22nd Oct 2014 09:16
(An item published at 1011 BST misstated the share price and movement. The correct version follows.)
LONDON (Alliance News) - Xeros Technology Group PLC Wednesday said its revenue nearly quintrupled in its last financial year, as it made progress in getting cleaning machines with its patented polymer bead cleaning system installed, particularly in the US, although its loss widened due to a rise in the costs associated with that push.
Xeros reported a pretax loss of GBP6.8 million for the year to July 31, wider than the GBP3.5 million loss it reported a year earlier, mainly due to a sharp increase in administrative expenses and cost of sales.
The company, which listed on AIM in March, is starting to gain traction with its cleaning technology, which it claims reduces water, energy and chemical usage compared with traditional industrial washing machines. It says it now counts four out of the world's top five hotel groups as customers in the US, its priority market, and last week saw its shares rise after it said two more US utility companies had launched energy incentive programmes for customers who commit to reducing their energy and water consumption through the use of a Xeros Commercial Laundry System.
Xeros reported revenue of GBP312,000 for its last financial year, up from just GBP65,000 a year earlier, as it made progress in expanding its technology sales. It said it had 37 installed and committed machines in the US at the end of July, and seven in Europe. It expects to have more than 80 installed and committed machines by end of calendar 2014, and will focus on accelerating installations in 2015.
Other sectors in which it has installed machines include retail dry cleaning, fitness centres and the US military. It recently got a EUR700,000 Eco-Innovation grant to help drive early adoption in Europe.
Its cash balances stood at GBP29.5 million at the end of the last financial year, an improvement from GBP8.5 million a year earlier, and it remained debt free. Cash burn during the year was GBP7.2 million, up from GBP3.2 million a year earlier, as it invested in research and development, its machines, and start-up costs.
It spent money on developing its supply chain and sales team, opening new offices in the US and increasing headcount to 62 people worldwide.
"In 2015, we will be focused on extending our installed base in the US with existing and new customers, geographic expansion in Commercial Laundry, product development and continued innovation in bead cleaning," Xeros Chairman John Samuel said in a statement.
The company added that it had strengthened its patent portfolio with five new patent filings in the last financial year, bringing the total to 33 patent families covering 33 inventions.
Xeros Technology was created to commercialize a discovery by the University of Leeds that nylon was an ideal substance for removing stains from textiles because it becomes highly absorbent in humid conditions and is incredibly resilient.
Its shares were down 3.2% at 120.00 pence Wednesday morning. The stock it its highest level since listing of 122.85 pence last week in the wake of the latest US utility incentive programmes.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Xeros Tech