News: Suppliers
28 January 2025
IQE raises full-year 2024 revenue and adjusted EBITDA guidance
In a pre-close trading update for full-year 2024, epiwafer and substrate maker IQE plc of Cardiff, Wales, UK says that it now expects revenue of £118m, exceeding 18 November’s guidance of about £115m. This is up from 2023’s £115.3m.
Combined with focused cost control and improved operational performance, adjusted EBITDA guidance has likewise been raised from at least £5m to at least £7.5m (up from 2023’s £4.3m).
“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,” comments executive chair Mark Cubitt.
Strategic review and proposed financing
As announced in November, IQE is undertaking a strategic review that 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 says that it is encouraged by the positive levels of interest from its partners and the broader recognition that the firm is a technical leader spanning strategically important vertical markets, with a well-invested asset base.
“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,” comments Cubitt.
In addition, IQE is in the final stages of concluding its proposed convertible loan note and has received strong support from shareholders. This process is expected to conclude soon.
“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,” concludes Cubitt.
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