Full Year Results 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.

28 April 2026

Xeros Technology Group Plc

("Xeros" or the "Company" or the "Group")

Full Year Results 2025

Delivering on important milestones with market leaders able to scale the technology

Xeros Technology Group plc (AIM:XSG), the creator of technologies that reduce the impact of clothing on the planet, announces its audited full year results for the year ended 31 December 2025.

The year under review delivered on all three of the Group's technologies: a breakthrough Launch Agreement with a top ten global washing machine brand, two launch partners for the external microplastic filter XF3, and the first sales from denim processing partner Yilmak. These important partnerships with market leaders prove that Xeros's technology is able to break the link between performance and damage, benefitting businesses, consumers, and the planet.

Highlights

Neil Austin, CEO said:

"Xeros is now in a strong position. It's important to remember that we are not reliant on the success of just one technology; and that currently all three of our technologies have market leading commercial partners with the potential to take them to scale. The high level of uptake at the recent fundraise has allowed us to reflect on the best way to achieve our significant commercial goals over the short and medium term. We believe that by making some additional investment in the Group's commercial and technical delivery capability we can maximise and accelerate the substantial opportunities that we have before us.

We have consistently talked about our confidence in the potential of Xeros's technology, and the achievements of the last 18 months continue to fuel this confidence."

Investor Presentation

An online investor Q&A session will be hosted by the management this morning at 11am. The session will be held on the Investor Meet Company ("IMC") platform. Registered investors, who follow Xeros on IMC, should have automatically been invited, everyone else should register at:

https://www.investormeetcompany.com/xeros-technology-group-plc/register-investor

Annual General Meeting ("AGM")

The Company will hold its AGM on Wednesday, 10 June 2026 at 12noon, at its offices Unit 2 Evolution, Advanced Manufacturing Park, Whittle Way, Catcliffe, Rotherham, South Yorkshire,

S60 5BL.

Following the formal meeting, attending shareholders will be offered a tour of the site and given demonstrations of the technology.

Shareholders whose shares are held in a nominee account will not automatically receive the Notice of the Meeting and should contact their stockbroker to obtain a "Letter of Representation" or "Proxy" if they wish to attend. Further details on this can be found at Nominee Accounts - ShareSoc

The Annual Report and the Notice of the Meeting will be posted to shareholders, and available on the website, on Wednesday 6 May 2026.

Enquiries

About Xeros

Xeros Technology plc has developed patented and proven, industry-leading technologies which reduce the environmental impact of how industries make and care for clothes.

The traditional wet processing methods used in industrial and domestic laundry and garment manufacturing consume billions of litres of fresh water and large amounts of energy and chemicals, as well as damaging and weakening clothing fibres and creating rising levels of environmental pollution. It is estimated that washing machines contribute 35% of the 171 trillion microplastic particles in the ocean.

A range of actors, including consumers, the media NGOs and regulators are exerting pressure on these industries, with legislative action beginning to be taken.

Xeros' three main technologies, Microplastic Pollution Filter, Laundry Care, and Garment Finishing, facilitate garment manufacturers, industrial laundries, domestic washing machine manufacturers and consumers, to reduce their environmental impact, whilst also significantly improving efficiency in the process.

Xeros' model is to generate revenue from licensing its technologies, generating royalties and the sale of consumables. Currently there are eight agreements in place. The addressable markets in Microplastic Pollution Filter, Laundry Care, and Garment Finishing are estimated to be valued at £350m p.a., £3bn p.a. and £132m p.a. respectively.

Chairman's Statement

Recently, I visited the local MediaMarkt in Chur (Switzerland), where I have bought many appliances over the years. It gave me a great sense of pride to think that our external filter technology, XF3, would soon be gracing the shelves of stores like this for consumers to buy. It was a clear reminder of the progress the business is making.

The year to 31 December 2025, delivered very important milestones. The most notable of which was the breakthrough Launch Agreement for Laundry Care, which we signed in October with a global top 10 washing machine brand. This collaboration is progressing according to plan. While we cannot name the brand, its leading position in the market is a testament to the global interest and potential for our technology.

We announced the partnership with Donlim in September 2024 to manufacture the XF3 under licence. We then announced in 2025 that Russell Hobbs would be the first brand partner for the unit. Further interest in the filter technology followed and in February of this year we announced that MediaMarkt, Europe's largest consumer electronics retailer, would be our second partner under its Koenic brand. It is very pleasing to note, that as I write, Donlim is now manufacturing units, for sale in the UK and all over Europe.

