REG - Xeros Tech Grp plc - Interim Results 2025
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RNS Number : 3087B Xeros Technology Group plc 30 September 2025
30 September 2025
Xeros Technology Group Plc
("Xeros" or the "Company" or the "Group")
Interim Results 2025
First fruits from commercialisation and significant new agreements
Xeros Technology Group plc (AIM:XSG), the creator of technologies that reduce
the impact of clothing on the planet, announces its unaudited interim results
for the six months ended 30 June 2025. The results show the first sales from
denim processing partner Yilmak, and significant new agreements as the
benefits of Xeros' technology for businesses, and the planet, continue to gain
traction.
Highlights
· Launch plans agreed with a leading European consumer electronics retailer, as
well as a major global appliance company, to market and sell the external
microfibre filtration unit (XF3), into all major European markets
· Yilmak has secured its first denim manufacturing partnership for its denim
processing machines with a prominent Pakistan-based manufacturer, Ambition
Apparel, which produces over nine million pairs of jeans a year
· Letter of Intent ("LOI") signed with Guangdong Welly Electrical Appliance Co.
Ltd ("Welly"), a key supplier to the fast-moving Chinese appliance industry,
to develop a washing machine with Xeros' integrated microfibre filter (XF1),
and to develop a module version for the global supply chain
· One of four leading global OEMs currently in technical verification for
Laundry Care (XC1) anticipated to move to a paid for agreement imminently
· Russell Hobbs plans to distribute the XF3 external filter into UK retailers
through Product Care Group ("PCG") before the year end
· Advisory Board strengthened to help support and progress new commercial
developments
· Delays with IFB's launch of its 9kg domestic washing machine have pushed
anticipated royalty revenue out of the current year
Financial Summary
· Revenue of £65k (H1 23: £79k) for the period to 30 June 2025 as delays
pushed some income into the second half
· Adjusted EBITDA loss fell to £1.6m (H1 24: £2.4m) reflecting lower ongoing
costs
· Lower administrative expenses at £1.8m (H1 24: £2.6m)
· Lower net cash outflow from operations of £1.6m (H1 24: £2.6m) with cash at
30 September of £0.8m
Neil Austin, CEO said:
"The Board and I are excited. We now have in place commercial and development
agreements across all three of our technologies that are capable of delivering
meaningful revenue.
"The team is focused on new development agreements, capitalising on the
inroads made into top global brands, and the supply chains that will expediate
the scaling of our technology. The power of Xeros' technology to reshape the
future of clothing care and production to deliver measurable benefits for
businesses, and the planet, has never been closer."
Investor Presentation
An online investor Q&A session will be hosted later this week with the
management. The session will be held on the Investor Meet Company ("IMC")
platform. Registered investors, who follow Xeros on IMC, will be invited
automatically, everyone else should register at:
https://www.investormeetcompany.com/xeros-technology-group-plc/register-investor
(https://www.investormeetcompany.com/xeros-technology-group-plc/register-investor)
Enquiries
Xeros Technology Group plc Tel: 0114 269 9656
Neil Austin, Chief Executive Officer
Alex Tristram, Director of Finance
Cavendish Capital Markets Limited (Nominated Adviser and Broker) Tel: 020 7220 0500
Julian Blunt/Teddy Whiley, Corporate Finance
Andrew Burdis/Sunila de Silva, ECM
Rawlings Financial PR Limited Mob: 07967 816 525
Keeley Clarke Email: Xeros@rfpr.co.uk
Cat Valentine
About Xeros
Xeros Technology plc has developed patented and proven, industry-leading
technologies which reduce the environmental impact of how industries make and
care for clothes.
The traditional wet processing methods used in industrial and domestic laundry
and garment manufacturing consume billions of litres of fresh water and large
amounts of energy and chemicals, as well as damaging and weakening clothing
fibres and creating rising levels of environmental pollution. It is estimated
that washing machines contribute 35% of the 171 trillion microplastic
particles in the ocean.
A range of actors, including consumers, the media NGOs and regulators are
exerting pressure on these industries, with legislative action beginning to be
taken.
Xeros' three main technologies, Microfibre Filter, Laundry Care, and Garment
Finishing, facilitate garment manufacturers, industrial laundries, domestic
washing machine manufacturers and consumers, to reduce their environmental
impact, whilst also significantly improving efficiency in the process.
