REG - Xeros Tech Grp plc - Trading Update

Xeros TechnologyAnnouncement

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RNS Number : 4416Q  Xeros Technology Group plc  27 January 2026

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NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

27 January 2026

 

Xeros Technology Group plc

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

 

Trading Update

Strong progress with Launch Agreement and denim processing

 

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 2025 ("FY25"), which will
be published in May 2026.

 

In the Group's Laundry Care technology, we are pleased to report excellent
progression on the Group's breakthrough Launch Agreement signed last year with
one of the world's largest, branded washing machine manufacturers. The
partner's initial consumer insights surveys have indicated better than
expected consumer demand for the benefits of the Xeros technology. This has
further strengthened our partner's conviction that our technology is the only
real solution to stop the damage to clothes caused in the conventional washing
process.

 

Three other leading global OEMs remain in technical verification, and we
continue to anticipate further significant commercial agreements in Laundry
Care within 2026.

 

Interest in our market leading external Microfibre Filter, XF3, shows no signs
of abating. With life-time testing now in the rear-view mirror, we are
imminently expecting our first two purchase orders for production runs, and
expect wider roll-out of these filters to follow in the current year. We look
forward to providing updates as these and other material purchase orders
arise.

 

In the Group's Garment Finishing division, very pleasing progress is being
made with Xeros' partnership with Yilmak Makina ("Yilmak"). Yilmak's first
Xeros enabled machine has been delivered to Ambition Apparel in Pakistan ahead
of schedule. On conclusion of commissioning and initial production runs we
expect Ambition Apparel, which is a prominent Pakistan-based manufacturer
producing over nine million pairs of jeans a year, to place orders for further
machines for delivery this year. Yilmak is also in the process of finalising
machines for deliveries to sites in Turkey, Egypt and Bangladesh.

 

These installations, once in full production, will provide real-world proof
points of the benefits of Xeros' technology and feed into discussions we are
having with a number of leading garment retail brands, who have shown interest
in a possible brand partnership, that would see their jeans marketed as having
been made using Xeros' Technology.

 

Revenue for the year ended 31 December 2025 will come in below market
expectations. This is for two reasons: a second batch of XOrbs to Yilmak did
not ship before the year end as had been anticipated; and as the Group's
commercial agreements mature, revenue recognition is becoming more complex, as
a result revenues from Yilmak's initial machine sale to Ambition Apparel,
alongside an early milestone payment on the recent Laundry Care Launch
Agreement will now fall into FY26. In addition, the Group's SG&A is
slightly above market expectations due to higher than expected costs of the
fundraise in 2025, and some additional staff expenditure. These deviations
from market expectations do not impact the outlook for the business for 2026.

 

The Group still expects to follow on the foundations built within 2025 to
deliver commercially in 2026. Revenue in 2026 will predominantly come from
royalties for Yilmak's denim processing machines and XF3, and from technology
transfer fees from Laundry Care partners.

 

The Board is pleased with the continuing commercial progress in all areas, and
we look forward to sharing further updates soon.

 

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

 Keeley Clarke                          Mob: 07967 816 525

 Cat Valentine                          Email: Xeros@rfpr.co.uk

 

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.

 

 

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