TIDMXSG
RNS Number : 6829M
Xeros Technology Group plc
23 September 2021
23 September 2021
Xeros Technology Group plc
2021 Interim Results
Xeros Technology Group plc (AIM: XSG, 'the Group', 'Xeros'), the
licensor of proprietary solutions improving the sustainability and
economics of garments and fabrics, today publishes its interim
results for the six months ended 30 June 2021.
Highlights
-- Licensees and partners have reached major milestones despite further Covid interruptions.
-- Multiple testing and trial agreements with leading domestic
washing machine manufacturers for XFiltra(TM) technology now
underway.
-- Licensing progress of XTend(TM) (XOrb(TM) /XDrum(TM) ) technology platform:
o SeaLion and IFB entered Commercial Laundry markets in China
and India respectively. Additional geographies being targeted.
o Progress in Denim Finishing market with pipeline of
opportunities in South Asia. Significant interest from major global
brands.
o IFB currently determining their 2022 product release plans,
including the timing for the launch of their Xeros enabled domestic
washing machine into the Indian market, with Q2 being our latest
view.
-- Multiple agreements signed for XFiltra technology platform
which addresses microfibre pollution from washing machines:
o Girbau agreement signed for commercial version with launch
expected in 2021.
o Following completion of product design of domestic version,
agreements signed with washing machine manufacturers and a leading
component supplier to the industry for testing and trials ahead of
commercial negotiations.
o British Antarctic Survey selected Xeros' XFiltra technology
for its operations in Antarctica.
o UK has proposed legislation on mandatory "in-machine" domestic
and commercial washing machine filtration by 1(st) January 2025
-- Financial
o Revenue growth of 58.6% to GBP0.3m (2020: GBP0.2m)
o Adjusted EBITDA(1) loss reduced by 5.4% to GBP2.8m (2020: loss
GBP3.0m)
o Net cash outflow from operations reduced by 17.5% to GBP3.4m
(2020: GBP4.1m)
o Monthly cash burn run rate of GBP0.5m per month reflecting
investments in XFiltra commercialisation
o Cash of GBP9.1m as of 31(st) August 2021
o Impact of Covid interruptions moves best estimate of cash
breakeven to Q1 2023
Mark Nichols , Chief Executive of Xeros, said:
The apparel industry is today recognised, alongside fossil
fuels, as one of the most damaging to our planet, consuming vast
amounts of natural resources and creating harmful pollution. Our
ability to radically improve the environmental and economic
performance of this supply chain brings immediate solutions against
the growing urgency for short term action.
Whilst Covid has continued to take its toll on all our
licensees' operations, they have managed to reach significant
milestones with a number of market launches taking place from which
we can expect license income growth. With this market proof and
acceptance in place, we expect to expand our geographic coverage
over the coming year.
As a result of our licensees' progress, many significant
enterprises in the clothing value chain including well-known brands
are now becoming increasingly aware of the viability of our
technologies, adding to our belief that they can and should become
widely deployed.
(1) Adjusted EBITDA is defined as loss on ordinary activities
before interest, tax, share-based payment expense, exceptional
costs, depreciation, and amortisation
This announcement contains inside information for the purposes
of Market Abuse Regulation (Regulation (EU) No. 596/2014) as
retained and applicable in the UK pursuant to S3 of the European
Union (Withdrawal) Act 2018 ('MAR').
Enquiries :
Xeros Technology Group plc Tel: 0114 321 6328
Mark Nichols, Chief Executive Officer
Paul Denney, Chief Financial Officer
finnCap Limited (Nominated Adviser and Broker) Tel: 020 7220 0570
Julian Blunt/Teddy Whiley, Corporate Finance
Andrew Burdis/Sunila de Silva, ECM
Notes to Editors
With close to 40 patent families, Xeros' revolutionary platform
technologies, XTend(TM) and XFiltra(TM), set new standards for
performance and sustainability across our clothing's lifecycle. By
reducing the consumption of valuable natural resources and
preventing microfibre and microplastic pollution, Xeros greatly
reduces the impact of our clothes on the planet.
Backed by science, we set new standards for significantly
reduced water consumption, lower carbon and effluent emissions, and
improved garment care/life at the manufacturing stage and
throughout laundry processes, in industry, and in the home. Xeros'
technologies deliver a unique combination of unbeatable
sustainability outcomes, improving performance whilst reducing
costs.
The manufacture of clothes and their subsequent care consumes
vast amounts of our finite, valuable resources. Xeros licenses new
technologies to enable us all to consume less, helping to protect
the world for our future.
