REG - Xeros Tech Grp plc - Trading Update

Xeros TechnologyAnnouncement

05/02/2025 07:00

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RNS Number : 9032V  Xeros Technology Group plc  05 February 2025

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5 February 2025

Xeros Technology Group plc

("Xeros", the "Company" or the "Group")

 

Trading Update

 

Xeros Technology Group plc (AIM: XSG), the creator of technologies that reduce
the impact of clothing on the planet, announces the following trading update
ahead of its results for the year ended 31 December 2024 ("FY24"), which will
be published in May 2025.

 

The Group is delighted to share that it has signed a Letter of Intent with a
major electronics distributor for an initial order of the XF3 external
microfibre plug and go filter.  This will see it placed into several major
retail outlets, initially in the UK under a well-known electronics brand,
towards the latter part of 2025.  Additionally, further discussions for
orders of XF3 with some of the World's largest electronics brands and
distributors are progressing well, with other partnership announcements
anticipated in early Q3.

 

Interest in the Group's FABRIC CARE technology is gaining further momentum
globally. The Group recently entered into a paid-for technical verification
process ("tech verification") with a leading global washing machine brand.
Tech verification is a proof-of-concept process, which precedes a Joint
Development Agreement ("JDA"), and typically takes around six months to
complete.

 

The Group is now in the tech verification process with four of the world's
largest washing machine companies as regards the Group's FABRIC CARE
technology. Of these global brands, two are in final stage evaluations ahead
of signing a JDA, which would aim towards a commercial launch during 2026.

 

This growing momentum is testament to the potential for the Group's technology
to revolutionise washing machines and garment care.

 

The Group continues to near commercialisation with its existing licensing
agreements. IFB Industries Limited ("IFB"), the largest washing machine
manufacturer in India, continues to track positively towards launch of a
FABRIC CARE enabled domestic washing machine range later this year.

 

On GARMENT FINISHING an unanticipated additional requirement during the final
stage of cycle development with the Group's denim finishing partner, Yilmak,
resulted in an order for XOrbs moving from FY24 into the first quarter of
FY25. This issue was fully resolved but created a revenue timing difference
and has resulted in FY24 revenue coming in below expectation though Adjusted
EBITDA and net cash is in line following better than expected cost savings of
£0.2m.

 

Net cash at 31 December 2024 was £2.8m.  With our ongoing focus on operating
cost discipline the Board continues to anticipate that this will be sufficient
to take the Group to month on month cash flow break even during the course of
this year.  Cognisant of potential timing issues when working with large
global organisations, the Board is taking a prudent view of its revenue
expectations for FY25.  Allowing for some delays and slippages within the
existing pipeline, the Board expects to achieve revenue of approximately
£2.5m in the current year, though this does not include the significant
upside potential of additional revenue opportunities from the numerous
discussions we currently have underway.

 

With the Group's clear near-term commercial deliverables, the Board remains
both confident and excited about Xeros' technology and the drivers for
clean-tech solutions, which continue to gain momentum across global markets.
The potential for global adoption of Xeros' technologies is evidenced by the
current discussions with major global laundry OEMs covering all major
geographies, fashion brands, and pressure for change from industry regulators
and governments seeking to reduce the environmental impact of cleaning our
clothes.

 

Neil Austin, CEO said: "The importance of our discussions with these major
global players should not be underestimated. A JDA with any one of these could
be potentially transformational for the Group, opening the door for others to
follow. The washing machine industry is ripe for innovation and change.
Existing washing machines have remained largely the same for 40 years and
there is pressure on leading OEMs to innovate to secure future sales and
market share, as well as meeting upcoming environmental regulations."

 

An online investor Q&A session will be hosted early next week with Neil
Austin, CEO, and Alex Tristram, Finance Director. 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://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.investormeetcompany.com%2Fxeros-technology-group-plc%2Fregister-investor&data=05%7C02%7Calex.tristram%40xerostech.com%7C0a8e329504a840acc49708dd45216ead%7C00b642fa5db145b9bac05cc2c96d88e4%7C0%7C0%7C638742732086405690%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=qRMqxbX0FVw6jVnJgFtEUS5J8Ocr946tVySrd01Rdv8%3D&reserved=0)

 

Enquiries

 

 Xeros Technology Group plc                                        Tel: 0114 269 9656

 Neil Austin, Chief Executive Officer

 Alex Tristram, Finance Director

 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                                     Tel: 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, Filtration, Finish, and Care, 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 Filtration, Finish and Care
are estimated to be valued at £350m p.a., £132m p.a. and £3bn p.a.
respectively.

 

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