aware of any  
 relevant audit information and to establish that the company’s auditors are aware of that information 
this confirmation is given and should be interpreted in accordance with the provisions of section 418 of the companies act 2006
a resolution to appoint pricewaterhousecoopers llp as auditors will be proposed at the forthcoming agm
approved by the board of directors and signed on behalf of the board 
peter harrington
group chief executive
3 november 2011
directors’ report
continued annual report and accounts 2011  pure wafer plc       17
introduction
this report sets out pure wafer’s executive remuneration policy structure and details of remuneration received by directors in the 
year ended 30 june 2011 this report is unaudited
role of the remuneration committee
the remuneration committee is responsible for
• establishing and recommending to the board the policy for executive remuneration
• determining on behalf of the board and shareholders the level and structure of remuneration packages of the executive  
 directors and
• reviewing and ensuring the alignment of executive remuneration with remuneration throughout the organisation including  
 company share schemes
the remuneration of nonexecutive directors is determined by the board as a whole no director is involved in discussions related to 
his own remuneration
membership and meetings
members of the committee were e ap gwilym chair of the committee s boyd and p dolan all the members of the committee are 
nonexecutive directors the committee met two times during the year with all the members attending both meetings
advisers
during the year the remuneration committee received guidance from the chief executive officer and the company secretary except 
on matters relating to their own remuneration
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 marketbased remuneration structure which rewards company and individual performance
remuneration packages comprise
• basic salary
• annual performance related bonus
• other benefits and
• participation in share incentive plans
basic salary
salaries are normally reviewed annually and any changes are effective from july in each year pay reviews take into account company 
and individual performance 
performance related bonuses
payments under the scheme are based upon the achievement of financial targets for the company as set by the remuneration 
committee
benefits
benefits in kind include the provision of a car or car allowance a payment of private fuel private medical insurance life assurance 
and permanent health insurance
share incentives
as discussed in note 23 the company introduced an equity settled share based compensation plan for eligible employees in the year 
directors’ remuneration report 18       pure wafer plc   annual report and accounts 2011
directors’ remuneration
total t otal
salary benefits bonus pension 2011 2010
director      
s boyd 52300    52300 56963
p harrington 197640 19697 49410 7955 274702 222518
k baker 197640 18486 24705 7955 248786 227741
t lowe 138078 18563 13794 15909 186344 167589
e ap gwilym 36581    36581 49605
p dolan 43055    43055 55381
j winters 142041 18770 14215 12500 187526 151040
c g clarke      24803
807335 75516 102124 44319 1029294 955640
 t o date of resignation as director
the remuneration disclosed above represents the us dollar usd equivalent of the amounts settled in sterling translated at a rate 
of 1591£1 with the exception of amounts paid to j winters which were settled in usd 
as disclosed in note 23 on 21 april 2011 an option grant was made to employees of the company the options granted to the 
directors of the company are summarised below
30 june
2011
2p ordinary
share
options
number 
30 june
2010
2p ordinary
shares
options
number
p harrington 1500000 
k baker 750000 
t lowe 750000 
j winters 750000 
service contracts for directors
k baker has a service agreement with the company dated 9 december 2004 subject to termination upon twelve months’ notice 
given by either party
p g harrington has a service agreement with the company dated 9 december 2004 subject to termination upon twelve months’ 
notice given by either party 
t lowe has a service agreement with the company dated 6 april 2009 subject to termination upon six months’ notice given by 
either party
j winters has a service agreement with the company dated 12 february 2007 subject to termination upon six months’ notice given 
by either party
directors’ remuneration report
continued annual report and accounts 2011  pure wafer plc       19
directors’ remuneration report
continued
letters of appointment for nonexecutive directors
s boyd has a letter of appointment with the company dated 1 october 2008 which is subject to termination upon a notice period of 
twelve months given by either party
e ap gwilym has a letter of appointment with the company dated 1 june 2006 which is subject to termination upon a notice period 
of twelve months given by either party
p dolan has a letter of appointment with the company dated 25 june 2007 which is subject to termination upon a notice period 
of twelve months given by either party
directors’ interest in shares
the beneficial interest of directors at the end of the year in the ordinary share capital of the company is set out in the directors’ 
report
eurfyl ap gwilym
nonexecutive director
3 november 2011 20       pure wafer plc   annual report and accounts 2011
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and 
regulations
company law requires the directors to prepare financial statements for each financial year under that law the directors are required 
to prepare the group financial statements in accordance with international financial reporting standards ifrs as adopted by the 
european union and have elected to prepare the parent company financial statements in accordance with united kingdom generally 
accepted accounting practice united kingdom accounting standards and applicable law under company law the directors must 
not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of 
the profit or loss of the company for that year 
in preparing the parent company financial statements the directors are required to
•  select suitable accounting policies and then apply them consistently
•  make judgements and accounting estimates that are reasonable and prudent
•  state whether applicable uk accounting standards have been followed subject to any material departures disclosed and  
 explained in the financial statements and
•  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will  
 continue in business
in preparing the group financial statements international accounting standard 1 requires that directors
•  properly select and apply accounting policies
•  present information including accounting policies in a manner that provides relevant reliable comparable and 
 understandable information 
•  provide additional disclosures when compliance with the specific requirements in ifrs are insufficient to enable users to  
 understand the impact of particular transactions other events and conditions on the entity’s financial position and financial  
 performance and
•  make an assessment of the company’s ability to continue as a going concern
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure 
that the financial statements comply with the companies act 2006 and as regards the group financial statements article 4 of the 
ias regulation they are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website wwwpurewafer com legislation in the united kingdom governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions
by order of the board
p g harrington
group chief executive
3 november 2011
consolidated statement of directors’ responsibilities annual report and accounts 2011  pure wafer plc       21
we have audited the group financial statements of pure wafer plc for the year ended 30 june 2011 which comprise the the 
consolidated income statement the consolidated statement of comprehensive income the consolidated statement of changes in 
equity the consolidated balance sheet the consolidated statement of cash flows the accounting policies and the related notes  
the financial reporting framework that has been applied in their preparation is applicable law and international financial reporting 
standards ifrss as adopted by the european union
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards 
require us to comply with the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with 
chapter 3 of part 16 of the companies act 2006 and for no other purpose  we do not in giving these opinions accept or assume 
responsibility for any other purpose or to any other person to whom this report is 
shown or into whose hands it may come save where expressly agreed by our prior consent in writing
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes 
an assessment of whether the accounting policies are appropriate to the group’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information in the annual report to 
identify material inconsistencies with the audited financial statements if we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report
opinion on financial statements 
in our opinion the group financial statements 
•  give a true and fair view of the state of the group’s affairs as at 30 june 2011 and of its loss and cash flows for the year 
 then ended
•  have been properly prepared in accordance with ifrss as adopted by the european union and 
•  have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the group financial statements are 
prepared is consistent with the group financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our 
opinion 
•  certain disclosures of directors’ remuneration specified by law are not made or 
•  we have not received all the information and explanations we require for our audit 
other matter 
we have reported separately on the parent company financial statements of pure wafer plc for the year ended 30 june 2011 
 
jason clarke senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
swansea
independent auditors’ report to the members of pure wafer plc 22       pure wafer plc   annual report and accounts 2011
note 2011
000
2011
000
revenue 4 29719 24827
cost of sales 21414 19676
gross profit 8305 5151
other administrative expenses 5094 3836
depreciation and amortisation 7030 7391
restructuring costs  765
operating loss 6 3819 6841
finance income 8  37
finance costs 9 1206 1407
other gains and losses 10 76 190
loss on ordinary activities before taxation 5101 8021
tax on loss on ordinary activities 11 511 1478
loss for the financial year 4590 6543
loss per share
basic loss per share 12 36c 51c
diluted loss per share 12 36c 51c
all activities derive from continuing operations
the notes on pages 27 to 47 are an integral part of these consolidated financial statements
the company has elected to take exemption under section 408 of the companies act 2006 to not present the parent company 
income statement or statement of comprehensive income
the loss for the parent company for the year was 952k 2010 loss of 1170k
consolidated income statement
year ended 30 june 2011 annual report and accounts 2011  pure wafer plc       23
2011
000 
2010
000
loss for the year 4590 6543
other comprehensive income
net loss on translation of subsidiaries with foreign functional currency  1148
total comprehensive income for the year 4590 7691
the notes on pages 27 to 47 are an integral part of these consolidated financial statements
consolidated statement of comprehensive income
year ended 30 june 2011 24       pure wafer plc   annual report and accounts 2011
share
capital
000
share
premium
account
000
merger
reserve
000
retained
earnings
000
exchange
translation
reserve
000
t otal
equity
000
balance at 30 june 2009 1029 24857 58826 51270 1677 31765
comprehensive income
loss for the financial year    6543  6543
other comprehensive income
net loss on translation of 
subsidiaries with foreign 
functional currency 
    1148 1148
transactions with owners
proceeds from issue of shares 3288     3288
balance at 30 june 2010 4317 24857 58826 57813 2825 27362
comprehensive income
loss for the financial year    4590  4590
share options 113 113
balance at 30 june 2011 4317 24857 58826 62290 2825 22885
the notes on pages 27 to 47 are an integral part of these consolidated financial statements
consolidated statement of changes in equity
year ended 30 june 2011 annual report and accounts 2011  pure wafer plc       25
note 2011
000
2010
000
noncurrent assets
goodwill 13 6630 6630
other intangible assets 13 1193 537
property plant and equipment 14 30970 38236
38793 45403
current assets
inventories 15 2194 1920
trade and other receivables 16 7248 6882
cash and cash equivalents 16 2032 311
11474 9113
total assets 50267 54516
current liabilities
trade and other payables 17 5178 4872
interestbearing loans and borrowings 19 8214 3601
derivative financial instruments 18 5 55
13397 8528
noncurrent liabilities
interestbearing loans and borrowings 19 11651 16098
deferred income 21 2334 2528
13985 18626
total liabilities 27382 27154
net assets 22885 27362
equity
ordinary shares 23 4317 4317
share premium 24857 24857
merger reserve 58826 58826
retained earnings 62290 57813
other reserve 2825 2825
total equity 22885 27362
