REG - Xeros Tech Grp plc - Interim Results 2022
30/09/2022 13:00
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RNS Number : 3878B Xeros Technology Group plc 30 September 2022
30
September 2022
Xeros Technology Group plc
('Xeros' or the 'Company' or the 'Group')
2022 Interim Results
Xeros Technology Group plc (AIM: XSG), the creator of technologies that reduce
the impact of clothing on the planet, today announces its unaudited interim
results for the six months ended 30 June 2022.
Highlights
· First licence of XFilter to leading domestic washing machine component
supplier
· Domestic machine technology planned for launch by leading Indian
manufacturer in Q4 2022
· Denim Finish technology trialled by multiple major retail brands
· New Xeros brand identity completed and marketing programme planned to
drive growth
· Conditional Placing and Open Offer announced earlier today to raise up
to £7.0m
· Appointment of Neil Austin as Chief Executive Officer on 1 August 2022
post period end
· XFilter Technology Platform
o Licensing agreement signed in June 2022 with Hanning, a leading component
supplier to multiple major domestic washing OEMs
o Development agreement signed in September 2022 with a second large European
component supplier to multiple domestic washing machine OEMs
o Independent test results of XFilter's efficacy by Hohenstein, a German
textile research and testing institute, in June 2022 confirmed an
industry-leading capture rate of 99%
o Test and trial agreement signed in July 2021 with a large Asian domestic
washing machine OEM on track and commenced commercial discussions
· XOrb/XDrum Technology Platform:
o Denim Finishing trials successfully completed with three major European
retail brands fully validating our sustainability and financial benefits.
First denim jeans made with Xeros technology sold to consumers
o Major European retail brand working with Xeros on a proposal to introduce
Finishing technology into the supply chain
o Following successful machine and cycles design, IFB is working towards entry
into the Indian domestic laundry market in Q4 2022
· Financial:
o Trading in line with expectations
o Adjusted EBITDA(1) loss increased by 36.9% to £3.9m (2021: loss £2.8m)
o Net cash outflow from operations increased by 15.1% to £3.9m (2021: £3.4m)
o Cash at 31 August 2022 of £2.6m
o Conditional Placing and Open Offer to raise up to £7.0m announced earlier
today
o Monthly cash burn stable at £0.5m per month
o Board comfortable with current forward guidance
1 Adjusted EBITDA is defined as loss on ordinary activities before interest,
tax, share-based payment expense, depreciation and amortisation
Neil Austin, Chief Executive Officer of Xeros, said:
"I am pleased to report the progress made during the first half of 2022 on our
three product categories of filtration, care and finish. The vital savings
in water and energy that our technology can deliver has been recognised and
adopted by key licensing and development partners laying a strong foundation
for future growth.
"The proceeds from the placing and open offer announced earlier today will be
applied to winning additional contracts in each of our application areas. Our
marketing investment will amplify the reach of our proposition and accelerate
new licence agreements. We look forward to updating shareholders on our
progress in due course."
Enquiries:
Xeros Technology Group plc Tel: 0114 321 6328
Neil Austin, Chief Executive Officer
Paul Denney, Chief Financial Officer
finnCap Limited (Nominated Advisor & Broker) Tel: 020 7220 0570
Julian Blunt / Teddy Whiley, Corporate Finance
Andrew Burdis / Sunila de Silva, ECM
Yellow Jersey PR Tel: 020 3004 9512
Sarah Hollins / Lilian Filips / Laurie Gellhorn
Notes to Editors
POWERED BY SCIENCE, XEROS CREATE TECHNOLOGIES ENGINEERED FOR THE FUTURE
Born out of textile research and advancing new standards of performance and
responsibility, Xeros' technologies revolutionise the way we make and clean
our clothes, conserving water and preventing waste. Designed to impact
industries and people on a global scale, Xeros transforms the performance,
impact and economics of the fashion and washing machine industry.
Xeros enables the scaling of its innovations and impact by licencing its
intellectual property to partners across the globe. Their work has, to date,
created 38 patent families.
Xeros' technologies are already in use in major global industries, including
commercial and home laundry and garment manufacture. So far, these
technologies have saved millions of litres of water and could prevent billions
of microfibres from ending in our oceans.
TO THE POWER OF CHANGE
xerostech.com (http://www.xerostech.com/)
Business Update
Business Review - Filtration
XFilter Technology Platform
The Xeros proprietary XFilter product has achieved 90% efficiency in
collecting synthetic and natural microfibres from washing machines.
