IQE trading update reveals 25 percent year-on-year growth.
Company shows strong trading performance, continued reduction in capital investment and focus on cash management
IQE plc, a manufacturer of advanced semiconductor wafer products and materials, has provided a pre-close trading update for the financial year ended 31 December 2020.
Revenue for the year ended 31 December 2020 is expected to be c.£178m, subject to external audit review (2019: £140m). This is consistent with previously issued guidance of at least £170m and represents over 25 percent year-on-year growth.
The group also highlights a net cash position of c.£2m as at 31 December 2020 (31 Dec 2019: net debt of £16m). strong trading performance, continued reduction in capital investment and focus on cash management.
Trading remained favourable in the final quarter of 2020 and the company enters 2021 with positive momentum in both the wireless and photonics business units.
Drew Nelson, CEO of IQE, said: “IQE has achieved real strategic progress over the past year with excellent results. I am extremely proud of our strong financial and operational performance in 2020, which represents a record revenue performance for IQE. We also demonstrated strong free cash flow of close to £18 million, facilitating the transition to a net cash positive position at year end. The whole IQE team contributed to this result and they have demonstrated outstanding resilience throughout what was a hugely challenging year globally.”