Xeros Technology Group plc Trading Update (5490U)

TIDMXSG

RNS Number : 5490U

Xeros Technology Group plc

19 January 2017

19 January 2017

Xeros Technology Group plc

Strategic and trading update

Xeros Technology Group plc (AIM: XSG, 'the Group', 'Xeros'), the developer and provider of patented polymer based systems with multiple commercial applications, is today providing a strategic and trading update. The Group expects to publish its results for 17 months ending 31 December 2016 during April 2017; date to be confirmed.

Strategy

During 2016, Xeros secured widespread recognition of its ground breaking polymer technology and gained international commercial traction. The Group's 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 Group is currently applying its polymer technology platform in two areas: Cleaning Technologies (including commercial and domestic laundry) and Tanning Technologies. In addition Xeros confirms that the third area of focus for development of its technology will be the textile sector.

Trading update

Within Cleaning Technologies, the Group 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 now with access to Xeros' cleaning technology.

Total commercial washing machine installations by the Group as at 31 December 2016 stood at 316. The Group reduced its installations rate in Q4 2016 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 OEMs to incorporate Xeros' technology in Commercial and Residential washing machines.

In Tanning Technologies, the Group 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 now has a dedicated commercialisation team in place.

In Textile Technologies, Xeros has started small-scale trials. All early indications are that Xeros' technology can reduce the chemistry, water consumption and effluent in textile manufacturing. Work is now underway to cover application areas with Intellectual Property registration.

The Group ended the year with a cash position of GBP29 million.

Mark Nichols, Chief Executive of Xeros, said:

"We continued to make excellent progress in the execution of our platform strategy. The endorsement of such leading organisations as Hilton and Wollsdorf further validates the benefits of adopting our polymer technology.

"We have identified textiles as the third area of focus. It is a sector which is very water and chemical intensive and therefore holds significant potential for our 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. We are confident of increasing the penetration of our chosen markets."

Enquiries:

 
 Xeros Technology Group plc                     Tel: [phone] 
  Mark Nichols, Chief Executive Officer 
 Jefferies International Limited (Nominated     Tel: [phone] 
  Adviser and Joint Broker) 
  Simon Hardy / Harry Nicholas 
 Berenberg (Joint Broker)                       Tel: [phone] 
  Chris Bowman / Ben Wright / Amritha Murali 
 Instinctif Partners                            Tel: [phone] 
  Adrian Duffield / Helen Tarbet / James Gray 
 

Notes to Editors

Xeros Technology Group plc (LN: XSG) is a platform technology company that is reinventing water intensive industrial and commercial processes by reducing water and chemistry usage with its polymer technologies. Its patented technologies have the capacity to provide material economic, operational and sustainability improvements that are unattainable with traditional processes. The Group is currently exploiting its intellectual property in three areas: Cleaning Technologies, Tanning Technologies and Textile Technologies. Xeros has a number of agreements in place with such international organisations as Hilton and Wollsdorf Leder.

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

This information is provided by RNS

The company news service from the London Stock Exchange

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January 19, 2017 02:00 ET (07:00 GMT)