In July 2021, Xeros signed a test and trial agreement with one of the world's
largest domestic washing machine manufacturers headquartered in Asia. As part
of this programme, the Hohenstein testing institute has accredited Xeros'
filtration solution with a capture rate of 99% of microplastics released in a
wash cycle.
In June 2022, Hanning Elektro-Werke GmbH & Co. KG ("Hanning") a major
supplier of machine parts to the appliance industry market, signed a
commercial agreement to produce and sell XFilter units on a global,
non-exclusive basis. Hanning will pay Xeros a royalty for each unit sold.
In September 2022, Xeros signed a further development agreement with a second
large European component supplier to multiple domestic washing machine OEMs.
In parallel to these activities, our filtration scientists have been working
closely with the UK government advising on microfibres filtration within a
laundry environment. Legislation is expected to be put in place for the
mandatory fitting of filters within domestic and commercial machines sold in
the UK from the beginning of 2025, the same timescale as French legislation.
Business Review - Care
Commercial Laundry
The Commercial Laundry market has traditionally been the proving ground of our
Care technology platform.
Xeros has partnered with Jiangsu SeaLion Technology Developments Company
("SeaLion") in China and with IFB Industries Limited ("IFB") in India. The
market segments they plan to address include hospitality, the performance
workwear market, industrial linen launderers and dry cleaners.
In Europe, Georges SA ("Georges") in France now have IFB-manufactured machines
working at a number of sites. Georges services the nationwide fleet of SNCF's
workwear along with contracts with Air France and other large French workwear
garment users.
Domestic Laundry
A scaled-down version of the same Care technologies used in the commercial
laundry market offers domestic washing machine consumers a reduction in water,
energy and detergent as well as extended garment life.
Our first licence partner for this application is IFB in India, the second
largest domestic washing machine company in India by sales volume which is
expected to launch in Q4 of 2022.
A successful launch in India of our domestic XC technology will be a pivotal
moment for Xeros, not just in giving a clear line of sight to a significant
future revenue stream but, as importantly, it will be key to unlocking wider
adoption by the industry and share of the 100 million units per annum market.
Business Review - Finish
Denim Finishing
Xeros offers a radical solution to this 1.2 billion units per annum industry.
Our technology simplifies the finishing process by completing all finishing
steps within one machine, eradicating the use of pumice and reducing
chemistry, water and energy use. Garments produced are greener, quicker and
cheaper to manufacture.
In early 2022, Xeros and our OEM licence partner, Ramsons Garment Finishing
Equipments PVT Ltd ("Ramsons") conducted trials. These trials not only
validated the quality of denim finishing for retail brands but also validated
all our stated resources and cost reductions.
One of those major European retail brands has now taken the next step of
asking Xeros to make a proposal for the widescale implementation of our
Finishing technology into their supply chain.
Outlook
During the first half of 2022, our licence and development partners made
continued progress. In June 2022 we achieved a notable landmark with our
XFilter technology being licensed for the first time into the domestic washing
machine market. The evidence from the adoption and commercialisation of both
our Care and Filtration platforms will unlock further licence agreements and
deliver the substantial benefits that our intellectual property bestows.
The proceeds from the placing and open offer of up to £7.0m announced today
will be applied to winning additional contracts in each of our application
areas. Our marketing investment will amplify the reach of our proposition and
accelerate new licence agreements.
Whilst it is difficult to predict with certainty the timeframe to cash
breakeven due to the nature of our business model, we estimate that with
existing and targeted contracts, Xeros will achieve EBITDA profitability and
cash breakeven in 2024.
As of 31 August 2022, the Group held cash of £2.6m. In our preliminary annual
results to 31 December 2021, published on 22 June 2022 we stated that Xeros
expect to require further investment to fund the business through to cash
breakeven. The conditional placing and open offer announced today will achieve
this end.
Neil Austin
Chief Executive Officer
Financial review
Group revenue was generated as follows:
Unaudited Unaudited 12 months ended
6 months to 6 months to
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Licensing income 12 144 124
Service income 27 104 190
Sale of goods - 93 155
Other revenue 1 - 5
_____ _ __ ____ _ _____
Total revenue 40 341 474
The Group financial results for the six months ended 30 June 2022 reflect the
timing and periodic nature of the Group's early-stage licensing contracts,
though remain in line with Board expectations, with an 88.3% reduction in
revenue to £0.04m (2021: £0.3m) and a 15.1% increase in net cash outflow
from operations to £3.9m in the period (2021: £3.4m). In the period the
Group recorded an adjusted EBITDA loss on continuing operations of £3.9m
(2021: loss £2.8m), an increase of 36.9%.
