Pure Wafer jumps as it sells Swansea factory after fire

12th Aug 2015 17:01

(ShareCast News) - Pure Wafer shares jumped 28% after it announced it had sold its Swansea factory which was damaged by a fire last year.Following the sale of the facility, the company expects to return to surplus funds of between 140p and 145p per share.The silicon wafer provider said all redundancy liabilities have been agreed and substantially settled. It has also assigned the remainder of the 99 year lease to a third party.Meanwhile, the group said its operations were unaffected by the closure of the Swansea facility and expects its Prescott facility in Arizona to report underlying profits in line with expectaions."With the facility currently running at record levels of productivity and high utilisation this provides confidence in the strength and profitability of this business going forward," the company said.WH Ireland analysts said: "To a strategic buyer, the value of the Prescott site could be significantly higher than our base case valuation."Pure remains a substantial value play and we retain our 'buy' recommendation this morning."Shares rose 28.24% to 163.5p on Wednesday.