In denim finishing, Yilmak Makina, secured its first denim manufacturing partnership with Ambition Apparel, a prominent textile company, which produces around nine million pairs of jeans per year. Since then, Yilmak has agreed further placements in Egypt and Bangladesh.

In November 2025, we secured £5.95 million gross by way of an Initial Placing, Follow on Subscription and Retail Offer. The interest in the potential for Xeros' technology was evidenced by the level of uptake at a price of 1.75p, which was a small premium to the average of the closing mid-market price for the 30 days prior to the announcement. These funds, along with the margin from revenue anticipated in the current year, give the business an opportunity to further develop its commercial partnerships across all technologies.

As already reported last year, there was one change to the Board in 2025; Dr Paul Jourdan resigned as a Board Observer following the change of fund manager for Amati AIM VCT plc from Amati Global investors to Maven Capital Partners UK LLP. In the current year Rachel Nooney, independent Non-Executive Director, resigned at the end of February. The Board would like to thank Rachel for her very valuable contribution to Xeros over the past four and a half years, for which we are very grateful. Her business insight, fresh perspective, and marketing expertise has supported Xeros throughout this period of strategic growth.

In the second half of 2025 the Nominations Committee undertook a review of the composition of the Board to assess its ongoing suitability as it transitions to a fully-fledged commercial enterprise, at that time it was agreed that, given the support and expertise the executive management receives from the Advisory Board, the composition was adequate. Since then, we have had a fundraising and Rachel's departure, and the Board is agreed, given that it is now light on independent governance, that another independent non-executive would be beneficial in due course.

Our strategy to become an IP-rich, capital-light licensor of proprietary technology solutions to multiple scale industries, which can deploy Xeros's core technologies remains on track. We have commercial partnerships with large market leading, global brands, each of which have the potential to take our technologies to millions of end user consumers. The global potential for our technology remains strong, and the quality of our partnerships, which Neil will talk about in more detail in his statement, is a testament to this potential.

I would like to once again thank you, shareholders, for your ongoing support, and to welcome our new shareholders who joined at the fundraising. I also want to extend praise to the management team and everyone at Xeros for their hard work and dedication to expanding and scaling our technology.

Klaas de Boer

Chairman

CEO's Statement

At this time of year when considering the preceding financial year, it offers a moment for reflection, and an opportunity to put into context the progress on our ambition to have Xeros's technology employed, as default, across the laundry appliances and apparel manufacturing industries.

Many of you will have heard directly from me that my goals for the Group are significant. I felt from the day I walked through the doors of Xeros HQ that the technology is more than good enough to not only provide a greener, cleaner way for our target Industries to operate but to offer significant cost and consumable efficiencies.

A key step to this has been to focus the business on securing commercial partnerships with the industry's top players. Whilst by no means complete, 2025 has seen us take significant strides towards that goal.

The biggest achievement was our breakthrough product launch agreement with one of the world's largest washing machine OEMs and top ten washing machine brands. While we can't name the partner due to commercial sensitivity, they represent 8% of global market access, operating predominantly across North and Latin America.

Through the year we indicated significant interest in our external microplastic filtration device from some of the largest players in the consumer electronics and domestic appliance Industries. Announced in 2025 was the heritage CE brand Russell Hobbs, and in recent weeks MediaMarkt, Europe's largest electrical retailer, was named as the second partner to launch the XF3 across European stores under its Koenic brand. Interest behind these continues to build, and final stage discussions with industry majors are nearing completion.

Also in 2025, Yilmak established its first denim manufacturing partnership with Ambition Apparel, a prominent textile company in Pakistan, which produces around nine million pairs of jeans per year. It is also in the process of shipping machines to sites in Turkey, Egypt and Bangladesh.

I would like to say how proud I am of the quality of our recent partnerships. As I said, we made the conscious decision to focus on working with the biggest and best; something that inevitably takes longer to complete but now sees the Group in a much stronger position moving forward. The companies that we are now dealing with are leading global businesses at the top of their markets. This is a testament to the work undertaken by the team at Xeros and acknowledgment of the potential for Xeros's technology to transform laundry and denim processing.