Xeros' model is to generate revenue from licensing its technologies,
generating royalties and the sale of consumables. Currently there are eight
agreements in place. The addressable markets in Microfibre Filter, Laundry
Care, and Garment Finishing are estimated to be valued at £350m p.a., £3bn
p.a. and £132m p.a. respectively.
CEO STATEMENT
I am pleased to report on the progress the Group has made in the six months to
30 June 2025 and to provide an update on significant commercial progression to
date.
So far in 2025 we have seen the first sales of Yilmak's Xeros enabled denim
processing machine, with multiple orders expected; received an LOI from a
major Chinese appliance manufacturer to develop our internal microfibre
filter, XF1; secured a brand partnership for our external microfibre filter,
the XF3, with Russell Hobbs, with plans to distribute the unit into UK
retailers through Product Care Group ("PCG") before the year end; agreed
launch plans with Europe's leading consumer and electronics retailer and a
leading global OEM to launch branded XF3 units across Europe; and excitedly,
one of the four leading global OEMs currently in technical verification for
Laundry Care (XC1) is anticipated to move to a paid for agreement imminently.
My aim since joining Xeros in 2022 has been to commercialise our innovative
sustainable technologies by putting them in the hands of global partners with
the capability and reach to bring them to market at scale, in a sustained and
effective way. The achievements this year show strong progress towards
achieving this aim.
The global laundry industry has moved closer towards Xeros' technology in
recent years. Our direct engagement with leading global OEMs has cemented
their awareness of our technology's potential. Global washing machine brands
know that consumers want their clothes to be clean, while looking their best
for as long as possible and without deteriorating through the washing process.
They are also under consumer and legislative pressure to improve the
environmental performance of their machines. The Xeros Laundry Care technology
provides an unmatched innovation that meets all these demands, and the growing
interest that global OEMs have in our technology is testament to this.
Equally, the fashion industry is under that same consumer and legislative
pressure to reduce its very significant impact on the environment. Through our
partnership with Yilmak we have been able to demonstrate that our technology
significantly reduces cost and environmental impact of denim, while still
meeting the high standards demanded by the processors and brands.
The importance of the Group's achievements so far within 2025 should not be
underestimated. We firmly believe that we are closer than ever to Xeros'
technology underpinning a revolution in the laundry and fashion industries.
Business update
Laundry Care (XC1 - Domestic, XC2 - Commercial)
Xeros' Laundry Care System uses reusable polymer spheres, known as XOrbs, to
gently increase mechanical action, improve chemical efficiency, wash
performance and protect clothing from harsh fabric on fabric contact during
the laundering process. This means that the life of clothing can be extended
by up to 100% using Xeros technology, whist also reducing water and
detergents. The benefits of the technology have been proved to a number of
global, blue-chip OEMs over the course of the last 18 months.
The Group currently has four global washing machine manufacturers in technical
verification, and we are pleased to report that one of these, a significant
player, is close to signing a paid for agreement. Although any of these could
be potentially transformational for the Group, and we hope to be able to make
an announcement shortly.
Whilst exciting progress is being made, the IFB washing machine is not
progressing to launch this year, contrary to what we had been led to
understand, and despite IFB having completed its order for XOrbs. To this end,
we have taken the decision to remove the anticipated royalty revenue from IFB
sales from our outlook for the current year. We still believe that IFB will
launch the 9kg Xeros-enabled washing machine at some point in the future but
that any revenue generation from this element of the business should be
classed as upside for 2026.
Our commercial laundry partners continue to perform well. Through our partner
in France, Georges, the uniforms of Air France, EDF, SNCF and Renault are all
being cleaned using Xeros' XOrb technology as well as across the firefighting
industry.
In conjunction with IFB, we have continued to expand our 'proof of concept'
commercial machines in major hotels around the world. We now have a commercial
machine installed across five hotel chains, the Marriott, Taj, ITC, St. Regis
and Fairfax. These machines have been well received and show promising results
for the hotel chains.
There are near-term commercial opportunities from commercial laundry, which we
plan to focus on in 2026.
Microfibre Filtration (XF1 - Domestic, XF2 - Commercial, XF3 - External)
We are delighted to announce that a Letter of Intent ("LOI") has been signed
with Guangdong Welly Electrical Appliance Co. LTD ("Welly") a key supplier to
the fast-moving Chinese appliance industry to develop a branded washing
machine with Xeros' integrated microfibre filter. Welly will also develop a
module version for other washing machine manufacturers and brands to fit into
their own machines.
