Tuesday, May 4, 2021

News: Major licensing progress for Xeros


Bosses at innovative Rotherham company, Xeros Technology, say they are in a "solid financial position" as manufacturers prepare to enter markets this year with products containing Xeros IP.

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.

The firm has moved to an IP rich and asset light business model and pitches itself as the developer and licensor of technologies which reduce the environmental impact and cost of clothing and fabrics.

Publishing its 2020 audited results for the 12 months ended December 31 2020, the Group reported an operating loss of £7.6m, a reduction of the loss of £17.1m reported in 2019. Adjusted EBITDA (earnings before tax) loss reduced to £6.8m from £14.4m in the previous year.

The company said that 2019 was about the organisational transition to an asset-light technology licensing business model and that 2020 was about the commercial implementation of that business model.

Whilst the Covid-19 pandemic has somewhat delayed the timing for licensees entering their markets, license partners have made significant progress.

Ramsons entered the garment finishing market in South Asia, selling nine machines to ABA - the first commercial sale of XOrb/XDrum enabled machines (the polymer technology). Xeros is targeting the huge denim finishing industry and SeaLion and IFB are ready to enter commercial laundry markets in China and India. IFB is also planning entry into the Indian domestic laundry market in 2021.

Major advances have also been made with the XFiltra technology platform - the system that removes microplastic fibres from laundry effluent. A leading commercial laundry equipment company is planning to enter the market with an industrial version in 2021 and product design to address the domestic machine market is planned for release for field trials by OEMs in mid-2021.

Mark Nichols, Chief Executive of Xeros, said: "A year of living with the global Covid-19 pandemic has increased the belief among consumers, politicians and business that we must build better for a more sustainable future. Consumers are increasingly choosing products which carry a lower environmental cost while legislators are putting the long-term health of the planet at the heart of policy making.

"Together with our licensees, we are making a tangible difference to the sustainability of the clothes and fabrics we wear and use. By minimising the environmental harms caused during their manufacture and care, Xeros is helping the world to 'wear better'.

"The launch of our technologies by licensees in South Asia and China will give us a platform to expand into new geographies where there is also an urgent need for the environmental and economic benefits presented by our technologies.

"We will do so from a solid financial position with resources in place to win additional license contracts and fully embed our technologies within major supply chains and in the hands of consumers."

After the year end, Xeros raised around £8m to support the commercialisation of its washing machine filtration technology. Funds will be deployed to win additional contracts, complete the commercialisation of XFiltra and to provide a contingency for further disruption from the Covid-19 pandemic. The expectation is that current funds are sufficient to move the Group to month-on-month cash breakeven by the end of 2022.

Xeros website

Images: Xeros


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