In November we raised £5.95m from a placing, follow on subscription and retail offer. These funds will provide the Group with working capital to support the commercialisation as well as provide contingency against ramp up of royalty income and subsequent operational cash flow break even.

Business update

Laundry Care (XC1 - Domestic, XC2 - Commercial)

We were thrilled to confirm in October that we had signed a significant Launch Agreement with one of the world's largest, branded washing machine manufacturers to develop a domestic washing machine under the manufacturer's global brand using Xeros's Laundry Care technology (XDrum and XOrbs) and Product Certification Mark. The manufacturer, which cannot be named due to commercial sensitivity, is a global leader, and top ten brand, selling around seven million domestic washing machines per year, operating predominantly across North and Latin America. It gives Xeros access to up to 8% of the global market.

The project, which is running on a paid-for, time-bound process with defined milestones and deliverables. Progress to date has been positive with initial consumer insights surveys indicating better than expected consumer demand for the benefits of the Xeros technology. This has further strengthened the conviction that our technology is the only real solution to prevent damage to clothes caused by conventional washing. The next stage of the development process will see prototyped machines delivered to the partner's marketing and sales leads for the development of the consumer messaging. 

Three further leading global washing machine manufacturers continue in technical verification, which is the precursor to a development agreement. These three if they were to convert, together with the existing agreement, would potentially give us access to 62% of the global washing machine market. We retain an option to work with IFB in the Indian subcontinent which will be reviewed through the coming year.

In investor presentations I have often spoken about the lack of innovation in laundry. While there have been changes, there have not been any major developments for nearly 40 years. With an ever-increasing consumer focus on fabric care and garment preservation, washing machine brands are now prioritising care alongside more sustainable processes. I believe that it is this repositioning of priorities from OEMs that will push the take up of our laundry technology, which is the first ever to break the link between cleaning and fabric damage.

Feeding into this is the Xeros Product Certification Mark, which we developed in 2025. The Mark is intended to be applied to all licensed technology going forward. It is a holographic badge with Xeros's logo and a QR Code linking to a technology information webpage. It is applied to each unit at the point of manufacture and signals that Xeros's patented innovative technology has been used.

Our commercial partner in France, Georges continues its expansion in the laundry of work wear and to support this growth has ordered three additional machines in early 2026. Georges business model is built around the Xeros Laundry Care technology, which saves money and extends garment life.

The commercial success of Georges using our technology is attracting a variety of attention from other potential commercial partners. In the pipeline we have interest from a machine manufacturer, as well as a laundry product brand.

While the major growth potential and scaling opportunity sits firmly with partnerships in domestic laundry, commercial offers immediate revenues from royalties and ongoing service payments for the replenishment of XOrbs.

Microplastic Pollution Filter (XF1 - Domestic, XF2 - Commercial, XF3 - External)

Microplastics and the damage they cause to human health and the environment remain a focus for legislators around the world. With 35% of microplastics in the ocean coming from washing machines, we believe that legislation to integrate filters within new washing machines will be universal within the next 10 years.

Our technology is developed, market leading and ready to go when this shift occurs and we have good relationships and inroads into global brands and washing machine manufactures that would put the Group in a strong position to be the technology provider of choice for the industry.

In the year we signed a Letter of Intent with Guangdong Welly Electrical Appliance Co. LTD ("Welly") a key supplier to the fast-moving Chinese appliance industry to develop a branded washing machine with Xeros' integrated microplastic filter. Welly also intends to develop a module version for other washing machine manufacturers and brands to fit into their own machines. Work continues to bring this to a full development agreement.

In the meantime, our external filter, XF3, which bridges the gap until filters are integrated, is receiving such a level of interest from domestic appliance brands and retailers that we have been able to choose our ideal launch partners. The units for Russell Hobbs for the UK and MediaMarkt for Europe are expected to be available to buy in the Summer.

Our third partnership with a major global appliance manufacturer and one of the world's largest producers of washing machines, continues to progress well.

In addition, the XF3 unit recently underwent independent verification with the Hohenstein Institute, that certified our XF3 filter to provide 98% microplastic capture. This is the market 's leading rating. 

The companies that we are engaged and partnered with are global leaders in their markets and able to offer huge scaling potential for our technology. The differential between the size of Xeros and these huge market leaders is evidence of the power of our technology. Our ability to bring these businesses to us is testament to the huge leap we have made towards full commercialisation and potential scalability.