Group revenue of £0.04m is comprised of £0.01m of licensing revenue, which
has fallen by 91.7% (2021: £0.1m), and £0.03m of service income and machine
sales, which, on a combined basis have fallen by 86.3% (2021: £0.2m).
Licensing income represents royalties from licence partners for the sale of
XDrum machines and revenue to Xeros for the sale of XOrbs. The fall in
licensing revenue in the year is a result of the timing and number of machines
sold by Xeros' licence partners. Service income and machine sales represents
payments from existing Xeros customers in the UK and Europe.
Gross profit for the six months ended 30 June 2022 fell by 101.3% to £0.0m
(2021: £0.2m) in line with the decrease in revenue.
Administrative expenses increased by 16.3% to £4.2m (2021: £3.6m) reflecting
increased investment in IP, marketing and the Group's XFilter technology as
disclosed previously. Headcount fell in comparison with the previous year,
with 42 employees as of 31 August 2022 (2021: 45).
As a result of the above, the Group's EBITDA loss increased by 36.4% to £3.9m
(2021: loss £2.8m).
Adjusted EBITDA is considered one of the key financial performance measures of
the Group as it reflects the true nature of our continuing trading activities.
Adjusted EBITDA is defined as the loss on ordinary activities before interest,
tax, share-based payment expense, non-operating exceptional costs,
depreciation and amortisation.
The Group increased its operating loss to £4.2m (2021: £3.4m), an increase
of 24.2%. The loss per share was 17.51p (2021: loss 15.24p).
Net cash outflow from operations increased to £3.9m (2021: £3.4m), an
increase of 15.1% in line with the increase of adjusted EBITDA in the period,
with minimal change in the working capital position over the prior period. The
Group had existing cash resources (including cash on deposit) as at 30 June
2022 of £3.8m (2021: £10.2m) and remains debt free. Group cash as at 31
August 2021 is £2.6m. Today the Group announced the conditional placing and
open offer to raise up to £7.0m with completion expected on 21 October 2022.
Overall cash utilisation remains in line with the Board's expectations at
£0.5m per month. The directors expect cash utilisation to remain at the
current level until such time as higher licensing revenue is generated from
our licence partners. Overall, the Board remains comfortable with current
forward guidance.
Paul Denney
Chief Financial Officer
Consolidated statement of profit or loss and other comprehensive income
For the six months ended 30 June 2022
Unaudited Unaudited
Six months Six months 12 months
ended ended ended
30 June 30 June 31 December
2022 2021 2021
Note £'000 £'000 £'000
Revenue 40 341 474
Cost of sales (43) (117) (193)
_______ _______ _______
Gross profit/(loss) (3) 224 281
Administrative expenses (4,160) (3,577) (7,225)
Adjusted EBITDA* (3,899) (2,849) (6,281)
Share based payment expense (184) (403) (463)
Exceptional administrative expenses - - -
Depreciation of tangible fixed assets (80) (101) (200)
Operating loss (4,163) (3,353) (6,944)
Finance income 9 3 17
Finance expense (10) (2) (3)
_______ _______ _______
Loss before taxation (4,164) (3,352) (6,930)
Taxation 3 (1) - 492
_______ _______ _______
Loss after tax (4,165) (3,352) (6,438)
_______ _______ _______
Other comprehensive loss
Items that are or maybe reclassified to profit or loss:
Foreign currency translation differences - foreign operations (6) (16) (1)
___ ____ __ _____ _______
Total comprehensive expense for the period (4,171) (3,368) (6,439)
___ ____ ____ _ __ _______
Loss per ordinary share
Basic and diluted on loss from continuing operations 6 (17.51)p (15.24)p (28.11)p
_______ _______ _______
*Adjusted EBITDA comprises loss on ordinary activities before interest, tax,
share-based payment expense, depreciation and amortisation.