the notes on pages 27 to 47 are an integral part of these consolidated financial statements
the financial statements on pages 22 to 47 were authorised for issue by the board of directors on 3 november 2011 and were 
signed on its behalf by 
peter harrington  tim lowe
director    director
consolidated balance sheet
as at 30 june 2011 26       pure wafer plc   annual report and accounts 2011
note 2011
000
2010
000
net cash inflowoutflow from operating activities 25 1374 308
taxation
research and development tax credits 1989 
investing activities 
interest received  37
purchase of property plant and equipment 601 1163
proceeds from disposal of property plant and equipment  331
net cash used in investing activities 601 795
financing activities 
interest paid 1158 1407
repayment of bank loans 1844 45
repayments of obligations under finance leases  45
proceeds from share issue  3288
net cash usedgenerated from financing activities 3002 1791
net decreaseincrease in cash and cash equivalents 240 688
cash and cash equivalents at beginning of year 1375 915
exchange losses on translation  1148
cash and cash equivalents at end of year 1615 1375
the notes on pages 27 to 47 are an integral part of these consolidated financial statements 
consolidated statement of cash flows
as at 30 june 2011 annual report and accounts 2011  pure wafer plc       27
1 general information
pure wafer plc is a company incorporated in the united kingdom under the companies act 2006 the address of the registered 
office is pure wafer plc central business park swansea vale swansea sa7 0ab the nature of the group’s operations and its 
principal activities are set out in the business review and principal activity section on page 10 
adoption of new and revised standards
the financial statements have been prepared in accordance with international financial reporting standards ifrs as adopted by 
the european union as they apply to financial statements of the group for the year ended 30 june 2011 and applied in accordance 
with the companies act 2006 the financial statements have been prepared in accordance with the historical cost convention
the following new standards new interpretations and amendments to standards and interpretations have been issued but are not 
effective for the financial year beginning 1 july 2010 and have not been early adopted
• ias 24 revised ‘related party disclosures’ effective for periods beginning on or after 1 january 2011  this amends the  
 requirements for related party disclosures but is not expected to impact the group significantly
• ifrs 9 ‘financial instruments – classification of financial assets and financial liabilities’ effective for periods beginning on or  
 after 1 january 2013  the group is yet to assess ifrs 9’s full impact however initial indications are that there will not be a  
 material impact on adoption of the standard
• ifrs 11 – ‘joint arrangements’ effective for periods beginning on or after 1 january 2013  this standard significantly amends  
 the accounting treatment of joint arrangements but is not expected to impact the group
• ifrs 12 – ‘disclosure of interests in other entities’ effective for periods beginning on or after 1 january 2013  this alters the  
 disclosure requirements for companies holding investments in subsidiaries joint arrangements and other entities  it will amend  
 the disclosures of the company but is not expected to have a significant impact
• ifrs 13 – ‘fair value measurements’ effective for periods beginning on or after 1 january 2013  this standard applies to all fair  
 value amounts and disclosures in the financial statements and may therefore have an impact on the group  the company has  
 not yet assessed this potential impact
• annual improvements 2010 effective for periods beginning on or after 1 january 2011 these are minor amendments to various  
 accounting standards and are not expected to impact the group
• amendment to ifrs 1 ‘firsttime adoption – exemption for severe hyperinflation and removal of fixed dates’ effective for periods  
 beginning on or after 1 july 2011  this is not expected to impact the group 
• amendment to ifrs 7 – ‘financial instruments disclosures –disclosures on transfers of financial assets’ effective for periods  
 beginning on or after 1 july 2011  this is not expected to impact the group
• amendment to ias 12 ‘income taxes – deferred tax accounting for investment properties’ effective for periods beginning on or  
 after 1 january 2012  this is not expected to impact the group
 amendment to ifric 14 ‘prepayments of a minimum funding requirement’ effective for periods beginning on or after 1  
 january 2011  this is not expected to impact the group
2 summary of significant accounting policies
basis of preparation
these accounting policies are based on the ifrs ias and ifric interpretations as adopted by the eu collectively “ifrs”  
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are 
set out in the chairman’s statement on pages 4 and 5 the financial position of the group its cash flows liquidity position and 
borrowing facilities are described in the finance review on page 8 in addition note 22 to the financial statements includes the 
group’s objectives policies and processes for managing its capital its financial risk management objectives details of its financial 
instruments and hedging activities and its exposures to credit risk and liquidity risk 
the current economic environment remains challenging the group has recorded a pretax loss however given the facilities that are 
currently in place the group has significant headroom above its forecast cash requirement which will allow it to manage its business 
risks successfully despite the current uncertain outlook 
the directors have assessed the balance sheet and likely future cash flows of the company and group at the date of signing the 
audit report this review considered detailed forecasts for the period to 30 june 2013 on this basis the directors have concluded 
that it is appropriate to prepare the financial statements on a going concern basis  
the key sensitivity in the forecasts includes the achievement of increased sales volumes the business has experienced an upturn in 
demand for its services and the directors believe that this will be sustained sales prices are assumed to remain largely unchanged  
after making enquiries the directors have a reasonable expectation that the group and the company have adequate resources 
to continue in operational existence for the foreseeable future for this reason they continue to adopt the going concern basis in 
preparing the annual report and financial statements 
notes to the consolidated financial statements 
as at 30 june 2011 28       pure wafer plc   annual report and accounts 2011
2 summary of significant accounting policies continued
going concern continued
basis of consolidation
the consolidated financial statements comprise pure wafer plc the company and its subsidiary undertakings pure wafer 
international limited and pure wafer  inc
subsidiaries are those entities controlled by the company control exists when the company has the power to govern the financial 
and operating policies of an enterprise so as to obtain benefits from its activities the financial statements of subsidiaries are 
included in the consolidated financial statements from the date that control commences until the date that control ceases
the purchase method of accounting is used to account for the acquisition of subsidiaries the cost of an acquisition is measured 
at the fair value of the consideration plus costs directly attributable to the acquisition the excess of the cost of the acquisition 
over the group’s share of the fair value of the net identifiable assets of the subsidiary acquired is recorded as goodwill intragroup 
transactions balances and unrealised gains on transactions between group companies are eliminated unrealised losses are also 
eliminated unless costs cannot be recovered where necessary accounting policies of subsidiaries have been changed to ensure 
consistency with the policies adopted by the group
segmental reporting
operational segments are reported in a manner consistent with the internal reporting provided to the chief operating decision 
maker  the chief operating decision maker  who is responsible for allocating resources and assessing the performance of operating 
segments has been identified as the board members that make strategic decisions the solar business is not deemed to be a 
separate segment for the purposes of the 2011 results as it did not commence commercial trading until after the yearend
foreign currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary 
economic environment in which the entity operates the functional currency for the group’s two operating subsidiaries pure wafer 
international limited and pure wafer inc this has been determined to be usd pure wafer plc is also reported in usd
any translation differences that have arisen since 1 july 2006 are presented as a separate component of equity as permitted by 
ifrs 1 any differences prior to this date are not included in this separate component of equity 
foreign currency transactions are initially recorded at the exchange rate ruling at the date of the transaction foreign exchange gains 
and losses resulting from the settlement of such transactions and from the translation at exchange rates ruling at the balance sheet 
date of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement except when 
deferred in equity as qualifying net investment hedges
financial instruments
financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the 
relevant instrument financial assets are derecognised when the rights to receive benefits have expired or been transferred and the 
group has transferred substantially all risks and rewards of ownership financial liabilities are derecognised when the obligation is 
extinguished
nonderivative financial assets are classified as either receivables or cash and cash equivalents they are stated at amortised 
cost using the effective interest method subject to reduction for allowances for estimated irrecoverable amounts a provision for 
impairment of trade receivables is established when there is objective evidence that the group will not be able to collect all amounts 
due according to the original terms of those receivables the amount of the provision is the difference between the asset’s carrying 
amount and the present value of estimated future cash flows and is recognised in the income statement for interestbearing 
assets their carrying value includes accrued interest receivable
cash and cash equivalents include cash in hand and deposits held on call together with other shortterm highly liquid investments 
nonderivative financial liabilities are stated at amortised cost using the effective interest method for borrowings their carrying 
value includes accrued interest payable as well as any unamortised issue costs
the group transacts derivative financial instruments to manage the underlying exposure to foreign exchange and interest rate risks 
the group does not transact derivative financial instruments for trading purposes however  as the group has decided not to hedge 
account for its derivative financial instruments as permitted under ias 39 they are accounted for through the income statement 
derivative financial assets and liabilities are stated at fair value which includes accrued interest receivable and payable where 
relevant changes in fair values are recognised in the income statement in the period in which they arise
financial liabilities and issue costs
all borrowings are initially stated at the fair value of the consideration received after deduction of issue costs issue costs are 
charged as a finance charge to the income statement on a constant yield basis over the term of the borrowings 
revenue recognition
revenue which represents the value of goods and services supplied excluding value added tax and trade discounts is recognised 
on completion of the service or despatch of goods sold in respect of the provision of wafer reclaim services the service is deemed 
to be complete at the point that the wafers are despatched for return to the customer in the case of solar products revenue will be 
recognised when installation works at customer sites have been completed 
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       29
2 summary of significant accounting policies continued
provisions
a provision is recognised in the balance sheet when the group has a legal or constructive obligation as a result of a past event where 
it is more likely than not that an outflow of resources will be required to settle that obligation and a reliable estimate of the amount 
can be made
a provision for restructuring is recognised when the group has approved a detailed and formal restructuring plan and the 
restructuring has either commenced or has been publicly announced future operating losses are not provided for 
where there are a number of similar obligations the likelihood that an outflow will be required in settlement is determined by 
considering the class of obligations as a whole a provision is recognised even if the likelihood of an outflow with respect to any one 