Garment Finishing (XFN1 - Denim, XFN2 - Washing)

Yilmak Makina, is the world's leading manufacturer of denim processing machines. Our partnership with them has significant potential for the scaling of our technology, which not only offers a reliable replacement for pumice stone, but significant savings on water, energy and chemical use.

The first machine placement at Ambition Apparel in Pakistan is producing very positive early results: finishes matched those required by the producers and without the use of pumice; the machine ran with 50% less energy and 30% less chemistry, resulting in 30% less CO2e, and significant cost savings.

Further machine placements have been agreed and are being prepared for shipment to major denim processers in Egypt and Turkey, with a further machine intended for Bangladesh. Yilmak will showcase the technology at Europe's leading trade fair, ITM Expo, in Istanbul in June.

Once in full production the results from these machines will feed into the discussions we are having with leading denim retail brands, interested in a possible brand partnership, that would see their jeans marketed as having been made using Xeros's Technology.

 Strategy

Our strategy is to become an IP-rich, capital light licensor of propriety technology solutions to multiple scale industries, all of which deploy the same Xeros core technologies. To date our focus has been on Denim Manufacture, Commercial and Domestic laundry.

These are multi-billion-pound industries that will benefit from adopting Xeros's Technology and are being driven to it by consumer and legislative pressure for reducing environmental impact and improved performance. Our technology delivers both alongside reduced operating costs, making it economically incontestable.

To achieve market penetration at scale, we have a three-pronged approach: commercial partnerships, direct engagement, and driving influence.

The focus of the business over the last three years has been to secure commercial partnerships with the industry's top players. The market reach potential that we have through the current launch agreement for domestic laundry care, and with the three further partners in technical validation, represents up to 68% of the global washing machine market.

The developing relationship with Welly mentioned above, and our partnership with Donlim, will position our filtration units, external in the short term and integrated in the long term, into the global washing machine supply chain.

As Yilmak rolls out its Xeros enabled denim processing machines, the opportunity to engage with major fashion and consumer brands, increases, which in turn would drive further machine sales.

Following the Group's successful fundraise within 2025 and as set out in the Group's communication at that time, it intends to invest appropriately in SG&A spend in order to maximise the opportunities available to it in 2026 and beyond.

We also continue to support legislators, industry groups, and NGOs working to drive better environmental practices.

Advisory Board

The advisory board collectively brings over 175 years of experience in: building brands; developing and releasing consumer products for global brands; marketing; selling innovative technologies into global consumer electronics; the small domestic appliance (SDA) industry; innovation; and responsible denim. This unparalleled experience is helping Xeros to access and present itself to leading major global players in the SDA, laundry and denim industries. It is testimony to the high quality of the technology, and our current partnership opportunities, that we are able to attract and benefit from such leaders in their respective fields.

Legislation

We continue to actively contribute to the Global microplastic legislative landscape, and still consider that the most effective way of dealing with microplastic pollution is to deal with the issue at source, including domestic laundry. We are proud of the impact our microplastic filtration devices will have in the immediate from those consumers that choose to address the issue and expect that this will be a legislative requirement in due course.

Patents

Patent protection is core to our business model and we proactively manage all 33 that sit in our portfolio. Patent protection and service costs are the Group's third largest.

ESG

Xeros has been a certified B Corp business since September 2023. We comply with rigorous standards, that make us part of a global movement of companies dedicated to using business as a force for good. We are proud to be included in a network of over 6,000 mission-led businesses, committed to meeting the rising standards for social and environmental performance.

Our innovative sustainable technologies greatly reduce the impact of laundry on the eco-system and achieve superior performance, are cost effective and highly efficient all whilst minimising the environmental impact of manufacturing and cleaning our clothes.

Our products reduce water use, chemical use, energy use, and can prevent microplastics from our laundry entering the oceans. It is estimated that 35% of all microplastic in the oceans come from washing our clothes.

Being a B Corp demonstrates the integrity of our team, and we remain dedicated to making a positive difference in our communities and beyond.

Outlook

Xeros is now in a strong position. It's important to remember that we are not reliant on the success of just one technology; and that currently all three of our technologies have market leading commercial partners with the potential to take them to scale. The high level of uptake at the recent fundraise has allowed us to reflect on the best way to achieve our significant commercial goals over the short and medium term. We believe that by making some additional investment in the Group's commercial and technical delivery capability we can maximise and accelerate the substantial opportunities that we have before us.

