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Xeros Technology Group plc (AIM: XSG, 'the Group', 'Xeros'),  the developer and licensor of platform technologies which transform the sustainability and economics of clothing and fabrics during their lifetime, today publishes its interim results for the six months ended 30 June 2020.

Highlights

• Licensed products close to market entry
  • Indian and Chinese licensees of Xeros' commercial laundry technology planning market launches in Q1 2021.
  • Indian licensee of garment finishing technology planning market launch in Q1 2021.
  • Planned market entry timing by Indian licensee of domestic laundry technology unchanged at mid-2021.
• Microfibre filtration technology independently judged as vastly superior to existing products
  • University of Plymouth study of domestic washing machine filtration solutions published in July 2020 evaluated XFiltra as significantly more effective than all other devices.
  • JDA signed in March 2020 with leading global laundry equipment OEM to develop a filtration product for their commercial washing machines.
• Transition to "Pure play" licensing model and organisation fully implemented
  • Completed exit from direct businesses with sale of Marken in June 2020.
  • Cash burn run rate down to less than £0.5m per month
  • Headcount reductions delivered in line with plans from 64 in December 2019 to 45 in August 2020
• Adjusted EBITDA¹ loss reduced by 59.8% to £3.0m (2019: loss £7.5m)
• Net cash outflow from operations reduced by 55.4% to £4.1m (2019: £9.2m).
• Cash of £6.2m as of 31st August 2020
• Announcement today of intention to consolidate shares to reduce number of shares in issue. Further details to be published in due course.

Mark Nichols , Chief Executive of Xeros, said:

"Covid-19 has inevitably caused some delays in our licensees' programmes. Whilst we cannot rule out further disruption, our licensees are planning to place XDrumTM machines with affirmation customers in both commercial laundry and garment finishing markets in Q4 of this year ahead of full market launches early next. Our licensee's plans for entering the domestic washing machine market in India in mid-2021 remain unchanged. Following successful market penetration with these first contracts, our plans are to extend the geographic reach of our license portfolio.

"The domestic version of XFiltraTM has now been independently judged as the leading solution for the abatement of the largest source of primary microplastic pollution which is created by the washing of our clothes at home. Our expectation is for our design to be licensed well in advance of European legislation deadlines, currently set at 2025. Our joint development programme with a world leading commercial laundry equipment company to create an industrial size filtration product is on track for completion at the end of the year.

"The implementation of our current and future license contracts will deliver major improvements in the sustainability of clothing and fabrics during their manufacture including reductions in water, chemistry, energy, effluent and cost.  Extending the useful life of these essential items in the hands of consumers and businesses adds to the preservation of precious resources and furthers the protection of the environment."

¹ Adjusted EBITDA is defined as loss on ordinary activities before interest, tax, share-based payment expense, exceptional costs, depreciation, and amortisation

 

Enquiries

 

Xeros Technology Group plc	Tel: 0114 321 6328
Mark Nichols, Chief Executive Officer Paul Denney, Chief Financial Officer
finnCap Limited (Nominated Adviser and Broker)	Tel: 020 7220 0500
Julian Blunt/Teddy Whiley, Corporate Finance Andrew Burdis/Sunila de Silva, ECM

Notes to Editors

Xeros Technology Group plc develops and licenses platform technologies which transform the sustainability and economics of clothing and fabrics during their manufacture and over their lifetime of use.

Xeros' patented XOrb™technologies significantly reduce the amount of water used in the dyeing, finishing or laundering of soft substrates such as garments and fabrics. They enable the remaining water to become far more efficient and effective in either affixing or removing molecules, the result being improvements in economic, operational, product and sustainability outcomes. The Group applies its XOrb technology in the fields of garment finishing and dyeing, tanning and commercial and domestic laundry.

Xeros' XDrum™technology is a patented, simple, low cost machine drum design which enables XOrbs to be introduced into and subsequently removed from process cycles in Xeros' chosen fields. The design provides Original Equipment Manufacturers ('OEMs') with the ability to make simple and low-cost changes in their products to incorporate the Company's XOrb technology.

The Group has signed multiple license agreements for its XDrum and XOrb products in major commercial and domestic markets.

XFiltra™is a proprietary in-machine filtration technology which prevents harmful microfibres including microplastics, generated during washing cycles, from being released into the world's river and oceans.  Microplastics released from synthetic clothing during laundering is the largest source of primary microplastic pollution entering oceans every year.

For more information, please visit -  http://www.xerostech.com/

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