University spin-out announces intention to float
XEROS, the Leeds university spin-out that has devised a way of reducing the amount of water used by washing machines, has today announced its intention to float on the Alternative Investment Market (AIM).
Admission and the fundraising are expected to allow the group to accelerate its roll-out in commercial laundry and to fund the research and development process through to commercialisation. The business is working with New York-based investment bank Jefferies and admission to trading is expected to take place next month.
Bill Westwater, CEO of Xeros, said: “Xeros’ patented reusable and recyclable polymer bead cleaning systems offer an attractive customer proposition combining cost savings, efficiencies and superior cleaning performance. Xeros’ technology has the potential to transform a number of industries globally and our planned admission to AIM will help accelerate our roll-out in commercial laundry and fund development through to commercialisation in other identified markets. I am delighted that our major shareholders are highly supportive of our proposed listing and associated fundraising.”
The focus of the group since it launched in 2006 has been to develop and commercialise years of research at the University of Leeds into textile dyeing and the use of polymer beads for cleaning various substrates. Compared to conventional washing machines, Xeros says its systems demand less time and typically more than 70% less water, 50% less energy and 50% less detergent.
The Xeros system comprises a special washing machine designed to release patented polymer beads into the drum for cleaning, and which then removes the beads from the clothes once the cleaning process is complete. The dirt from soiled items is attracted and absorbed by the beads, producing cleaner results than “soap and water” washing methods.
Current Xeros partners include Johnsons Services Group and premium dry cleaners Jeeves of Belgravia.
The group, based in the Advanced Manufacturing Park near Rotherham, to date has raised in excess of £15m from investors, including IP Group, Enterprise Ventures, the Entrepreneurs Fund and Invesco. Most recently, it raised £10m from new and existing investors.
Xeros says it is initially targeting the commercial laundry market in the US, the UK, Europe and China. Currently, the firm has 30 installed/committed to be installed machines in the US, UK and EU and estimates that approximately 120 further machine installations are expected for 2014.
Xeros also intends to license the production, distribution and marketing of relevant machines and detergents to partners and will look to benefit from the expertise, scale and global reach of such potential partners.
