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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 audited results for the 12 months ended 31 December 2020.

Highlights

• Multiple licensees entering/ready to enter markets with XOrb™/XDrum™ technologies.
• XFiltra™ filtration technology at the forefront of abating microfibre pollution.
• Strong progress in spite of Covid-19 pandemic.
• £9.0m raised to execute current license contracts and win additional contracts in targeted geographies.
• Cash burn run-rate down to £0.4m per month in second half of 2020.

 

• Licensing progress of XOrb/XDrum technology platform:
  • Ramsons entered Garment Finishing market in South Asia.
  • SeaLion and IFB ready to enter Commercial Laundry markets in China and India respectively.
  • Subject to any further Covid-19 impacts, IFB planning entry into Indian Domestic Laundry market in 2021.

 

• Major advances in XFiltra technology platform addressing microfibre pollution from washing machines:
  • Leading Commercial Laundry equipment company planning to enter market with industrial version in 2021.
  • Product design to address domestic machine market planned for release for field trials by OEMs in mid-2021.
  • Increased legislative activity in multiple countries with France committed to domestic machines with filters from 1^st January 2025.
  • Third party validation of XFiltra as the most efficient microfibre filtration device, with current XFiltra design capture rate greater than 90%.

 

• Financial:
  • Revenue decreased in 2020 by 78.8% to £0.4m (2019: £1.8m) reflecting full year impact of disposal of direct operations and transition to licensing model.
  • Adjusted EBITDA¹ loss reduced by 53.2% to £6.8m (2019: loss £14.4m).
  • Administrative expenses down 54.8%
  • Post-tax earnings loss reduced by 66.2% to £7.0m (2019: loss £20.6m).
  • Net cash outflow from operations reduced by 54.9% to £6.3m (2019: £14.1m). Cash at 31 March 2021 £11.7m.

 

Mark Nichols, Chief Executive of Xeros, said:

"A year of living with the global Covid-19 pandemic has increased the belief among consumers, politicians and business that we must build better for a more sustainable future. Consumers are increasingly choosing products which carry a lower environmental cost while legislators are putting the long-term health of the planet at the heart of policy making.

"Together with our licensees, we are making a tangible difference to the sustainability of the clothes and fabrics we wear and use. By minimising the environmental harms caused during their manufacture and care, Xeros is helping the world to 'wear better'.

"The launch of our technologies by licensees in South Asia and China will give us a platform to expand into new geographies where there is also an urgent need for the environmental and economic benefits presented by our technologies.

"We will do so from a solid financial position with resources in place to win additional license contracts and fully embed our technologies within major supply chains and in the hands of consumers."

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: 01143216328
Mark Nichols, Chief Executive Officer Paul Denney, Chief Financial Officer
finnCap Limited (Nominated Advisor & Broker)	Tel: 020 7220 0500
Julian Blunt / Teddy Whiley, Corporate Finance Andrew Burdis / Sunila de Silva, ECM

 

Notes to Editors

Xeros Technology Group plc has developed and licenses two platform technologies which transform sustainability, performance and economics in the manufacturing and laundering of garments and fabrics.

Xeros' patented XOrbs™ which are used in conjunction with the company's XDrum™ technology significantly reduce the amount of water and chemistry used in the dyeing, finishing or laundering of garments and fabrics. They increase the efficiency of these processes which require molecules to be either affixed or removed from substrates. In the case of laundry, they are proven to significantly increase the life of clothes and fabrics.  The results being major improvements in economic, operational, product and environmental outcomes.

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

The Group has signed multiple license agreements for its XDrum and XOrb technologies with leading OEMs in major commercial and domestic markets.

XFiltra™ is the Company's proprietary washing machine filtration technology which prevents harmful microfibres including microplastics, generated during washing cycles, from being released into the world's rivers and oceans.  Microfibres released into the environment from clothing and fabrics during their laundering, being a major source of pollution in the environment and contamination in the food chain.