This collaboration deepens the relationship with Xinbao Group, owner of
Welly and Donlim (Xeros' XF3 manufacturing partner). The agreement with Welly
serves both to open the Chinese domestic washing machine market and gives the
Group a critical position in the global washing machine supply chain, as
global legislative movements push for the integration of microfibre
technology.
Interest in the Group's microfibre pollution filter, XF3, has exceeded
expectations. Launch Plans are in place with two major global companies
intending to market and sell the XF3 unit under their respective brands. The
first is with Europe's leading consumer electronics retailer, and the other a
major global appliance company. These partnerships will give Xeros the
opportunity to sell the filter alongside over 27 million washing machine sales
per annum, and launches XF3 into all major European markets in the first phase
of the launch. Purchase orders are anticipated within the next six months.
The pilot production of the XF3 in partnership with PCG, under the Russell
Hobbs brand, has now been completed and consumer trials are expected to
conclude shortly. The filter has received strong interest from UK retailers
and is expected to be launched before the year end.
Microplastics and the damage they cause to human health and the environment
remain a focus for legislators around the world and we believe that integrated
filters on new washing machines will be universal within the next 10 years.
The inroads to global brands and suppliers that the Xeros team has made, put
the Group in a strong position to be the technology provider of choice for the
industry.
Garment Finishing (XFN1 - Denim, XFN2 - Washing)
We are delighted to announce Yilmak's first denim manufacturing partnership
with Ambition Apparel, a prominent textile company, which produces around nine
million pairs of jeans per year. The partnership will see Yilmak's denim
processing machinery, which uses Xeros' XOrb technology integrated across
Ambition Apparel's manufacturing facilities in Pakistan.
Yilmak is also in final stage trials with one of Türkiye's largest
manufacturing and brand groups, which produces 11 million pairs of jeans a
year.
The progress seen within the denim finishing market has been extremely
encouraging. Xeros and Yilmak have worked together to validate the benefits of
washing denim with XOrbs with headlines of 20% cost reduction, elimination of
pumice and an overall CO2e reduction of 30% whilst maintaining a quality of
finish commensurate with traditional methods. We have consistently
demonstrated the benefits of our technology within the development facility,
and it is rewarding to see them proven, at scale, in operational production
sites.
The interest in the Xeros enabled machines from denim manufactures is high,
and discussions continue with several European and UK fashion brands who are
interested in denim products manufactured using Xeros' technology.
The exact timing of the sales by Yilmak, and the sales of the XOrbs required
to produce the machines, remains uncertain but the progress is tangible and,
with confidence that the machines will continue to garner interest, they
should form a growing source of revenue for the Group.
Strategy
Our strategy is to become an IP-rich, capital light licensor of propriety
technology solutions to multiple scale industries, all of which deploy the
same Xeros core technologies. To date our focus has been on Garment
Manufacture, Commercial and Domestic laundry.
These are multi-billion-pound industries that will benefit from adopting
Xeros' Technology and are being driven to it by consumer and legislative
pressure for reducing environmental impact and improved performance. Our
technology delivers both alongside reduced operating costs, making it
economically incontestable.
To achieve market penetration at scale, we have a three-pronged approach:
commercial partnerships, direct engagement, and driving influence. The
commercial partnerships we have secured to date have come from our increasing
direct engagement. We continue to engage with major fashion and consumer
brands, and leading global OEMs. We also continue to support legislators,
industry groups, and NGOs working to drive better environmental practices.
Advisory Board strengthened with two key strategic appointments
Dr Tim Moore joins with over 20 years of experience in developing and
releasing consumer products for global brands such as ghd, Shark Ninja,
Scalextric and Bosch. His unique mix of capabilities across product
commercialisation, market understanding and product definition through to
manufactured products will significantly add to our ability to capitalise on
the growing commercial opportunities that we are seeing. He has extensive
experience in scaling businesses having operated in both fast-growing start-up
and large corporate environments and has a strong understanding of how to
create and sustain high-functioning engineering teams that deliver rapidly.
