pure wafer plc 
annual report and accounts
pure wafer plc
central business park 
swansea sa7 0ab
tel 44 01792 311 200 
fax 44 01792 795 420 
web wwwpurewafercom
pure wafer plc  annual report and accounts 2008 corporate statement
pure wafer is an industry leading provider 
of silicon wafer reclaim services pure wafer 
cleans and polishes silicon wafers sent 
for reclaim by many of the world’s largest 
semiconductor manufacturers pure wafer 
operates a state of the art foundry which 
has the capability to meet the stringent 
standards of purity and flatness required 
by its customers
pure wafer is listed on the alternative 
investment market aim of the london 
stock exchange headquartered in the uk 
it operates on a global basis through an 
international sales force throughout europe 
north america and south east asia
 ifc corporate statement 
01 highlights
 02 pure wafer at a glance 
 04 chairman’s statement 
06 chief executive’s review 
 07 financial review 
10  board of directors senior management 
and advisers 
 12 directors’ report 
17 directors’ remuneration report 
19 consolidated statement of directors’ responsibilities
20 consolidated independent auditors’ report 
21 consolidated income statement 
 22 statement of changes in equity 
 23 consolidated balance sheet
 24	 consolidated	cash	flow	statement
 25	 notes	to	the	consolidated	financial	statements
45 company statement of directors’ responsibilities
46 company independent auditors’ report
 47 company balance sheet
48	 notes	to	the	company	financial	statements	
51 notice of annual general meeting 01 annual report and accounts 2008  pure wafer plc
highlights
›  turnover £223m 2007 £223m
›  ebitda £31m 2007 £58m
› 	 	 operating	profit	£02m	2007	£35m
› 	 	 p retax	loss	£08m	2007	£36m	profit
›  pretax loss £01m before restructuring 
costs	and	other	losses	2007	£32m	profit
›   basic loss per share 231p 2007 earnings 
per share 105p 
› 	 	 net	cash	inflow	from	operating	activities	
£17m 2007 £43m
financial
operational
› 	 	 uk	site	in	swansea	h as	been	
operationally restructured
›  usa operation in prescott arizona 
has increased 300mm capacity and 
is	in	process	of	obtaining	qualification	
to act as a supplier to the majority of 
us semiconductor manufacturers
› 	 	 the	 us	dollar	remained	weak	against	
sterling	during	the	period	however 	
following	periodend	sterling	has	
weak ened	against	the	us	dollar
› 	 	 business	now	stabilised	and	with	spare	
capacity 	is	ready	to	tak e	advantage	of	
the	upswing	in	the	semiconductor	mark et	
when	it	occurs 02 pure wafer plc  annual report and accounts 2008
pure wafer at a glance
our history
p ure	w afer	was	established	in	 2 0 0 0 	 b y	
a 	 m a n a g e m e n t 	 t e a m 	 w i d e l y 	 experienced	
in	the	semiconductor	 i n d u s t r y 	 w i t h 	 t h e	
b a c k i n g 	 o f 	 s t r a t e g i c 	 i n v e s t m e n t 	 f r o m	
venture capital and industry partners 
t h e 	 g r o u p 	 fl o a t e d 	 o n 	 a i m 	 i n 	 d e c e m b e r 	 2 0 0 4	
and in february 2007 pure wafer completed 
t h e 	 a c q u i s i t i o n 	 o f 	 a 	 w a f e r 	 r e c l a i m 	 f a c i l i t y 	 i n	
arizona us
t h e 	 g r o u p 	 i s 	 n o w 	 a n 	 i n d u s t r y 	 l e a d i n g	
provider	o f 	 w a f e r 	 r e c l a i m 	 s e r v i c e s 
our facilities uk
the uk business operates from a state 
of the art purpose built facility situated 
in	a	new	technology	park	in	swansea	
wales  and is the most advanced plant 
of	its	kind	in	europe	the	size	of	the	facility	
is in excess of 4500m
2
 and includes over 
2000m
2
 of production cleanrooms 
we have installed the latest generation 
of	tools	available	on	the	mark et	with	the	
most advanced equipment as used by 
ic and prime silicon producers with the 
highest	technical	specifications	we	are	
positioned to offer the most effective 
wafer	reclaim	ser vice	to	our	customers	
with	minimal	silicon	removal	this	enables	
our customers to maximise the number 
of	times	a	test	wafer	can	be	reclaimed
our facilities usa
the	facility	in	p rescott	arizona	was	
constructed in 1997 and has received in 
excess of 40m of investment since then 
this high volume hightech fab has been 
focussed on provision of 100mm 125mm 
150mm 	 and 	 200mm 	 wafer 	 reclaim 	 ser vices	
but	following	the	acquisition	by	p ure	w afer	
in february 2007 capability to reclaim 
300mm	wafers	has	been	installed
pure wafer is a worldwide leader in the provision 
of 300mm wafer reclaim services these services 
enable semiconductor manufacturers to gain 
efficiencies through the increased reuse of silicon 
test wafers within their production processes  03 annual report and accounts 2008  pure wafer plc
our process
at pure wafer our process for reclaiming 
t e s t 	 w a f e r s 	 i n v o l v e s 	 t h e 	 f o l l o w i n g 	 k e y 	 s t a g e s 	
› 	 i n s p e c t i o n 	 o f 	 t h e 	 w a f e r s 	 f o r 	defects	
a n d 	 c l a s s i fi c a t i o n 	 b y 	 t y p e 	of	contaminant	
to be removed 
›  submersion in a precise mix of chemicals 
appropriate to remove the contaminant 
› 	 assessment	of	flatness	and	correction	
of defects using pure wafer’s advanced 
polishing processes 
› cleaning and drying 
› 	 f inal	quality	inspection	and	packaging	
for return to the customer
about wafer reclaim
during the many stages of the manufacturing process of 
semiconductors	large	quantities	of	test	wafers	are	used	to	check	
the	accurate	calibration	of	equipment	these	test	wafers	are	a	k ey	
consumable in the manufacture of semiconductors and the ability 
to reclaim them through pure wafer’s advanced process provides 
manufacturers	with	the	oppor tunity	to	reduce	costs
the semiconductor industry is currently seeing a rapid transition 
to	300mm	wafers	in	order	for	manufacturers	to	continue	to	
increase functionality at a reduced cost the industry has sought 
to	increase	the	size	of	wafers	on	which	semiconductors	are	
manufactured	300mm	wafer	processing	now	represents	the	
fastest	growing	area	of	the	semiconductor	industr y 	
however 	wafer	reclaim	is	a	highly	specialised	and	technically	
sophisticated	process	only	a	few	companies	worldwide	are	
able to meet the exacting standards required by semiconductor 
manufacturers	for	the	reclaim	of	300mm	wafers	of	which	
pure wafer is one 04 pure wafer plc  annual report and accounts 2008
introduction
the year to 30 june 2008 particularly the 
second half of the financial year was one of the 
most challenging for pure wafer as the industry 
experienced a continued slowdown in the 
semiconductor market cutbacks in capital 
spending a steep decline in chip prices 
a weak us dollar record high oil prices 
and a tightening of the availability of credit 
as these conditions deteriorated we saw 
increased competition a marked reduction 
in wafer volume orders intense pressure on 
our selling prices increased freight costs and 
the adverse impact of a weak us dollar
a key fundamental of wafer reclaim as 
a costsaving service to semiconductor 
manufacturers remains transition from 200mm 
to 300mm silicon wafers for the production of 
semiconductors going forward continues and 
bodes well for the future however it has 
become clear to us that the recovery in the 
industry is likely to take longer than first 
envisaged a view shared by industry analysts
financial results
› turnover £223m 2007 £223m
› ebitda £31m 2007 £58m
› operating profit £02m 2007 £35m
› pretax loss £08m 2007 £36m profit
›  pretax loss £01m before restructuring costs 
and other losses 2007 £32m profit
›  basic loss per share 231p 2007 earnings 
per share 105p 
›  net cash inflow from operating activities 
£17m 2007 £43m
whilst the results are disappointing following 
a satisfactory first half to the financial year 
the board are encouraged by the actions of the 
management team during the second half to 
reduce the impact of the adverse market conditions
group funding
the current trading environment is challenging 
however to the date of approving the financial 
statements the group has continued to meet its 
capital and interest repayments on all its debt 
during the year the group has recorded a 
pretax loss and has relied on waivers of 
loan covenant tests at 30 june 2008 and 
30 september 2008 in order to stay in line 
with banking facility arrangements as we 
announced in june 2008 the board continues 
to be in discussions with its principal lenders 
the current management forecasts for the 
remainder of the year to 30 june 2009 indicate 
that the company needs to reschedule the 
capital repayments of debt including the letter 
of credit for 195m being the final deferred 
consideration of the acquisition of the usa 
facility which falls due in february 2009 
and may also need to obtain waivers of future 
covenant tests the directors have instituted 
measures to preserve cash and continue to 
negotiate the rescheduling of our current 
debt obligations 
preliminary approach and strategic options
the board has received a preliminary 
indicative approach to acquire pure wafer plc 
whilst negotiations are in progress there can 
be no certainty that an offer will be made 
the directors are also pursuing alternative 
strategic options and sources of finance in 
the event that neither the offer for the business 
nor a restructuring of existing borrowing 
facilities can be arranged no commitment 
has been secured to date and we will update 
shareholders when it is appropriate to do so
management
in november 2007 we announced that 
keith baker would be stepping down as 
group chief executive officer to take up his role 
as group chief operating officer to focus on the 
daytoday running of the swansea and arizona 
sites peter harrington a cofounder of the business 
and formerly strategic developments director 
replaced keith as group chief executive officer
we have further strengthened our board during 
the period with the addition of stephen young 
as interim group finance officer in april 2008 
replacing james dearing he is a chartered 
management accountant cima and an 
experienced public company finance director 
whose previous position was with british biocell 
international formerly bbi holdings plc
following the periodend in july 2008 we 
announced that giles clarke would be stepping 
down from his position of nonexecutive chairman 
to deputy chairman eurfyl ap gwilym was 
appointed as nonexecutive chairman in his place 
eurfyl has served on the pure wafer board since its 
ipo in december 2004 in the roles of nonexecutive 
director chairman of the remuneration committee 
and deputy chairman of the board
in october 2008 we announced the appointment 
of stephen boyd to the board as a nonexecutive 
director effective from 1 october 2008 stephen 
aged 58 a chemical engineer by training having 
gained a 1st class honours degree in chemical 
engineering at imperial college london has 
chairman’s statement
pure wafer has undertaken a full operational 
restructuring process to reflect the situation in 
the market progress has been made to reduce 
costs and the business is now more efficiently 
structured to reflect current demand  05 annual report and accounts 2008  pure wafer plc
highlights
›  satisfactory first half financial year
›  transition from 200mm to 300mm silicon wafers continues
›  significant board changes
worked in a number of manufacturing industries 
including five years as group chief executive of 
capital industries plc stephen currently sits on 
a number of boards of both public and private 
companies mainly in the technology sector 
and is currently chairman of pittards plc
i would like to thank the entire team for their 
support and effort during the challenging year 
outlook
trading for the first half of the 2009 financial year 
has been encouraging to date although the 
outlook for the semiconductor industry remains 
difficult as the global economy continues to face 
turbulence and uncertainties the downturn in 
the industry coupled with an oversupply of wafer 
reclaim capacity has continued to put pressure 
on pricing and volumes during the current 
financial year and we do not expect an early 
marketwide recovery in the industry
pure wafer has undertaken a full operational 
restructuring process to reflect the situation in 
the market progress has been made to reduce 
costs and the business is now more efficiently 
structured to reflect current demand these actions 
together with the 300mm capacity installed at 
both our facilities in the uk and the usa put 
pure wafer in a good position to take advantage 
of the industry recovery going forward
the us dollar has significantly strengthened 
against sterling since 30 june 2008 and 
should this remain will have a positive impact 
on revenue and cash flow going forward
eurfyl ap gwilym
nonexecutive chairman
19 december 2008 06 pure wafer plc  annual report and accounts 2008
highlights
›  uk site in swansea has been 
operationally restructured
›  usa operation in prescott arizona 
has increased 300mm capacity and is 
in process of obtaining qualification to 
act as a supplier to the majority of us 
semiconductor manufacturers
›  the us dollar remained weak against 
sterling during the period however 
following periodend sterling has 
weakened against the us dollar
›  business now stabilised and with spare 
capacity is ready to take advantage of the 
upswing in the semiconductor market when 
it occurs
operational review
the volumes for 200mm wafer reclaim for the 
full year to 30 june 2008 were up by 51 
when compared with the prior year this increase 
reflects the first set of results which include a 
full year performance of the prescott arizona 
acquisition 300mm wafer reclaim for the year 
showed a slight decrease in volumes of 5 
compared with the prior year with all of this 
decrease experienced in the second half following 
stable volumes in the first half of the year 
the slowdown in the industry and the 
increased competition from new taiwanese 
competitors resulted in significant pressure 
on selling prices therefore during the second 
half of the year we undertook a full operational 
restructuring process during which we have 
driven efficiencies and realised cost savings 
across the business these actions together 
with the 300mm capacity installed at both 
swansea and prescott put pure wafer in 
a good position to take advantage of the 
industry recovery going forward
prescott site arizona usa
it has been a busy time for the site in prescott 
arizona the development of the site to install 
300mm wafer reclaim capacity and the transfer 
of the 300mm technology from our swansea 
site were concluded early in the year both on 
time and within budget the qualification of 
the first 300mm customer was completed and 
the first revenuebearing 300mm wafers were 
achieved in october 2007 just eight months 
after the acquisition 
the site now has a 300mm line with an 
approximate capacity of 30000 wafers per month 
and is in a position to take advantage of the 
significant us market
during the period the site engaged with nearly 
every north american semiconductor manufacturer 
and is currently qualified or in the qualification 
process with all of them the rampup of 
volume sales continued during the period and 
the business is well placed to build upon this 
success the prescott site remains cash positive 
and profitable at an ebitda level and the us 
remains a key market for us
swansea site uk
the swansea site undertook a significant 
operational restructuring process during the 
period aimed at reducing the cost per wafer 
to enhance the competitiveness of our product 
without reducing quality this process has 
been successful and we managed to achieve 
significant cost savings during the period 
whilst maintaining our position at the leading 
edge of our industry
both 300mm and 200mm volumes remained 
relatively stable during the period with a small 
decrease in volumes seen during the second 
half as the prolonged slowdown of the industry 
took hold 
market and new products
we continue to explore opportunities outside 
of wafer reclaim to enhance our portfolio of 
products although we will only do so in areas 
where we have certainty of the end market and 
where we will not incur significant research and 
development costs we are confident that we 
can deliver new product developments in areas 
of global growth compatible with our existing 
core skills and worldclass manufacturing 
equipment and facilities
peter harring ton
group chief executive
19 december 2008
chief executive’s review
the prescott site remains cash positive 
and profitable at an ebitda level and 
the us remains a key market for us 07 annual report and accounts 2008  pure wafer plc
highlights
›  further capacity increases underway
›  arizona site performed in line with expectations
›  new customers on board
›  market growth continues 08 pure wafer plc annual report and accounts 2008
international financial r eporting standards ifrs
this annual report is the first delivered by the 
group under ifrs therefore the prior year 
statement figures to 30 june 2007 have been 
restated accordingly comments on the group’s 
key performance indicators are presented below
r evenue
revenue for the period was £223m a decrease 
of 04 on last year 2007 £223m an analysis 
of turnover by origin and destination can be found 
in note 5
volumes
the volume of 300mm equivalent wafers at 
1028000 2007 898000 was 14 up on 
the prior year these figures include full year 
2007 4½ months volumes from the business 
acquired in the usa the 300mm equivalent 
volume is used as a constant measure to convert 
100mm 125mm 150mm and 200mm wafer 
sizes to the same surface area of that of a 
300mm wafer volumes in the us are 
predominantly 200mm and below
gross profit
gross profit at £62m 2007 £89m a reduction 
of 30 was impacted by the reduction in average 
300mm selling prices in the marketplace which 
fell more quickly than management envisaged 
the gross profit margin reduced accordingly to 
28 2007 40
operating profit
the operating profit of £02m 2007 £35m 
was achieved after incurring £04m 2007 £nil 
of restructuring costs and a cost of £02m 
in relation to exiting an existing customer 
agreement the latter cost being included 
in administration costs
in addition the depreciation and amortisation 
charge included in the operating profit was 
£29m 2007 £24m after taking this 
into account earnings before interest 
tax depreciation and amortisation ebitda 
was £31m 2007 £58m
administrative expenses
administrative expenses of £57m 2007 £55m 
for the group remained broadly constant 
however this included a full year of cost from 
the acquisition of the prescott arizona facility 
of £14m 2007 £07m for 4½ months
lossprofit before tax
the loss before tax was £08m 
2007 £36m profit
despite the challenges arising from the increase 
in customer specifications as the requirement 
for smaller and lower numbers of particles 
per wafer continues to progress the group has 
managed to continue to reduce the cost per 
300mm equivalent wafer we are continuing 
our focus on cost reduction and are pursuing 
production cost per wafer savings across both 
manufacturing sites
foreign exchange
as over 95 of group revenue is in us dollars 
revenue and margins are significantly impacted 
by the movement in this currency 
we continue to convert as much of the cost 
base as possible to us dollars in order to 
provide a natural hedge against the us dollar 
revenue streams 
cash flow and capital expenditure
the group continues to be cash generative on 
an operating level with a net cash inflow from 
operating activities of £17m 2007 £43m
however the financing structure of the group 
and the current schedule of debt repayment 
have resulted in a reduction of cash of £20m 
for the year from £30m to £10m as at 
30 june 2008 £39m of interest bearing loans 
were due for repayment within one year and 
the final tranche of deferred consideration for 
the us acquisition of £09m or us195m 
is due for repayment in february 2009 
during the period capital equipment with the 
value of £50m was acquired with £33m 
of this expenditure at the us site in relation 
to completion of the 300mm line
taxation
there is no current tax charge across the group 
due to the losses incurred during the year 
the board has taken the prudent decision to 
remove the deferred tax asset of £53m from 
the balance sheet as it is not expected to 
be utilised within the foreseeable future 
this generates a non cash deferred tax 
charge for the year of £53m
deferred consideration
the business in prescott arizona was 
purchased for us112m comprising a 
payment of us75m on completion in 
february 2007 us175m after 12 months 
in february 2008 and a further us195m 
interestfree deferred consideration instalment 
falling due in february 2009
financial review
we continue to convert as much of the 
cost base as possible to us dollars in 
order to provide a natural hedge against 
the us dollar revenue streams  09 annual report and accounts 2008  pure wafer plc
the initial purchase payment of us750m was 
funded through a fouryear variable interest rate 
loan from royal bank of scotland “rbs” that 
was fixed through an interest rate swap at the 
time of drawdown to a rate of 69 per annum 
the us175m deferred consideration was 
also funded through a fouryear variable interest 
rate loan from rbs that was also fixed to 48 
through an interest rate swap at the drawdown 
in february 2008 the final deferred consideration 
payment is not contingent and accordingly 
is backed by a letter of credit from rbs 
the deferred consideration payment has been 
discounted to present value and is reflected in the 
accounts as a financial liability within net funds 
as the amount has been discounted an imputed 
noncash interest charge is levied through the 
income statement each period until the deferred 
consideration is paid
eps and dividend
basic loss per share for the period was 231p 
2007 105p earnings per share which includes 
the effect of the provision against the uk deferred 
tax asset removing the impact of tax the adjusted 
loss per share is 30p 2007 136p earnings 
per share
due to the current economic climate the cash 
constraints faced by the group moving forward 
and the lack of available distributable reserves 
the board is not able to recommend the 
payment of a dividend for this financial year
stephen y oung
interim group finance officer
19 december 2008
   year ended year ended 
   30 june 31 june 
   2008 2007  
   £’000 £’000
turnover   22268 22348
gross profit   6180 8917
ebitda   3094 6066
operating profit   162 2980
lossprofit before tax   799 2702
adjusted diluted eps   231p 1111p
we continue to convert as much of the cost base as possible to us dollars in order to provide 
a natural hedge against the us dollar revenue streams 
the table below shows yearonyear the average rate achieved by the group after taking into 
account the impact of hedging instruments
   year ended  year ended 
   30 june 2008 31 june 2007
opening rate £1  us   201 184
average rate achieved after hedging £1  us  201 191
closing rate £1  us   198 201 10 pure wafer plc  annual report and accounts 2008
board directors senior management and advisers
1 dr eurfyl ap gwilym
nonexecutive chairman
eurfyl ap gwilym has a wide experience of 
the technology industry having served on 
the boards of many companies including 
philips electronics ge information services 
and bis banking international he is currently 
a nonexecutive director of a number of listed 
companies and the principality building society 
eurfyl joined the board in november 2004 
2 giles cl arke dl nonexecutive director and deputy chairman
giles clarke is chairman and majority 
shareholder of a number of private companies 
including atl telecom a designer of data 
transmission chips he founded majestic wine 
in 1981 and cofounded pet city in 1990 
giles is a national council member of the 
learning and skills council is chairman of 
the england and wales cricket board and is 
nonexecutive chairman of chaco resources plc 
he joined the board in november 2004
3 paul dol an 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
stephen bo yd
nonexecutive director
stephen boyd has worked in a number of 
manufacturing industries including five years 
as group chief executive of capital industries 
plc stephen currently sits on a number of 
boards of both public and private companies 
mainly in the technology sector and is currently 
chairman of pittards plc stephen joined the 
board on 1 october 2008
nonexecutive directors
1 
4 
2 
5 
3  11 annual report and accounts 2008  pure wafer plc
4 peter harring ton
group chief executive
peter harrington is a 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
5 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
stephen young
interim group finance officer
stephen young is a chartered management 
accountant cima and an experienced public 
company finance director stephen has held the 
position of finance director at several technology 
companies including the aim listed british biocell 
international formerly bbi holdings plc
executive directors
interim company secretar y  
and registered office
s young
pure w afer plc
central business park
swansea vale
swansea sa7 0ab
solicitors
morgan cole 
llys tawe
kings road
swansea sa1 8pg
bankers
royal bank of scotl and
one kingsway
cardiff cf10 3yb
nominated advisersbrokers
al tium
30 st james’s square
london
sw1y 4al 
auditors
del oitte llp
blenheim house 
fitzalan court 
newport road 
cardiff cf24 0ts
registrars
capita registrars
the registry
34 beckenham road
beckenham
kent br3 4tu
public rel ations advisers
financial dynamics
holborn gate
26 southampton buildings
london wc2a 1pb
advisers 12 pure wafer plc  annual report and accounts 2008
the directors present their annual report and the audited financial statements of the group for the year ended 30 june 2008
principal activity 
the principal activity of the group remains the reclaim of silicon test wafers the principal activity of the company is as a holding company 
and provision of management services to the group’s trading subsidiaries
the consolidated income statement is set out on page 21
a review of developments affecting the group during the year and its prospects for the future is set out in the chairman’s statement and the 
chief executive’s review
business review
a detailed review of the group’s operations and key performance indicators is contained in the chairman’s statement on pages 4 and 5 the 
chief executive’s review on pages 6 and 7 and the financial review on pages 8 and 9
information about the use of financial instruments by the company and its subsidiaries is given in note 24 to the financial statements 
dividends
the directors do not recommend the payment of a dividend 2007 £nil
risks and uncertainties 
there are a number of potential risks and uncertainties which could have a material impact on the company’s longterm performance
liquidity and funding risk
the current environment is challenging however to the date of approving this financial statement the group has met its capital and interest 
repayments on all its debt during the year the group has recorded a pretax loss and has relied on waivers of loan covenant tests at 30 june 2008 
and 30 september 2008 in order to stay in line with banking facility arrangements as we announced on 30 june 2008 the board continues to 
be in discussion with its principal lenders who remain supportive the current management forecasts for the remainder of the year to 30 june 2009 
indicate that the company needs to reschedule the capital repayments of debt and may also need to obtain waivers of future loan covenant tests 
the directors have instituted measures to preserve cash and reschedule the current debt repayment obligations
the board has received an indicative preliminary approach to acquire pure wafer plc whilst negotiations are in progress there can be no certainty 
that an offer will be made if any sale is arranged it is likely to include a cash injection which will be used to reduce the debt obligations of the 
group but if not the group will need to restructure the finance facilities such that the debt can be serviced from forecast levels of trading and 
cash flow
the directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business nor a restructuring 
of existing facilities can be arranged no commitment has been secured to date and we will update shareholders when it is appropriate to do so 
successful resolution of these matters is essential to be able to secure ongoing funding and continue trading 
market risk
volumes – in the current climate there is a risk that sales volumes will continue to decrease leading to a reduction in market prices as our 
competitors compete for existing business the possibility of temporary shutdown or closure of customers’ manufacturing facilities increases 
this risk we mitigate the risk by maintaining our standards of quality and endeavouring to qualify to provide wafer reclaim services to as 
many of the major semiconductor manufacturers as we can
price – competitive pressures create a risk that the market price for wafer reclaim services will fall affecting our gross margin we mitigate 
this risk by understanding the production cost for each wafer and only tendering for work at rates that will achieve an acceptable return
credit risk
the group offers short term credit to customers and there is a risk that customers will default on payments for services provided the group 
manages the risk by trading with a wide range of customers in diverse geographical locations and monitoring the creditworthiness of customers 
both before offering credit terms and during their relationship with pure wafer 
treasury risk
foreign exchange – the group’s sales are predominantly in us dollars so the strong pound against the us dollar has reduced reported revenue 
the group currently hedges a portion of this risk with forward exchange contracts but also achieves natural hedges by incurring a proportion 
of the group’s operating costs and securing all of the loan finance in dollars
interest rate – the group’s borrowings include variable rate term loans and fixed rate finance leases we mitigate the risk associated with our 
variable rate loans by entering into interest rate swaps to fix the interest rate for the duration of the loans 
competitor risks
new entrants – the high level of investment required and the related cost of capital makes this unlikely in the current market conditions
directors’ report  13 annual report and accounts 2008  pure wafer plc
technology risk
as the group operates in a technology sector there is a risk that the process could be superseded and new capital investment required however 
the board feels that this is extremely unlikely in the current market and based on available knowledge of new producttechnology developments
capital structure
details of the authorised and issued share capital together with details of the movements in the company’s issued share capital during the year 
are shown in note 25 the company has one class of ordinary shares which carries no right to fixed income each share carries the right to one 
vote at general meetings of the company 
there are no specific restrictions on the size of a holding or on the transfer of shares which are both governed by the general provisions of the 
articles of association and prevailing legislation the directors are not aware of any agreements between holders of the company’s shares that 
may result in restrictions on the transfer of securities or on voting rights substantial shareholders are listed in a separate section that follows
details of employee share schemes are set out in note 26 
no person has any special right of control over the company’s share capital and all issued shares are fully paid
with regard to the appointment and replacement of directors the company is governed by its articles of association the companies acts and 
related legislation the articles themselves may be amended by special resolution of the shareholders the powers of directors are described 
in the main board terms of reference copies of which are available on request and the corporate governance statement on page 15
under its articles of association the company has authority to issue ordinary shares up to an aggregate nominal value equal to 5 of the 
aggregate nominal ordinary share capital as in issue immediately following admission
supplier payment policy 
the group’s policy is to settle terms of payment with suppliers when agreeing the terms of trade trade creditors of the group at 30 june 2008 
were equivalent to 67 days 2007 81 days purchases based on the average daily amount invoiced by suppliers during the year 
directors and their interests 
the current directors of the company who served throughout the financial year unless stated otherwise are as shown below 
c g clarke nonexecutive director 
e ap gwilym nonexecutive chairman
†
 
