Xeros Technology Group has increased its income and reduced EBITDA losses in its half-year results. In a statement issued 13 September, the Group said it has achieved a number of its planned key milestones in its transition from a designer and seller of water saving commercial washing machines towards an IP-rich, capital-light licenser of polymer-based water saving solutions to multiple scale industries, all of which deploy the same Xeros core technologies.
Earned income was £1.9million in the six months ended 30 June 2018, a rise of 77.3% on £1.1m in the same period of 2017, with 142.6% increase in service income. The company also reported an adjusted EBITDA loss of £11.6m compared to £13.2m the year before.
Xeros has three divisions covering the cleaning/laundry, tanning and garment finishing markets. In cleaning/laundry, the company has three applications covering commercial laundry (Hydrofinity), the cleaning of high performance workwear (Marken) and domestic laundry.
During the period, the Group signed its first Symphony Project (Xeros technology in branded OEM machines) licensing agreement in July. The 10-year agreement with Jiangsu SeaLion Technology Development Co. Ltd allows Sea-Lion to integrate Xeros’ latest XDrum technology in its commercial washing machines and sell them though its own extensive distribution network in China on an exclusive basis.
For markets outside of China, the Group signed its second Symphony Project testing and validation agreement with a large global OEM (the first such agreement was signed in September 2017). These trials have been extended to accommodate the Xeros XDrum design.
It also announced two orders under its indirect business model with 16 machines for fanute, its FCP (Forward Channel Partner) in South Africa and 32 machines for Electro RAK, its FCP in the UAE.
The Group’s High Performance Workwear business unit, branded Marken, has grown from a single Nevada site to four sites across the US with the acquisition of two sites (Atlanta and Miami) from Gloves Inc in March and with the commissioning, in July, of a new purpose-built site in Southern California to serve, initially, the San Diego Fire Department.
Mark Nichols, chief executive of Xeros, said: “The environmental macro drivers – water scarcity and pollution – are major factors in the increasing level of interest, engagement and agreements we are now seeing in our unique and proven technologies, with a number of large OEMs as well as distributors around the world.
“Changing the products and production processes of large industries is inevitably challenging but the high levels of engagement across our portfolio of applications is strong evidence that wide-scale adoption is increasingly likely. OEMs incorporating our technologies has been key to this increased uptake – as demonstrated by our first licensing deal in China.”