News: Revenues up but Xeros suffers delays with appliance manufacturers
Xeros Technology Group plc, the Rotherham-based creator of technologies that reduce the impact of clothing on the planet, has reported good operational progress across its key divisions in its latest financial results, despite wider appliance industry headwinds extending commercial timelines.
The AIM-listed group is taking greater ownership for the creation of its own washing platform to counteract delays.
Based at the Advanced Manufacturing Park (AMP) in Rotherham, Xeros recently published its unaudited interim results for the six months ended June 30 2026.
The results show group revenue increased by 67.7% to £0.1m, driven by income recorded across all of the group's technology areas (a first for the business). Adjusted EBITDA (earnings before tax) loss remained static at £1.6m, while administrative expenses decreased slightly to £1.8m due to tight cost management.
Xeros reported net cash of £3.5m in the preiod (£2.8m at the end of August 2026) and remains debt-free following working capital movements in respect of 2025.
Operational highlights included the retail launch of its XF3 external microplastic filter, which is now on sale in Germany via MediaMarkt, with a UK retail launch through Russell Hobbs expected imminently. Further launches are anticipated across major Nordic and US retailers.
In denim finishing, Xeros' partner Yilmak - the world’s largest denim processing machine manufacturer - achieved its goal of initial machine placements in Turkey, Egypt, Pakistan, and Bangladesh, with further orders placed for Sri Lanka and India.
In its Laundry Care division, the firm reported continued progress with a major global washing machine brand under a previously announced breakthrough agreement. Xeros has also initiated an additional go-to-market strategy to launch Xeros-designed washing machine platforms by 2028, which it estimates could represent a £25m revenue opportunity.
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However, the company noted that macro-economic pressures and lower-cost Asian competition facing major European and US appliance manufacturers are extending partner programme timelines beyond its control.
As a result, early revenues previously anticipated in the second half of 2026 are now expected to shift into the first half of 2027.
The announcement discusses a project named "WM2.0" which has begun negotiations ahead of the anticipated appointment of one or two manufacturers in China. The project sees Xeros take greater ownership and responsibility for the creation of a fully functioning washing platform to counteract delays felt whilst working with manufacturers that licence Xeros' technology.
Neil Austin CEO at Xeros, said: "The Group has made good operational progress. Our external microplastic pollution filter (XF3), is now on sale in Germany through MediaMarkt; our denim processing partner, Yilmak, which is the world's largest denim processing machine manufacturer, has facilitated strategic machine placements across key denim manufacturing hubs; the breakthrough agreement for our Xeros laundry care washing machine with one of the world's largest washing machine brands continues to progress well.
"Whilst we have a few months delay in activation, we also have firmer foundations for growth with additional placements in Denim Finishing and distributors for XF3 lined up.
"The Board and I remain excited by the interest levels in, and potential for, Xeros's Technology."
The focus for the management team is distribution.
Speaking in a Q&A for investors, Austin added: "We need product which is ready and is in market, and we need that product to be as distributed as widely with high quality partnerships as we possibly can. If we do that, we give this business the very best opportunity to be able to establish those foundations.
"I'm extremely pleased with the progress that the business has been able to make and equally the things that I can see which we can't talk about just yet, which we know are coming as well. So we never take these things for granted. We are very careful when it comes to the use of the cash that we've got.
"I can say to you that in terms of the work that the business has done, we are establishing those foundations which are critical to be able to get us to the position that, as I said, the management team, the board ... will agree with, not least as well as investors, want us to get to."
Xeros website
Images: Xeros
The AIM-listed group is taking greater ownership for the creation of its own washing platform to counteract delays.
Based at the Advanced Manufacturing Park (AMP) in Rotherham, Xeros recently published its unaudited interim results for the six months ended June 30 2026.
The results show group revenue increased by 67.7% to £0.1m, driven by income recorded across all of the group's technology areas (a first for the business). Adjusted EBITDA (earnings before tax) loss remained static at £1.6m, while administrative expenses decreased slightly to £1.8m due to tight cost management.
Xeros reported net cash of £3.5m in the preiod (£2.8m at the end of August 2026) and remains debt-free following working capital movements in respect of 2025.
Operational highlights included the retail launch of its XF3 external microplastic filter, which is now on sale in Germany via MediaMarkt, with a UK retail launch through Russell Hobbs expected imminently. Further launches are anticipated across major Nordic and US retailers.
In denim finishing, Xeros' partner Yilmak - the world’s largest denim processing machine manufacturer - achieved its goal of initial machine placements in Turkey, Egypt, Pakistan, and Bangladesh, with further orders placed for Sri Lanka and India.
In its Laundry Care division, the firm reported continued progress with a major global washing machine brand under a previously announced breakthrough agreement. Xeros has also initiated an additional go-to-market strategy to launch Xeros-designed washing machine platforms by 2028, which it estimates could represent a £25m revenue opportunity.
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However, the company noted that macro-economic pressures and lower-cost Asian competition facing major European and US appliance manufacturers are extending partner programme timelines beyond its control.
As a result, early revenues previously anticipated in the second half of 2026 are now expected to shift into the first half of 2027.
The announcement discusses a project named "WM2.0" which has begun negotiations ahead of the anticipated appointment of one or two manufacturers in China. The project sees Xeros take greater ownership and responsibility for the creation of a fully functioning washing platform to counteract delays felt whilst working with manufacturers that licence Xeros' technology.
Neil Austin CEO at Xeros, said: "The Group has made good operational progress. Our external microplastic pollution filter (XF3), is now on sale in Germany through MediaMarkt; our denim processing partner, Yilmak, which is the world's largest denim processing machine manufacturer, has facilitated strategic machine placements across key denim manufacturing hubs; the breakthrough agreement for our Xeros laundry care washing machine with one of the world's largest washing machine brands continues to progress well.
"Whilst we have a few months delay in activation, we also have firmer foundations for growth with additional placements in Denim Finishing and distributors for XF3 lined up.
"The Board and I remain excited by the interest levels in, and potential for, Xeros's Technology."
The focus for the management team is distribution.
Speaking in a Q&A for investors, Austin added: "We need product which is ready and is in market, and we need that product to be as distributed as widely with high quality partnerships as we possibly can. If we do that, we give this business the very best opportunity to be able to establish those foundations.
"I'm extremely pleased with the progress that the business has been able to make and equally the things that I can see which we can't talk about just yet, which we know are coming as well. So we never take these things for granted. We are very careful when it comes to the use of the cash that we've got.
"I can say to you that in terms of the work that the business has done, we are establishing those foundations which are critical to be able to get us to the position that, as I said, the management team, the board ... will agree with, not least as well as investors, want us to get to."
Xeros website
Images: Xeros
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