item included in the same class of obligations may be small
share based payments
the company operates an equitysettled sharebased compensation plan the fair value of the employee services received in 
exchange for the grant of the options is recognised as an expense the total amount to be expensed over the vesting period is 
determined by reference to the fair value of the options granted excluding the impact of any nonmarket vesting conditions for 
example profitability and sales growth targets  
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and share 
premium when the options are exercised
property plant and equipment
property plant and equipment are shown in the balance sheet at their historical cost less accumulated depreciation and 
impairment historical cost includes expenditure that is directly attributable to the acquisition and installation of the items 
subsequent costs are included in the assets’ carrying amounts or recognised as a separate asset as appropriate only when it is 
probable that future economic benefits associated with them will flow to the group and the cost of the item can be measured 
reliably all other repairs and maintenance are charged to the income statement as incurred
depreciation is provided so as to write off the initial cost of each asset to its residual value on a straight line basis over its estimated 
useful life as follows
long leasehold buildings  15 years
fixtures and fittings  5 years
plant and machinery  4–10 years
computer equipment  3 years
motor vehicles   5 years
the assets’ residual values and useful lives are reviewed and adjusted if appropriate by the directors at each balance sheet 
date where the carrying amount of an asset is greater than its estimated recoverable amount it is written down immediately to 
its recoverable amount gains and losses on disposals are determined by comparing proceeds with carrying amounts these are 
included in the income statement
government grants
government grants are recorded initially as deferred income and recognised in the income statement in line with the expense to 
which they contribute for grants in respect of the purchase of property plant and equipment the deferred income is released over 
the life of the related assets for grants in respect of staff costs the deferred income is released over the monitoring period of the 
grant offer 
intangible assets – goodwill
goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets and liabilities acquired 
both tangible and intangible
goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses any impairment is 
recognised immediately in the income statement and cannot be subsequently reversed goodwill is allocated to groups of cash
generating units for the purpose of impairment testing gains or losses on the disposal of an entity include the carrying amount of 
goodwill relating to the entity sold 
internally generated intangible assets – research and development
expenditure on research activities is recognised as an expense in the period in which it is incurred
an internally generated intangible asset arising from the group’s development is recognised only if all of the following conditions are 
met an asset is created that can be separately identified it is probable that the asset created will generate future economic benefits 
and the development cost of the asset can be measured reliably
internally generated intangible assets are amortised on a straight line basis over their useful lives where no internallygenerated 
intangible asset can be recognised development expenditure is recognised as an expense in the period in which it is incurred 30       pure wafer plc   annual report and accounts 2011
2 summary of significant accounting policies continued
intangible assets – other
these consist mainly of process development costs capitalised the assets are amortised on a straightline basis over the expected 
useful economic life of five years the assets’ residual values and useful lives are reviewed and adjusted if appropriate by the 
directors at each balance sheet date
impairment of assets
assets that have an indefinite life are not subject to amortisation and are tested at least annually for impairment assets that are 
subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount 
may not be recoverable an impairment loss is recognised in the income statement for the amount by which the carrying amount of 
the asset exceeds its recoverable amount the recoverable amount is the higher of the fair value less costs to sell and the value in 
use for the purpose of assessing impairment assets are grouped at the lowest levels for which there are separately identifiable cash 
flows cashgenerating units
inventories
inventories are stated at the lower of cost and net realisable value cost is determined using the firstin firstout fifo method 
the cost of finished goods and work in progress comprises raw materials direct labour  other direct costs and related production 
overheads based on normal operating capacity but excludes borrowing costs work in progress is valued to reflect the historical 
yield from the reclaim process net realisable value is the estimated selling price in the ordinary course of business less the 
estimated costs of completion and selling expenses
leasing
assets held under finance leases are recognised as assets of the group at their fair value or if lower at the present value of the 
minimum lease payments each determined at the inception of the lease the corresponding liability to the lessor is included in the 
balance sheet as a finance lease obligation lease payments are apportioned between finance charges and reduction of the lease 
obligation so as to achieve a constant rate of interest on the remaining liability finance charges are charged directly against income
rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease
benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight line basis over the lease 
term
restructuring costs
certain costs are classified as relating to restructuring where they relate to the incremental cost of undertaking a significant change 
to the operations or staff structure of the business 
operating loss
operating loss is stated after charging restructuring costs but before investment income finance costs and foreign exchange gains 
and losses
borrowing costs
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets that 
necessarily take a substantial period of time to get ready for their intended use or sale are added to the costs of those assets until 
such time as the assets are substantially ready for their intended use or sale
investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is 
deducted from the borrowing costs eligible for capitalisation
all other borrowing costs are recognised in the income statement in the period in which they are incurred
cash and cash equivalents
in the consolidated statement of cash flows cash and cash equivalents includes cash in hand deposits held at all banks and bank 
overdrafts in the consolidated balance sheet bank overdrafts are shown within borrowings in current liabilities
taxes
tax on the profit or loss for the year comprises current and deferred tax
current tax is the expected tax payable on the taxable income for the year  using tax rates substantively enacted at the balance sheet 
date and any adjustments to tax payable in respect of previous years
deferred tax is provided in full on temporary differences between the carrying amount of assets and liabilities in the financial 
statements and the tax base deferred tax assets are recognised only to the extent that it is probable that future taxable profits will 
be available against which the temporary differences can be utilised deferred tax assets and liabilities are not discounted
deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are 
expected to apply when the deferred tax liability is settled or the deferred tax asset is realised
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       31
2 summary of significant accounting policies continued
taxes continued
deferred tax is provided on temporary differences arising on investments in subsidiaries and associates except where the timing of 
the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in 
the foreseeable future
tax is recognised in the income statement except where it relates to items recognised directly in equity in which case it is 
recognised in equity
share capital
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares or options are shown in 
equity as a deduction net of tax from the proceeds 
pensions
the company operates a defined contribution scheme that is available to all staff upon the completion of any probationary period
3 critical accounting judgements and key sources of estimation uncertainty
critical accounting judgements and key sources of estimation uncertainty
in the application of the group’s accounting policies which are described in note 2 the directors are required to make judgements 
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources 
the estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant 
actual results may differ from these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in 
the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods 
if the revision affects both current and future periods
key sources of estimation uncertainty
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a 
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are 
discussed below
impairment of noncurrent assets
determining whether goodwill property plant and equipment or intangible assets are impaired requires an estimation of the value 
in use of the cash generating units cgus to which those assets are allocated the group has two separate cgus representing 
the uk and the us businesses the value in use calculation requires the entity to estimate the future cash flows expected to arise 
from the cash generating unit and a suitable discount rate in order to calculate present value the carrying amount of goodwill was 
663m and property plant and equipment was 3097m at the balance sheet date 
the group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the first three 
years assuming growth based on detailed sales and cost forecasts the cash flows are extrapolated in perpetuity assuming a 225 
growth rate representing the directors’ estimate of the average longterm growth rate for the markets in which the group operates 
the rate used to discount the forecast cash flows of each of the cgus as defined above was based on the group’s pre tax weighted 
average cost of capital of 89  
for both cgus the impairment review is sensitive to the forecast level of sales sales are planned to increase as demand continues 
to return to the market through the three year forecast period the impairment review includes significant headroom to address this 
there is a risk of impairment if sales were to fall more than 40 below expectation
the review of the uk cgu is also sensitive to discount rate and the forward usd rate were the discount rate to increase to above 
171 or the longterm usd forward rate to rise above 183 there would be a risk of impairment
based on the assumptions made by the directors no impairment has been booked
fair value of derivatives and other financial instruments
as described in note 22 the directors use their judgement in selecting appropriate valuation techniques for financial instruments 
not quoted on an active market valuation techniques commonly used by market practitioners are applied for derivative financial 
instruments assumptions are made based on quoted market rates adjusted for specific features of the instrument other financial 
instruments are valued using a discounted cash flow analysis based on the assumptions supported where possible by observable 
market prices or rates the fair value of financial instruments at the balance sheet date was a net liability of 5000 2010 
55000   32       pure wafer plc   annual report and accounts 2011
deferred tax
the group has tax losses of some 93m available for offset against future uk taxable profits in determining the value of the 
deferred tax asset that can be attributed to these losses the directors have to estimate likely future taxable profits and the period 
over which the asset may be recovered the directors consider the most uptodate forecasts for the uk business and assess the 
risks inherent in achieving those forecasts at the balance sheet date no deferred tax asset has been recorded the deferred tax 
asset may be recognised again in future if there is an improvement in the forecast taxable profits 
3 critical accounting judgements and key sources of estimation uncertainty continued
key sources of estimation uncertainty continued
useful life of property plant and equipment
the group’s plant and machinery is amortised over a period of seven to ten years in estimating the life of the equipment the 
directors have to consider the likely period over which the technology will be used in the market and the ability of the business to 
maintain the equipment to an appropriate condition for use were the technology to be superseded in a much shorter timeframe 
than this the carrying value would need to be depreciated over a shorter timeframe resulting in an increase in the annual 
