Solid financial foundation for listed cleaning tech company
Sustainable cleaning technology company business, Xeros Technology Group, says its revenue dropped in 2020 by 78.8% to £0.4m (2019: £1.8m).
The Rotherham-headquartered company, which has published its 2020 audited results this morning, says the decrease reflects the full year impact of disposal of its direct operations and its switch to a licensing model.
The Group reported an operating loss of £7.6m (2019: loss £17.1m), a reduction of 55.3%, while its adjusted EBITDA loss reduced by 53.2% to £6.8m (2019: loss £14.4m).
Xeros had existing cash resources as of 31 December 2020 of £5.2m (2019: £5.6m) and remains debt free.
Its cash as of 31 March 2021 was £11.7m following the completion of a £9m equity placing in March 2021 to strengthen its balance sheet.
The business says it has signed multiple license agreements for its XDrum and XOrb technologies, which transform sustainability, performance and economics in the manufacturing and laundering of garments and fabrics.
And it notes it is making major advances with its proprietary XFiltra technology platform, which addresses microfibre pollution from washing machines.
Mark Nichols, chief executive, said: “Consumers are increasingly choosing products which carry a lower environmental cost while legislators are putting the long-term health of the planet at the heart of policy making.
“Together with our licensees, we are making a tangible difference to the sustainability of the clothes and fabrics we wear and use. By minimising the environmental harms caused during their manufacture and care, Xeros is helping the world to ‘wear better’.
“The launch of our technologies by licensees in South Asia and China will give us a platform to expand into new geographies where there is also an urgent need for the environmental and economic benefits presented by our technologies.
“We will do so from a solid financial position with resources in place to win additional license contracts and fully embed our technologies within major supply chains and in the hands of consumers.”
Chairman Klaas de Boer added: “With the aforementioned £9m (gross) in financing added in March, the company’s balance sheet is very healthy.
“Covid-19 may still throw a few surprises, but our robust balance sheet should see us through those.
“Several license partners (IFB, SeaLion and Ramsons) have, or are planning to launch commercial products based on Xeros’s technology, and we are looking to add new ones.
“In parallel, there is a lot of momentum building behind XFiltra; some of the £9m will be deployed to add resources to that programme.
“Our progress points towards a bright future where our technologies are having a real positive impact at scale on the environment we share.”