We have consistently talked about our confidence in the potential of Xeros's technology, and the achievements of the last 18 months continue to fuel this confidence.

Neil Austin

Chief Executive Officer

Financial Review

Group revenue was generated as follows:

The financial results in 2025 reflect the ongoing development of the Group as major contracts move towards full commercialisation. The Group remains confident that the globally significant partnerships already signed, as well as those it anticipates signing in the near and medium term, provide a platform for significant improvements in the Group's financial performance.

The Group anticipates that future revenue will be generated by those licensees and commercial partners incorporating Xeros technology into their platforms and product ranges, and that this will provide revenue in the form of royalty payments and the sale of XOrbs incorporated into those products. In addition, the Group can generate revenue from technology transfer fees during the pre-launch product development process on certain of its technologies. The Group has continued to rationalise the cost base in the year and considers that this level can support the Group in the medium term as it moves to profitability.

Group revenue increased by 50.3% to £0.2m in the year ended 31 December 2025 (2024: £0.2m). The Group's revenue is derived from three principal sources: 

The Group continues to receive service revenue from the retained estate of commercial laundry machines in the UK and Europe. This is predominately made up of our French partner, Georges. Service revenue in the period decreased by 70.0% to £0.01m (2024: £0.05m). This reduction was due to previous changes to the service contract as a result of Brexit, which came fully into effect during the year. Going forward, as the licensing model grows, this service revenue is expected to become a smaller part of the overall revenue mix.

Licensing revenue in the period was £0.1m (2024: £0.1m), an increase of 11.1%, reflecting increased royalties and payments from technology transfer processes. We anticipate that licensing revenue will become the largest portion of Group revenue as products using Xeros's IP become fully commercialised. 

Revenue from the sale of goods was significantly higher at £0.2m in the period (2024: £0.04m), an increase of 227.1% Sales of XOrbs were made to Yilmak and IFB as they finalised their machines ready for sale. Going forward we see an ongoing supply of XOrbs to Yilmak as further machines are sold, and as XOrbs require replenishing. This, alongside service revenue, will be a source of recurring revenue for the Group. 

The revenue increase was weighted towards sale of goods, which was primarily the sale of XOrbs, and as a result the gross margin percentage was lower at 75.2% (2024: 86.3%).

The Group decreased its adjusted EBITDA loss by 23.9% to £3.3m (2024: loss £4.4m) as a result of ongoing cost controls and the increased revenue contribution as set out above.

Gross profit/loss and adjusted EBITDA are considered the key financial performance measures of the Group as they reflect the trading activities of the Group, which are focused on core commercialisation activities. Adjusted EBITDA is defined as the loss on ordinary activities before interest, tax, share-based payments and warrant expense, depreciation and amortisation.

Administrative expenses, decreased by 22.1% to £3.8m (2024: £4.7m), following a reduction in the Group's headcount and a continued focus on cost across the business. The Group's average headcount fell by 22.2% in the year to 21 (2024: 27).

The Group reported an operating loss of £3.6m (2024: loss £4.6m), a decrease of 23.1%. The loss per share was 0.62p (2024: loss 1.08p). 

Net cash outflow from operations decreased by 42.3% to £2.6m (2024: £4.5m) as a result of the Group's overall cost reduction, as shown in a reduction in cash used in operations to £2.8m (2024: £4.7m), and the receipt of £0.2m R&D tax credits from HMRC relating to 2024. Cash utilisation was in line with the Board's expectations. 

In November, the Group raised £5.9m gross, expenses for the fundraise totalled £0.5m with net proceeds of £5.4m. As at 31 December 2025 the Group's net cash was £5.6m (2024: £2.8m), and it remains debt free. 

Alex Tristram

Finance Director

Consolidated statement of profit or loss and other comprehensive income

For the year ended 31 December 2025

* Adjusted EBITDA comprises loss on ordinary activities before interest, tax, share-based payment expense, warrant expense, depreciation and amortisation.

