IQE (IQE) Trading Update summary

Financial performance

• FY24 revenue expected at £118m, surpassing previous guidance of £115m.

• Adjusted EBITDA anticipated to be at least £7.5m, exceeding the prior expectation of £5m.

• Improved operational performance and focused cost control contributed to financial outperformance.

Strategic review and financing

• Strategic review underway, focusing on Taiwan operations and considering options like IPO or full sale.

• Board reports strong partner interest and recognition of technical leadership in key markets.

• Proposed convertible loan note in final stages, with strong shareholder support.

• Financing aims to enhance resilience and support expansion into high-growth areas.

Market position and operations

• IQE is a leading global supplier of compound semiconductor wafers and advanced materials.

• Operates manufacturing sites in the UK, US, and Taiwan, serving diverse sectors including smart devices, communications, automotive, and aerospace.

• Holds a strong intellectual property portfolio, enabling superior product quality and economics.