Stuart Sawyer joins with over 30 years of experience in the development and
building of brands. Currently CEO of the ingredient brand D3O, he brings
commercial expertise, marketing capabilities in bringing complex technologies
and products to market. He has extensive experience in scaling and exiting
businesses, having owned and operated in both fast-growth start-up and PLC
environments. He has a strong understanding of extracting value through the
creation of IP from both the technology and brand.
As interest in our technologies gains traction, the expertise of the Advisory
Board is key to helping us unlock the full potential of the commercial
opportunities we are now seeing.
Trading update
Whilst exciting progress is being made, the partnerships on filtration and
denim manufacturing, detailed above, were finalised later than anticipated,
resulting in some revenue from royalty payments and XOrbs moving from the
current year into 2026. In addition, the IFB delay has led to the decision to
remove the anticipated royalty revenue from IFB sales from our outlook for the
current year. As noted, we still believe that IFB will launch the 9kg
Xeros-enabled washing machine but that any revenue generation from this
element of the business should be classed as upside for 2026. This decision,
together with the other timing issues which have pushed some revenue into
2026, means that the Group will report revenue for the year ending 31 December
2025 below current expectations.
The Group's cash position remains positive, with cash inflow from the sale of
XOrbs to IFB, for royalty payments from commercial machine sales and service
revenue from existing contracts. It has also received R&D tax credits and
a payment from Qualus, the Group's leather processing partner. These payments
together with tight cost controls and lower second half outgoings, have
resulted in a cash balance of c£0.8m at the end of September. With further
inflows expected during the latter part of Q4, the Group will remain cash
positive for 2025.
Outlook
In spite of the lower revenue outlook for 2025, the Board is delighted with
the Group's progress and is now more confident about the prospects for the
Group than at any previous point in its recent history. We now have in place
commercial and development agreements across all three of our technologies
that are capable of delivering meaningful revenue and are anticipating further
news shortly. The expansion of agreements over the medium term will offer the
Group increasing protection from licensor product delays.
Neil Austin
CEO
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
2025 2024 2024
£'000 £'000 £'000
Licensing income 10 23 63
Service income 4 43 50
Sale of goods 34 10 48
Other revenue 17 3 -
Total revenue 65 79 161
The Group financial results for the six months ended 30 June 2025 reflect
further cost control as the Group progresses towards the anticipated
mass-market launches by its licence partners. The group recorded a 32.6%
reduction in operating loss to £1.7m (H1 2024: £2.5m)
Licensing income represents royalties from licence partners for the sale of
Xeros enable technology, which has decreased slightly in 2024 due to the
timing of sales by partners and the shipments of XOrbs. Service income and
machine sales represents payments from existing Xeros customers in the UK and
Europe for servicing mostly legacy machines. The Group expects that future
revenues will be comprised mostly of licensing revenue and revenue from the
sale of goods, as it supplies XOrbs to customers.
Gross profit for the six months ended 30 June 2025 remained static at £0.05m
(2024: £0.05m).
Administrative expenses decreased by 31.1% to £1.8m (H2 2024: £2.6m), driven
by further close management of the Group's cost base. Headcount was broadly in
line with the previous year, with 23 employees as of 31 August 2025 (2024:
24).The Group's adjusted EBIDTA loss fell by 31.1% to £1.6m (H1 2024:
£2.4m).
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 decreased its operating loss to £1.7m (H1 2024: £2.5m), a decrease
of 32.6%. The loss per share was 0.33p (2024: loss 1.69p).
Net cash outflow from operations decreased 40.1% to £1.6m (H1 2024: £2.6m),
reflecting cost control in place across the Group. The Group had existing cash
resources (including cash on deposit) as at 30 June 2024 of £1.2m (2024:
£4.7m) and remains debt free. Group cash as at 30 September 2024 is expected
to be £0.8m.
Overall cash utilisation remains in line with the Board's expectations at
below £0.25m per month. The directors expect cash utilisation remain at
around this level as the Group moves into full commercialisation with licence
partners.