For more information, please visit -
http://www.xerostech.com/
Business update
Covid-19 impacts on our plans
During the reporting period, Covid-19 has continued to impact
our licensees' operations with the result that their planned market
entries of Xeros' technologies have been further delayed. In some
instances, entry dates have been delayed by close to a year
compared to pre-Covid plans. Encouragingly, our licensees'
commitment to commercialising our technologies has not changed. The
consensus being that the need for environmentally sustainable
technologies such as ours has increased further still during the
pandemic.
A slight reduction in the global demand for domestic washing
machines is expected to recover given the underlying long term,
demographic trends. In many parts of the world, washing machines
are considered to be an essential household item with the
consequence that demand is inelastic. We are also seeing plans for
increased regulation on domestic washing machine microfibre
filtration. Consequently, our licensing strategy and plans for our
domestic laundry and filtration technologies are unchanged.
Demand in volume terms has returned across the clothing value
chain, this coinciding with increasing demands for much greater
sustainability from consumers, NGOs and regulators. These secular
trends are met by Xeros' platform technologies whilst
simultaneously reducing manufacturing costs. Accordingly, we do not
see any major impacts to our strategy and plans for our
applications within this market.
Within our commercial laundry application, the greatest impact
continues to be felt in the hospitality industry where broad
immunisation with an effective vaccine is likely to be necessary
before customer numbers return to previous levels. Despite these
market challenges, our licensees for this application have entered
their markets with additional focus on those segments where demand
is largely unaffected by Covid including specialist cleaning where
results continue to exceed expectations.
As regards our own operations, we have implemented a hybrid
working policy for those staff who do not perform physical
operations at our Technology Centre in the Advanced Manufacturing
Park in Sheffield. Slight disruptions to contract execution
continue to be experienced when key staff become infected or are
required to isolate away from their co-workers but as yet, these
have yet to have any material impact. Not being able to physically
be present within our licensees' operations has also contributed to
the overall delays experienced but has largely been overcome with
our team members often changing their working hours to match those
of our licensees.
It is, of course, possible that further disruption will occur
due to Covid and whilst this may impact the timing of revenues in
the near term, we do not believe they will materially reduce them
over the medium and long term. Our patent portfolio has significant
longevity with many of our patent families having coverage through
the mid to late 2030s.
Execution of license contracts and joint development
agreements
In May 2021 SeaLion launched their Hydrology range of Xeros
enabled washing machines for the Commercial Laundry market in China
with IFB doing the same in India in September with their Tuff Tec
Eco range. In order to address a wide cross section of their
markets, both of these partners are entering the market with two
machine sizes and each have plans to add a third. With these
accomplishments, we now intend to add new Commercial Laundry
licensees covering additional geographic regions on a prioritised
basis.
Ramsons commissioned their first machines in the denim finishing
market in February 2021, with a broad range of denim finishing
recipes being developed in the intervening time period. Based on
the progress achieved, shipments of Ramsons XDrum machines are now
expected to commence before the end of the year to additional denim
manufacturers within South Asia. Further territories are planned to
be entered with new licensees in 2022. Engagement continues with a
number of well-known global brands with a view to Xeros' technology
becoming a preferred or mandated technology for use in their supply
chains.
In the domestic laundry arena, with machine design for
manufacture completed by IFB, much of the period has been devoted
to successfully developing cycles which meet targets for water,
chemistry and energy reduction and fabric care improvement. IFB are
currently determining, in the context of their broader 2022 product
release plans, the most appropriate timing for the release of their
Xeros enabled domestic washing machine into the Indian market. Q2
being our latest view. An extensive testing programme is in
progress with Midea in China with potential commercial discussions
planned to start in 2022 following their successful completion.
Since the beginning of the financial year we have completed,
with our design partner, Tata, the product design for domestic
XFiltra and have started to provide devices to a number of major
domestic manufacturers under testing and trials agreements ahead of
planned engagement on commercial terms. These activities will
coincide with a targeted launch by Girbau of a commercial laundry
version by the end of the year and also the shipment of an XFiltra
for use in the British Antarctic Surveys station in Antarctica.
Regulatory momentum continues with the UK All Party Parliamentary
Group proposing legislation that all domestic and commercial
washing machines are fitted with microfibre filters by the 1(st)
January 2025 with this being the same date legislated by the French
government. The earliest we might expect license revenues from
domestic filtration product sales is 2023.
Intellectual Property
During the period, we further expanded our intellectual property
portfolio, mainly in the area of filtration where we have 6 patent
applications within a total of close to 40 patent families. The
Group continues to carry significant patent defence and litigation
insurance in the event that a serious patent infringement is made
by a third party.