Consolidated statement of changes in equity
For the six months ended 30 June 2022
Share Share Merger reserve Foreign Retained Total
capital premium currency earnings
translation deficit
reserve
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2021 2,997 113,073 15,443 (2,205) (124,786) 4,522
Loss for the year - - - - (6,438) (6,438)
Other comprehensive expense - - - (1) - (1)
Loss and total comprehensive expense for the period - - - (1) (6,438) (6,439)
Transactions with Owners recorded directly in equity:
Issue of shares following placing and open offer 562 8,438 - - - 9,000
Exercise of share options 9 32 - - - 41
Costs of share issues - (525) - - - (525)
Share based payment expense - - - - 463 463
Total contributions by and distributions to owners 571 7,945 - - 463 8,979
At 31 December 2021 3,568 121,018 15,443 (2,206) (130,761) 7,062
At 1 January 2021 2,997 113,073 15,443 (2,205) (124,786) 4,522
Loss for the period - - - - (3,352) (3,352)
Other comprehensive expense - - - (16) - (16)
Loss and total comprehensive expense for the period - - - (16) (3,352) (3,368)
Transactions with Owners recorded directly in equity:
Issue of shares following placing and open offer 562 8,438 - - - 9,000
Exercise of share options 6 23 - - - 29
Cost of share issues - (526) - - - (526)
Share based payment expense - - - - 403 403
Total contributions by and distributions to owners 568 7,935 - - 403 8,906
At 30 June 2021 3,565 121,008 15,443 (2,221) (127,735) 10,060
Balance at 1 January 2022 3,568 121,018 15,443 (2,206) (130,761) 7,062
Loss for the period - - - - (4,165) (4,165)
Other comprehensive expense - - - (6) - (6)
Loss and total comprehensive income for the period - - - (6) (4,165) (4,171)
Transactions with Owners recorded directly in equity:
Share based payment expense - - - - 184 184
Total contributions by and distributions to owners - - - - 184 184
At 30 June 2022 3,568 121,018 15,443 (2,212) (134,742) 3,075
Consolidated statement of financial position
As at 30 June 2022
Unaudited Unaudited
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 834 181 128
Trade and other receivables 17 37 30
851 218 158
Current assets
Inventories 111 85 108
Trade and other receivables 363 760 346
Cash on deposit 970 8,093 5,323
Cash and cash equivalents 2,840 2,134 2,483
4,284 11,072 8,260
Total assets 5,135 11,290 8,418
Liabilities
Non-current liabilities
Right of use liabilities (653) - -
Deferred tax (38) (38) (38)
(691) (38) (38)
Current liabilities
Trade and other payables (1,369) (1,192) (1,318)
(1,369) (1,192) (1,318)
Total liabilities (2,060) (1,230) (1,356)
Net assets 3,075 10,060 7,062
Equity
Share capital 3,568 3,565 3,568
Share premium 121,018 121,008 121,018
Merger reserve 15,443 15,443 15,443
Foreign currency translation reserve (2,212) (2,221) (2,206)
Accumulated losses (134,742) (127,735) (130,761)
Total equity 3,075 10,060 7,062
Consolidated statement of cash flows
For the six months ended 30 June 2022
Unaudited Unaudited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Operating activities
Loss before tax (4,164) (3,352) (6,930)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 80 101 200
Share based payment 184 403 463
(Increase)/decrease in inventories (3) 11 (12)
(Increase)/decrease in trade and other receivables (3) (281) 161
Increase/(decrease) in trade and other payables 5 (270) (184)
Finance income (9) (3) (17)
Finance expense 10 2 3
Cash used in operations (3,900) (3,389) (6,316)
Tax (payments)/receipts (1) - 495
Net cash outflow used in operations (3,901) (3,389) (5,824)
Investing activities
Finance income 9 3 17
Finance expense (10) (2) (3)
Cash withdrawn from/(placed on) deposit 4,353 (8,093) (5,323)
Purchases of property, plant and equipment (12) (10) (56)
Net cash inflow/(outflow) from investing activities 4,340 (8,102) (5,365)
Financing activities
Proceeds from issue of share capital, net of costs - 8,504 8,515
Payment of lease liabilities (86) (36) -
Net cash (outflow)/inflow from financing activities (86) 8,468 8,515
Increase/(decrease) in cash and cash equivalents 353 (3,023) (2,674)
Cash and cash equivalents at start of year 2,483 5,158 5,158
Effect of exchange rate fluctuations on cash held 4 (1) (1)
Cash and cash equivalents at end of the period 2,840 2,134 2,483
Notes to the interim financial information
for the six months ended 30 June 2022
1. General information
The principal activity of Xeros Technology Group plc ("the Company") and its
subsidiary companies (together "Xeros" or the "Group") is the development and
licensing of platform technologies which transform the sustainability and
economics of clothing and fabrics during their manufacture and over their
lifetime of use.
