Last checked at 8 Feb 2023 10:23
08 February 2023
This announcement contains inside information
Xeros Technology Group plc
('Xeros' or the 'Company' or the 'Group')
Pre-Close Trading Update
Xeros Technology Group plc (AIM: XSG), the creator of technologies that reduce the impact of clothing on the planet, today provides a pre-close trading update for the full year to 31 December 2022 ("FY22").
In the 21 December 2022 business update the Group referenced the positive progress by its licence partner in India, IFB with the launch of an 11kg domestic washing machine into the Indian market. The Group continues to support IFB in the final stages of testing of a 9kg domestic machine prior to market launch, with a senior Xeros team visiting IFB in Goa in February.
In addition the Group continues to progress its commercial partnerships with existing and prospective licensees within the Filtration and Finish technologies.
The Board now expects that the adjusted EBITDA loss for the year ended 31 December 2022 will be 5-10% higher than prior guidance* due mainly to the timing of commercial milestone payments and as a result of some minor restructuring undertaken during the latter part of FY22 with associated costs of £0.3m. This restructuring is expected to reduce the Group's ongoing cash run rate. Year end cash position stood at £6.5 million. The Group's financial results are not yet finalised and remain subject to audit.
The Company expects to report its FY22 Preliminary Results during the second half of March 2023.
Neil Austin, Chief Executive Officer of Xeros, said:
"We remain confident that our commercial strategy continues to set the right direction to grow our business as we build our global partnerships and revenue pipeline. Combined with the strong market demand for technology that has a positive environmental impact, we look forward to our continued progress and generating value for our stakeholders."
* For the purpose of this announcement, the Board believes market consensus for FY22 to be adjusted EBITDA losses of £6.8 million. Adjusted EBITDA losses are defined as the loss on ordinary activities before interest, tax, share-based payment expense, warrant expense, depreciation and amortisation.
Enquiries:
Xeros Technology Group plc Neil Austin, Chief Executive Officer Paul Denney, Chief Financial Officer | Tel: 0114 321 6328
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finnCap Limited (Nominated Adviser and Broker) Julian Blunt/Teddy Whiley, Corporate Finance Andrew Burdis/Sunila de Silva, ECM
Yellow Jersey PR Sarah Hollins/Lilian Filips/Annabelle Wills | Tel: 020 7220 0570
Tel: 020 3004 9512
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Notes to Editors
POWERED BY SCIENCE, XEROS CREATE TECHNOLOGIES ENGINEERED FOR THE FUTURE
Born out of textile research and advancing new standards of performance and responsibility, Xeros' technologies revolutionise the way we make and clean our clothes, conserving water and preventing waste. Designed to impact industries and people on a global scale, Xeros transform the performance, impact and economics of the fashion and washing machine industry.
Xeros enable the scaling of their innovations and impact by licencing their intellectual property to partners across the globe. Their work has, to date, created 38 patent families.
Xeros' technologies are already in use in major global industries, including commercial and home laundry and garment manufacture. So far, these technologies have saved millions of litres of water and could prevent billions of microfibres from ending in our oceans.
TO THE POWER OF CHANGE
xerostech.com