Outlook
Covid-19 has caused royalty income to be delayed further since
we reported our year end results in April. Whilst this impacts our
short-term revenues, our licensees commitment to our XTend platform
technology remains very high as witnessed by a number of market
entries. This provides us with confidence that their revenues will
grow in 2022 and beyond. Successful market entry in these
territories provides the evidence and credibility for us to sign
additional contracts with leading OEMs in other parts of the world
on a prioritised basis.
Our proprietary XFiltra platform technology has made significant
progress and our ambition remains for our domestic design to be
within all washing machines across Europe and ultimately, globally.
The size and quality of the manufacturers with whom we have testing
and trial agreements supports our belief that we have the most
effective and user friendly device, with the lowest lifetime cost,
on offer to the industry.
Despite 2021 revenues reflecting the inevitable impacts of
Covid-19, our confidence level in our technologies remains high.
Whilst broad commercialisation of our two platform technologies is
in the hands of our current and future licensees, we see demand
only increasing for them as their benefits are increasingly
recognised as essential to the environmental sustainability of the
world's fashion and garment value chains.
As previously commented, there are many factors that influence
the timing to cash breakeven in Xeros with our licensees'
performance against their contracts and the signature of contracts
with additional licensees being fundamental to this. Under previous
assumptions, our expectation was to reach breakeven by the end of
2022. Given the further delays from Covid, our best estimate is
that cash breakeven will move to Q1 2023.
Financial review
Group revenue was generated as follows:
Unaudited Unaudited 12 months
6 months 6 months ended
to to
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Licensing income 144 35 58
Service income 104 172 314
Machine sales 93 8 8
Other revenue - - 5
_____ _ __ ____ _ _____
Total revenue 341 215 385
The Group financial results for the six months ended 30 June
2021 reflect the continuing progress of Xeros in transitioning from
a direct operations business model to a licensing business model,
with a 58.6% increase in revenue to GBP0.3m (2020: GBP0.2m) and a
17.5% reduction in net cash outflow from operations to GBP3.4m in
the period (2020: GBP4.1m). In the period the Group recorded an
adjusted EBITDA loss on continuing operations of GBP2.8m (2020:
loss GBP3.0m), a reduction of 5.4%
Group revenue of GBP0.3m is comprised of GBP0.1m of licensing
revenue, which has grown by 311.4% (2020: GBP0.0m), and GBP0.2m of
service income and machine sales, which, on a combined basis have
grown by 9.4% (2020: GBP0.2m). Licensing income represents
royalties from license partners for the sale of XDrum machines and
revenue to Xeros for the sale of XOrbs. Whilst absolute amounts are
small, these license revenues represent the first royalties flowing
to Xeros following our licensees' market launches in India &
China. Service income and machine sales represents payments from
existing Xeros customers in the UK and Europe. As previously
announced, these legacy customers are fully serviced by third party
distributors.
Gross profit for the six months ended 30 June 2021 grew by 96.6%
to GBP0.2m (2020: GBP0.1m) in line with revenue growth. The gross
margin for the period of 65.7% (2020: 55.3%) reflects the move to a
licensing business model.
Administrative expenses remained flat at GBP3.6m (2020: GBP3.6m)
reflecting the fact that headcount remains stable with 45 employees
as at the 31(st) August (2020: 45). Since the end of the reported
period, the Group has increased the investment in XFiltra trials
and the associated marketing costs, reflecting plans previously
communicated as part of the equity placing in March 2021.
With the increase in revenue, the Group reduced its adjusted
EBITDA loss by 5.4% to GBP2.8m (2020: loss GBP3.0m.
Adjusted EBITDA is considered one of the key financial
performance measures of the Group as it reflects the true nature of
our continuing trading activities. Adjusted EBITDA is defined as
the loss on ordinary activities before interest, tax, share-based
payment expense, non-operating exceptional costs, depreciation and
amortisation.
The Group reduced its operating loss to GBP3.4m (2020: GBP3.5m),
a reduction of 3.3%. The loss per share was 15.24p (2020: loss
31.64p).
Net cash outflow from operations reduced to GBP3.4m (2020:
GBP4.1m), a reduction of 17.5% in line with the reduction of
adjusted EBITDA in the period and an improvement in the working
capital position over the prior period. The Group had existing cash
resources as at 30 June 2021 of GBP10.2m (2020: GBP7.0m) and
remains debt free. Group cash as at 31 August 2021 is GBP9.1m. In
March the Group raised GBP8.5m, net of costs, from
shareholders.
