Xeros raises £4.55m through share placing as group advances washing machine technology
A pioneering Yorkshire firm seeking to make the world’s washing machines more eco-friendly has completed a multi-million-pound share placing to support its commercialisation strategy.
The Rotherham-based company, Xeros, has raised gross proceeds of about £4.55m through a placing and subscription of about 303.7 million new ordinary shares in aggregate at the issue price of 1.5 pence per share.
It has also provided shareholders with the opportunity to subscribe for an aggregate of up to 66.7 million retail offer shares at the issue price to raise up to about £1m.
The company said the proceeds will be used to strengthen the company’s balance sheet, enabling execution of current contracts, pursuit of global opportunities and to provide reassurance to contract counterparties.
In addition, they will provide working capital as the company advances commercialisation of its core technologies, and provide contingency against timing of royalty income and operational cash flow break-even.
Neil Austin, chief executive of Xeros, said: “Our technology solutions drive significant cost, energy and water efficiencies for our customers while reducing pollution in both the manufacture and laundering of clothing.
“The fundraise puts the group in the strongest possible position to execute its commercialisation strategy, which is focused around highmargin licence fees and recurring consumable revenue.
“I would like to take this opportunity to thank investors for their continued support at this exciting time for Xeros.”
One of the company’s areas of focus is ‘Care’ technology which involves patented polymer beads called XOrbs being placed into washing machines alongside clothing to reduce water and energy usage in a cycle and collected at the end of a wash for use again.
Xeros is already working with IFB, India’s largest domestic and commercial washing machine manufacturer, on the rollout of home washing machines which use XOrbs.
Speaking to The Yorkshire Post last September, Mr Austin said that advanced talks are also happening with major European brands.
“The bigger picture is we want this care technology to be in every washing machine globally,” he said.
“To do that we need to have relationships with the big washing machine manufacturers.”
Talks with the major brands are also ongoing in regard to the company’s filtration technology. It has developed a product called the XFilter that is designed to trap microfibres released as part of the cleaning process and stopping them ending up in waste water.
The XFilter, designed for new washing machines, goes into a detergent drawer which can be emptied in a similar way to clearing lint from a tumble dryer. The firm has also just launched an external filtration product, called XF³, which can be retrofitted to existing washing machines.
It comes ahead of France mandating a microfibre capture requirement for all washing machines from 2025, with the move expected to be followed in the rest of the EU, as well as the UK and California.
Mr Austin said the XF³ hugely widens the company’s potential market.
Xeros recorded an adjusted EBITDA loss on continuing operations of £2.6m for the six months ended June 30, 2023, a decrease of 32.2 per cent of the £3.9m loss recorded at the same point in 2022 as costs were reduced and revenue increased.
Mr Austin said the company remains on track for hitting breakeven by late 2024.