IQE enjoyed a sharp rise in revenue and a swing back to underlying profitability in the first half of the year, driven by demand from AI data centres and defence.
It also said it planned to move its listing to London’s Main Market and looks set to join the long list of companies preparing to leave AIM.
The compound semiconductor maker said revenue rose 43% to £64.6m in the six months to 30 June, with AI-related demand providing the uptick in sales.
Its photonics division, which supplies materials for optical data transfer, grew 45% to £38.5m as AI and data-centre demand increased and as funding was released for US defence programmes,
Its wireless business grew 40% to £26.0m. Adjusted EBITDA swung to a £6.0m profit, from a small loss a year earlier, helped by higher factory utilisation and a richer product mix.
The Cardiff-based group remained loss-making at the pre-tax level, though the reported loss narrowed to £12.6m from £18.3m. Its balance sheet was transformed by a fundraising completed as part of a strategic review, leaving it with net cash of £30.2m, having carried net debt of £23.5m a year earlier.
IQE said it would convert existing capacity in the second half to meet rising demand for indium phosphide, a material used in AI and data-centre applications, and reaffirmed full-year guidance for revenue growth of more than 30% and adjusted EBITDA in the low tens of millions.
Alongside the results, IQE announced its intention to move from AIM to the London Stock Exchange’s Main Market, targeting admission in the first half of 2027.
“During the period, we have demonstrated our ability to capture long-term growth opportunities across these critical markets, underpinned by a number of key supply agreements. IQE is uniquely positioned to meet customer needs and will be converting existing capacity in H2 to support the increasing demand for Indium Phosphide solutions,” said Jutta Meier, Chief Executive Officer of IQE.
“Looking ahead, we have initiated a move to the Main Market of the London Stock Exchange, marking an important next step in IQE’s development and reflecting the Board’s ambition to broaden support for the business and position IQE for the future.”