Xeros to cut 100 jobs in £10m restructure plans
A South Yorkshire ‘clean-tech’ company has announced plans to raise up to £10m and slash headcount by 100 as it moves from a sales to a licensing model.
Xeros Technology Group – inventor of the ‘almost waterless’ washing system – said it planned to stop direct sales by the end of 2019. Staff numbers will be cut from 160 to 60 by early next year. It also announced a share issue plan to raise up to £10m.
Chief executive Mark Nichols said the plan was to licence the use of their inventions to global washing manufacturers.
"With our technologies now proven and much simplified, following the introduction of the XDrum, global scale manufacturers are now testin g our products with a view to long term licensing.
"It has been a challenging journey to this point, given the maturity and size of the industry players we have to convince to adopt our technology. However, we have now reached an inflection point in the implementation of our strategy to become an asset light IP-rich licensing business.”
Xeros’ ‘waterless’ system utilises XOrbs – reusable plastic beads which knock dirt off clothes in a humid environment. The XDrum allows them to be used in a domestic machine.
Mr Nichols said: "The business case for our technologies continues to increase as the scarcity and pricing of water rises with consumption outstripping availability in many parts of the world.”
The XFiltra catches 99 per cent of synthetic fibres from a wash, preventing them entering the sea. It can be emptied into a household bin. Bosses believe government will legislate to halt plastic laundry pollution. Some 119m washing machines are sold globally each year.
Mr Nichols added: “Switching to high margin licensing turnover over the next two years against a backdrop of a low-cost organisation provides us with a line of sight to cash break even."
The aim was to have a monthly cash burn rate of £600,000 in 2020, down from an average of £2.2m in 2018, he added.
An issue price for the share plan has yet to be announced.