Friday, September 20, 2019

News: Commercialisation accelerates at Xeros


Losses are narrowing at innovative Rotherham company, Xeros Technology, as it signs further licensing deals and steps back from direct sales and physical supply chains.

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.

Xeros is moving to a IP rich and asset light business model with the majority of revenue derived from high margin licensing agreements.

The strategy sees the licensing of technologies to market incumbents and receiving a proportion of the value created by means of royalties. The technology can also be applied to leather processing and garment finishing.

The firm's pretax loss for the six months ended June 30 was £9m, a reduction from the £13m loss in the same period in the previous year. This was the result of administrative expenses.

Revenue fell 16% to £1.6m due to a reduction in physical sale of commercial washing machines by its Hydrofinity division.


Mark Nichols, chief executive of Xeros, said: "Since Xeros' inception, the geo-political and environmental pressures on the world's supply of water continue to increase, year on year. There is no reason to believe this will change or abate. Our technologies help to extend this precious resource whilst simultaneously reducing significantly pollution.

"After a number of years of development, manufacturers and consumers have now recognised that our innovative technologies are highly valuable, both in terms of their sustainability and cost benefits.

"The commercialisation of our products is now accelerating with a number of contracts in execution and in development in a number of countries including the two most populous.

"In 2017 we changed our strategy to commercialise our technologies under a license model in order to achieve the broadest possible market penetration from the lowest possible cost base. Our licensing contract wins and reducing cash burn rate are evidence that we are now making good progress to achieving that objective."

Since the end of the period, Xeros signed an agreement with Ramsons Garment Finishing Equipment PVT Ltd, the largest supplier of garment finishing equipment in South Asia. Under the agreement, Ramsons will develop, manufacture and sell garment finishing equipment used in the manufacture of denim jeans which incorporates Xeros' technology on an exclusive basis across South Asia and Africa.

Xeros also signed an agreement which sees WashCo granted the exclusive rights to take over the servicing of Xeros' hospitality laundry customers in the UK.

Xeros website

Images: Xeros


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