Stronger than expected pipeline of opportunities for cleaning technology firm

Water cleaning technology group, Xeros, says its licensees are moving closer to commercial launch as it publishes its 2023 full year results.

Rotherham-headquartered Xeros has reported a revenue increase of 81% to £0.3m (FY22: £0.02m) alongside a pre-tax loss of £4.8m (FY22: £7.4m loss).

Administrative expenses decreased by 34.1% to £5m (2022: £7.5m), following a reduction in the group’s headcount and a continued focus on cost across the business.

Xeros has developed three main technologies – called Filtration, Finish, and Care – to reduce the environmental impact of cleaning clothing.

The group’s model model is to generate revenue from licensing its technologies, generating royalties and the sale of consumables.

Neil Austin, CEO, said: “Our agreements with licensees moved closer to commercial launch, as we embarked on the crucial technology transfer process with both IFB and Yilmak Makina.

“We completed the technology transfer for IFB domestic machines (Goa) in December 2023, and Yilmak Makina’s commercial denim processing machines (Turkey) in quarter one of the new financial year.

“All these machines have now moved to the manufacture and marketing stage, ahead of scale launch later this year.

“In addition, the work undertaken to increase the group’s commercial focus has resulted in a stronger than expected pipeline of potential new agreements. We are now in discussion with 10 major organisations with interest across all the group’s technologies.”

The group adds that cost controls will remain in place and priority will be given to the commercialisation of existing opportunities.

Xeros says its balance sheet was significantly strengthened by a post year-end warrant exercise and fundraise, providing it with additional working capital of £6.3m before fees to support the delivery of its FY24 and FY25 goals.

It adds that is is currently in direct dialogue with six of the 10 leading global domestic washing machine manufacturers for its Care and Filtration technologies.