IQE
plc
THIS ANNOUNCEMENT CONTAINS
INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU)
NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
Cardiff, UK
23 January 2025
Pre-close Trading
Update
- FY24 revenue and Adj. EBITDA expected to
exceed expectations
- Positive impact of cost actions
evidenced
IQE plc (AIM: IQE, "IQE" or
the "Group"), the leading global supplier
of compound semiconductor wafer products and advanced material
solutions, provides a pre-close Trading
Update for the financial year ended 31 December 2024.
Revenue for the period is expected
to be at £118m, combined with focused cost control and improved
operational performance, the Group expects Adjusted EBITDA to be at
least £7.5m, exceeding expectations* and subject to external
review.
Strategic review and Proposed Financing
As announced in November 2024, IQE
is undertaking a Strategic Review which the Board believes will
better unlock significant unrealised value within the Group. At
this stage, the strategic review is focused on its Taiwan
operations covering all strategic options, including IPO or a full
sale. While the review remains at an early stage, the Board is
encouraged by the positive levels of interest from its partners and
the broader recognition that the Group is a technical leader across
a variety of strategically important vertical markets, with a
well-invested asset base.
In addition, the Group is pleased to
say it is in the final stages of concluding its proposed
convertible loan note and that it has received strong support from
shareholders. This process is expected to conclude shortly and an
announcement will be made accordingly. A circular will be sent to
shareholders providing further details and seeking their approval
in due course.
Mark Cubitt, Executive Chair of IQE,
commented:
"I am pleased that the business performance in
2024 will show revenue and adjusted EBITDA ahead of expectations.
Amid ongoing macro headwinds, Jutta and the leadership team have
taken effective action to refocus the Group on its core strengths
and improve operational performance, resulting in an encouraging
financial picture. I am really pleased by the reaction from our
staff, customers and shareholders to the announcement of the
strategic review, and the resulting positive engagement. In
addition, the proposed financing will provide IQE with greater
resilience as we continue to strengthen key customer relationships
and expand further into emerging high growth
areas"
*As communicated on 18 November 2024, the group expected
revenue to be around £115m and Adjusted EBITDA of at least £5m for
the financial year ended 31 December 2024.
Contacts:
IQE
plc
+44 (0) 29 2083 9400
Mark Cubitt
Jutta Meier
Amy Barlow
Peel Hunt (Nomad and Joint Broker)
+44 (0) 20 7418 8900
Ben Cryer
Kate Bannatyne
Adam Telling
Deutsche Numis (Joint Broker)
+44 (0) 20 7260 1000
Simon Willis
Hugo Rubinstein
Iqra Amin
Headland Consultancy (Financial PR)
+ 44 (0) 20
38054822
Andy Rivett-Carnac: +44 (0) 7968 997
365
Chloe Francklin: +44 (0)78 3497
4624
ABOUT IQE
http://iqep.com
IQE is the leading global supplier
of advanced compound semiconductor wafers and materials solutions
that enable a diverse range of applications across:
·
Smart Connected Devices
·
Communications Infrastructure
·
Automotive and Industrial
·
Aerospace and Security
As a scaled global epitaxy wafer
manufacturer, IQE is uniquely positioned in this market which has
high barriers to entry. IQE supplies the global market and is
enabling customers to innovate at chip and OEM level. By leveraging
the Group's intellectual property portfolio including know-how and
patents, it produces epitaxy wafers of superior quality, yield and
unit economics.
IQE is headquartered in Cardiff UK,
with employees across manufacturing locations in the UK, US and
Taiwan, and is listed on the AIM Stock Exchange in
London.
This announcement is issued on
behalf of the Company by Jutta Meier, Interim CEO & Chief
Financial Officer.