depreciation charge
4 revenue
an analysis of the group’s revenue is as follows
2011
000
2010
000
continuing operations 29719 24827
5 business and geographical segments 
business and geographical segments are reported in a manner consistent with internal reporting provided to the chief operating 
decisionmaker  which has been identified as the pure wafer plc board
the group’s activities and turnover primarily consist of the reclamation and reprocessing of silicon test wafers in the uk and the 
us for external customers the solar business is not deemed to be a separate segment for the purposes of the 2011 results as it 
did not commence commercial trading until after the yearend
for management purposes the group is organised into two operating divisions based on the geographical territory of origin these 
divisions are the basis on which the group reports its primary segment information
segment information is presented below
uk
north
america consolidated
year ended 30 june 2011 000 000 000
revenue 16395 13324 29719
intersegment sales are charged at prevailing market prices
segment result
operating profit before depreciation and amortisation 2086 1971 4057
depreciation 5693 1814 7507
amortisation of government grants 562  562
amortisation of intangibles 85  85
segment result 3130 157 2973
unallocated corporate expenses 846
operating loss 3819
finance costs 1206
other gains and losses 76
loss before tax 5101
tax 511
loss for the financial year 4590
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       33
uk
north
america eliminations consolidated
year ended 30 june 2011 000 000 000 000
balance sheet
assets
segment assets 42400 21186 13331 50255
unallocated corporate assets 12
consolidated total assets 50267
liabilities
segment liabilities 13020 26689 13331 26374
unallocated corporate liabilities 1004
consolidated total liabilities 27382
year ended 30 june 2010
uk
000
north
america
000
consolidated
000
revenue 14247 10553 24827
intersegment sales are charged at prevailing market prices
result
operating profit before depreciation and amortisation 1005 1093 2098
depreciation 6066 1774 7840
amortisation of government grants 547  547
amortisation of intangibles 98  98
segment result 4612 681 5293
unallocated corporate expenses 1548
operating loss 6841
finance income 37
finance costs 1407
other gains and losses 190
loss before tax 8021
tax 1478
loss for the financial year 6543
uk
north
america eliminations consolidated
year ended 30 june 2010 000 000 000 000
balance sheet
assets
segment assets 40463 22348 8306 54505
unallocated corporate assets 11
consolidated total assets 54516
liabilities
segment liabilities 12248 22688 8306 26630
unallocated corporate liabilities 524
consolidated total liabilities 27154 34       pure wafer plc   annual report and accounts 2011
analysis byproduct
the revenue byproduct variant was as follows
2011
000
2010
000
150mm wafers 992 911
200mm wafers 10744 8909
300mm wafers 17292 14352
other 691 655
29719 24827
analysis by destination 
the revenue by destination was as follows
2011
000
2010
000
europe 6009 6948
united states of america 15536 12115
asia 8174 5764
29719 24827
6 operating loss
operating loss has been arrived at after chargingcrediting
2011
000
2010
000
government grants 562 547
depreciation of property plant and equipment 
– owned assets 6459 6792
– leased assets 1048 1048
hire of assets
– land and buildings 644 626
– equipment 14 101
– other 20 21
restructuring costs  765
amortisation of intangible fixed assets see note 13 85 98
staff costs see note 7 10788 9783
auditors’ remuneration
2011
000
2010
000
fees payable to the company’s auditors for the audit of the company’s annual accounts 9 9
fees payable to the company’s auditors for other services to the group
– audit of the company’s subsidiaries pursuant to legislation 55 50
t otal audit fees 64 59
other services
– tax services 19 57
t otal nonaudit fees 19 57
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       35
7 information regarding directors and employees
2011
000
2010
000
directors’ emoluments
aggregate emoluments including benefits in kind 985 917
contributions to money purchase pension schemes 44 38
1029 955
000 000
highest paid director
aggregate emoluments including benefits in kind 267 220
contributions to money purchase pension schemes 8 8
275 228
no no
number of directors in defined contribution pension scheme 3 3
2011
no
2010
no
average number of persons employed including directors
production 202 180
sales and administration 26 29
228 209
000 000
staff costs during the year including directors
wages and salaries 8923 8141
social security costs 1601 1316
cost of employee share schemes see note 23 113 
pension costs 151 326
10788 9783
8 finance income 
2011
000
2010
000
interest on bank deposits  37
9 finance costs 
2011
000
2010
000
interest on bank loans 134 243
interest on obligations under finance leases and hire purchase contracts 1072 1164
1206 1407 36       pure wafer plc   annual report and accounts 2011
10 other gains and losses
2011
000
2010
000
foreign exchange losses 126 286
derivative financial instruments 50 476
76 190
11 tax on loss on ordinary activities
2011
000
2010
000
current taxation
current tax on income for the year at 28 2010 28  
adjustments in respect of prior years research and development tax credits 511 1478
total current tax 511 1478
deferred taxation
origination and reversal of temporary differences  
total credit for the year 511 1478
the difference between the total tax shown above and the amount calculated by applying the standard rate of united kingdom 
corporation tax to the loss before tax is as follows
2011
000
2010
000
loss on ordinary activities before tax 5101 8021
tax on loss on ordinary activities before tax at 28 2010 28 1428 2246
factors affecting charge for the year
nonrecognition of deferred tax asset for losses carried forward 1428 2246
adjustments in respect of prior periods research and development tax credits 511 1478
total tax credit for the year 511 1478
12 loss per share
the calculation of the basic and diluted loss per share is based on the following data
2011 2010
earnings
loss for the year 000 4590 6543
number of shares
weighted average number of ordinary shares for the purpose of basic loss per share 000 126303 126303
effect of dilutive potential ordinary shares
– share warrants 000 54328 48778
dilutive weighted average number of shares 180631 175081
loss per ordinary share – basic 36c 51c
loss per ordinary share – diluted 36c 51c
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       37
13 goodwill and other intangible fixed assets
goodwill
000
other
intangibles
000
t otal
000
cost 
at 1 july 2009 6630 474 474
additions  444 444
at 1 july 2010 6630 918 918
additions  741 741
at 30 june 2011 6630 1659 1659
amortisation 
at 1 july 2010  283 283
charge for the year  98 98
at 1 july 2011  381 381
charge for the year  85 85
at 30 june 2011  466 466
carrying amount 
at 30 june 2011 6630 1193 7823
at 30 june 2010 6630 537 7167
goodwill which relates to the february 2007 acquisition of the group’s us business is denominated in us dollars usd and is 
considered to represent a single cash generating unit cgu
goodwill is reviewed annually or when other events or changes in circumstance indicate that the carrying amount may not be fully 
recoverable
the recoverable amount of this cgu is determined from value in use calculations the key assumptions for the value in use 
calculation are those regarding the discount rate growth rate and expected changes to selling prices and direct costs management 
estimates discount rates using pretax rates that reflect current market assessments of the time value of money and the risks 
specific to the cgu the growth rates are based on industry growth forecasts changes in selling prices and direct costs are based 
on past practices and expectations of future changes in the market
the group prepares cash flow forecasts derived from the most recent financial budgets approved by the board for the first three 
years assuming growth based on detailed sales and cost forecasts the cash flows are then extrapolated in perpetuity assuming a 
225 growth rate which the directors’ believe represents the long term average growth rate for this cgu and the market in which 
it operates the rate used to discount the forecast cash flows is based on a pre tax weighted average cost of capital of 89 which 
reflects the overall business risks associated with this cgu
the impairment review is sensitive to the forecast level of sales sales are planned to increase as demand returns to the market 
through the three year forecast period 
other intangibles
other intangibles represent costs associated with process development with the exception of solar development costs capitalised 
costs are amortised over their useful economic life which is estimated at five years 
solar development costs totalling 741k were capitalised in the period solar development costs have not yet been amortised 
as the solar division has not yet commenced commercial trading 38       pure wafer plc   annual report and accounts 2011
14 property plant and equipment
long leasehold 
buildings
000
fixtures and
fittings
000
plant and
machinery
000
computer
equipment
000
motor
vehicles
000
total
000
cost
at 1 july 2009 17116 700 61427 672 22 79937
additions   706 13  719
disposals   457   457
at 1 july 2010 17116 700 61676 685 22 80199
additions 7 22 187 25  241
at 30 june 2011 17123 722 61863 710 22 80440
depreciation
at 1 july 2009 7903 437 25288 613 9 34250
charge for the year 1142 101 6537 55 5 7840
disposals   127   127
at 1 july 2010 9045 538 31698 668 14 41963
charge for the year 1143 93 6253 14 4 7507
at 30 june 2011 10188 631 37951 682 18 49470
carrying amount
at 30 june 2011 6935 91 23912 28 4 30970
at 30 june 2010 8071 162 29978 17 8 38236
included within the net book value of plant and machinery are assets with a net book value of 5134000 2010 6182000 as 
assets held under finance lease agreements 
15 inventories
2011
000
2010
000
raw materials 1397 1246
work in progress 423 599
finished goods 374 75
2194 1920
the directors do not consider the carrying value of inventory to be significantly different to the market value of stock
16 other financial assets
trade receivables
2011
000
2010
000
trade receivables 5968 3871
other receivables and prepayments 411 612
accrued income 869 921
corporation tax recoverable research and development tax credit  1478
7248 6882
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       39
16 other financial assets continued
trade receivables continued
t otal trade receivables net of allowances held by the group at 30 june 2011 amounted to 5968k 2010 3871k
the average credit period taken on sale of goods is 73 days 2010 61 days the group has provided fully for all receivables which 
are considered impaired management performs a detailed review of the trade receivables ledger across the group at least twice 
annually to assess receivables that are past due and not recoverable 
before accepting any new customer the group uses an external credit scoring system to assess the potential customer’s credit 
quality and defines credit terms by customer  of the trade receivables balance at the end of the year  1360k 2010 526k is 
due from the group’s largest customer there are no other customers who represent more than 10 of the total balance of trade 
receivables 
included in the group’s trade receivables balance are debtors with a carrying amount of 1537k 2010 161k which are past 
due at the reporting date for which the group has not provided as there has not been a significant change in the credit quality and 
the amounts are still considered recoverable the group does not hold any collateral over these balances the average age of these 
receivables is 113 days 2010 90 days
ageing of past due but not impaired receivables
2011
000
2010
000
less than three months 919 137
more than three months 618 24
1537 161
movement in the allowance for doubtful debts
2011
000
2010
000
balance at beginning of the year 116 818
amounts written off as uncollectable  806
provision against specific customers 68 104
balance at end of the year 184 116
in determining the recoverability of a trade receivable the group considers any change in the credit quality of the trade receivable 
from the date credit was initially granted up to the reporting date the concentration of credit risk is limited due to the customer 
base being large and unrelated accordingly the directors believe that there is no further credit provision required in excess of the 
allowance for doubtful debts
ageing of impaired trade receivables
2011
000
2010
000
current 11 17
60–90 days 48 30
90–120 days  
120 days 125 69
184 116
the directors consider that the carrying amount of trade and other receivables approximates to their fair value 
deferred taxation
due to the losses incurred during the current and prior years the board has taken the decision not to recognise the deferred tax 
asset for losses carried forward as they are not expected to be utilised within the foreseeable future at 30 june 2011 due to the 
existence of capital allowances current taxable profits do not support recognition of this asset