p dolan nonexecutive director 
s boyd nonexecutive director appointed 1 october 2008 
p harrington group chief executive 
k baker chief operating officer  
s young interim group finance officer appointed 23 june 2008 
j j dearing group finance director  resigned 30 april 2008
  j j dearing stood down as group finance director on 14 november 2007 and was replaced by p dolan as interim group finance director until 23 june 2008  
j j dearing resigned from the board on 30 april 2008
k baker stood down as group chief executive on 14 november 2007 and was replaced by p harrington
 †e ap gwilym took over from c g clarke as chairman on 10 july 2008
the beneficial interests of the directors in the share capital of the company at the beginning and the end of the financial year were as follows
        30 june 31 june  
        2008 2007 30 june 30 june 
        2p ordinary 2p ordinary 2008 2007 
        share share 2p ordinary 2p ordinary 
        options options shares shares 
        number  number  number  number
c g clarke        — — 279482 279482
e ap gwilym        — — 25000 25000
p harrington        95203 95203 159066 159066
k baker        158911 158911 163012 163012
p dolan        — — 65000 —
the directors held no shares in any other group company at any time during the financial year 14 pure wafer plc  annual report and accounts 2008
substantial shareholders 
as at 8 december 2008 notifications of beneficial interests in 3 or more of the company’s issued share capital are as follows
         ordinary shares 
         number 
blackrock investment management         5443149 2047
axa framlington          2675352 1006
goldman sachs group          2111883 794
ellipsiz ltd          2000500 752
aviva          1959184 737
noble fund managers          1780000 669
polar capital european forager fund ltd        1483748 558
new star asset management         1302102 490
majedie asset management         1300000 489
fc asset management         1296276 487
jupiter asset management         1027126 386
revera asset management         919776 346
standard life investments ltd         800000 302
authority to issue and allot shares
the companies act 1985 contains restrictions on the power of the directors to allot a company’s shares as a result the directors may only 
issue the shares pursuant to the authority within the statutory terms given by shareholders’ resolutions or contained in the articles of association 
their power to issue equity shares for cash to persons other than the existing shareholders is similarly restricted
resolutions to confer these authorities were passed at the previous annual general meeting agm not on incorporation these authorities will 
expire at the conclusion of the next agm unless previously renewed varied or revoked by the company in general meeting
resolutions to renew the authorities will be prepared at the 2008 agm to be held on 4 february 2009
subsequent to the passing of these resolutions the directors will have the authority to allot shares up to an aggregate nominal amount of £159547 
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 £26591
health and safety environmental and social responsibility
the company has detailed health and safety guidelines which are communicated to all employees and which are regularly reviewed for suitability 
in the context of the company’s activities
the group is fully committed to protecting the environment in which we live and work both ecologically and socially a formal policy is in place 
with internal management control systems to ensure that this is achieved as best as is practicable and to ensure that the international standard 
for environmental management iso 14001 is met
charitable and political donations
the group did not make any monetary charitable or political donations during the period
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are set out in the 
chairman’s statement on pages 4 and 5 the financial position of the group its cash flows liquidity position and borrowing facilities are 
described in the financial review on pages 8 and 9 in addition note 24 to the financial statements includes the group’s objectives policies 
and processes for managing its capital its financial risk management objectives details of its financial instruments and hedging activities 
and its exposures to credit risk and liquidity risk the directors have assessed the balance sheet and likely future cash flows of the company 
and group at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the financial statements 
on a going concern basis 
as described in the chairman’s statement on pages 4 and 5 the current environment is challenging the company has recorded a pretax loss 
and has relied on waivers of loan covenant tests at 30 june and 30 september 2008 in order to stay in line with banking facility arrangements 
in forming the conclusion about the going concern basis the directors have considered these factors together with the forecasts for the business 
for the period to 30 june 2010 the forecasts indicate that the company can continue to meet interest payments but it needs to reschedule some 
of the capital repayments of debt and may also need to obtain waivers of future loan covenant tests the company has met all capital and interest 
payments as they fell due up to the date of approving the financial statements whilst the directors have instituted measures to preserve cash and 
reschedule the current repayment obligations these circumstances create material uncertainties over future cash flows and the availability of finance 
directors’ report 
continued 15 annual report and accounts 2008  pure wafer plc
as explained in the chairman’s statement on  pages 4 and 5 the board has received a preliminary indicative approach to acquire pure wafer plc 
whilst negotiations are progressing there can be no certainty that an offer will be made if any sale is arranged it is likely to include a cash injection 
which will be used to reduce the debt obligations of the company but if not the group will need to restructure the finance facilities such that the 
debt can be serviced from forecasted levels of trading and cash flow
the directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business nor a restructuring 
of existing facilities can be arranged no commitment has been secured to date 
the directors have concluded that the combination of circumstances represents a material uncertainty that casts significant doubt upon the group’s 
and the company’s ability to continue as a going concern and therefore that it may be unable to realise its assets and discharge its liabilities 
in the normal course of business nevertheless after making enquiries and considering the uncertainties described above the directors have 
a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future 
for these reasons they continue to adopt the going concern basis in preparing the annual report and financial statements 
the financial statements do not include any adjustments that would result if the going concern assumption were not applicable 
corporate governance 
the company is listed on aim and is therefore not required to comply with the provisions of the combined code however the board adopts a 
number of principles of the combined code that it feels are relevant to a business of the size and complexity of pure wafer plc as set out below
during the year the board comprised a nonexecutive chairman three 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 four nonexecutive directors meets regularly throughout the year 
c g clarke e ap gwilym s boyd and p dolan are considered by the board to be independent nonexecutive directors between 14 november 2007 
and 23 june 2008 p dolan acted as interim finance director and was not considered independent during this period
the board is responsible for overall group strategy acquisition and investment policy approval of major capital expenditure projects and consideration 
of significant financing matters there is a formal schedule of matters specifically reserved to the board’s jurisdiction it reviews the strategic 
direction of the group its annual budgets the progress towards achievement of those budgets its forecasts and its capital expenditure 
programmes in furtherance of their duties there are agreed procedures for the directors to take independent advice if necessary at the 
company’s expense
the board considers the chairman to be the main point of contact to whom concerns of whatever nature may be conveyed in the event that 
an individual does not wish to raise a concern with him the board has identified the deputy chairman as an independent member of the board 
to whom such concerns may be addressed
audit committee
the company has an audit committee comprising two nonexecutive directors and the chairman excepting the period between 14 november 2007 
and 23 june 2008 the committee was chaired by p dolan e ap gwilym stood in as audit committee chair during those dates the committee 
provides a link between the board and the group’s auditors on matters falling within the scope of the group’s audit these matters include accounting 
standards and policies internal financial control procedures and the group’s statutory financial statements which are intended for publication 
remuneration committee
the remuneration committee comprises the two 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 peter harrington reports any decisions taken 
with justification to the board as quickly as practicable
board meetings
there were nine board meetings during the period to 30 june 2008 all board members attended every meeting that took place whilst they were 
a director 16 pure wafer plc  annual report and accounts 2008
directors’ report 
continued
risk management
the board of directors has overall responsibility for the group’s system of internal control and for reviewing its effectiveness whilst the role 
of management is to implement board policies on risk and control the system of internal control is designed to manage rather than eliminate 
the risk of failure of business objectives in pursuing these objectives internal controls can provide only reasonable and not absolute assurance 
against material misstatement or loss
the key elements of this system are
›  the audit committee
›  a comprehensive budgeting system with an annual budget approved by the group board
›  detailed monthly reporting including forecasting to the group board and comparison of results against budget with performance monitoring 
and explanations provided for significant variances and
›  a defined procedure for seeking and obtaining approval for major transactions
in order to address risk management a control framework is in place which aims as best as practicable to
›  safeguard group assets
›  ensure proper accounting records are maintained and
›  provide reliable financial information for internal and external use
dialogue with shareholders
the company reports formally to the shareholders twice a year when its halfyear and fullyear results are announced and the interim report and 
annual report are sent to shareholders the annual report is accompanied by notice of the agm of the company at which a presentation is given 
and directors are available to take questions both formally during the meeting and informally after the meeting the management is available for 
dialogue with major shareholders on the company’s plans and objectives and from time to time meets with them
auditors
in the case of each of the persons who are directors of the company at the date when this report is approved
›  so far as each of the directors is aware there is no relevant audit information as defined in the companies act 1985 of which the company’s 
auditors are unaware and
›  each of the directors has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit 
information as defined and to establish that the company’s auditors are aware of that information 
this confirmation is given and should be interpreted in accordance with the provisions of s234za of the companies act 1985
deloitte  touche llp were appointed as the company’s auditors during the year on 1 december 2008 deloitte  touche llp changed their 
name to deloitte llp and have indicated their willingness to continue in office a resolution for their reappointment will be proposed at the 
forthcoming annual general meeting
approved by the board of directors and signed on behalf of the board 
peter harrington
19 december 2008  17 annual report and accounts 2008  pure wafer plc
directors’ remuneration report 
introduction
this report sets out pure wafer’s executive remuneration policy structure and details of remuneration received by directors in the year ended 
30 june 2008 this report is unaudited
role of the remuneration committee
the remuneration committee is responsible for
›  establishing and recommending to the board the policy for executive remuneration
›  determining on behalf of the board and shareholders the level and structure of remuneration packages of the executive directors and
›  reviewing and ensuring the alignment of executive remuneration with remuneration throughout the organisation including company share schemes
the remuneration of 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 c g clarke and p dolan all the members of the committee are 
nonexecutive directors the committee met three times during the year and all the members attended each meeting
advisers
during the year the remuneration committee received guidance from the nonexecutive chairman the chief executive officer and the company 
secretary except on matters relating to their own remuneration
remuneration policy
the committee and board believe that in order to attract motivate and retain a senior management team of the right calibre it is necessary 
to provide a competitive 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
under the executive share option scheme members of the management team including nondirectors have options over 414697 shares 
2007 614311 exercisable between three and ten years following grant at 2p subject to achievement of certain eps performance criteria
the executive directors’ interests in the options are as follows
     options   market    
    balance at lapsed balance at  price at  performance  
    1 july during 30 june  date of  exercise period  
    2007  year  2008    grant  price financial  
    number  number number date of grant £  £ year expiry date
k baker   63829 — 63829 16112005 235 002 2008 15112015
   95082 — 95082 27112006 246 002 2009  26112016
     158911     
        
