Tuesday, June 21, 2016

News: Xeros export success in the Caribbean


Innovative Rotherham company, Xeros has signed a $500,000 deal for its award-winning polymer bead cleaning laundry system with a commercial launderer in St. Thomas as the Caribbean islands suffer ongoing droughts.

Based on the Advanced Manufacturing Park (AMP), Xeros is a Leeds University spin-out that has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes.

Listed on the AIM stock exchange, Xeros is commercialising the system which uses at least 70% less water, up to 50% less energy and approximately 50% less detergent.

In one of the largest laundry deals on St. Thomas this year, the Scarab Group replaced all of their conventional washers with Xeros laundry systems to reduce their water and energy costs without sacrificing the quality of service to their luxury hotel customers. Based in St. Thomas - which makes up part of the U.S. Virgin Islands - the sustainably focused Scarab Group provides laundry services to the majority of hotels across the island.

Record droughts in the Caribbean islands over the past five years have businesses rethinking their water use. With water and energy costs escalating and tourism being one of the primary industries in the Caribbean, it is important for hotels and for businesses serving hotels to implement water conservation practices on their properties.


Bruce Devon, owner of Scarab Group, said: "After our initial Xeros laundry system install at our facility in St. Thomas, we were so impressed with the exceptional cleaning results and water reduction we replaced all our machines with Xeros low water systems.

"Linen quality and cleanliness is essential for our customers and with Xeros we are able to provide sparkling clean linens while simultaneously reducing our ecological footprint."

The deal follows on from the Verdanza Hotel in Puerto Rico using the Xeros laundry system as a strategic component of the 222 room hotel’s commitment to reduce its impact on the environment while ensuring guests' comfort.

The Xeros business model is more about the deployment and servicing of the patented polymer beads than the machines themselves. The company and resellers benefit from a monthly recurring revenue stream from services and sales of "Sbeadycare," the all-inclusive laundry management programme, to hotels, commercial and industrial laundries, dry cleaners, fitness clubs and spas.

To meet the need of commercial customers, Xeros has introduced a new pricing strategy, to enable buyers to own the machines outright instead of leasing them. For Xeros, while the lower entry purchase price point for the machine results in an initial up-front loss on the cost of the machine, a greater monthly service fee will generate increased service margins for the group and an improvement in gross margin overall over the course of a five year contract.

Conventional laundry operations in hotels represent 20% of overall water usage. In the US, a hotel laundry service uses approximately 25 gallons of water for each occupied room every single day.

Xeros website

Images: Antilles Resorts


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