Cleaning tech business confident of growth prospects following difficult year

Garments cleaning technology business, Xeros, says it has experienced a tough year in which it was unable to deliver “tangible evidence of market adoption at scale.”

Publishing its audited results for the 12 months ended 31 December 2022 today, the Rotherham-based company notes it had to complete a further £6.3m equity fundraise, during the turmoil of the disastrous UK mini-budget.

The business reports revenues for the period of £0.2m (2021: £0.5m) and an adjusted EBITDA loss of £7.4m (2021: loss £6.3m) but says its longer-term prospects are more positive.

Neil Austin, chief executive officer of Xeros, said: “I am pleased to report the solid progress made by Xeros during 2022 across all key areas of the business; Filtration, Finish and Care.

“The further agreements won throughout the financial year clearly demonstrate that our technology is widely regarded globally.

“The Board remains confident in the group’s strategy and its growth prospects, especially given the global legislative agenda moving forward so positively and we look forward to updating shareholders on our progress in due course.”

Highlights for the company during the year included two further licences won for its XFilter technology to increase market access.

A major European retailer endorsed trial is underway in denim manufacturer for the firm’s Finish technology.

And Xeros Care technology is now available for use by consumers in homes following, the launch of the company’s 11kg semi-professional machine.

Austin said the business still anticipates that it will be able to achieve month-on-month EBITDA and cashflow breakeven during 2024.

“While all of this means that near term expectations are lower than previously envisaged, we would contend they are on a sounder footing and we remain firmly of the view that there remains a clear path for our early adopter licensing brands to achieve wider market implementation globally,” he said.

And he pointed out that as a technology licensing business, Xeros has the benefits of low overheads and an ability to scale up significantly at a high gross margin with minimal cost increase.