p g harrington   25531 — 25531 16112005 235 002 2008  15112015
   69672 — 69672 27112006 246 002 2009  26112016
     95203     
        
j dearing   25531 25531 — 16112005 235 002 2008  15112015
   54918 54918 — 27112006 246 002 2009  26112016
     —     
j dearing resigned from the board on 30 april 2008 and all his options lapsed at this point
no executive director schemes vested in the period 18 pure wafer plc  annual report and accounts 2008
share incentive schemes nondirectors
the group also operates a share option scheme in relation to employees who are not directors
the group had granted options over 138621 shares during 2006 the exercise price of the options is £145 and the option can be exercised by 
the individuals at any point from two years from the date of issue up to a period of ten years from the date of issue of the option these options 
do not have any performance criteria there remain 22398 share options under the scheme that have not yet been exercised or lapsed
saye scheme
each year a saye scheme is set up for the benefit of all employees
directors’ remuneration
         compensation 
         for loss total total 
     salary benefits bonus pension of office 2008 2007 
director     £ £ £ £ £ £ £
c g clarke     75000 — — — — 75000 100000
k baker     119400 21492 42000 5000 — 187892 191145
j dearing     61500 671 29300 4583 48450 144504 117728
p harrington     108488 12701 33800 5000 — 159989 148328
e ap gwilym     31350 — — — — 31350 31350
p dolan     80000 — — — — 80000 575
j samuel     — — — — — — 23513
     475738 34864 105100 14583 48450 678735 612629
  to date of resignation on 30 april 2008
 salary includes elements which relate to nonexecutive director role and as interim group finance director between 14 november 2007 and 23 june 2008
service contracts for directors
k baker has a service agreement with the company dated 9 december 2004 subject to termination upon twelve month’s notice given by either 
party
p harrington has a service agreement with the company dated 9 december 2004 subject to termination upon six month’s notice given by either party 
letters of appointment for nonexecutive directors
c g clarke has a letter of appointment with the company dated 1 june 2006 which is subject to termination upon a notice period 
of twelve months’ given by either party
e ap gwilym has a letter of appointment with the company dated 1 june 2006 which is subject to termination upon a notice period 
of twelve months’ given by either party
p dolan has a letter of appointment with the company dated 25 june 2007 which is subject to termination upon a notice period 
of twelve months’ given by either party
directors’ interest in shares
the beneficial interest of directors at the end of the year in the ordinary share capital of the company is set out in the directors’ report
eurfyl ap gwilym
chairman of remuneration committee
19 december 2008 19 annual report and accounts 2008  pure wafer plc
consolidated statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements the directors have prepared the financial statements 
for the group in accordance with international financial reporting standards ifrss company law requires the directors to prepare such 
financial statements in accordance with ifrss the companies act 1985 and article 4 of the ias regulation
international accounting standard 1 requires that financial statements present fairly for each financial year the company’s financial position 
financial performance and cash flows this requires the faithful representation of the effects of transactions other events and conditions 
in accordance with the definitions and recognition criteria for assets liabilities income and expenses set out in the international accounting 
standards board’s ‘framework for the preparation and presentation of financial statements’ in virtually all circumstances a fair presentation 
will be achieved by compliance with all applicable international financial reporting standards directors are also required to
› properly select and apply accounting policies
›  present information including accounting policies in a manner that provides relevant reliable comparable and understandable 
information and 
›  provide additional disclosures when compliance with the specific requirements in ifrss are insufficient to enable users to understand 
the impact of particular transactions other events and conditions on the entity’s financial position and financial performance 
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the company for safeguarding the assets for taking reasonable steps for the prevention and detection of fraud and other irregularities and 
for the preparation of the directors’ report which comply with the requirements of the companies act 1985 
the directors are responsible for the maintenance and integrity of the company website legislation in the united kingdom governing 
the preparation and dissemination of financial statements differs from legislation in other jurisdictions 20 pure wafer plc  annual report and accounts 2008
consolidated independent auditors’ report 
to the members of pure wafer plc
we have audited the group financial statements of pure wafer plc for the year ended 30 june 2008 which comprise the consolidated income 
statement the consolidated statement of changes in equity the consolidated balance sheet the consolidated cash flow statement and the related 
notes 1 to 30 these financial statements have been prepared under the accounting policies set out therein
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and 
for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company and the 
company’s members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the consolidated financial statements in accordance with applicable law and 
international financial reporting standards ifrss as adopted by the european union are set out in the statement of directors’ responsibilities
our responsibility is to audit the consolidated financial statements in accordance with relevant legal and regulatory requirements and 
international standards on auditing uk and ireland
we report to you our opinion as to whether the consolidated financial statements give a true and fair view and are properly prepared in accordance 
with the companies act 1985 we also report to you whether in our opinion the information given in the directors’ report is consistent with the 
consolidated financial statements 
in addition we report to you if in our opinion the group has not kept proper accounting records if we have not received all the information and 
explanations we require for our audit or if information specified by law regarding directors’ remuneration and other transactions is not disclosed 
we read the chairman’s report chief executive’s report business review directors’ report and directors’ remuneration report and consider 
whether they are consistent with the audited consolidated financial statements we consider the implications for our report if we become aware 
of any apparent misstatements or material inconsistencies with the consolidated financial statements our responsibilities do not extend to any 
further information outside the annual report 
basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board 
an audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the consolidated financial statements 
it also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the consolidated financial 
statements and of whether the accounting policies are appropriate to the group’s circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufficient evidence to give reasonable assurance that the consolidated financial statements are free from material misstatement whether 
caused by fraud or other irregularity or error in forming our opinion we also evaluated the overall adequacy of the presentation of information 
in the consolidated financial statements
opinion
in our opinion
›  the financial statements give a true and fair view in accordance with ifrss as adopted by the european union of the state of the group’s 
affairs as at 30 june 2008 and of its loss for the year then ended
›  the financial statements have been properly prepared in accordance with the companies act 1985 and article 4 of the ias regulations and 
›  the information given in the directors’ report is consistent with the financial statements
emphasis of matter – going concern
without qualifying our opinion we draw attention to the disclosures made in note 2 of the financial statements concerning the group’s ability 
to continue as a going concern the group has relied on waivers of loan covenant tests at 30 june and 30 september 2008 in order to stay 
in line with banking facility arrangements and needs to reschedule its capital repayments of debt these conditions along with other matters 
as set forth in note 2 indicate the existence of a material uncertainty which may cast significant doubt about the group’s ability to continue 
as a going concern the financial statements do not include the adjustments that would result if the group were unable to continue as a 
going concern as it is not practicable to determine or quantify them
deloitte llp
chartered accountants and registered auditors
cardiff united kingdom
19 december 2008 21 annual report and accounts 2008  pure wafer plc
consolidated income statement
year ended 30 june 2008
      2008 2007 
     note £’000 £’000
revenue     4 22268 22348
cost of sales      16088 13431
gross profit      6180 8917
depreciation and amortisation      2932 2387
sharebased payment creditcharge      426 379
other administrative expenses      3157 2690
total administrative expenses      5663 5456
restructuring costs      355 —
earnings before interest tax depreciation and amortisation      3094 5848
depreciation and amortisation      2932 2387
operating profit     6 162 3461
investment revenue     8 182 149
finance costs      9 777 427
other lossesgains         10 366 412
lossprofit on ordinary activities before taxation      799 3595
tax on lossprofit on ordinary activities     11 5331 810
lossprofit for the financial year      6130 2785
     
