Pure Wafer, which recycles computer chips for semiconductor manufacturers, is to pay its first-ever dividend after the directors announced an improvement in its financial position and future prospects.

The Swansea-based company reported pre-tax profits of $3.6 million for the year to 30 June, compared with $3 million for the same period last year. However, its revenues fell by $1 million to $35.9 million.

Chairman Peter Harrington said: “I am delighted to announce continued improvement in the profitability of the company and a further strengthening of the balance sheet. Strong cash generation has enabled Pure Wafer to invest in additional 300mm-wafer capacity, introduce further technology advancements and further reduce debt, finishing the year with a net cash balance of $1.5 million. This represents a turn-round of more than $3.0 million since June 2013.”