Consolidated statement of changes in equity

For the year ended 31 December 2025

Consolidated statement of financial position

For the year ended 31 December 2025

Consolidated statement of cash flows

For the year ended 31 December 2025

Notes to the consolidated financial information

For the year ended 31 December 2025

1) BASIS OF PREPARATION

The financial information has been prepared in accordance with the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006 and in accordance with the AIM rules. The principal accounting policies of the Group have remained unchanged from those set out in the Group's 2024 annual report.

The financial information has been prepared under the historical cost convention and is presented in Sterling, rounded to the nearest thousand.

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The financial information for the period ended 31 December 2025 was approved by the Board on 27 April 2026 and has been extracted from the Group's financial statements upon which the auditor's opinion is unmodified and does not include a statement under section 498(2) or (3) of the Companies Act 2006.

The statutory accounts for the period ended 31 December 2025 will be posted to shareholders at least 21 days before the Annual General Meeting and made available on our website www.xerostech.com. In due course, they will be delivered to the Registrar of Companies. The statutory accounts for the period ended 31 December 2024 have been delivered to the Registrar of Companies.

The preparation of financial statements in conformity with UK-adopted International Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income, and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In preparing the financial information, management are required to make accounting assumptions and estimates. The assumptions and estimation methods are consistent with those applied to the annual report and financial statements for the year ended 31 December 2024. Additionally, the principal risks and uncertainties that may have a material impact on activities and results of the Group remain materially unchanged from those described in that annual report.

Business combinations and basis of consolidation

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are deconsolidated from the date control ceases.

Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated.

Where the acquisition is treated as a business combination, the purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.

The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of the acquisition is less than the fair value of net assets of the subsidiary acquired, the difference is recognised directly in the income statement.

All intragroup balances and transactions, including unrealised profits arising from intragroup transactions, are eliminated fully on consolidation.

Going Concern

As at 31 December 2025, the Group had £5.5m of cash and cash equivalents. At this stage of its development, the Group incurs operating cash outflows and is reliant on existing cash resources to fund its operations. The Group has made recent commercial progress across its technology portfolio and expects to generate higher levels of revenue in 2026 and 2027. The Directors consider that the Group has and expects to generate sufficient cash to meet its obligations as they fall due for at least 12 months following the date of this report. The Directors also believe that these financial resources, alongside the Group's existing and anticipated customer contracts, provide the Group with a platform to bring it's technologies to commercialisation and cash generation.

While the Group actively manages key customer stakeholders where appropriate and remains confident in the underlying commercial potential of the Group's technologies, the revenue anticipated be generated by these contracts is reliant on the actions of third parties. As a result, the Directors keep the Group's ongoing cash forecast and the associated going concern assessment under regular review, in light of any changes to the expected revenue profile of the Group. The Directors consider that the Group's cash balances, alongside revenue expectations and the ability to influence the SG&A spending of the Group, all provide comfort over the Group's going concern status.

The Group is subject to a number of risks, including those as set out in the strategic report with the Group's Annual Report. These risks include the global macro-economic conditions, particularly in the global markets in which the Group and its partners operate. The going concern assessment as carried out by the Directors has taken the impact of these into account as far as possible. While this inclusion does not change the assessment of the Directors in respect of going concern, the Group remains reliant on the progress of international licence partners in order for it to execute the commercialisation strategy.

When making their going concern assessment the Directors assess available and committed funds against all non-discretionary expenditure, and related cash flows, as forecast for the period ended 31 December 2027. These forecasts indicate that the Group is able to settle its liabilities as they fall due in the forecast period. In these forecasts the Directors have considered appropriate sensitivities, including the progress of the Group's commercial contracts.

2) SEGMENTAL REPORTING

The financial information by segment detailed below is frequently reviewed by the Chief Executive Officer, who has been identified as the Chief Operating Decision Maker ("CODM"). The Group considers that it currently has one operating segment and reports revenue by type.

An analysis of revenues by type is set out below:

The Group had three customers responsible for more than 10% of revenue, who were responsible for 35%, 23% and 20% respectively.

During the year ended 31 December 2024 the Group had two customers responsible for more than 10% of revenue, who were responsible for 49% and 31% respectively.