lossearnings per share     12  
basic      231p 105p
diluted      231p 103p
     
all activities derive from continuing operations 22 pure wafer plc  annual report and accounts 2008
statement of changes in equity
year ended 30 june 2008
          exchange  
      share premium  merger  retained  translation  total 
      capital  account  reserve earnings  reserve  equity 
      £’000 £’000 £’000 £’000 £’000 £’000
balance at 1 july 2006 – as restated   530 12644 30425 18072 — 25527
net loss on translation of subsidiaries with foreign functional currency   — — — — 1774 1774
profit for the financial year  — — — 2785 — 2785
new shares issued  2 139 — — — 141
equitysettled sharebased payments  — — — 300 — 300
balance at 30 june 2007  532 12783 30425 14987 1774 26979
net gain on translation of subsidiaries with foreign functional currency   — — — — 140 140
loss for the financial year  — — — 6130 — 6130
equitysettled sharebased payments  — — — 386 — 386
balance at 30 june 2008  532 12783 30425 21503 1634 20603 23 annual report and accounts 2008  pure wafer plc
      2008 2007 
      note £’000 £’000
noncurrent assets     
goodwill     13 3348 3297
other intangible assets     13 146 185
property plant and equipment     14 24254 22136
      27748 25618
current assets     
inventories     15 3311 2812
trade and other receivables     16 5177 7438
derivative financial instruments     19 50 33
deferred taxation asset     22 — 5334
assets held for sale     17 735 —
cash and cash equivalents      962 2976
      10235 18593
total assets      37983 44211
     
current liabilities     
trade and other payables     18 3541 5590
interestbearing loans and borrowings     20 3894 2326
deferred consideration     23 943 834
derivative financial instruments     19 150 15
current tax liabilities      — 15
      8528 8780
     