the value of the unrecognised deferred tax asset relating to tax losses of the uk business at 30 june 2011 is 93m 2010 
100m 40       pure wafer plc   annual report and accounts 2011
cash and cash equivalents
these comprise cash in hand and deposits held at call with banks the carrying amount of these assets approximates to their fair 
value
17 other financial liabilities
trade and other payables
curent liabilities
2011
000
2010
000
trade accounts payable 2098 2086
other taxation and social security 106 689
accruals and other creditors 2974 2097
5178 4872
trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs the average credit 
period taken for trade purchases is 48 days 2010 60 days the group endeavours to settle outstanding payables within the credit 
time frame while managing available working capital 
the directors consider that the carrying amount of trade payables approximates their fair value
18 derivative financial instruments
2011
000
2010
000
current liabilities
interest rate swap 5 55
further details pertaining to financial instruments are provided in note 22
19 interestbearing loans and borrowings
2011
000
2010
000
current liabilities
overdrafts 3647 1686
bank loans 1898 1915
hire purchase and finance lease agreements 2669 
8214 3601
noncurrent liabilities
bank loans 3599 5426
hire purchase and finance lease agreements 8052 10672
11651 16098
overdrafts are repayable on demand bank loans hire purchase and finance lease obligations are repayable as follows
2011
000
2010
000
bank loans
within one year 1898 1915
between one and two years 1898 1915
between two and five years 1701 3511
5497 7341
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       41
hire purchase contracts and finance leases
within one year 2669 
between one and two years 2669 2681
between two and five years 5383 7991
10721 10672
obligations under finance lease and hire purchase contracts are secured on the related assets see note 20 for further detail on 
finance lease contracts the bank loans are secured on the assets and undertakings of the group
the fair value of the group’s loan finance leases and hire purchase obligations approximates to their carrying amount 
on 3 august 2011 the group reached an agreement with its lenders to restructure the capital repayment terms of hire purchase and 
finance leases under the terms of this revised arrangement capital repayments will not recommence until january 2012 at 30 june 
2011 the relevant borrowings were classified according to the repayment profile in place at that date
20 obligations under finance leases 
minimum lease payments
2011
000
2010
000
amounts payable under finance leases
– within one year 3413 
– in the second to fifth years inclusive 8996 12705
– after five years  
total value of lease obligations 12409 12705
less future finance charges 1688 2033
present value of lease obligations 10721 10672
it is the group’s policy to lease certain plant and machinery under finance leases 
the contractual payments in respect of finance leases based on the undiscounted cash flows and the earliest date on which the 
group and company can be required to pay are shown above 
for the year ended 30 june 2011 the average effective borrowing rate was 74 2010 74 interest rates are fixed at the 
contract date all leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments 
the carrying amount of the borrowings approximates their fair value
all lease obligations are denominated in usd the fair value of the group’s lease obligations approximates to their carrying amount 
the group’s obligations under finance leases are secured by the lessors’ rights over the leased assets
21 deferred income
2011
000
2010
000
unamortised grant income
– included within current liabilities 538 531
– included within noncurrent liabilities 2334 2528
balance at 30 june 2872 3059
562000 was released to the income statement in the year 2010 547000
deferred income includes the unreleased balance of regional selective assistance grants received to date 42       pure wafer plc   annual report and accounts 2011
2011
000
2010
000
as at 1 july 3059 3606
new grants recognised in the financial year 375 
amount credited to profit and loss account in the financial year 562 547
as at 30 june 2872 3059
22 financial instruments
capital risk management
the group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide 
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to minimise the cost of 
capital
the capital structure of the group consists of debt which includes the borrowings disclosed in note 20 cash and cash equivalents 
and equity directly attributable to equity holders of the parent comprising issued capital reserves and retained earnings as 
disclosed in the statement of changes in equity 
the group monitors capital on the basis of the gearing ratio this ratio is calculated as net debt divided by equity net debt 
comprises the borrowings disclosed in note 20 less cash and cash deposits equity comprises issued capital reserves and retained 
earnings as disclosed in the statement of changes in equity
the gearing ratio at the year end are as follows
2011
000
2010
000
debt 16218 18013
cash and cash equivalents including overdrafts 1615 1375
net debt 17833 19388
equity 22885 27362
net debt to equity ratio 1128 1141
significant accounting policies
details of the significant accounting policies and methods adopted including the criteria for recognition the basis of measurement 
and the basis on which income and expenses are recognised in respect of each class of financial asset financial liability and equity 
instrument are disclosed in note 2 to the financial statements
2011
000
2010
000
financial assets
loans and receivables 
– cash and cash equivalents 2032 311
– trade receivables note 16 5968 3871
8000 4182
financial liabilities 
fair value through profit or loss fvtpl derivative instruments 5 55
amortised cost
– overdrafts 3647 1686
– bank loans 5497 7341
– finance leases 10721 10672
– trade payables 2098 2086
21968 21840
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       43
22 financial instruments continued
financial risk management objectives
the group’s financial instruments comprise bank loans finance leases derivative financial instruments and trade receivables and 
trade payables that arise already from its operations the purpose of the instruments is to raise finance for group activities 
the group seeks to minimise the effects of financial risks by using derivative financial instruments to hedge known exposures the 
interest rates on bank loans are managed through the use of interest rate swaps and interest on the remaining financial liabilities 
are fixed the use of financial derivatives is governed by the group’s policies approved by the board of directors which provide 
written principles on foreign exchange risk interest rate risk credit risk the use of financial derivatives and nonderivative financial 
instruments and the investment of excess liquidity the group does not enter into or trade financial instruments including derivative 
financial instruments for speculative purposes
market risk
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates 
the group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency risk 
including
•       interest rate swaps to mitigate the risk of rising interest rates
foreign currency risk management 
the group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate fluctuations arise 
exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts 
the carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date 
are as follows
2011
000
2010
000
monetary assets
euro 227 48
sterling 120 
monetary liabilities
euro 142 100
sterling 4275 1844
yen 75 110
interest rate risk management
the group is exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates the risk is 
managed by the group maintaining an appropriate mix between fixed and floating rate borrowings by the use of interest rate swap 
contracts to fix the interest rate on the floating rate loans 
the group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management 
section of this note 
interest rate swap contracts
under interest rate swap contracts the group agrees to exchange the difference between fixed and floating rate interest amounts 
calculated on agreed notional principal amounts such contracts enable the group to mitigate the risk of higher interest rates on the 
fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt held the fair value of interest 
rate swaps at the reporting date is determined by discounting the future cash flows using the curves at the reporting date and the 
credit risk inherent in the contract and is disclosed below the average interest rate is based on the outstanding balances at the 
end of the financial year the current contracts were matched to the original payment profiles for the group debt with the financial 
restructuring package that has taken place after the year end these are no longer matched the directors will consider the impact of 
the mismatch in evaluating the interest rate strategy going forward
the group has entered into interest rate swap agreements in respect of the bank loans 
the company has one interest rate swap contract this expires on 12 february 2012 the fair value of the contract as at 30 june 
2011 was a liability of 5000 2010 20158 the contract is net settled 
credit risk management
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group the 
group has adopted a policy of only dealing with creditworthy counterparties the group only transacts with major high street banks 
trade receivables consist of a large number of customers spread across diverse geographical areas ongoing credit evaluation is 
performed on the financial condition of accounts receivable the group does not have any significant credit risk exposure to a single 
counterparty the details are disclosed in note 16  44       pure wafer plc   annual report and accounts 2011
22 financial instruments continued
liquidity risk management
the group manages liquidity risk by maintaining adequate reserves banking facilities and reserve borrowing facilities by 
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities 
liquidity and interest risk tables
the following tables detail the group’s remaining contractual maturity for its nonderivative financial liabilities the tables have been 
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the group can be required 
to pay the table includes both interest and principal cash flows
weighted
average
effective
interest rate
less than
6 months
000
6 months
–1 year
000
12 
years
000
25 
years
000
t otal
000
2011
variable interest rate instruments overdraft 45 3647    3647
variable interest rate instruments bank loans 64 949 949 1898 1928 5724
fixed interest rate instruments finance leases 54 711 711 1422 2844 5688
variable interest rate instruments finance leases 70 623 624 1247 2494 4988
59 5930 2284 4567 7266 20047
2010
variable interest rate instruments overdraft 45 2775    2775
variable interest rate instruments bank loans 64 958 957 1915 3828 7658
fixed interest rate instruments finance leases 54   1409 4253 5662
variable interest rate instruments finance leases 70   1272 3838 5110
60 3733 957 4596 11919 21205
note 20 describes that the majority of the group’s interest bearing debt is denominated in usd
with the exception of financial assets as disclosed in note 16 financial assets are current and are non interest bearing 
fair value of financial instruments
the fair values of financial assets and financial liabilities are determined as follows
• foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted 
 interest rates matching maturities of the contracts
•  interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the   
 applicable yield curves derived from quoted interest rates and
• the carrying amount of financial assets and financial liabilities recorded at amortised cost approximates to their fair value
23 called up share capital 
2011
000
2010
000
called up allotted and fully paid
126302693 2010 126302693 ordinary shares of 2p each 4317 4317
warrants
as part of the restructuring exercise undertaken in september 2009 the company created the right for each of the placees to 
subscribe in cash at 2p per share subscription price for such number of new ordinary shares pro rata to their participation in 
the placing which taken together with new ordinary shares issued pursuant to the placing but excluding 2500000 new ordinary 
shares being subscribed for by stephen boyd and existing ordinary shares already held by the placees will result in the placees 
increasing their holding of ordinary shares to the following percentages of the company’s fully diluted share capital immediately 
following admission
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       45
23 called up share capital continued
placee              percentage
stephen boyd             1000
peter harrington            325
keith baker             250
tim lowe             200
jerry winters             188
jeffrey whitlock             063
marilyn bollengier            125
mark selway             150
the warrants are not transferable in whole or in part the rights to subscribe under the placee warrants may be exercised at any 
time
