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Xeros Technology Group plc (AIM: XSG, 'the Group', 'Xeros'), the developer and provider of water saving technologies with multiple commercial applications, today publishes its final results for the 12 months ended 31 December 2018.

Highlights

• Domestic Laundry
  • Exclusive development and licensing agreement signed with the leading Indian appliance manufacturer
  • Development agreement signed with largest Chinese washing machine OEM
• High Performance Workwear
  • Increasing adoption of Xeros technology by US fire departments to remove harmful contaminants from   protective garments
• Commercial Laundry
  • Exclusive licensing agreements signed with largest OEMs in China and India to manufacture and sell   machines incorporating XDrum technology
  • RSA, Dubai, and North America markets now served by channel partners
• Tanning - 10 year contract signed with tannery to use Xeros' technology
• Textile - successful tests with major Chinese manufacturers in texturing and colouration of garments
• Financial
  • Revenue increased by 62% to £3.5m (2017: £2.2m)
  • Adjusted EBITDA1 loss reduced by 27.3% to £20.9m (2017: loss £28.7m)
  • Administration expenses, after exceptional items and FX, down 9.2% - expected to further reduce in 2019
  • Post-tax earnings loss reduced to £29.4m (2017: loss £30.6m)
  • Net cash outflow from operations reduced by 18.4% to £22.1m (2017: £27.1m). Cash at 31 March 2019   £10.8m
  • Rapidly reducing cost base as development phase nears completion
  • Expect to raise equity from investors in 2019 to further strengthen balance sheet

Mark Nichols, Chief Executive of Xeros, said:

"Having completed the lion's share of our development our disruptive water saving technologies are now firmly on a path to commercialisation under an IP rich and asset light business model in global scale industries.

"We see the demand for our technology increasing as environmental and societal pressures continue to put intense strain on finite water resources - both in terms of pricing and consumption. Manufacturers, consumers and regulators are increasingly demanding that supply chains improve their sustainability credentials with a particular focus on reducing water usage. Demands that we can help meet.

"We have achieved a number of major inflection points with others expected to follow in 2019, each of which have the capacity to generate significant value. As we end the development phase, our cost base will continue to decline ahead of the implementation of the contracts we have won which are expected to generate high margin royalty revenues."

^[1] Adjusted EBITDA is defined as loss on ordinary activities before interest, tax, share-based payment expense, exceptional costs, depreciation and amortisation

Enquiries:

Xeros Technology Group plc	Tel: 0114 321 6328
Mark Nichols, Chief Executive Officer Paul Denney, Chief Financial Officer
Jefferies International Limited (Nominated Adviser and Joint Broker)	Tel: 020 7029 8000
Simon Hardy / Will Soutar
Berenberg (Joint Broker)	Tel: 020 3207 7800
Chris Bowman / Ben Wright / Laure Fine
Instinctif Partners (Financial PR)	Tel: 020 7457 2020
Adrian Duffield / Kay Larsen / Chantal Woolcock

 

Notes to Editors

About Xeros

Xeros Technology Group plc (LN: XSG) is a platform technology company that is reinventing water intensive industrial and commercial processes.

Xeros' uses its patented XOrbTM technologies to significantly reduce the amount of water used in a number of major applications with the remaining water becoming far more efficient in either affixing or removing molecules from substrates such as fabrics and garments. The result being significant improvements in economic, operational and sustainability outcomes.

Xeros has three divisions working in the garment finishing (Textile Technologies), tanning (Tanning Technologies, branded Qualus) and cleaning/laundry (Cleaning Technologies) markets. In cleaning/laundry, the company has three applications covering domestic laundry, commercial laundry (branded "Hydrofinity") and the cleaning of high-performance workwear (branded "Marken").

For more information, please visit - http://www.xerostech.com/