noncurrent liabilities     
interestbearing loans and borrowings     20 6912 5456
deferred income      1940 2129
deferred consideration     23 — 867
      8852 8452
total liabilities      17380 17232
net assets      20603 26979
equity     
share capital     25 532 532
share premium account      12783 12783
merger reserve       30425 30425
retained earnings      21503 14987
exchange translation reserve      1634 1774
total equity      20603 26979
these financial statements were approved by the board of directors on 19 december 2008 and signed on its behalf by
peter harrington  stephen young
chief executive  interim group finance officer
19 december 2008   19 december 2008
consolidated balance sheet
30 june 2008 24 pure wafer plc  annual report and accounts 2008
consolidated cash flow statement
year ended 30 june 2008
      2008 2007 
      note £’000 £’000
net cash inflow from operating activities      28 1733 4259
investing activities      
interest received      182 149
purchase of property plant and equipment       4964 7927
acquisition of subsidiary      — 3846
acquisition of subsidiaries – deferred consideration payments     23 857 —
net cash used in investing activities       5639 11624
financing activities      
interest paid      777 347
repayment of bank loans      1002 
repayments of obligations under finance leases      1645 
increase in borrowings      5547 5087
proceeds on issue of shares      — 141
net cash used in financing activities       2123 4881
net decrease in cash and cash equivalents       1782 2484
cash and cash equivalents at beginning of year       2976 5652
exchange losses on translation       231 192
cash and cash equivalents at end of year      962 2976 25 annual report and accounts 2008  pure wafer plc
notes to the consolidated financial statements 
year ended 30 june 2008
1 general information
pure wafer plc is a company incorporated in the united kingdom under the companies act 1985 the address of the registered office is pure wafer plc 
central business park swansea vale swansea sa7 0ab the nature of the uk group’s operations and its principal activities are set out in the 
financial review and principal activity section on pages 1 to 10
adoption of new and revised standards
the financial statements have been prepared in accordance with international financial reporting standards ifrs as adopted by the european union 
as they apply to financial statements of the group for the year ended 30 june 2008 and applied in accordance with the companies act 1985
the financial statements for the year ended 30 june 2008 are the group’s first consolidated financial statements prepared under ifrs with 
a transition date of 1 july 2006 consequently the comparative figures for 2007 have been restated in accordance with the accounting policies 
set out below ifrs 1 allows certain exemptions from retrospective application of ifrs in the opening balance sheet at 1 july 2006 where these 
have been used they are explained in the relevant policy below the financial statements have been prepared in accordance with the historical 
cost convention
the effect of adopting ifrs on the opening and comparative balance sheet is disclosed in note 30
at the date of authorisation of these consolidated financial statements the following standards and interpretations which have not been applied 
in these consolidated financial statements were in issue but not yet effective
ias 23  revised borrowing costs  
ifrs 3  business combinations revised 
ifrs 8 segment reporting and the ongoing need for country by country reporting 
ifric 12  service concession arrangements 
ifric 13 customer loyalty programmes 
ifric 14  ias 19 – the limit on a defined benefit asset minimum funding requirements and their interaction 
ifric 15 agreements for the construction of real estate 
ifric 16 hedges in the net investment of a foreign operation
the directors do not anticipate that the adoption of these standards and interpretations in future periods will have a material impact on the financial 
statements except for additional segmental disclosures when ifrs 8 comes into effect for periods commencing on or after 1 january 2009
2 accounting policies
basis of preparation
these accounting policies are based on the ifrs ias and ifric interpretations as adopted by the eu collectively “ifrs” 
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are set out in the 
chairman’s statement on pages 4 and 5 the financial position of the group its cash flows liquidity position and borrowing facilities are 
described in the financial review on pages 8 and 9 in addition note 24 to the financial statements includes the group’s objectives policies and 
processes for managing its capital its financial risk management objectives details of its financial instruments and hedging activities and its 
exposures to credit risk and liquidity risk the directors have assessed the balance sheet and likely future cash flows of the company and group 
at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the financial statements on a going 
concern basis 
as described in the chairman’s statement on pages 4 and 5 the current environment is challenging the company has recorded a pretax loss and 
has relied on waivers of loan covenant tests at 30 june and 30 september 2008 in order to stay in line with banking facility arrangements in 
forming the conclusion about the going concern basis the directors have considered these factors together with the forecasts for the business for 
the period to 30 june 2010 the forecasts indicate that the company can continue to meet interest payments but it needs to reschedule some 
of the capital repayments of debt and may also need to obtain waivers of future loan covenant tests the company has met all capital and interest 
payments as they fell due up to the date of approving the financial statements whilst the directors have instituted measures to preserve cash and 
reschedule the current repayment obligations these circumstances create material uncertainties over future cash flows and the availability of finance 
as explained in the chairman’s statement on pages 4 and 5 the board has received a preliminary indicative approach to acquire pure wafer plc 
whilst negotiations are progressing there can be no certainty that an offer will be made if any sale is arranged it is likely to include a cash injection 
which will be used to reduce the debt obligations of the company but if not the group will need to restructure the finance facilities such that the 
debt can be serviced from forecasted levels of trading and cash flow
the directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business nor a restructuring 
of existing facilities can be arranged no commitment has been secured to date 
the directors have concluded that the combination of circumstances represents a material uncertainty that casts significant doubt upon the group’s 
and the company’s ability to continue as a going concern and therefore that it may be unable to realise its assets and discharge its liabilities 
in the normal course of business nevertheless after making enquiries and considering the uncertainties described above the directors have 
a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future 
for these reasons they continue to adopt the going concern basis in preparing the annual report and financial statements 
the financial statements do not include any adjustments that would result if the going concern assumption were not applicable  26 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
2 accounting policies continued
basis of consolidation
the consolidated financial statements comprise pure wafer plc the company and its subsidiary undertakings pure wafer international limited 
and pure wafer inc
subsidiaries are those entities controlled by the company control exists when the company has the power to govern the financial and operating 
policies of an enterprise taking into account any potential voting rights the financial statements of subsidiaries are included in the consolidated 
financial statements from the date that control commences until the date that control ceases
the purchase method of accounting is used to account for the acquisition of subsidiaries the cost of an acquisition is measured at the fair value 
of the consideration plus costs directly attributable to the acquisition the excess of the cost of the acquisition over the group’s share of the fair 
value of the net identifiable assets of the subsidiary acquired is recorded as goodwill intragroup transactions balances and unrealised gains on 
transactions between group companies are eliminated unrealised losses are also eliminated unless costs cannot be recovered where necessary 
accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the group
f oreign currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in 
which the entity operates the functional currency for the group’s two operating subsidiaries pure wafer international limited and pure wafer inc 
this has been determined to be us dollars pure wafer plc as an individual entity has a sterling functional currency
the income and cash flow statements of nonsterling denominated group entities are translated to sterling the group’s presentation currency 
at average rates of exchange in each period assets and liabilities of these undertakings are translated at rates of exchange ruling at the balance 
sheet date the differences between retained profits and losses translated at average and closing rates are taken to reserves as are differences 
arising on the retranslation to sterling of nonsterling denominated group entity net assets at the beginning of the year
any translation differences that have arisen since 1 july 2006 are presented as a separate component of equity as permitted by ifrs 1 
any differences prior to this date are not included in this separate component of equity 
foreign currency transactions are initially recorded at the exchange rate ruling at the date of the transaction foreign exchange gains and losses 
resulting from the settlement of such transactions and from the translation at exchange rates ruling at the balance sheet date of monetary assets 
and liabilities denominated in foreign currencies are recognised in the income statement except when deferred in equity as qualifying net 
investment hedges
revenue recognition
revenue which represents the value of goods and services supplied excluding value added tax and trade discounts is recognised on completion 
of the service or despatch of goods sold in respect of the provision of wafer reclaim services the service is deemed to be complete at the point 
that the wafers are despatched for return to the customer if entitlement to revenue is subject to the customer’s use of reclaimed wafers the 
revenue is deferred until the point at which the wafer is utilised by the customer and revenue is earned
f inancial instruments
financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the relevant instrument 
financial assets are derecognised when the rights to receive benefits have expired or been transferred and the group has transferred substantially 
all risks and rewards of ownership financial liabilities are derecognised when the obligation is extinguished
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
provisions
a provision is recognised in the balance sheet when the group has a legal or constructive obligation as a result of a past event where it is more 
likely than not that an outflow of resources will be required to settle that obligation and a reliable estimate of the amount can be made
a provision for restructuring is recognised when the group has approved a detailed and formal restructuring plan and the restructuring has either 
commenced or has been publicly announced future operating losses are not provided for
where there are a number of similar obligations the likelihood that an outflow will be required in settlement is determined by considering the 
class of obligations as a whole a provision is recognised even if the likelihood of an outflow with respect to any one item included in the same 
class of obligations may be small 27 annual report and accounts 2008  pure wafer plc
2 accounting policies continued
property plant and equipment
property plant and equipment are shown in the balance sheet at their historical cost less accumulated depreciation and impairment historical cost 
includes expenditure that is directly attributable to the acquisition and installation of the items subsequent costs are included in the assets’ 
carrying amounts or recognised as a separate asset as appropriate only when it is probable that future economic benefits associated with them 
will flow to the group and the cost of the item can be measured reliably all other repairs and maintenance are charged to the income statement 
as incurred
depreciation is provided so as to write off the initial cost of each asset to its residual value on a straightline basis over its estimated useful life 
as follows
long leasehold buildings 15 years
fixtures and fittings 5 years
plant and equipment 7–10 years
computer equipment 3 years
motor vehicles 5 years
the assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date where the carrying amount 
of an asset is greater than its estimated recoverable amount it is written down immediately to its recoverable amount gains and losses on 
disposals are determined by comparing proceeds with carrying amounts these are included in the income statement
noncurrent assets held for sale
noncurrent assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell noncurrent assets are 
classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use this condition is 
regarded as being met only when the sale is highly probable and the asset is available for immediate sale in its present condition management 
must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification
government grants
government grants are recorded initially as deferred income and recognised in the income statement in line with the expense to which they 
contribute for grants in respect of the purchase of property plant and equipment the deferred income is released over the life of the related 
assets for grants in respect of staff costs the deferred income is released over the monitoring period of the grant offer
intangible assets – goodwill
goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets and liabilities acquired both tangible 
and intangible
goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses any impairment is recognised 
immediately in the income statement and cannot be subsequently reversed goodwill is allocated to groups of cashgenerating 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 straightline 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
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
impairment of assets
assets that have an indefinite life are not subject to amortisation and are tested at least annually for impairment assets that are subject to 
amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable 
an impairment loss is recognised in the income statement for the amount by which the carrying amount of the asset exceeds its recoverable 
amount the recoverable amount is the higher of the fair value less costs to sell and the value in use for the purpose of assessing impairment 
assets are grouped at the lowest levels for which there are separately identifiable cash flows cash generating units
inventories
inventories are stated at the lower of cost and net realisable value cost is determined using the 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 is progress is valued to reflect the historical yield from the reclaim process net realisable value is the 
estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses 28 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
2 accounting policies continued
leasing
assets held under finance leases are recognised as assets of the group at their fair value or if lower at the present value of the minimum lease 
payments each determined at the inception of the lease the corresponding liability to the lessor is included in the balance sheet as a finance 
lease obligation lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate 
of interest on the remaining liability finance charges are charged directly against income
rentals payable under operating leases are charged to income on a straightline 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 straightline basis over the lease term
restructuring costs
certain costs are classified as relating to restructuring where they relate to the incremental cost of undertaking a significant changes to the 
operations or staff structure of the business
operating profit
operating profit is stated after charging restructuring costs but before investment income finance costs and foreign exchange
borrowing costs
borrowing costs directly attributable to the acquisition construction or production of qualifying assets which are assets that necessarily take 
a substantial period of time to get ready for their intended use or sale are added to the costs of those assets until such time as the assets 
are substantially ready for their intended use or sale
investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from 
the borrowing costs eligible for capitalisation
all other borrowing costs are recognised in the income statement in the period in which they are incurred
the group has chosen to adopt the revised version of ias 23 borrowing costs early and has taken advantage of the transitional provision 
included within that standard not to capitalise interest on qualifying assets that arose prior to the date of transition to ifrs on 1 july 2006
taxes
tax on the profit or loss for the year comprises current and deferred tax
current tax is the expected tax payable on the taxable income for the year using tax rates substantially enacted at the balance sheet date 
and any adjustments to tax payable in respect of previous years
deferred tax is provided in full on temporary differences between the carrying amount of assets and liabilities in the financial statements 
and the tax base deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against 
which the temporary differences can be utilised deferred tax assets and liabilities are not discounted
deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected 
to apply when the deferred tax liability is settled or the deferred tax asset is realised
deferred tax is provided on temporary differences arising on investments in subsidiaries and associates except where the timing of the reversal 
of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future
tax is recognised in the income statement except where it relates to items recognised directly in equity in which case it is recognised in equity
sharebased payments
in accordance with ifrs 2 sharebased payments the fair value of equitysettled sharebased payments to employees is determined at the date 
of grant and is expensed on a straightline basis over the vesting period based on the company’s estimate of shares or options that will eventually 
vest where the estimate of the number of options vesting due to achievement of performance conditions is revised the change to the sharebased 
payments cost is adjusted prospectively leading to a sharebased payments credit in periods where the performance criteria that were historically 
expected to be achieved are determined to be unlikely to be met fair value of new options granted is measured by a blackscholes pricing model
share capital
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares or options are shown in equity as a 
deduction net of tax from the proceeds  29 annual report and accounts 2008  pure wafer plc
3 critical accounting judgements and key sources of estimation uncertainty 
critical accounting judgements and key sources of estimation uncertainty
in the application of the group’s accounting policies which are described in note 2 the directors are required to make judgements estimates 
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources the estimates and 
associated assumptions are based on historical experience and other factors that are considered to be relevant actual results may differ from 
these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in the period in 
which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both 
current and future periods
critical judgements in applying the group’s accounting policies
the following critical judgement has been made in the process of applying the group’s accounting policies judgements involving estimations 
are dealt with separately below
going concern
the directors’ report and the going concern section of note 2 describes the material uncertainty over the ability of the group to meet the 
contractual capital repayment obligations of its current finance facilities in the next 12 months in preparing the financial statements the 
directors have concluded that the group is a going concern and have assumed that it will be able to continue to trade in line with its business 
plan realising the value of assets and liabilities in the normal course of business 
this judgement has significant impact on the valuation and presentation of the balance sheet as if the group were no longer a going concern 
the carrying value would need to be restated to market value for assets and settlement values for liabilities significant items affected would 
include noncurrent assets inventory loans finance leases and deferred income
sharebased payments
the group has two share option schemes that vest contingently upon the achievement of certain earnings per share targets in the years ending 
30 june 2008 and 30 june 2009 in preparing the financial statements the directors have concluded that the 2008 scheme will not vest 
based on actual numbers and also that the 2009 scheme will not vest based on an assessment of trading to the date of signing the financial 
statements and estimates of results for the remainder of the year as a result of this judgement sharebased payment charges recognised in 
2006 and 2007 have been reversed leading to a credit of £426000 in the income statement for 2008 
key sources of estimation uncertainty
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below
impairment of 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 to which goodwill has been allocated the value in use calculation requires the entity to estimate the future cash flows 
expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value the carrying amount of goodwill 
was £33 million and property plant and equipment was £242 million at the balance sheet date based on the assumptions made by the 
directors no impairment has been booked details of the impairment review including sensitivity to key assumptions are given in note 13 
fair value of derivatives and other financial instruments
as described in note 24 the directors use their judgement in selecting appropriate valuation techniques for financial instruments not quoted 
on an active market valuation techniques commonly used by market practitioners are applied for derivative financial instruments assumptions 
are made based on quoted market rates adjusted for specific features of the instrument other financial instruments are valued using a discounted 
cash flow analysis based on the assumptions supported where possible by observable market prices or rates the fair value of financial 
instruments at the balance sheet date was a net liability of £100000 
deferred tax
the group has tax losses of some £18 million available for offset against future taxable profits in determining the value of the deferred tax asset that 
can be attributed to these losses the directors have to estimate likely future taxable profits and the period over which the asset may be recovered 
the directors consider the most uptodate forecasts for the business and assess the risks inherent in achieving those forecasts at the balance 
sheet date no deferred tax asset has been recorded after recognising a write off of deferred tax of £53 million during 2008 the deferred tax 
asset may be recognised again in future if there is an improvement in the forecast taxable profits 
useful life of property plant and equipment
the group’s plant and machinery is amortised over a period of seven to ten years in estimating the life of the equipment the directors have 
to consider the likely period over which the technology will be used in the market and the ability of the business to maintain the equipment 
to an appropriate condition for use were the technology to be superseded in a much shorter timeframe than this the carrying value would 
need to be depreciated over a shorter timeframe resulting in an increase in the annual depreciation charge
4 revenue
an analysis of the group’s revenue is as follows
          2008 2007 
          £’000 £’000
continuing operations          22268 22348
financial income          182 149
          22450 22497 30 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
5 business and geographical segments 
the group’s activities and turnover primarily consist of the reclamation and reprocessing of silicon test wafers in the uk and us for external customers 
for management purposes the group is organised into two operating divisions based on the geographical territory of origin these divisions are 
the basis which the group reports its primary segment information
segment information is presented below
          north 
         uk america consolidated 
year ended 2008         £’000 £’000 £’000
revenue         16926 5342 22268
intersegment sales are charged at prevailing market prices
result      
segment result         514 411 925
unallocated corporate expenses          763
operating profit           162
investment revenues           182
finance costs           777
other losses           366
loss before tax           799
tax           5331
loss for the financial year           6130
         north 
        uk america eliminations consolidated 
year ended 2008        £’000 £’000 £’000 £’000
capital additions        1596 3368 — 4964
deprecation and amortisation       2543 389 — 2932
impairment losses recognised in income      
balance sheet      
assets      
segment assets        27195 11750 5044 33901
unallocated corporate assets          4082
           37983
liabilities      
segment liabilities        8882 11961 5044 15799
unallocated corporate liabilities          1581
consolidated total liabilities          17380
          north 
         uk america consolidated 
year ended 2007         £’000 £’000 £’000
revenue         20310 2038 22348
intersegment sales are charged at prevailing market prices
result        
segment result         4106 92 4198
unallocated corporate expenses          737
operating profit           3461
investment revenues           149
finance costs           427
other gains           412
profit before tax           3595
tax           810
profit for the financial year          2785 31 annual report and accounts 2008  pure wafer plc
5 business and geographical segments continued 
        uk america eliminations consolidated 
year ended 2007        £’000 £’000 £’000 £’000
capital additions        5783 3671 — 9454
deprecation and amortisation       2246 141 — 2387
      
balance sheet      
assets      
segment assets        33924 8244 2017 40151
interests in associates           —
unallocated corporate assets          4060
           44211
      
liabilities      
segment liabilities        10774 8327 2017 17084
unallocated corporate liabilities          148
consolidated total liabilities          17232
analysis by product
the revenue by product variant was as follows
          2008 2007 
          £’000 £’000
150mm wafers          963 424
200mm wafers          5194 3389
300mm wafers          14287 17262
other including scrap sales         1824 1273
          22268 22348
analysis by destination 
the revenue by destination was as follows
          2008 2007 
          £’000 £’000
europe           5939 7509
united states of america         8133 9319
asia           8196 5520
          22268 22348
6 operating profit
          2008 2007 
          £’000 £’000
this has been arrived at after chargingcrediting     
government grants           271 172
depreciation of property plant and equipment         
– owned assets           2293 1804
– leased assets           593 535
hire of assets     
– land and buildings          289 175
– equipment          236 141
– other          34 33
amortisation of intangible fixed assets         46 48
research and development costs          279 434
staff costs see note 7          6629 6862
auditors’ remuneration – audit services         38 40
auditors’ remuneration – nonaudit services         27 20
     32 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
6 operating profit continued
auditors’ remuneration 
          2008 2007 
          £’000 £’000
fees payable to the company’s auditors for the audit of the company’s annual accounts     8 12
fees payable to the company’s auditors for other services to the group    
– audit of the company’s subsidiaries pursuant to legislation       30 28
total audit fees          38 40
other services    
– other services pursuant to legislation        24 9
– tax services          3 11
total nonaudit fees          27 20
fees payable to deloitte llp and their associates for nonaudit services to the company are not required to be disclosed because the financial 
statements are required to disclose such fees on a consolidated basis 
7 information regarding directors and employees
          2008 2007 
          £’000 £’000
directors’ emoluments    
aggregate emoluments including benefits in kind       664 598
contributions to money purchase pension schemes       15 15
          679 613
    
          2008 2007 
          £’000 £’000
highest paid director    
aggregate emoluments including benefits in kind       183 186
contributions to money purchase pension schemes       5 5
          188 191
    
          2008 2007 
          number number
number of directors in pension scheme        3 3
    
          2008 2007 
          number number
average number of persons employed including directors    
production          237 200
sales and administration         31 26
          268 226
    
          2008 2007 
          £’000 £’000
staff costs during the year including directors    
wages and salaries          6169 5739
social security costs          672 575
equitysettled sharebased payments note 26       426 379
pension costs          214 169
          6629 6862
 includes related national insurance
8 investment revenue 
          2008 2007 
          £’000 £’000
interest on bank deposits         182 149 33 annual report and accounts 2008  pure wafer plc
9 f inance costs 
          2008 2007 
          £’000 £’000
interest on bank loans          385 96
interest on obligations under finance leases and hire p urchase contracts      293 286
deferred consideration finance charges note 23       99 45
          777 427
     
10 other lossesgains
          2008 2007 
          £’000 £’000
foreign exchange losses         248 408
derivative financial instruments         118 4
          366 412
 