the right to subscribe is conditional on the middle market price minimum market price quoted by the london stock exchange for 
the ordinary shares as at close of trading on the business day prior to the date of exercise being not less than 3p a placee warrant 
is deemed to be exercised immediately prior to a sale of the entire issued ordinary share capital of the company
the subscription price and minimum market price will be subject to adjustment in the event of any reconstruction merger sale on a 
share for share basis or the like
royal bank of scotland plc rbs warrant 
the company created the right for rbs to subscribe in cash at 2p per share for such number of ordinary shares as in aggregate 
equals 10 per cent of the fully diluted equity share capital of the company immediately after exercise of such right the rbs 
warrant may be exercised at any time until 31 december 2029 the rbs warrant is deemed to be exercised immediately prior to a 
sale of the entire issued share capital of the company the rbs warrant is transferable in whole or part provided that the transfer 
does not trigger a requirement to make an offer under rule 9 of the code
share based payments
pure wafer plc has an enterprise management incentive share option scheme emi scheme
during the year  5550000 options to subscribe for ordinary shares have been granted to directors and to selected employees 
under the emi scheme
the exercise price of granted options is set out below
granted 2011
options at
exercise price
of £002
number of options 5550000
options are conditional on the employee remaining within the employment of the group on the exercise date the vesting period  
the options issued under the emi scheme are exercisable as follows
in respect of the options over ordinary shares granted at 2 pence the options shall be exercisable from 1 november 2011 at the 
subscription price of 2 pence
movements in the number of share options outstanding and their related weighted average exercise prices are as follows
average exercise 
per share
options 
number
at 1 july 2010 
granted – 21 april 2011 2 pence 5550000
at 30 june 2011 5550000 46       pure wafer plc   annual report and accounts 2011
share options outstanding at the end of the year have the following expiry date and exercise prices
expiry date
average exercise 
per share
shares
2011
2021 – expiry date 21 april 2 pence 5550000
the weighted average fair value of the options with an exercise price of 2 pence granted on 21 april 2011 determined using the 
blackscholes valuation model was 30 pence per option the significant inputs into the model were weighted average share price 
of 39 pence at the grant date exercise price of 2 pence volatility of 50 risk free rate of 360 and a dividend stream of nil the 
charge to the income statement arising in respect of share options granted in the period amounted to 113000
24 operating lease arrangements
2011
000
2010
000
minimum lease payments under operating leases recognised as an expense in the year 750 750
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable 
operating leases in respect of office properties which fall due as follows
2011
000
2010
000
land and buildings
– within one year  
– between one and two years 300 166
– between two and five years 53 523
– more than five years 8250 8300
8603 8989
the operating leases greater than five years relate to a 99 year lease of land at the swansea premises that expires in 2099 and 
the lease of land and buildings in prescott arizona expiring in december 2017 none of the figures in the above table have been 
discounted to present value
2011
000
2010
000
equipment 
– within one year  
– between one and two years  49
– between two and five years 14 
– more than five years  
14 49
2011
000
2010
000
other 
– within one year  
– between one and two years 32 32
– between two and five years  
– more than five years  
32 32
notes to the consolidated financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       47
25 notes to the consolidated cash flow statement
2011
000
2010
000
loss for the period 4590 6543
adjustment for
– taxation 511 1478
– finance expense 1206 1407
– share options charge 113 
– finance income  37
– other noncash gains and losses 50 476
– depreciation and amortisation 7586 7938
operating cash flows before movement in working capital 3754 811
increase  decrease in receivables 1842 721
decrease in payables 264 1599
increase  decrease in inventory 274 1201
net cash inflow  outflow from operating activities 1374 308
26 related party transactions
the ultimate controlling party of the group is pure wafer plc
transactions between the company and its subsidiaries which are related parties of the company have been eliminated on 
consolidation and are not disclosed in this note 
the remuneration of the directors who are key management personnel of the group is set out in note 7 48       pure wafer plc   annual report and accounts 2011
we have audited the parent company financial statements of pure wafer plc for the year ended 30 june 2011 which comprise 
the balance sheet the accounting policies and the related notes the financial reporting framework that has been applied in their 
preparation is applicable law and united kingdom accounting standards united kingdom generally accepted accounting practice
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the parent 
company financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an 
opinion on the parent company financial statements in accordance with applicable law and international standards on auditing uk 
and ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with 
chapter 3 of part 16 of the companies act 2006 and for no other purpose  we do not in giving these opinions accept or assume 
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save 
where expressly agreed by our prior consent in writing
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error  this includes an 
assessment of whether the accounting policies are appropriate to the parent company’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information in the annual report to 
identify material inconsistencies with the audited financial statements if we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report
opinion on financial statements 
in our opinion the parent company financial statements 
•  give a true and fair view of the state of the company’s affairs as at 30 june 2011
•  have been properly prepared in accordance with united kingdom generally accepted accounting practice and 
•  have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the parent company financial statements 
are prepared is consistent with the parent company financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our 
opinion  
•  adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been  
 received from branches not visited by us or 
•  the parent company financial statements are not in agreement with the accounting records and returns or 
•  certain disclosures of directors’ remuneration specified by law are not made or 
•  we have not received all the information and explanations we require for our audit
other matter 
we have reported separately on the group financial statements of pure wafer plc for the year ended 30 june 2011 
jason clarke senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
swansea
independent auditors’ report 
to the members of pure wafer plc annual report and accounts 2011  pure wafer plc       49
note
2011
000
2010
000
fixed assets
investments 4 17922 17922
current assets
debtors 5 3822 4112
cash at bank and in hand — —
t otal current assets 3822 4112
creditors amounts falling due within one year 6 1005 456
net current assets 2817 3656
total assets less current liabilities 20739 21578
net assets 20739 21578
capital and reserves
called up share capital 8 4317 4317
share premium account 9 24857 24857
profit and loss account 9 7280 6441
exchange translation reserve 1155 1155
shareholders’ funds 9 20739 21578
the notes on pages 50 to 54 are an integral part of these company financial statements
the financial statements on pages 49 to 54 were authorised for issue by the board of directors on 3 november 2011 and were 
signed on its behalf by 
peter harrington  tim lowe
director    director
company balance sheet
at at 30 june 2011 50       pure wafer plc   annual report and accounts 2011
1 accounting policies – company
the financial statements are prepared in accordance with applicable united kingdom accounting standards the particular 
accounting policies adopted which have been applied consistently throughout the current and the prior financial year  are described 
below
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are 
set out in the chairman’s statement on pages 4 and 5 the financial position of the group its cash flows liquidity position and 
borrowing facilities are described in the finance review on page 8 in addition note 22 to the financial statements includes the 
group’s objectives policies and processes for managing its capital its financial risk management objectives details of its financial 
instruments and hedging activities and its exposures to credit risk and liquidity risk 
as described in the chairman’s statement on pages 4 and 5  the current economic environment remains challenging the group has 
recorded a pretax loss however  given the facilities that are currently in place the group has significant headroom above its forecast 
cash requirement which will allow it to manage its business risks successfully despite the current uncertain outlook 
the directors have assessed the balance sheet and likely future cash flows of the company at the date of signing the audit report 
this review considered detailed forecasts for the period to 30 june 2013 on this basis the directors have concluded that it is 
appropriate to prepare the financial statements on a going concern basis 
the key sensitivity in the forecasts includes the achievement of increased sales volumes the business has experienced an upturn in 
demand for its services and the directors believe that this will be sustained sales prices are assumed to remain largely unchanged 
after making enquiries the directors have a reasonable expectation that the group and the company have adequate resources 
to continue in operational existence for the foreseeable future for this reason they continue to adopt the going concern basis in 
preparing the annual report and financial statements 
accounting convention
the financial statements are prepared under the historical cost convention modified for the fair value of share based payments 
investments
investments in subsidiaries and associates are held as fixed assets and are stated at cost less provision for any impairment
cash flow statement
under financial reporting standard no 1 revised 1996 the company is not required to prepare a cash flow statement as a group 
cash flow statement has been included in the financial statements of the group 
share based payments
the company operates an equitysettled sharebased compensation plan  the fair value of the employee services received in 
exchange for the grant of the options is recognised as an expense  the total amount to be expensed over the vesting period is 
determined by reference to the fair value of the options granted excluding the impact of any nonmarket vesting conditions for 
example profitability and sales growth targets  
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and share 
premium when the options are exercised
taxation
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or 
substantively enacted at the balance sheet date 
deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax or 
a right to pay less tax at a future date at rates expected to apply when they crystallise based on current tax rates and law timing 
differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in 
which they are included in the financial statements
deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered deferred tax 
assets and liabilities are not discounted
notes to the company financial statements 
as at 30 june 2011 annual report and accounts 2011  pure wafer plc       51
2 information regarding directors and employees
2011
000
2010
000
directors’ emoluments
aggregate emoluments including benefits in kind 985 834
contributions to money purchase pension schemes 44 32
1029 866
000 000
highest paid director
aggregate emoluments including benefits in kind 267 240
contributions to money purchase pension schemes 8 8
275 248
no no
number of directors in defined contribution pension scheme 3 3
no no
average number of persons employed including directors
sales and administration 6 6
2011
000
2010
000
staff costs during the year including directors
wages and salaries 684 731
social security costs 75 79
pension costs 30 32
789 842
3 loss for the year
as permitted by section 408 of the companies act 2006 the company has elected not to present its own profit and loss account for 
the year  pure wafer plc reported a loss for the financial year ended 30 june 2011 of 952k 2010 loss of 1170k
auditors’ remuneration for audit services for the company was 9000 2010 9000 auditors’ remuneration for nonaudit services 
for the company was nil 2010 nil  52       pure wafer plc   annual report and accounts 2011