Alex Tristram
Finance Director
Consolidated statement of profit or loss and other comprehensive income
For the six months ended 30 June 2025
Unaudited Unaudited
Six months Six months 12 months
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Note £'000 £'000 £'000
Revenue 65 79 161
Cost of sales (18) (14) (22)
_______ _______ _______
Gross profit 47 65 139
Administrative expenses (1,797) (2,593) (4,830)
Adjusted EBITDA* (1,627) (2,425) (4,365)
Share based payment expense (54) (23) (175)
Depreciation of tangible fixed assets (69) (80) (151)
Operating loss (1,750) (2,528) (4,691)
Finance income 23 - 59
Finance expense - (18) (36)
_______ _______ _______
Loss before taxation (1,727) (2,546) (4,668)
Taxation 3 - - 183
_______ _______ _______
Loss after tax (1,727) (2,546) (4,485)
_______ _______ _______
Other comprehensive loss
Items that are or maybe reclassified to profit or loss:
Foreign currency translation differences - foreign operations - - -
___ ____ __ _____ _______
Total comprehensive expense for the period (1,727) (2,546) (4,485)
___ ____ ____ _ __ _______
Loss per ordinary share
Basic and diluted on loss from continuing operations 6 (0.33)p (0.82)p (1.08)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 2025
Share Share Deferred Merger reserve Warrant reserve Foreign Retained Total
capital premium share currency earnings
capital translation deficit
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 151 125,766 3,544 15,443 947 - (144,247) 1,604
Loss for the year - - - - - - (4,485) (4,485)
Loss and total comprehensive expense for the period - - - - - - (4,485) (4,485)
Transactions with Owners recorded directly in equity:
Issue of shares following placing and open offer 311 4,351 - - - - - 4,662
Exercise of share warrants 59 1,620 - - - - - 1,679
Cost of share issues - (517) - - - - - (517)
Share based payment expense - - - - - - 175 175
Total contributions by and distributions to owners 370 5,454 - - - - 175 5,913
At 31 December 2024 521 131,220 3,544 15,443 947 - (148,557) 3,118
At 1 January 2024 151 125,766 3,544 15,443 947 - (144,247) 1,604
Loss for the period - - - - - - (2,545) (2,545)
Other comprehensive expense - - - - - (1) - (1)
Loss and total comprehensive expense for the period - - - - - (1) (2,545) (2,546)
Transactions with Owners recorded directly in equity: -
Issue of shares following placing and open offer 370 5,970 - - - - - 6,340
Cost of share issues - (517) - - - - - (517)
Share based payment expense - - - - - - 23 23
Total contributions by and distributions to owners 370 5,453 - - - - 23 5,846
At 30 June 2024 521 131,219 3,544 15,443 947 (1) (146,769) 4,904
Balance at 1 January 2025 521 131,220 3,544 15,443 947 - (148,557) 3,118
Loss for the period - - - - - - (1,727) (1,727)
Other comprehensive expense - - - - - - - -
Loss and total comprehensive income for the period - - - - - - (1,727) (1,727)
Transactions with Owners recorded directly in equity:
Exercise of share options 1 11 - - - - - 12
Share based payment expense - - - - - - 54 54
Total contributions by and distributions to owners 1 11 - - - - 54 66
At 30 June 2025 522 131,231 3,544 15,443 947 - (150,230) 1,457
Consolidated statement of financial position
As at 30 June 2025
Unaudited Unaudited
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 134 107 149
Right of use assets 610 718 664
Trade and other receivables - - -
744 825 813
Current assets
Inventories 156 160 154
Trade and other receivables 450 650 541
Cash on deposit 4 4 4
Cash and cash equivalents 1,209 4,711 2,803
1,819 5,525 3,502
Total assets 2,563 6,350 4,315
Liabilities
Non-current liabilities
Right of use liabilities (511) (683) (558)
Other payables (80) - (80)
Deferred tax (38) (38) (38)
(629) (721) (676)
Current liabilities
Trade and other payables (477) (725) (521)
(476) (725) (521)
Total liabilities (1,106) (1,446) (1,197)
Net assets 1,457 4,904 3,118
Equity
Share capital 521 521 521
Share premium 131,231 131,219 131,220
Deferred share capital 3,544 3,544 3,544
Merger reserve 15,443 15,443 15,443
Foreign currency translation reserve - (1) -
Accumulated losses (150,229) (146,769) (148,557)
Warrant reserve 947 947 947
Total equity 1,457 4,904 3,118
Consolidated statement of cash flows
For the six months ended 30 June 2025
Unaudited Unaudited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Operating activities
Loss before tax (1,727) (2,546) (4,668)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 69 80 43
Amortisation of Right of Use assets - 108
Share based (credit)/expense 54 23 175
(Increase)/decrease in inventories (2) (1) 5
(Increase)/decrease in trade and other receivables 91 (298) (188)
Increase/(decrease) in trade and other payables (48) 80 (88)
Finance income (38) - (59)
Finance expense 16 19 36
Cash used in operations (1,584) (2,643) (4,675)
Tax (payments)/receipts - - 183
Net cash outflow used in operations (1,584) (2,643) (4,492)
Investing activities
Finance income 38 - 59
Sales of property, plant and equipment - - 4
Purchases of property, plant and equipment - (4) (68)
Net cash inflow/(outflow) from investing activities 38 (4) (5)
Financing activities
Proceeds from issue of share capital, net of costs 12 5,824 5,824
Payment of lease liabilities (44) (41) (83)
Finance expense (16) (19) (36)
Net cash (outflow)/inflow from financing activities (48) 5,764 5,705
Increase/(decrease) in cash and cash equivalents (1,594) 3,117 1,208
Cash and cash equivalents at start of year 2,803 1,595 1,595
Effect of exchange rate fluctuations on cash held - (1) -
Cash and cash equivalents at end of the period 1,209 4,711 2,803
Notes to the interim financial information
for the six months ended 30 June 2025
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 2025.
