Xeros Tech Share News (XSG)

(ShareCast News) - Developer and provider of patented polymer based systems, Xeros Technology Group provided a strategic and trading update on Thursday, before it publishes its results for 17 months ending 31 December during April.The AIM-traded firm said that during 2016, it secured "widespread recognition" of its polymer technology, and gained international commercial traction.It said its strategy is to develop and commercialise intellectual property to deliver significant water and chemical savings to large scale global industries."Xeros' patented technology can be applied in partnerships with other companies across an increasing number of sectors," the board explained."The group is currently applying its polymer technology platform in two areas - cleaning technologies and tanning technologies."In addition, Xeros confirms that the third area of focus for development of its technology will be the textile sector."Within cleaning technologies, the group said it has a number of major commercial relationships in development and has now been awarded approved supplier status for Hilton hotels in the Americas, which comprises an estate of over 4,300 hotels.Total commercial washing machine installations by the group as at 31 December stood at 316.Xeros said it reduced its installation rate in the fourth quarter in order to focus on securing enterprise-wide partnerships such as the agreement with Hilton, increase its commissioning capacity to meet demand, and to introduce its new 16kg machines to the market.As part of the actions taken to increase its commissioning capacity, the group further improved its route to market with five forward channel partners now approved to sell, install and commission Xeros machines.The group also continued its detailed discussions with several globally recognised original equipment manufacturers to incorporate Xeros' technology in commercial and residential washing machines.In tanning technologies, Xeros said it recently signed a heads of terms with Wollsdorf Leder Tannery in Austria for a 10-year contract to convert its entire re-tanning processes to Xeros' technology in 2017.In addition to the head of terms with Wollsdorf Leder, four European tanneries committed to trials in December with two currently underway, including one with a "globally recognised brand".The group said it now has a dedicated commercialisation team in place.In textile technologies, Xeros said it has started small-scale trials."All early indications are that Xeros' technology can reduce the chemistry, water consumption and effluent in textile manufacturing."It said work was now underway to cover application areas with intellectual property registration.The group ended the year with a cash position of £29m."We continued to make excellent progress in the execution of our platform strategy," said CEO Mark Nichols."The endorsement of such leading organisations as Hilton and Wollsdorf further validates the benefits of adopting our polymer technology."Nichols said the board has identified textiles as the third area of focus, saying it is a sector which is very water- and chemical-intensive and therefore holds significant potential for its technology."We are in advanced discussions with a number of globally recognised brands as we look to accelerate the adoption of our technology."We look forward to reporting on further progress in 2017, [and] we are confident of increasing the penetration of our chosen markets."