‘The Board is now expanding the scope of the previously announced Strategic Review to also incorporate the potential sale of the Company and is seeking buyers,’ says a statement from IQE.
IQE is now considered to be in an “offer period” as defined by the Takeover Panel’s Code.
IQE has been approached by a potential buyer although there can be no certainty either that an offer will be made or the terms of any offer, if made,
The company has cut its 2025 revenue forecast to between £90 million ($121.5 million) and £100 million pounds, down from its prior expectation of £115.1-£123 million as it was also hurt by some contract delays.
It expects annual earnings of between a loss of £5 million pounds and a profit of £ 2 million.
“We have updated our expectations for the full year to adjust for the deferral of certain contracts in our Wireless and Photonics segments,” says CEO Jutta Meier, “this is a result of continued global and macro uncertainty which has impacted the unwinding of customer inventory levels pre-built in 2023 and 2024, the sale of new mobile handsets and the release of budgetary spending across the US military and defence sector.”
’The Board continues to believe there is a significant market opportunity for IQE because of the Group’s leading position in providing advanced compound semiconductors across several market verticals and to a base of global marque customers,’ says IQE.
’The Group has continued to experience weakness in wireless markets, largely as a result of softness in mobile handset sales, and this is expected to persist through 2025. In addition, delays to federal funding cycles in US military and defence sectors are resulting in the deferral of orders into 2026,” says the company,
IQE has been negotiating with multiple parties for the sale of the Group’s Taiwan operations. Should the sale of Taiwan be concluded, it is expected that the proceeds will be used to fully repay the Group’s Revolving Credit Facility with HSBC Bank and Convertible Loan Notes issued in March 2025, as well as providing IQE with cash to invest in its core operations
The Group will report its interim results on 23 September 2025.