An analysis of revenues by geographic location of customers is set out below:

3) LOSS FROM OPERATIONS

4) TAXATION

Tax on loss on ordinary activities

The credit for the year can be reconciled to the loss before tax per the statement of profit or loss and other comprehensive income as follows:

Factors affecting the current tax charges

The tax assessed for the year varies from the main company rate of corporation tax as explained below:

The Group accounts for Research and Development tax credits where there is certainty regarding HMRC approval. The Group has received a tax credit in respect of the year ended 31 December 2024. There is no certainty regarding the claim for the year ended 31 December 2025 and as such no relevant credit or asset is recognised.

5) LOSS PER SHARE (BASIC AND DILUTED)

Basic loss per share is calculated by dividing the loss attributable to equity holders of the parent by the weighted average number of ordinary shares in issue during the year. Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares.

The weighted average number of shares in issue throughout the period is as follows.

The Company has issued employee options over 40,957,842 (31 December 2024: 36,222,942) ordinary shares which are potentially dilutive. There is, however, no dilutive effect of these issued options as there is a loss for each of the periods concerned.

6) SHARE CAPITAL AND WARRANTS

The Group undertook a share capital reorganisation exercise during the year ended 31 December 2022, splitting the ordinary shares with a nominal value of 15p into ordinary shares of 0.1p and deferred shares of 14.9p. The new deferred shares have no significant rights attached to them and carry no right to vote or participate in distribution of surplus assets and have not been admitted to trading on the AIM market of the London Stock Exchange plc, nor will they in the future. Accordingly, deferred shares are excluded from the calculation of earnings per share in note 5.

As permitted by the provisions of the Companies Act 2006, the Company does not have an upper limit to its authorised share capital.

The following is a summary of the changes in the issued share capital of the Company during the period ended 31 December 2025:

At 31 December 2025, the Company had two classes of share, being ordinary shares of 0.1p each and deferred shares of 14.9p each.

The Group's Share Capital reserve represents the nominal value of the ordinary shares in issue. The Group's Share Premium Reserve represents the premium the Group received on issue if its shares. The Group's Deferred Share Capital reserve represents the nominal value of the deferred shares in issue. The Merger Reserve arose on the combination of companies within the Group prior to the flotation on AIM.

As part of the placing completed in December 2025 the Group issued warrants to purchase ordinary shares of 0.1p for a fixed fee of 2p per share. The warrant exercise lapse date is 28 November 2028.

7) RELATED PARTY TRANSACTIONS

During the year, the Group entered into transactions, in the ordinary course of business, with other related parties. Those transactions with directors are disclosed below. Transactions entered into, along with trading balances outstanding at each period end with other related parties, are as follows:

Note 1: Amati Global provide a board observer to the Board and invoice the group for related fees.

Note 2: David Armfield is a designated member of Kinetix Corporate Finance who provided the Group with corporate finance services as part of the fundraise in 2025.

Terms and conditions of transactions with related parties

Purchases between related parties are made on an arm's length basis. Outstanding balances are unsecured, interest free and cash settlement is expected within 60 days of invoice. 

Transactions with Key Management Personnel

The Company's key management personnel comprise only the Directors of the Company. During the period, the Company entered into the following transactions in which the Directors had an interest:

Directors' remuneration:

Remuneration received by the Directors from the Company is set out below. Further detail is provided within the Directors' remuneration report:

*In addition, certain Directors hold share options in the Company for which a fair value share based charge of £104,000 has been recognised in the consolidated statement of profit or loss and other comprehensive income (year ended 31 December 2024: £175,000)

The highest-paid Director in the year received a total remuneration of £301,000 (year ended 31 December 2024: £221,000). During the year ended 31 December 2025, the Company entered into numerous transactions with its subsidiary companies which net off on consolidation - these have not been shown above.

Forward-looking statements

This announcement may include certain forward-looking statements, beliefs or opinions, including statements with respect to Xeros' business, financial condition and results of operations. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other various or comparable terminology. These statements are made by the Xeros Directors in good faith based on the information available to them at the date of this announcement and reflect the Xeros Directors' beliefs and expectations. By their nature these statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, developments in the global economy, changes in government policies, spending and procurement methodologies, and failure in health, safety or environmental policies.

No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements speak only as at the date of this announcement and Xeros and its advisers expressly disclaim any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this announcement. No statement in the announcement is intended to be, or intended to be construed as, a profit forecast or to be interpreted to mean that earnings per Xeros share for the current or future financial years will necessarily match or exceed the historical earnings. As a result, you are cautioned not to place any undue reliance on such forward-looking statements.