11 tax on lossprofit on ordinary activities
          2008 2007 
          £’000 £’000
current taxation    
united kingdom corporation tax    
current tax on income for the year at 3028 2007 30      — —
deferred tax    
origination and reversal of timing differences        — 810
valuation provision recognised against deferred tax asset       5331 —
total charge for the year          5331 810
    
the difference between the total tax shown above and the amount calculated by applying the standard rate of united kingdom corporation tax 
to the lossprofit before tax is as follows
          2008 2007 
          £’000 £’000
lossprofit on ordinary activities before tax        606 3595
tax on lossprofit on ordinary activities before tax at 3028 2007 30     131 810
factors affecting charge for the year    
expenses not deductible for tax purposes        — 10
accelerated capital allowances and other timing differences       — 206
utilisation of losses brought forward        — 594
origination and reversal of timing differences        — 1059
valuation provision recognised against deferred tax asset for losses carried forward     5462 —
total tax charge for the year          5331 810
the tax rate is a blended rate of 30 to 31 march 2008 and 28 from 1 april 2008 
12 lossearnings per share  
the calculation of the basic and diluted lossearnings per share is based on the following data
          2008 2007
earnings     
lossprofit for the year £’000         6130 2785
number of shares     
weighted average number of ordinary shares for the purpose of basic lossearnings per share ‘000   26591 26524
effect of dilutive potential ordinary shares     
– share options          — 487
dilutive weighted average number of shares        26591 27011
lossearnings per ordinary share – basic        231p 105p
lossearnings per ordinary share – dilutive        231p 103p
diluted loss per share for the year ended 30 june 2008 is the same as basic since for a loss making period all share options are antidilutive 
and their exercise would improve the loss per share figure 438000 such share options were in issue at 30 june 2008 34 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
13 goodwill and other intangible fixed assets
          process  
         goodwill developments total 
         £’000 £’000 £’000
cost       
at 1 july 2006         — 253 253
additions         3417 — 3417
foreign exchange differences        120 22 142
at 1 july 2007         3297 231 3528
foreign exchange differences        51 9 60
at 30 june 2008         3348 240 3588
amortisation       
at 1 july 2006         — — —
charge for the year          — 48 48
foreign exchange differences        — 2 2
at 1 july 2007         — 46 46
charge for the year          — 46 46
foreign exchange differences        — 2 2
at 30 june 2008         — 94 94
carrying amount       
at 30 june 2008         3348 146 3494
at 30 june 2007         3297 185 3482
goodwill relates to the february 2007 acquisition of the group’s us business is denominated in us dollars and is considered to represent 
a single cash generating unit
the group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired
the recoverable amounts of the cgus are determined from value in use calculations the key assumptions for the value in use calculations are 
those regarding the discount rates growth rates and expected changes to selling prices and direct costs during the period management estimates 
discount rates using pretax rates that reflect current market assessments of the time value of money and the risks specific to the cgus the growth 
rates are based on industry growth forecasts changes in selling prices and direct costs are based on past practices and expectations of future 
changes in the market
the group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the two years assuming 
no growth in the first year and 10 growth in the second year the cash flows are extrapolated for the following eight years assuming no growth 
this rate does not exceed the average longterm growth rate for the relevant markets the rate used to discount the forecast cash flows of each 
of the cgus as defined above was based on the group’s weighted average cost of capital 75 
the impairment review is sensitive to the selection of discount rate the calculation demonstrates that there is headroom of £10 million over 
the carrying value of the goodwill if as a result of renegotiation of the group’s banking arrangements the group’s cost of capital were to increase 
above 9 there is a risk of impairment in future 
process development 
process development costs are amortised over their useful economic life which is estimated at five years  35 annual report and accounts 2008  pure wafer plc
14 property plant and equipment 
      long  
      leasehold fixtures and plant and computer  motor 
      buildings fittings machinery equipment vehicles total 
      £’000 £’000 £’000 £’000 £’000 £’000
cost      
at 1 july 2006      8105 148 17437 232 — 25922
additions      731 164 8436 112 11 9454
foreign exchange differences     672 18 1695 22 — 2407
at 1 july 2007      8164 294 24178 322 11 32969
additions      145 54 4756 9 — 4964
transfer to assets held for sale – see note 17    — — 726 — — 726
transfer from inventory     — — 413 — — 413 
foreign exchange differences     126 5 420 5 — 556
at 30 june 2008      8435 353 29041 336 11 38176
 
depreciation      
at 1 july 2006      2560 110 6473 178 — 9321
charge for the year      517 23 1764 35 — 2339
foreign exchange differences     223 10 579 15 — 827
at 1 july 2007      2854 123 7658 198 — 10833
charge for the year      522 44 2260 57 3 2886
foreign exchange differences     50 2 147 4 — 203
at 30 june 2008      3426 169 10065 259 3 13922
      
carrying amount      
at 30 june 2008      5009 184 18976 77 8 24254
at 31 june 2007      5310 171 16520 124 11 22136
  during the period it was determined that spares for the group’s plant and machinery were held as consumables within inventory certain spares are used infrequently or can 
be refurbished and have the characteristics of fixed assets they have been transferred to fixed assets at 30 june 2008
included within the net book value of plant and machinery are assets with a net book value of £3744000 2007 £3564000 as assets held 
under finance lease agreements 
15 inventories
          2008 2007 
          £’000 £’000
raw materials           2472 2043
work in progress          555 615
finished goods          284 154
          3311 2812
      36 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
16 other financial assets
trade and other receivables
          2008 2007 
          £’000 £’000
trade receivables          3707 4317
other receivables and prepayments         1053 1436
accrued income          417 1685
          5177 7438
     
trade receivables 
total trade receivables net of allowances held by the group at 30 june 2008 amounted to £3707000 2007 £4317000 
the average credit period taken on sale of goods is 71 days 2007 77 days the group has provided fully for all receivables which are considered 
impaired management performs a detailed review of the trade receivables ledger across the group at least twice annually to assess receivables 
that are past due and not recoverable 
before accepting any new customer the group uses an external credit scoring system to assess the potential customer’s credit quality and defines 
credit terms by customer of the trade receivables balance at the end of the year £593000 2007 £588000 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 £1348000 2007 £1343000 which are past due at 
the reporting date for which the group has not provided as there has not been a significant change in the credit quality and the amounts are still 
considered recoverable the group does not hold any collateral over these balances the average age of these receivables is 110 days 2007 100
ageing of past due but not impaired receivables
          2008 2007 
          £’000 £’000
less than three months         1168 1101
more than three months         180 242
          1348 1343
movement in the allowance for doubtful debts
          2008 2007 
          £’000 £’000
balance at beginning of the year         114 76
provision acquired with business combination        — 13
amounts written off as uncollectible        21 25
provision against specific customer following contract termination       135 —
balance at the end of the year         228 114
in determining the recoverability of a trade receivable the group considers any change in the credit quality of the trade receivable from the date 
credit was initially granted up to the reporting date the concentration of credit risk is limited due to the customer base being large and unrelated 
accordingly the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts 
ageing of impaired trade receivables
          2008 2007 
          £’000 £’000
current          135 —
60–90 days          — —
90–120 days          — —
120 days          93 114
          228 114
the directors consider that the carrying amount of trade and other receivables approximates their fair value 
cash and cash equivalents
these comprise cash in hand and deposits held at call with banks the carrying amount of these assets approximates their fair value
17 assets held for sale
a machine was acquired during the year ended 30 june 2007 to service a specific customer the agreement with the customer was terminated 
during 2008 and as a result the customer agreed to buy back the asset for £735000 the purchase was completed after 30 june 2008 
accordingly the asset has been transferred from property plant and equipment to assets held for sale at the balance sheet date  37 annual report and accounts 2008  pure wafer plc
18 other financial liabilities
trade and other payables
          2008 2007 
current liabilities          £’000 £’000
trade accounts payable         1911 3846
other taxation and social security         342 619
accruals and other creditors         1288 1125
          3541 5590
trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs the average credit period taken for 
trade purchases is 67 days 2007 81 days in light of the constraints around the availability of finance outlined in the “going concern” section 
of the directors’ report and note 2 the group endeavours to settle outstanding payables within the credit time frame while managing available 
working capital 
the directors consider that the carrying amount of trade payables approximates their fair value
19 derivative financial instruments 
derivative financial instruments
          2008 2007 
          £’000 £’000
current assets     
forward foreign exchange contracts         50 33
current liabilities     
interest rate swap           150 15
further detail of financial instruments is provided in note 24
20 interestbearing loans and borrowings
          2008 2007 
          £’000 £’000
current liabilities     
bank loans          2077 942
hire purchase and finance lease agreements        1817 1384
          3894 2326
noncurrent liabilities     
bank loans          4709 2590
hire purchase and finance lease agreements        2203 2866
          6912 5456
     
          2008 2007 
          £’000 £’000
bank loans     
within one year           2077 942
between one and two years         2052 943
between two and five years         2657 1647
          6786 3532
     
the hire purchase and finance lease obligations are repayable as follows
          2008 2007 
          £’000 £’000
hire purchase contracts and finance leases     
within one year          1817 1384
between one and two years         1425 1418
between two and five years         778 1448
          4020 4250
obligations under finance lease and hire purchase contracts are secured on the related assets see note 21 for further detail on finance lease contracts  38 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
20 interestbearing loans and borrowings continued
in determining the presentation of loan balances the directors have considered the uncertainty relating to going concern outlined in the 
directors’ report on page 14 and note 3 the group was able to stay within the terms of the bank loan agreements due to waivers of covenant 
tests at 30 june 2008 and has received similar waivers post year end were the group not able to meet the conditions of the loan agreements 
the debt would be reclassified as due within one year
on the assumption that the group is a going concern the fair value of the group’s loan finance leases and hire purchase obligations approximates 
their carrying amount if the group were no longer to be a going concern the settlement figure for these loans may be different to the figures presented 
the principal features of the group’s bank loans which were used to finance the acquisition and development of the us business are as follows
›  a loan for us75 million £37 million was taken out in may 2007 with a variable interest rate based on us libor it is repayable 
in quarterly instalments commencing three months after the first drawdown and is due to be fully repaid in february 2011
›  a loan for us175 million £09 million was taken out in may 2008 with a variable interest rate based on us libor it is repayable 
in quarterly instalments commencing three months after the first drawdown and is due to be fully repaid in february 2012
›  a loan for us70 million £35 million was drawn down during 2008 with an effective fixed interest rate of 54 it is repayable 
in quarterly instalments commencing in 2008 and is due to be fully repaid in may 2012
21 obligations under finance leases 
       minimum  
       lease payments 
          2008 2007 
          £’000 £’000
amounts payable under finance leases      
within one year          1908 1585
in the second to fifth years inclusive        2435 3107
total value of lease obligations          4343 4692
less future finance charges         323 442
present value of lease obligations         4020 4250
it is the group’s policy to lease certain plant and machinery under finance leases the average remaining lease term is four years for the year 
ended 30 june 2008 the average effective borrowing rate was 74 2007 78 interest rates are fixed at the contract date all leases are 
on a fixed repayment basis and no arrangements have been entered into for contingent rental payments the carrying amount of the borrowings 
approximates their fair value
the contractual payments in respect of finance leases based on the undiscounted cash flows and the earliest date on which the group and 
company can be required to pay are shown above 
all lease obligations are denominated in us dollars the fair value of the group’s lease obligations approximates their carrying amount 
the group’s obligations under finance leases are secured by the lessors’ rights over the leased assets
22 deferred tax asset
          2008 2007 
          £’000 £’000
balance at 1 july           5334 5334
deferred tax asset provided against during the year        5334 —
balance at 30 june           — 5334
    
the amounts of deferred taxation assetliability recorded in the financial statements are as follows
          2008 2007 
          £’000 £’000
accelerated capital allowances         — 1417
shortterm timing differences         — 139
tax losses           — 6612
          — 5334 39 annual report and accounts 2008  pure wafer plc
23 deferred consideration
          2008 2007 
          £’000 £’000
current liabilities     
deferred consideration          943 834
noncurrent liabilities     
deferred consideration          — 867
          2008 2007 
          £’000 £’000
deferred consideration     
within one year          943 834
between one and two years         — 867
          943 1701
     