4 investments
investment in
subsidiaries
000
cost and net book value
at 1 july 2010 and 30 june 2011 17922
the company’s investments in group companies relate to
holding
£1 ordinary shares activity country of incorporation
pure wafer international limited 100 reclamation and reprocessing of 
silicon test wafers 
united kingdom
pure wafer  inc 100 reclamation and reprocessing of 
silicon test wafers 
united states
pure wafer solar limited 100 dormant united kingdom
5 debtors
2011
000
2010
000
amounts owed by group undertakings 3810 4102
other debtors and prepayments 12 10
3822 4112
6 creditors amounts falling due within one year 
2011
000
2010
000
bank loans and overdraft note 7 900 362
other creditors and accruals 105 94
1005 456
7 borrowings  
2011
000
2010
000
overdraft
within one year 900 362
900 362
8 called up share capital
2011
000
2010
000
called up allotted and fully paid
126302693 2010 126302693 ordinary shares of 2p each 4317 4317
warrants
as part of the restructuring exercise undertaken in september 2009 the company created the right for each of the placees to 
subscribe in cash at 2p per share ‘‘subscription price’’ for such number of new ordinary shares pro rata to their participation in 
the placing which taken together with new ordinary shares issued pursuant to the placing but excluding 2500000 new ordinary 
shares being subscribed for by stephen boyd and existing ordinary shares already held by the placees will result in the placees 
increasing their holding of ordinary shares to the following percentages of the company’s fully diluted share capital immediately 
following admission
notes to the company financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       53
8 called up share capital continued
placee              percentage
stephen boyd             1000
peter harrington            325
keith baker             250
tim lowe             200
jerry winters             188
jeffrey whitlock             063
marilyn bollengier            125
mark selway             150
the warrants are not transferable in whole or in part the rights to subscribe under the placee warrants may be exercised at any 
time
the right to subscribe is conditional on the middle market price ‘‘minimum market price’’ quoted by the london stock exchange 
for the ordinary shares as at close of trading on the business day prior to the date of exercise being not less than 3p a placee 
warrant is deemed to be exercised immediately prior to a sale of the entire issued ordinary share capital of the company
the subscription price and minimum market price will be subject to adjustment in the event of any reconstruction merger sale on a 
share for share basis or the like
royal bank of scotland plc rbs warrant 
the company created the right for rbs to subscribe in cash at 2p per share for such number of ordinary shares as in aggregate 
equals 10 per cent of the fully diluted equity share capital of the company immediately after exercise of such right the rbs 
warrant may be exercised at any time until 31 december 2029 the rbs warrant is deemed to be exercised immediately prior to a 
sale of the entire issued share capital of the company the rbs warrant is transferable in whole or part provided that the transfer 
does not trigger a requirement to make an offer under rule 9 of the code   
share based paymants
pure wafer plc has an enterprise management incentive share option scheme emi scheme
during the year  5550000 options to subscribe for ordinary shares have been granted to directors and to selected employees 
under the emi scheme
the exercise price of granted options is set out below
granted 2011
options at
exercise price
of £002
number of options 5550000
options are conditional on the employee remaining within the employment of the group on the exercise date the vesting period  
the options issued under the emi scheme are exercisable as follows
in respect of the options over ordinary shares granted at 2 pence the options shall be exercisable from 1 november 2011 at the 
subscription price of 2 pence 
movements in the number of share options outstanding and their related weighted average exercise prices are as follows
average exercise
per share
2010
000
at 1 july 2010 
granted – 21 april 2011 2 pence 5550000
at 30 june 2011 5550000
share options outstanding at the end of the year have the following expiry date and exercise prices
expiry date
exercise price
per share
shares
2011
2021 – expiry date 21 april 2 pence 5550000 54       pure wafer plc   annual report and accounts 2011
the weighted average fair value of the options with an exercise price of 2 pence granted on 21 april 2011 determined using the 
blackscholes valuation model was 30 pence per option the significant inputs into the model were weighted average share price 
of 39 pence at the grant date exercise price of 2 pence volatility of 50 risk free rate of 360  and a dividend stream of nil the 
charge to the income statement arising in respect of share options granted in the period amounted to 113000
9 combined reconciliation of movement in shareholders’ funds and statement of movements on reserves
share
capital
000
share
premium
account
000
profit and
loss 
account
000
exchange
translation
reserve
000
total
2011
000
t otal
2010
000
at the beginning of the year 4317 24857 6441 1155 21578 19842
loss for the financial year   952  952 1552
share options   113  113 
issue of share capital      3288
at the end of the year 4317 24857 7280 1155 20739 21578
10 related party transactions
under financial reporting standard 8 the company is not required to disclose transactions with entities 100 or more of whose 
voting rights are controlled within the group 
notes to the company financial statements 
as at 30 june 2011 continued annual report and accounts 2011  pure wafer plc       55
notice is given that the 2011 agm of pure wafer plc company will be held at 11am on14 december 2011 at pure wafer plc 
central business park swansea vale swansea sa7 0ab for the following purposes
resolutions
to consider and if thought fit pass the following resolutions resolutions 1 to 6 inclusive and resolution 8 and 9 will be proposed as 
ordinary resolutions and resolutions 7 and 10 will be proposed as special resolutions
1 t o receive the directors’ report and the company’s annual accounts for the year ended 30 june 2011 together with last  
 directors report the last directors remuneration report and the auditors’ report on those accounts and the auditable part of the  
 directors remuneration report and on the directors report
2  t o reappoint k baker as a director of the company
3  t o reappoint e ap gwilym as a director of the company
4  t o 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  t o authorise the directors to fix the remuneration of the auditors
6  that the directors of the company be and are hereby generally and unconditionally authorised for the purposes of section 551  
 of the companies act 2006 the act to issue and allot 
 61 ordinary shares of 2p each in the capital of the company ordinary shares to be issued upon valid exercise of any share  
  options granted to employees of the company in accordance with the terms of the company’s 2005 performance share  
  plan and 2005 saye option plan 
 
 62  ordinary shares pursuant to the warrants granted to royal bank of scotland plc and certain executives of the company as  
  described in the circular sent to shareholders on 21 august 2009 as subsequently amended and
 63  shares in the company up to an aggregate nominal amount of £842018
 provided that unless previously revoked varied or renewed this authority shall expire at the conclusion of the next agm of  
 the company after the passing of this resolution save that the company may make an offer or agreement before the expiry  
 of this authority which would or might require relevant securities to be allotted after such expiry and the directors may allot  
 relevant securities pursuant to any such offer or agreement as if the authority conferred by this resolution had not expired this  
 authority shall be in substitution for any such authority previously given
7  that subject to the passing of resolution 6 pursuant to section 570 of the act and in substitution for all existing authorities  
 under that section or under section 95 of the companies act 1985 the directors be and are generally empowered to allot  
 equity securities within the meaning of section 560 of the act for cash either pursuant to the authority conferred by   
 resolution 6 or by way of a sale of shares held in treasury as if section 561 of the act did not apply to any such allotment  
 provided that this power shall be limited to
 71 the allotment of equity securities in connection with an offer of ordinary shares up to an aggregate nominal value of  
  £842018 whether by way of a rights issue open offer or otherwise to holders of ordinary shares in    
  proportion as nearly as practicable to the respective numbers of ordinary shares held by them subject to   
  such exclusions or other arrangements as the directors may deem necessary or expedient in relation to    
  treasury shares fractional entitlements record dates or any legal or practical problems under the laws of any   
  territory or the requirements of any regulatory body or stock exchange
 72  the allotment of equity securities to be issued pursuant to any share options granted to employees of the company in  
  accordance with the terms of the company’s 2006 performance share plan and 2005 saye option plan  
 73  the allotment of ordinary shares pursuant to the warrants granted to royal bank of scotland plc and certain executives of  
  the company as described in the circular sent to shareholders on 21 august 2009 as subsequently amended and
 74 the allotment of equity securities for cash otherwise than pursuant to paragraphs 71 to 73 above up to an aggregate  
  nominal amount of £126303
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 
8 t o authorise the directors to make such amendments to the rules of the company’s existing saye andor employee share  
 option plans as may be necessary or expedient other than as regards the number of shares which may be offered where the  
 current limits on individual and overall participation contained in the rules will continue in force to provide the company with  
 a structure to operate a cost effective allemployee sharesave plan including creating a subplan or schedule to an existing plan  
notice of annual general meeting 56       pure wafer plc   annual report and accounts 2011
resolutions continued
 and obtaining or refreshing hm revenue  customs approval where such plans may be administered as tax approved employee  
 share plans
9 t o authorise the directors subject to the passing of resolution 8 to establish an employee benefit trust if appropriate to  
 administer the company’s sharesave plan including the provision of shares interests in shares loans or cash payments as may  
 be required under such plan and to set up a subsidiary company to act as corporate trustee in relation to the trust
 
10 that pursuant to section 701 of the act the company be and is generally and unconditionally authorised to make market  
 purchases within the meaning of section 6934 of the act of ordinary shares of 2p each in the capital of the company  
 shares provided that
 101  the maximum number of shares which may be purchased is 12630269
 102  the minimum price exclusive of expenses which may be paid for a share is 2p
  103  the maximum price exclusive of expenses which may be paid for a share is an amount equal to the higher of
  i 105 of the average of the closing middle market quotations for the shares as quoted on the aim market  
   operated by the london stock exchange aim for the five business days immediately preceding the day on which 
   the purchase is made and
  ii the value of a share calculated on the basis of the higher of the price quoted for 
   a the last independent trade of and
   b the highest current independent bid for  any number of shares on aim
and unless previously revoked varied or renewed shall expire at the conclusion of the next agm of the company after the passing 
of this resolution save that the company may enter into a contract to purchase shares before the expiry of this authority under 
which such purchase will or may be completed or executed wholly or partly after such expiry and may make a purchase of shares 
pursuant to any such contract as if the authority conferred by this resolution had not expired
by order of the board
tim lowe     registered office
company secretary    pure wafer plc
      central business park
      swansea vale
      swansea sa7 0ab
notice of annual general meeting annual report and accounts 2011  pure wafer plc       57
notes 
entitlement to attend and vote
1 only those members registered on the company’s register of members at
  • 600 pm on 12 december 2011 or 
  • if this meeting is adjourned at 600pm on the day two days prior to the adjourned meeting
shall be entitled to attend and vote at the meeting
website giving information regarding the meeting
2  information regarding the meeting including the information required by section 311a of the companies act 2006 is available  