Xeros Technology Group plc is domiciled in the UK and incorporated in England
and Wales (registered number 8684474), and its registered office address is
Unit 2 Evolution, Advanced Manufacturing Park, Whittle Way, Catcliffe,
Rotherham, S60 5BL. The Company's principal activity is that of a holding
company.
The interim financial information was approved for issue on 30 September 2022.
2. Basis of preparation
The interim financial information has been prepared under the historical cost
convention and in accordance with the recognition and measurement principles
of UK-adopted International Accounting Standards ("IFRSs").
The interim financial information has been prepared on a going concern basis
and is presented in Sterling to the nearest £'000.
The accounting policies used in the interim financial information are
consistent with those used in the prior year.
The following adopted IFRSs have been issued but have not been applied by the
Group in this financial information. Their adoption is not expected to have a
material effect on the financial information unless otherwise indicated:
· Amendments to IAS 12 Income Taxes, effective 1 January 2023
· Amendments to IAS 1 Presentation of Financial Statements, effective
1 January 2023
· Amendments to IAS 8 Accounting policies, Changes in Accounting
Estimates and Errors, effective 1 January 2023
· Amendments to IFRS 17 Insurance Contracts, effective 1 January 2023
Further IFRS standards or interpretations may be issued that could apply to
the Group's financial statements for the year ending 31 December 2022. If any
such amendments, new standards or interpretations are issued then these may
require the financial information provided in this report to be changed. The
Group will continue to review its accounting policies in light of emerging
industry consensus on the practical application of IFRS.
The preparation of financial information in conformity with the recognition
and measurement requirements of IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are based on
management's best knowledge of the amount, event or actions, actual events
ultimately may differ from those estimates.
The interim financial information does not include all financial risk
management information and disclosures required in annual financial
statements. There have been no significant changes in any risk or risk
management policies since 31 December 2021. The principal risks and
uncertainties are materially unchanged and are as disclosed in the Annual
Report for the year ended 31 December 2021.
The interim financial information for the six months ended 30 June 2022 and
for the six months ended 30 June 2021 does not constitute statutory financial
statements as defined in Section 434 of the Companies Act 2006 and is neither
reviewed nor audited. The comparative figures for the year ended 31 December
2021 are not the Group's consolidated statutory accounts for that financial
year. Those accounts have been reported on by the Group's auditor and
delivered to the Registrar of Companies. The report of the auditor was (i)
unmodified, (ii) did not contain a statement under Sections 498(2) or 498(3)
of the Companies Act 2006. The report did contain an emphasis of matter
paragraph in relation to a material uncertainty in respect of the going
concern status of the Group as at 31 December 2021. The Directors believe that
the conditional placing and open offer of up to £7.0m announced on 30
September 2022 provides certainty over the short-term financing of the Group.
This will be reviewed as part of the annual reporting process for the year
ended 31 December 2022.
3. Taxation
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Current tax:
UK tax credits received in respect of prior periods - - (505)
Foreign taxes paid 1 - 13
Total tax charge/(credit) 1 - (492)
The Group accounts for Research and Development tax credits where there is
certainty regarding HMRC approval. There is no certainty regarding the claim
for the year ended 31 December 2021 and as such no relevant credit or asset is
recognised.
4. Trade and other receivables
Unaudited Unaudited
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Due within 12 months:
Trade receivables 54 172 110
Other receivables 65 248 63
Prepayments and accrued income 244 340 173
363 760 346
Due after more than 12 months
Other receivables 17 37 30
There is no material difference between the lease receivable amounts as in
other receivables noted above and the minimum lease payments or gross
investments in the lease as defined by IFRS 16.
The minimum lease payment is receivables as follows:
Unaudited Unaudited
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Not later than one year 27 86 35
Later than one year not later than five years 17 37 30
44 123 65
Contractual payment terms with the Group's customers are typically 30 to 60
days. The Directors believe that the carrying value of trade and other
receivables represents their fair value. In determining the recoverability of
trade receivables the Directors consider and change in the credit quality of
the receivable from the date credit was granted up to the reporting date.
