Shares in IQE PLC (AIM:IQE) were propelled 9% higher to 13.38p after the semiconductor wafer supplier posted a year-end update revealing revenues and earnings higher than expected and that it has had "positive levels of interest" from partners after beginning a strategic review.
The Cardiff-headquartered company said revenue for 2024 came at £118 million versus the average analyst forecast of £115 million.
Underlying profits (EBITDA) were £7.5 million, well above the City consensus of £5 million.
Having announced the strategic review in November, initially focused on whether to push on with an IPO of its Taiwan operations or full sale, the board said it "is encouraged by the positive levels of interest from its partners and the broader recognition that the group is a technical leader across a variety of strategically important vertical markets, with a well-invested asset base".
The support from shareholders includes for a fundraising via a proposed convertible loan note, which is expected to conclude shortly.
Executive chair Mark Cubitt said chief financial officer and interim CEO Jutta Meier "have taken effective action to refocus the group on its core strengths and improve operational performance, resulting in an encouraging financial picture".
He said the proposed financing "will provide IQE with greater resilience as we continue to strengthen key customer relationships and expand further into emerging high-growth areas".
In a separate note to its client, broker Peel Hunt said: "Despite industry headwinds, IQE management has gained credibility by: 1) Delivering against FY24 expectations, 2) Outlining a plan to unlock sum-of-the-parts value, and 3) Making progress on strengthening the balance sheet."
The analysts said they are "hopeful" about the semiconductor sector cycle turning in the second half of the year.