  from wwwpurewafer com
attending in person
3  if you wish to attend the meeting in person you will need to bring with you a form of formal identification which includes your  
  photograph such as a passport or a picture driving licenc
appointment of proxies
4 if you are a member of the company at the time set out in note 1 above you are entitled to appoint a proxy to exercise all or any  
  of your rights to attend speak and vote at the meeting and you should have received a proxy form with this notice of meeting  
  you can only appoint a proxy using the procedures set out in these notes and the notes to the proxy form
5 a proxy does not need to be a member of the company but must attend the meeting to represent you details of how to appoint  
  the chairman of the meeting or another person as your proxy using the proxy form are set out in the notes to the proxy form  
  if you wish your proxy to speak on your behalf at the meeting you will need to appoint your own choice of proxy not the  
  chairman and give your instructions directly to them
6 you may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares you may  
  not appoint more than one proxy to exercise rights attached to any one share t o appoint more than one proxy please complete  
  and return the enclosed form of proxy and return it to capita registrars pxs 34 beckenham road beckenham  kent br3  
  4tu in accordance with the instructions thereon
7 a vote withheld is not a vote in law which means that the vote will not be counted in the calculation of votes for or against the  
  resolution if no voting indication is given your proxy will vote or abstain from voting at his or her discretion your proxy will vote  
  or abstain from voting as he or she thinks fit in relation to any other matter which is put before the meeting
appointment of proxy using hard copy proxy form
8 the notes to the proxy form explain how to direct your proxy to vote on each resolution or withhold their vote
  t o appoint a proxy using the proxy form the form must be
  • completed and signed
  • sent or delivered to capita registrars pxs 34 beckenham road beckenham kent br3 4tu in accordance with the   
    instructions thereon and
  • received by capita registrars at the above address no later than 11am on 12 december 2011
in the case of a member which is a company the proxy form must be executed under its common seal or signed on its behalf by an 
officer of the company or an attorney for the company
any power of attorney or any other authority under which the proxy form is signed or a duly certified copy of such power or 
authority must be included with the proxy form
appointment of proxy by joint members
9 in the case of joint holders where more than one of the joint holders purports to appoint a proxy only the appointment  
  submitted by the most senior holder will be accepted seniority is determined by the order in which the names of the joint  
  holders appear in the company’s register of members in respect of the joint holding the firstnamed being the most senior
changing proxy instructions
10  t o change your proxy instructions simply submit a new proxy appointment using the methods set out above note that the  
  cutoff time for receipt of proxy appointments see above also applies in relation to amended instructions any amended proxy  
  appointment received after the relevant cutoff time will be disregarded
  where you have appointed a proxy using the hardcopy proxy form and would like to change the instructions using another hard 
  copy proxy form please contact capita registrars on 0871 664 0300 calls cost 10p per minute plus network extras lines are  
  open 830am to 530pm mondayfriday
  if you submit more than one valid proxy appointment the appointment received last before the latest time for the receipt of  
  proxies will take precedence 58       pure wafer plc   annual report and accounts 2011
termination of proxy appointments
11 in order to revoke a proxy instruction you will need to inform the company using the following method
  •  by sending a signed hard copy notice clearly stating your intention to revoke your proxy appointment to capita registrars  
   prx 34 beckenham road beckenham kent br3 4tu in the case of a member which is a company the revocation notice  
   must be executed under its common seal or signed on its behalf by an officer of the company or an attorney for the  
   company any power of attorney or any other authority under which the revocation notice is signed or a duly certified copy  
   of such power or authority must be included with the revocation notice
   the revocation notice must be received by capita registrars no later than 11am on 12 december 2011
   if you attempt to revoke your proxy appointment but the revocation is received after the time specified then subject to the  
   paragraph directly below your proxy appointment will remain valid
   appointment of a proxy does not preclude you from attending the meeting and voting in person if you have appointed a  
   proxy and attend the meeting in person your proxy appointment will automatically be terminated
corporate representatives
12 a corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all its  
  powers as a member provided that no more than one corporate representative exercises powers over the same share
issued shares and total voting rights
13 as at 1200 noon on 1 november 2011 the company’s issued share capital comprised 126302693 ordinary shares of 2p  
  each each ordinary share carries the right to one vote at a general meeting of the company and therefore the total number of  
  voting rights in the company as at 1200 noon on 1 november 2011 is 126302693
  the website referred to in note 2 will include information on the number of shares and voting rights
questions at the meeting
14 under section 319a of the companies act 2006 the company must answer any question you ask relating to the business being  
  dealt with at the meeting unless
  •  answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of confidential  
   information
  •  the answer has already been given on a website in the form of an answer to a question or
  •  it is undesirable in the interests of the company or the good order of the meeting that the question be answered
voting
15 voting on all resolutions will be conducted by way of a poll rather than on a show of hands so that the votes of all shareholders  
  attending in person or by proxy are properly taken into account 
documents on display
16 the following documents will be available for inspection at the offices of the company central business park swansea vale  
  swansea sa7 0ab from 13 december 2011 until the time of the meeting and for at least 15 minutes prior to the meeting until  
  the end of the meeting
  •  copies of the service contracts of executive directors of the company
  •  copies of the letters of appointment of the nonexecutive directors of the company
communication
17 except as provided above members who have general queries about the meeting should use the following means of   
  communication no other methods of communication will be accepted
  •  in writing to tim lowe pure wafer plc central business park swansea vale swansea sa7 0ab
  you may not use any electronic address provided either
  •  in this notice of annual general meeting or 
  •  any related documents including the chairman’s letter and proxy form
to communicate with the company for any purposes other than those expressly stated
notice of annual general meeting designed and produced by pure wafer plc
central business park
swansea vale
swansea sa7 0ab
tel 44 01792 311 200
fax 44 01792 795 420
web wwwpurewafercom


Summary:
 4       pure wafer plc   annual report and accounts 2011
chairman’s statement
introduction
the year to 30 june 2011 saw the 
semiconductor industry move from 
recovery to growth with pure wafer 
continuing to benefit from the additional 
volume business from all geographical 
areas in which we trade and with all 
customers across the various sectors of 
the industry 
the industry growth in general and the 
projected increasing worldwide demand 
for hand held devices and tablets also 
prompted some of our major customers 
to announce extensive capital expenditure 
plans for new 300mm manufacturing 
facilities coming on line between now and 
2014 both in asia and north america 
these announcements and actions give 
exciting long term prospects for pure 
wafer 
during the financial year as volume 
demand strengthened and the confidence 
in a period of sustained growth returned 
there has been an acceptance of selling 
price increases across the customer 
base and an acknowledgement that 
the low prices of previous periods were 
unsustainable for the industry the 
group has therefore been successful in 
implementing price increases across its 
customer base
the unfortunate events in japan following 
the tsunami in february resulted in 
additional business for pure wafer in 
our fourth quarter as our customers 
looked to ensure that their reclaim wafer 
supply was maintained as our japanese 
competitors struggled to maintain their 
service
during the financial year we saw the pure 
wafer solar panel business successfully 
achieve full accreditation under the 
microgeneration certification scheme 
mcs for all our solar products and 
our solar installations this enables 
our customers to take advantage of 
the uk government’s feedintariff the 
accreditation of our products provides us 
with a strong platform on which to build 
financial results
•  t urnover 297m 2010 248m
• ebitda 32m 2010 13m pre 
restructuring charges
• operating loss 38m 2010 68m
• pretax loss 51m 2010 80m
• basic loss per share 36c 2010 loss 
per share 51c 
the results show significant improvement 
on prior years and the board is 
encouraged by the actions of the 
management team during the period to 
take advantage of the market conditions 
to maximise revenue and to continue 
reducing costs across all sectors of the 
business 
group funding
during the period we successfully 
completed negotiations with our bank 
and asset funders of a further financial 
restructuring package which will assist 
the management of our working capital 
requirement arising from the increased 
volumes of wafer reclaim and the 
potential growth in our solar business 
the financial agreements comprise a 
further 6 months of capital payments 
holiday on the asset based debts and a 
rescheduling of the capital repayments 
over a 42 month period commencing on 
1st january 2012 and concluding by 30th 
june 2015 the agreement also includes 
an increased bank overdraft facility of up 
to £17million 27million 
the company’s existing bank debt 
continues to be repaid in accordance 
with the original restructuring agreement 
completed in august 2009
the latest financial restructuring 
agreement further demonstrates the 
commitment that the bank and asset 
funders have to pure wafer and shows 
a confidence in the recovery of the 
business and i would like to thank them 
for their support
management
i would like to thank the entire team for 
their support and efforts during a year 
in which activity levels increased and our 
solar products were accredited
outlook
the current period has commenced 
strongly with a continuation of high 
volumes enjoyed during our fourth 
quarter it is particularly pleasing that 
high and stable volumes are being seen 
from our customers in all geographical 
regions this together with the 300mm 
manufacturing facilities currently under 
construction by the semiconductor 
industry and in some cases nearing 
completion gives an optimistic long term 
outlook
on the flip side the worldwide fear of a 
second recession due to the uncertainty 
in the financial markets and the effect 
of this on consumer confidence has 
the semiconductor industry’s move from recovery 
to growth has been reflected in our results annual report and accounts 2011  pure wafer plc       5
prompted the industry to consider its 
levels of inventory many industry analysts 
are predicting a short term industry 
slowdown during our second quarter 
with full production returning during 
the beginning of the second half of our 
financial year 
the launch of our solar products is a 
very exciting time for pure wafer because 
we believe that the renewable energy 
market has massive potential growth both 
globally and significantly here in the uk 
underpinned by the introduction of the 
government backed feedintariff in april 
2010 the 2012 financial year has started 
well following successful accreditation 
of our products in 2011 a number of 
solar installations have been completed 
our order book is building with a mix 
of domestic and large commercial 
installations we have been successful 
in being awarded a contract for a local 
community housing scheme for rooftop 
solar pv systems with a potential value of 
up to £1million and are well placed to win 
other major solar contracts in the public 
sector all for completion this forthcoming 
financial year 
these factors together with our financial 
restructuring providing additional working 
capital gives pure wafer a strong 
foundation on which to move forward
stephen boyd
chairman
3 november 2011