          2008 2007 
          £’000 £’000
movement in deferred consideration     
at 1 july          1701 —
acquisitions          — 1709
payment          857 —
discounting note 9          99 45
foreign exchange differences         — 53
at 30 june          943 1701
24 f inancial instruments
capital risk management
the capital structure of the group consists of debt which includes the borrowings disclosed in note 20 cash and cash equivalents and equity 
directly attributable to equity holders of the parent comprising issued capital reserves and retained earnings as disclosed in the statement of 
changes in equity comments regarding the uncertainty around the continued availability of debt finance and the impact this has on the going 
concern basis of preparing the group financial statements are given in the directors’ report and in note 2
gearing ratio
the gearing ratio at the year end is as follows
          2008 2007 
          £’000 £’000
debt          10806 7782
cash and cash equivalents         962 2976
net debt          9844 4806
equity          20603 26979
net debt to equity ratio          1209 1561
significant accounting policies
details of the significant accounting policies and methods adopted including the criteria for recognition the basis of measurement and the basis 
on which income and expenses are recognised in respect of each class of financial asset financial liability and equity instrument are disclosed 
in note 2 to the financial statements
          2008 2007 
          £’000 £’000
financial assets     
fair value through profit or loss fvtpl derivative instruments       50 33
loans and receivables      
– cash and cash equivalents         962 2976
– trade receivables          3707 4317
          4719 7326
financial liabilities      
fair value through profit or loss fvtpl derivative instruments      150 15
amortised cost     
– bank loans          6786 3532
– finance leases          4020 4250
– trade creditors          1911 3846
– deferred consideration         943 1701
          13810 13344
  40 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
24 f inancial instruments continued
f inancial risk management objectives
the group’s financial instruments comprise bank loans finance leases derivative financial instruments and trade receivables and trade payables 
that arise already from its operations the purpose of the instruments is to raise finance for group activities 
the group seeks to minimise the effects of financial risks by using derivative financial instruments to hedge known exposures the interest rates 
on bank loans are managed through the use of interest rate swaps and interest on the remaining financial liabilities are fixed the use of financial 
derivatives is governed by the group’s policies approved by the board of directors which provide written principles on foreign exchange risk 
interest rate risk credit risk the use of financial derivatives and 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
›  forward foreign exchange contracts to hedge the exchange rate risk arising on the sale of services by the uk trading subsidiary in us dollars and 
›  interest rate swaps to mitigate the risk of rising interest rates
f oreign currency risk management 
the group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate fluctuations arise 
exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts 
the carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows
          2008 2007 
          £’000 £’000
monetary assets     
euro          171 181
sterling          24 14
monetary liabilities     
euro          1650 1476
sterling          1401 2225
yen          369 188
us dollar          737 —
f oreign currency sensitivity analysis 
the group is mainly exposed to fluctuations in the us dollar 
the following table details the group’s sensitivity to a 20 decrease in the sterling against the relevant foreign currencies 20 is the sensitivity 
rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably 
possible change in foreign exchange rates the sensitivity analysis includes only outstanding foreign currency denominated monetary items and 
adjusts their translation at the period end for a 20 change in foreign currency rates the sensitivity analysis includes external loans as well 
as loans to foreign operations within the group where the denomination of the loan is in a currency other than the currency of the lender or 
the borrower the table below indicates the impact of a reduction in the us dollar rate from 200 as at year end to 160
       us dollar currency impact
          2008 2007 
          £’000 £’000
reduction in profitincrease in loss         1435 1379
gain on translation of subsidiaries         5232 5639
total net assets impact          3797 4260 41 annual report and accounts 2008  pure wafer plc
24 f inancial instruments continued
f orward foreign exchange contracts
it is the policy of the group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts within 
50 to 75 of the exposure generated the group also enters into forward foreign exchange contracts to manage the risk associated with 
anticipated sales and purchase transactions out to six months within 50 to 75 of the exposure generated basic adjustments are made 
to the carrying amounts of nonfinancial hedged items when the anticipated sale or purchase transaction takes place
the following table details the forward foreign currency contracts outstanding as at 30 june 2008
    fair value at  
    30 june 2008  
buy amount sell amount rate date mature £’000
gbp 5377721 usd 10500003 195 11 december 2009 1
usd 1500000 gbp 768246 195 11 december 2008 9
gbp 8120650 usd 15750000 194 11 june 2009 31
usd 2250000 gbp 1160093 194 11 december 2008 11
    50
the following table details the forward foreign currency contracts outstanding as at 30 june 2007
    fair value at  
    30 june 2007  
buy amount sell amount rate date mature £’000
usd 1250000 gbp 635001 197 16 july 2007 11
usd 1250000 gbp 634840 197 15 august 2007 11
usd 1250000 gbp 634517 197 17 september 2007 11
    33
these contracts have been valued at fair value calculated as the difference between the sterling value of the year end calculated using mark to market 
off spot rate at close of business on 30 june 2008 and the rate contracted at maturity and included as financial instruments on balance sheet 
the bank has an option to extend the 2008 foreign exchange contracts beyond initial contracted dates the option was valued as a liability 
of £29000 at 30 june 2008 within the value disclosed above and has not yet been exercised post year 
the contracts are net settled 
interest rate risk management
the group is exposed to interest rate risk as entities in the group borrow funds at both fixed and floating interest rates the risk is managed 
by the group by maintaining an appropriate mix between fixed and floating rate borrowings by the use of interest rate swap contracts to fix 
the interest rate on the floating rate loans 
the group’s exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note 
interest rate swap contracts
under interest rate swap contracts the group agrees to exchange the difference between fixed and floating rate interest amounts calculated on 
agreed notional principal amounts such contracts enable the group to mitigate the risk of higher interest rates on the fair value of issued fixed 
rate debt held and the cash flow exposures on the issued variable rate debt held the fair value of interest rate swaps at the reporting date is 
determined by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract and is 
disclosed below the average interest rate is based on the outstanding balances at the end of the financial year
the group has entered into interest rate swap agreements in respect of the bank loans 
the company has two interest rate swap contracts the first expires on 12 february 2011 the fair value of the interest rate swap on 30 june 2008 
was a liability of £159234 2007 £15248 the second expires on 12 february 2012 the fair value of the contract as at 30 june 2008 was 
an asset of £9004 2007 £nil this contract was taken up during the year the contracts are net settled 
credit risk management
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group the group has 
adopted a policy of only dealing with creditworthy counterparties the group only transacts with major high street banks 
trade receivables consist of a large number of customers spread across diverse geographical areas ongoing credit evaluation is performed on 
the financial condition of accounts receivable the group does not have any significant credit risk exposure to a single counterparty the details 
are disclosed in note 16 
liquidity risk management
the group manages liquidity risk by maintaining adequate reserves banking facilities and reserve borrowing facilities by continuously monitoring 
forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities at the date of approving the financial statements 
a material uncertainty exists over the ability of the group to service loan facilities going forward and the directors are in discussion with the banks 
to agree appropriate revisions to loan capital repayments further detail is given in the going concern section of the directors’ report and in note 2  42 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
24 f inancial instruments continued
liquidity and interest risk tables
the following tables detail the group’s remaining contractual maturity for its 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 less than 6 months  1 – 2  2 – 5  
      effective 6 months  – 1 year years years  total 
      interest rate £’000 £’000 £’000 £’000 £’000
2008       
noninterest bearing      00 2253 943 — — 3196
variable interest rate instruments     64 689 1613 1283 1140 4725
fixed interest rate instruments     54 529 534 1024 1650 3737
finance lease liability      70 1398 890 1373 594 4255
      50 4869 3980 3680 3384 15913
2007       
noninterest bearing      00 4465 871 970 — 6306
variable interest rate instruments     69 601 585 1086 1746 4018
finance lease liability      78 801 801 1601 1522 4725
      43 5867 2257 3657 3268 15049
note 20 describes that the majority of the group’s interest bearing debt is denominated in us dollars the above table presents the group’s 
liabilities at the year end exchange rate which was 198 at 30 june 2008 2007 201 at the date of approving the financial statements 
the us rate has reduced to 156 which would increase the sterling value of payments by 27
with the exception of financial assets as disclosed in note 16 financial assets are current and are non interest bearing 
fair value of financial instruments
the fair values of financial assets and financial liabilities are determined as follows
›  foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates 
matching maturities of the contracts
›  interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves 
derived from quoted interest rates and
›  the carrying amount of financial assets and financial liabilities recorded at amortised cost approximates to their fair value 
the applicability of these models is dependent on the group being able to continue as a going concern as set out in the directors’ report on page 14 
if the group was no longer able to adopt the going concern basis the valuation of financial instruments would need to reflect the settlement 
values for the instruments and may be different from the figures presented 
25 called up share capital 
          2008 2007 
          £’000  £’000
authorised     
50000000 2007 50000000 ordinary shares of 2p each      1000 1000
     
called up allotted and fully paid     
26591182 2007 26591182 ordinary shares of 2p each      532 532
     
26 sharebased payments 
the group has two types of share option schemes
›  save as you earn schemes which are available to all employees of the group options are exercisable at a price equal to the average quoted 
market price of the company’s share on the date of grant the average remaining vesting period for options which are not exercisable is 15 years 
the options are exercisable in the year of vesting and are forfeited if the employee leaves the group before the options vest 
›  performance related schemes which are available to certain employees of the group options vest based on the achievement of eps criteria 
for financial years ending 30 june 2008 and 2009 options are exercisable at 2p per share the average remaining vesting period for options 
which have not vested is 15 years if the options remain unexercised after a period of ten years from the date of grant the options expire 
options are forfeited if the employee leaves the group before the options vest 
the fair values of services received in return for share options granted to employees are measured by reference to the fair value of share options 
granted the estimate of the fair value of the services received is measured based on a blackscholes model with the expectations of early 
exercise incorporated into the model 43 annual report and accounts 2008  pure wafer plc
26 sharebased payments continued
details of the share options outstanding during the year were as follows 
     2008  2007
         weighted   weighted 
        number of  average number of  average 
        share  exercise share  exercise 
        options price p options price p
outstanding at beginning of year       731484 35 390186 95
granted during the year       — — 446659 10
lapsedforfeited during the year       293905 67 8448 197
exercised during the year       — — 96913 145
outstanding at the end of the year       437579 14 731484 35
exercisable at the end of the year       22398 145 22398 145
the options outstanding at 30 june 2008 had a weighted average remaining contractual life of 16 years in the year ended 30 june 2008 no options 
were granted 2007 446659 the aggregate of the estimated fair values of the options granted on those dates is £nil 2007 £1060000 
as no new options were granted no information regarding the inputs to the black scholes model has been presented with regards to the options 
granted in earlier periods expected volatility was determined by reference to the historical volatility of listed competitors’ share prices the expected 
life used in the model has been adjusted based on management’s best estimate for the effects of nontransferability exercise restrictions and 
behavioural considerations
the group’s income statement includes a credit of £386000 2007 expense of £300000 related to equitysettled sharebased payment 
transactions during the year 
27 operating lease arrangements 
          2008 2007 
          £’000  £’000
minimum lease payments under operating leases recognised as an expense in the year     467 349
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating leases 
in respect of office properties which fall due as follows
          £’000  £’000
land and buildings     
– within one year          280 282
– between one and two years         280 235
– between two and five years         750 706
– more than five years          4011 4246
          5411 5469
the operating leases greater than five years relate to a 99 year lease of land at the swansea premises that expires in 2099 and the lease of land 
and buildings in prescott arizona expiring in december 2017 none of the figures in the above table have been discounted to present value
          2008 2007 
          £’000  £’000
equipment      
– within one year          88 73
– between one and two years         5 8
– between two and five years         3 8
– more than five years          — —
          96 89
          2008 2007 
          £’000  £’000
other      
– within one year          25 34
– between one and two years         10 34
– between two and five years         2 15
– more than five years          — —
          37 83 44 pure wafer plc  annual report and accounts 2008
notes to the financial statements 
for the year ended 30 june 2008 continued
28 notes to the consolidated cash flow statement
          2008 2007 
          £’000  £’000
lossprofit for the period         6130 2785
adjustment for     
– taxation           5331 810
– finance expense          777 427
– finance income          182 149
– other noncash gains and losses         386 76
– depreciation and amortisation         2932 2387
– nonmonetary foreign exchange translation on assetsliabilities      322 197
operating cash flows before movement in working capital       2020 5987
increasedecrease in receivables         2261 1933
decreaseincrease in payables         2049 1630
increase in inventory          499 1425
net cash inflow from operating activities        1733 4259
     
29 related party transactions
the ultimate controlling party of the group is pure wafer plc
transactions between the company and its subsidiaries which are related parties of the company have been eliminated on consolidation and are 
not disclosed in this note 
the remuneration of the directors who are key management personnel of the group is set out in note 7 and in the directors’ remuneration report
30 reconciliation of ifrs comparatives from previously unpublished uk gaap financial information
in 2007 the group prepared its consolidated financial statements under uk gaap  with effect from 1 july 2007 the group is required to 
prepare its consolidated financial statements in accordance with ifrs see below for summary reconciliation to ifrs from reported uk gaap 
comparative information
year ended 30 june 2007
       functional adoption  
      as reported currency of ias 39     
      under change of financial reclass  as reported  
      uk gaap subsidiary instruments ification taxation† under ifrs  
      £’000 £’000 £’000 £’000 £’000 £’000
revenue      22348 — — — — 22348
operating profit      2980 513 — 32 — 3461
profit before tax      2702 895 2 — — 3595
profit for the period      5562 895 2 — 3670 2785
noncurrent assets      29487 3869 — — — 25618
current assets      17981 — 33 — 579 18593
current liabilities      8765 — 15 — — 8780
noncurrent liabilities      9188 736 — — — 8452
equity      29515 3133 18 — 579 26979
at 30 june 2006
noncurrent assets      19837 2847 — — — 16990
current assets      13312 — 22 — 4249 17583
current liabilities      4029 — — — — 4029
noncurrent liabilities      5608 591 — — — 5017
equity      23512 2256 22 — 4249 25527
    under ifrs each of the directors is required to assess which currency is the functional currency for each subsidiary the directors have deemed that pure wafer plc the holding 
company remains a sterling denominated company pure wafer inc the us subsidiary remains a us dollar denominated company and pure wafer international limited 
the uk trading entity has a functional currency of us dollars the change of the functional currency in pure wafer international limited impacts nonmonetary assets and 
liabilities that were acquired in earlier periods and held at historical cost sterling amounts such as fixed assets which decrease in value by £39m 2006 £28m and 
deferred grant income which decreases by £07m 2006 £06m the impact on the income statement is to reduce depreciation and grant income by £05m net and 
introduce a foreign exchange gain of £04 million arising on translation of sterling monetary items to the functional currency 
 ias 39 requires a valuation of all derivatives not subject to hedge accounting to be included in the balance sheet
 †   under the ifrs taxation standard ias 12 deferred tax is calculated as the tax effect of the difference between the tax carrying value and the book value of the group’s 
assets and liabilities the above changes represent the impact on deferred tax of the other ifrs transition adjustments plus a recalculation of the opening deferred tax 
asset at 1 july 2006 under ifrs under uk gaap  a valuation allowance had been included against the deferred tax asset which the directors feel would not have 
been required under the ifrs rules at that date 45 annual report and accounts 2008  pure wafer plc
company statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations
company law requires the directors to prepare financial statements for each financial year under that law the directors have elected to prepare 
the financial statements in accordance with united kingdom generally accepted accounting practice united kingdom accounting standards 
and applicable law the financial statements are required by law to give a true and fair view of the state of affairs of the company and of the 
profit or loss of the company for that period in preparing these financial statements the directors are required to
›  select suitable accounting policies and then apply them consistently
›  make judgements and estimates that are reasonable and prudent
›  state whether applicable uk accounting standards have been followed and
›  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
the directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position 
of the company and enable them to ensure that the financial statements comply with the companies act 1985 they are also responsible for 
safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities 46 pure wafer plc  annual report and accounts 2008
company independent auditors’ report 
to the members of pure wafer plc
we have audited the financial statements of pure wafer plc for the year ended 30 june 2008 which comprise the company balance sheet 
and the related notes 1 to 11 these parent company financial statements have been prepared under the accounting policies set out therein 
we have reported separately on the group financial statements of pure wafer plc for the year ended 30 june 2008 
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report 
and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company 
and the company’s members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the financial statements in accordance with applicable law and united kingdom accounting standards 
united kingdom generally accepted accounting practice are set out in the statement of directors’ responsibilities
our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and international standards 
on auditing uk and ireland
we report to you our opinion as to whether the parent company financial statements give a true and fair view and whether the parent company 
financial statements have been properly prepared in accordance with the companies act 1985 we also report to you whether in our opinion the 
information given in the directors’ report is consistent with the financial statements
in addition we report to you if in our opinion the company has not kept proper accounting records if we have not received all the information 
and explanations we require for our audit or if information specified by law regarding directors’ remuneration and other transactions is not 
disclosed
we read the directors’ report and consider whether it is consistent with the audited parent company financial statements we consider the 
implications for our report if we become aware of any apparent misstatements or material inconsistencies with the parent company financial 
statements our responsibilities do not extend to any further information outside the annual report 
basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board 
an audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the parent company financial statements 
it also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the parent company 
financial statements and of whether the accounting policies are appropriate to the company’s circumstances consistently applied and 
adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us 
with sufficient evidence to give reasonable assurance that the parent company financial statements are free from material misstatement whether 
caused by fraud or other irregularity or error in forming our opinion we also evaluated the overall adequacy of the presentation of information in 
the parent company financial statements
opinion
in our opinion
›  the parent company financial statements give a true and fair view in accordance with united kingdom generally accepted accounting practice 
of the state of the company’s affairs as at 30 june 2008 
›  the parent company financial statements have been properly prepared in accordance with the companies act 1985 and
›  the information given in the directors’ report is consistent with the parent company financial statements
emphasis of matter – going concern
without qualifying our opinion we draw attention to the disclosures made in note 1 of the financial statements concerning the company’s ability 
to continue as a going concern the group has relied on waivers of loan covenant tests at 30 june and 30 september 2008 in order to stay in 
line with banking facility arrangements and needs to reschedule its capital repayments of debt these conditions along with other matters as set 
forth in note 1 indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a 
going concern the financial statements do not include the adjustments that would result if the company was unable to continue as a going 
concern as it is not practicable to determine or quantify them
deloitte llp
chartered accountants and registered auditors
cardiff united kingdom
19 december 2008 47 annual report and accounts 2008  pure wafer plc
company balance sheet
30 june 2008
      2008 2007 
     note £’000 £’000
fixed assets     
investments     4 9215 9215
     