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 IFRS 19 Subsidiaries without Public Accountability: Disclosures,
effective 1 January 2027
· Amendments to IFRS 18 Presentation and Disclosure in Financial Statements,
effective 1 January 2027
Further IFRS standards or interpretations may be issued that could apply to
the Group's financial statements for the year ending 31 December 2025. 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 2024. The principal risks and
uncertainties are materially unchanged and are as disclosed in the Annual
Report for the year ended 31 December 2024.
The interim financial information for the six months ended 30 June 2025 and
for the six months ended 30 June 2024 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
2024 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 2024. The circumstances that
gave rise to this emphasis of matter paragraph are unchanged as at the date of
this report.
The half year condensed consolidated financial statements do not include all
of the information and disclosures required for full annual financial
statements and should be read in conjunction with the group's annual financial
statements as at 31 December 2024, which have been prepared in accordance with
UK adopted International Accounting Standards (IFRS).
IAS 34 'Interim financial reporting' is not applicable to these half-year
condensed consolidated financial statements and has therefore not been
applied.
3. Taxation
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Current tax:
UK tax credits received in respect of prior periods - - (195)
Foreign taxes paid - - 12
Total tax charge/(credit) - - (183)
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 2024 and as such no relevant credit or asset is
recognised.
4. Trade and other receivables
Unaudited Unaudited
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Due within 12 months:
Trade receivables 67 13 3
Other receivables 8 261 245
Prepayments (Prepayments and accrued income for June 24) 285 376 167
Accrued income 90 126
450 650 541
Due after more than 12 months
Other receivables - - -
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
2025 2024 2024
£'000 £'000 £'000
Not later than one year - 2 -
Later than one year not later than five years - - -
- 2 -
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
2025 2024 2024
£'000 £'000 £'000
Trade payables 117 383 141
Taxes and social security 58 62 58
Other creditors 15 29 16
Accruals and deferred income 195 246 220
Right of use liabilities 91 688 88
476 1,408 523
Current 476 725 523
Non-current, comprising right-of-use liabilities and other creditors 591 683 638
1,067 1,408 1,369
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 2025 and 30
June 2024 and also for the year ended 31 December 2024. 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
2025 2024 2024
£'00 £'000 £'000
Total loss attributable to the equity holders of the parent (1,727) (2,546) (4,485)
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Issued ordinary shares at the start of the period 520,686,413 150,982,917 150,982,917
Effect of shares issued for cash 88,524 160,853,651 263,126,382
Weighted average number of shares at the end of the period 520,774,937 311,836,568 414,109,299
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2025 2024 2024
Basic and diluted on loss for the period (0.33)p (0.82)p (1.08)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 at
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 Average remaining No. of leases with termination options
of term lease term
Land and buildings 2 33 - 80 57 months 2
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 2023 772
Depreciation charged in the period (54)
Balance as at 30 June 2024 718
Depreciation charged in the period (108)
Balance as at 31 December 2024 664
Depreciation charged in the period (54)
Balance as at 30 June 2025 610
Lease liabilities
Lease liabilities are presented in the statement of financial position as
follows:
Unaudited Unaudited
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Current 91 86 88
Non-current 511 602 558
602 688 646
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
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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