Pre-tax losses hit £31m at Xeros as firm continues commercialisation process

Cleaning technology group Xeros has reported annual pre-tax losses of £31.9m but say it is making progress in commercialising technology.

Publishing its annual results to 31 December 2017, the Rotherham-based firm saw pre-tax losses grow to £31.9m, up from pre-tax losses of £21m in the 17 months to 31 December 2016.

The firm’s revenues dropped to £2.1m from £2.3m in 2016. It reported an adjusted EBITDA loss of £28.7m (17-month 31 December 2016: loss £20.7).

Year end cash stood at £25.1m (17-month 31 December 2016: £28.9m) following a £25m capital raise through a share placing in December 2017. This was aimed at accelerating commercialisation against specific milestones to provide value to partners and investors across the firm’s divisions in Cleaning Technoligies, Tanning Technologies and Textile Technologies.

The group acquired a specialist US business in a deal worth $1m during 2017. The US cleaning business MarKen specialises in personal protection equipment cleaning.

Xeros added that there had been “significant progress” towards commercialising technology across all targeted applications and that there had been meaningful engagement with major industry players around the world.

 

 

 

 

Mark Nichols, chief executive of Xeros, said: “Xeros is now providing a unique, proven technological solution in a world increasingly threatened by the environmental challenges of water scarcity and pollution.

“We now have two businesses with turnover, other applications with near term inflection points and are engaged with some of the leading market incumbents in each of our cleaning and tanning applications. We also expect to be in discussion with major garment producers in the near term for our textile applications.

“For the majority of our applications, our plans are to implement IP-rich, capital-light business models with market incumbents. With our resources now aligned specifically to business opportunity, we are working our way through major commercialisation milestones.

“We are now at a pivotal point in the commercialisation of our technologies.”

Xeros added: “In each of our businesses we have a clear strategy to achieve commercial inflection points in 2018 which will allow future monetisation of these businesses. With development work materially completed in 2017 and the foundations for commercialisation put in place, Xeros’ costs will remain fixed whilst revenues increase from licensing and other low capital intensity models.”

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