current assets     
debtors     5 4082 6713
cash at bank and in hand      — 2001
      4082 8714
     
creditors amounts falling due within one year     6 978 1923
net current assets      3104 6791
total assets less current liabilities      12319 16006
creditors amounts falling due after more than one year     7 607 3457
net assets      11712 12549
     
capital and reserves     
called up share capital     9 532 532
share premium account     10 12783 12783
profit and loss account     10 1603 766
shareholders’ funds     10 11712 12549
     
these financial statements were approved by the board of directors on 19 december 2008
signed on behalf of the board of directors
peter harrington  stephen young
chief executive  interim group finance officer
19 december 2008   19 december 2008 48 pure wafer plc  annual report and accounts 2008
notes to the company financial statements
year ended 30 june 2008
1 accounting policies – company
the financial statements are prepared in accordance with applicable united kingdom accounting standards the particular accounting policies 
adopted which have been applied consistently throughout the current and the prior financial year are described below
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are set out in the 
chairman’s statement on pages 4 and 5 the financial position of the group its cash flows liquidity position and borrowing facilities are 
described in the chief executive’s review on pages 6 and 7 in addition note 24 to the financial statements includes the group’s objectives 
policies and processes for managing its capital its financial risk management objectives details of its financial instruments and hedging 
activities and its exposures to credit risk and liquidity risk the directors have assessed the balance sheet and likely future cash flows of the 
company and group at the date of signing the audit report and on this basis have concluded that it is appropriate to prepare the financial 
statements on a going concern basis 
as described in the chairman’s statement on pages 4 and 5 the current environment is challenging the company has recorded a pretax loss and 
has relied on waivers of loan covenant tests at 30 june and 30 september 2008 in order to stay in line with banking facility arrangements in 
forming the conclusion about the going concern basis the directors have considered these factors together with the management forecasts for the 
business for the period to 30 june 2010 the forecasts indicate that the company can continue to meet interest payments but it needs to 
reschedule some of the capital repayments of debt and may also need to obtain waivers of future loan covenant tests the company has met all 
capital and interest payments as they fell due up to the date of approving the financial statements whilst the directors have instituted measures 
to preserve cash and reschedule the current repayment obligations these circumstances create material uncertainties over future cash flows 
and the availability of finance 
as explained in the chairman’s statement on pages 4 and 5 the board has received a preliminary indicative approach to acquire pure wafer plc 
whilst negotiations are progressing there can be no certainty that any offer will be made if a sale is arranged it is likely to include a cash 
injection which will be used to reduce the debt obligations of the company but if not the group will need to restructure the finance facilities 
such that the debt can be serviced from forecasted levels of trading and cash flow
the directors are also pursuing alternative strategic options and sources of finance in case neither the offer for the business nor a restructuring 
of existing facilities can be arranged no commitment has been secured to date 
the directors have concluded that the combination of circumstances represents a material uncertainty that casts significant doubt upon the group’s 
and the company’s ability to continue as a going concern and therefore that it may be unable to realise its assets and discharge its liabilities in 
the normal course of business nevertheless after making enquiries and considering the uncertainties described above the directors have a 
reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future 
for these reasons they continue to adopt the going concern basis in preparing the annual report and financial statements 
the financial statements do not include any adjustments that would result if the going concern assumption were not applicable 
accounting convention
the financial statements are prepared under the historical cost convention 
investments
investments in subsidiaries and associates are held as fixed assets and are stated at cost less provision for any impairment
cash flow statement
under financial reporting standard 1 revised 1996 the company is not required to prepare a cash flow statement as a group cash flow 
statement has been included in the financial statements of the group 
taxation
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been enacted or substantively 
enacted at the balance sheet date 
deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax or a right to pay less 
tax at a future date at rates expected to apply when they crystallise based on current tax rates and law timing differences arise from the inclusion 
of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements
deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered deferred tax assets and 
liabilities are not discounted 49 annual report and accounts 2008  pure wafer plc
2 information regarding directors and employees
          2008 2007 
          £’000 £’000
directors’ emoluments    
aggregate emoluments including benefits in kind       664 598
contributions to money purchase pension schemes       15 15
          679 613
    
          2008 2007 
          £’000 £’000
highest paid director    
aggregate emoluments including benefits in kind       183 186
contributions to money purchase pension schemes       5 5
          188 191
    
          2008 2007 
          number number
number of directors in pension scheme        3 3
    
          2008 2007 
          number number
average number of persons employed including directors    
sales and administration         7 7
    
          2008 2007 
          £’000 £’000
staff costs during the year including directors    
wages and salaries          636 573
social security costs          76 72
pension costs          14 15
          726 660
    
3 loss for the year
as permitted by section 230 of the companies act 1985 the company has elected not to present its own profit and loss account for the year 
pure wafer plc reported a loss for the financial year ended 30 june 2008 of £837000 2007 £737000 
auditors’ remuneration for audit services for the company was £8000 2007 £12000 auditors’ remuneration for nonaudit services for the 
company was £20000 2007 £9000 
4 investments
           investment in  
           subsidiaries 
           £’000
cost and net book value     
at 1 july 2007 and 30 june 2008          9215
the company’s investments in group companies relate to
   holding 
   1 ordinary  country of  
subsidiaries   shares activity  incorporation
pure wafer international limited  100 reclamation and reprocessing of silicon test wafers  united kingdom
pure wafer inc   100 reclamation and reprocessing of silicon test wafers united states
5 debtors
          2008 2007 
          £’000 £’000
amounts owed by group undertakings         4016 6645
other debtors and prepayments         66 68
          4082 6713
  50 pure wafer plc  annual report and accounts 2008
notes to the company financial statements
year ended 30 june 2008 continued
6 creditors amounts falling due within one year 
          2008 2007 
          £’000 £’000
bank loans and overdraft note 8         978 942
other taxation and social security         — 147
deferred consideration          — 834
          978 1923
     
7 creditors amounts falling due after more than one year 
          2008 2007 
          £’000 £’000
bank loans           607 2590
deferred consideration          — 867
          607 3457
     
8 borrowings 
          2008 2007 
          £’000 £’000
overdraft      
within one year          757 —
     
bank loans      
within one year          221 942
between one and two years         221 943
between two and five years         386 1647
          828 3532
     
deferred consideration     
within one year          — 834
between one and two years         — 867
          — 1701
in february 2008 the company restructured its borrowing facilities the outstanding balance on the us70 million term loan taken out in 2007 
carrying value at 30 june 2007 £3532000 was transferred to the company’s subsidiary pure wafer inc on the same date a new loan 
was taken out for us175 million
9 called up share capital
          2008 2007 
          £’000 £’000
authorised     
50000000 ordinary shares of 2p each        1000 1000
called up allotted and fully paid     
26591182 2007 26591182 ordinary shares of 2p each      532 532
          532 532
     
10 combined reconciliation of movement in shareholders’ funds and statement of movements on reserves
        share profit  
       share premium and loss total  total 
       capital account account  2008 2007 
       £’000  £’000  £’000  £’000  £’000
at the beginning of the year       532 12783 766 12549 13145
loss for the financial year      — — 837 837 737
proceeds from issue of new shares      — — — — 141
at the end of the year        532 12783 1603 11712 12549
     
11 related party transactions
under financial reporting standard 8 the company is not required to disclose transactions with entities 90 or more of whose voting rights are 
controlled within the group 51 annual report and accounts 2008  pure wafer plc
notice is given that the 2008 annual general meeting of pure wafer plc “company” will be held at 1000am on 4 february 2009 
at pure wafer plc central business park swansea vale swansea sa7 0ab for the following purposes
resolutions
to consider and if thought fit pass the following resolutions resolutions 1 to 6 will be proposed as ordinary resolutions and resolutions 7 and 8 
will be proposed as special resolutions
1  to receive the directors’ report and the company’s annual accounts for the year ended 30 june 2008 together with the auditors’ report 
on those accounts
2 to reappoint e ap gwilym as a director of the company
3 to reappoint p harrington as a director of the company
4 to reappoint s boyd as a director of the company
5  to reappoint deloitte llp as auditors of the company to hold office from the conclusion of the meeting until the conclusion of the next 
general meeting of the company at which accounts are laid
6  to authorise the directors to fix the remuneration of the auditors
7  that the directors of the company be and are hereby generally and unconditionally authorised to issue and allot 
  71  ordinary shares to be issued upon valid exercise of any share options granted to employees of the company in accordance with 
the terms of the company’s 2005 performance share plan and 2005 saye option plan and
 72  relevant securities within the meaning of section 80 of the companies act 1985 “act” up to an aggregate nominal amount 
of £159547
  provided that unless previously revoked varied or renewed this authority shall expire at the conclusion of the next agm of the company 
after the passing of this resolution save that the company may make an offer or agreement before the expiry of this authority which would 
or might require relevant securities to be allotted after such expiry and the directors may allot relevant securities pursuant to any such offer 
or agreement as if the authority conferred by this resolution had not expired
8  that subject to the passing of resolution 6 pursuant to section 95 of the act in substitution for all existing authorities under that section 
the directors be and are generally empowered to allot equity securities within the meaning of section 942 of the act for cash pursuant 
to the authority conferred by resolution 6 as if section 891 of the act did not apply to any such allotment provided that this power shall 
be limited to
  81  the allotment of equity securities in connection with an offer whether by way of a rights issue open offer or otherwise to holders 
of ordinary shares in the capital of the company in proportion as nearly as practicable to the respective numbers of ordinary shares 
held by them subject to such exclusions or other arrangements as the directors may deem necessary or expedient in relation to 
fractional entitlements or any legal or practical problems under the laws of any territory or the requirements of any regulatory body 
or stock exchange
  82  the allotment of equity securities to be issued pursuant to any share options granted to employees of the company in accordance 
with the terms of the company’s 2006 performance share plan and 2005 saye option plan and
  83  the allotment of equity securities for cash otherwise than pursuant to paragraphs 72 and 73 above up to an aggregate nominal 
amount of £26591
  and unless previously revoked varied or renewed shall expire at the conclusion of the next agm of the company after the passing of this 
resolution save that the company may make an offer or agreement before the expiry of this power which would or might require equity 
securities to be allotted for cash after such expiry and the directors may allot equity securities for cash pursuant to any such offer or 
agreement as if the power conferred by this resolution had not expired 
notice of annual general meeting 52 pure wafer plc  annual report and accounts 2008
9  that pursuant to section 166 of the act the company be and is generally and unconditionally authorised to make market purchases 
within the meaning of section 163 of the act of ordinary shares of 2p each in the capital of the company “shares” provided that
  91  the maximum number of shares which may be purchased is 2652435
 92  the minimum price exclusive of expenses which may be paid for a share is 2p
  93  the maximum price exclusive of expenses which may be paid for a share is an amount equal to 105 of the average of the middle 
market quotations for the shares as derived from the daily official list of the london stock exchange for the five business days 
immediately preceding the day on which the purchase is made
  and unless previously revoked varied or renewed shall expire at the conclusion of the next annual general meeting of the company after the 
passing of this resolution save that the company may enter into a contract to purchase shares before the expiry of this authority under which 
such purchase will or may be completed or executed wholly or partly after such expiry and may make a purchase of shares pursuant to any 
such contract as if the authority conferred by this resolution had not expired
by order of the board
stephen y oung registered office
company secretary pure wafer plc
19 december 2008 central business park
 swansea vale
 swansea sa7 0ab
 
notes
1  only those members registered in the register of members of the company as at 1000am on 2 february 2009 or in the event that the 
meeting is adjourned in the register of members 48 hours before the time of any adjourned meeting shall be entitled to attend or vote 
at the meeting in respect of the number of shares registered in their name at that time changes to entries in the register of members 
after 1000am on 2 february 2009 or in the event that the meeting is adjourned after 48 hours before the time of any adjourned 
meeting shall be disregarded in determining the rights of person to attend or vote at the meeting
2  a member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and on a poll to vote instead of himher 
a proxy need not be a member of the company a proxy may not speak at the meeting except with the permission of the chairman of the 
meeting the appointment of a proxy will not preclude a member from attending and voting in person at the meeting if he or she so wishes
3  a form of proxy is enclosed to be valid it must be deposited at the offices of the company’s registrars capita registrars the registry 
34 beckenham road kent br3 4tu by 1000am on 2 february 2009 or in the event that the meeting is adjourned no later than 
48 hours before the time of any adjourned meeting
4  the register of interests of directors and their connected persons in the share capital of the company is available for inspection during normal 
business hours at the registered office of the company excluding weekends and public holidays it will also be available for inspection at 
the place of the annual general meeting from 1100am on the day of the meeting until the conclusion of the meeting
notice of annual general meeting 
continued


Summary:
 pure wafer plc 
annual report and accounts
pure wafer plc
central business park 
swansea sa7 0ab
tel 44 01792 311 200 
fax 44 01792 795 420 
web wwwpurewafercom
pure wafer plc  annual report and accounts 2008