5. Trade and other payables
Unaudited Unaudited
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Trade payables 368 399 439
Taxes and social security 120 105 110
Other creditors 34 36 38
Accruals and deferred income 793 585 661
Right of use liabilities 707 67 19
2,022 1,192 1,267
Current 1,369 1,192 1,267
Non-current 653 - -
2,022 1,192 1,267
6. Loss per share
Basic loss per share is calculated by dividing the loss attributable to equity
holders by the weighted average number of shares in issue during the period.
The Group was loss-making for the 6-month periods ended 30 June 2022 and 30
June 2021 and also for the year ended 31 December 2021. Therefore, the
dilutive effect of share options has not been taken account of in the
calculation of diluted earnings per share, since this would decrease the loss
per share reported for each of the periods reported.
The calculation of basic and diluted loss per ordinary share is based on the
loss for the period, as set out below. Calculations of loss per share are
calculated to two decimal places.
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Total loss attributable to the equity holders of the parent (4,165) (3,352) (6,438)
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Issued ordinary shares at the start of the period 23,784,483 19,976,090 19,976,090
Effect of shares issued for cash - 2,023,873 2,922,789
Weighted average number of shares at the end of the period 23,784,483 21,999,963 22,898,879
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2022 2021 2021
Basic and diluted on loss for the period (17.51)p (15.24)p (28.11)p
7. Leases
The Group has leases for office buildings and associated warehousing and
operational space. With the exception of short-term leases and leases of
low-value underlying assets, each lease is reflected on the statement of
financial position as a right-of-use asset and a lease liability. The Group
classifies its right-of-use-assets in a manner consistent with its property,
plant and equipment.
Each lease generally imposes and restriction that, unless there is a
contractual right for the Group to sublet the asset to another party, the
right-of-use-asset can only be used by the Group. Leases are either
non-cancellable or may only be cancelled by incurring a substantive
termination fee. The Group is prohibited from selling of pledging the
underlying leased assets as security. For leases over office buildings and
warehousing and operations space, the Group must keep those properties in a
good state of repair and return the properties in their original condition a
the end of the lease. Further, the Group must insure items of property, plant
and equipment and incur maintenance fees on such items in accordance with the
lease contracts.
The table below describes the nature of the Group's leasing activities by type
of right-of-use asset recognised on the statement of financial position:
No. of right-of-use assets leased Remaining range of term Average remaining lease term No. of leases with termination options
Land and buildings 1 117 months 117 months 1
Right-of-use assets
Additional information on the right-of-use assets by class is as follows:
Land and buildings
£'000
Balance as at 31 December 2020 68
Depreciation charged in the period (27)
Balance as at 30 June 2021 41
Depreciation charged in the period (27)
Balance as at 31 December 2021 14
Additions in the period 775
Depreciation charged in the period (34)
Balance as at 30 June 2022 755
Lease liabilities
Lease liabilities are presented in the statement of financial position as
follows:
Unaudited Unaudited
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Current 54 67 19
Non-current 653 - -
707 67 19
8. Seasonality
The Group experiences no material variations due to seasonality.
9. Availability of interim statement
This interim statement will be available on Xeros' website at
www.xerostech.com (http://www.xerostech.com) .
Forward-looking statements
This announcement may include certain forward-looking statements, beliefs or
opinions, including statements with respect to Xeros' business, financial
condition and results of operations. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would", "could" or
"should" or, in each case, their negative or other various or comparable
terminology. These statements are made by the Xeros Directors in good faith
based on the information available to them at the date of this announcement
and reflect the Xeros Directors' beliefs and expectations. By their nature
these statements involve risk and uncertainty because they relate to events
and depend on circumstances that may or may not occur in the future. A number
of factors could cause actual results and developments to differ materially
from those expressed or implied by the forward-looking statements, including,
without limitation, developments in the global economy, changes in government
policies, spending and procurement methodologies, and failure in health,
safety or environmental policies.
No representation or warranty is made that any of these statements or
forecasts will come to pass or that any forecast results will be achieved.
Forward-looking statements speak only as at the date of this announcement and
Xeros and its advisers expressly disclaim any obligations or undertaking to
release any update of, or revisions to, any forward-looking statements in this
announcement. No statement in the announcement is intended to be, or intended
to be construed as, a profit forecast or to be interpreted to mean that
earnings per Xeros share for the current or future financial years will
necessarily match or exceed the historical earnings. As a result, you are
cautioned not to place any undue reliance on such forward-looking statements.
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