Overall cash utilisation remains in line with the Board's
expectations at GBP0.5m per month. This cash utilisation has
increased from the previously reported level of GBP0.4m per month
and reflects the planned investment in XFiltra and marketing
activity. The directors expect cash utilisation to remain at the
current level until such time as higher licensing revenue is
generated from our license partners.
Consolidated statement of profit or loss and other comprehensive
income
For the six months ended 30 June 2021
Unaudited Unaudited
Six months Six months 12 months
ended ended ended
30 June 30 June 31 December
2021 2020 2020
Note GBP'000 GBP'000 GBP'000
Revenue 341 215 385
Cost of sales (117) (96) (434)
_______ _______ _______
Gross profit/(loss) 224 119 (49)
Administrative expenses (3,577) (3,587) (7,586)
Adjusted EBITDA* (2,849) (3,013) (6,761)
Share based payment expense (403) (342) (653)
Exceptional administrative expenses - - -
Depreciation of tangible fixed assets (101) (113) (221)
--------------------------------------------- ----- ----------- ----------- ------------
Operating loss (3,353) (3,468) (7,635)
Finance income 3 5 9
Finance expense (2) (3) (6)
_______ _______ _______
Loss before taxation (3,352) (3,466) (7,632)
Taxation 3 - - 698
_______ _______ _______
Loss after tax from continuing operations (3,352) (3,466) (6,934)
Loss from discontinued operations - (344) (37)
Loss for the period (3,352) (3,810) (6,971)
_______ _______ _______
Other comprehensive loss
Items that are or maybe reclassified
to profit or loss:
Foreign currency translation differences
- foreign operations (16) (10) 41
___ ____ __ _____ _______
Total comprehensive expense for
the period (3,368) (3,820) (6,930)
____ _
___ ____ __ _______
Loss per ordinary share
Basic and diluted on loss from continuing
operations 5 (15.24)p (31.64)p (44.88)p
Basic and diluted on loss from discontinued
operations - (3.14)p (0.24)p
Basic and diluted on loss for the
period 5 (15.24)p (34.78)p (45.12)p
_______ _______ _______
*Adjusted EBITDA comprises loss on ordinary activities before
interest, tax, share-based payment expense, exceptional
administrative expenses, depreciation and amortisation.
Consolidated statement of changes in equity
For the six months ended 30 June 2021
Foreign
currency Retained
Share Share Merger translation earnings
capital premium reserve reserve deficit Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2020 1,176 109,226 15,443 (2,246) (118,468) 5,131
Loss for the year - - - - (6,971) (6,971)
Other comprehensive
expense - - - 41 - 41
------------------------------ --------- --------- --------- ------------- ---------- --------
Loss and total comprehensive
expense for the period - - - 41 (6,971) (6,930)
------------------------------ --------- --------- --------- ------------- ---------- --------
Transactions with
Owners recorded directly
in equity:
Issue of shares following
placing and open
offer 1,800 4,200 - - - 6,000
Exercise of share
options 21 74 - - - 95
Costs of share issues - (427) - - - (427)
Share based payment
expense - - - - 653 653
------------------------------ --------- --------- --------- ------------- ---------- --------
Total contributions
by and distributions
to owners 1,821 3,847 - - 653 6,321
------------------------------ --------- --------- --------- ------------- ---------- --------
At 31 December 2020 2,997 113,073 15,443 (2,205) (124,786) 4,522
------------------------------ --------- --------- --------- ------------- ---------- --------
At 1 January 2020 1,176 109,226 15,443 (2,246) (118,468) 5,131
------------------------------ --------- --------- --------- ------------- ---------- --------
Loss for the period - - - - (3,810) (3,810)
Other comprehensive
expense - - - (10) - (10)
------------------------------ --------- --------- --------- ------------- ---------- --------
Loss and total comprehensive
expense for the period - - - (10) (3,810) (3,820)
------------------------------ --------- --------- --------- ------------- ---------- --------
Transactions with
Owners recorded directly
in equity:
Issue of shares following
placing and open
offer 1,800 4,200 - - - 6,000
Cost of shares - (427) - - - (427)
Share based payment
expense - - - - 342 342
------------------------------ --------- --------- --------- ------------- ---------- --------
Total contributions
by and distributions
to owners 1,800 3,773 - - 342 5,915
------------------------------ --------- --------- --------- ------------- ---------- --------
At 30 June 2020 2,976 112,999 15,443 (2,256) (121,936) 7,226
------------------------------ --------- --------- --------- ------------- ---------- --------
Balance at 1 January
2021 2,997 113,073 15,443 (2,205) (124,786) 4,522
------------------------------ --------- --------- --------- ------------- ---------- --------
Loss for the period - - - - (3,352) (3,352)
Other comprehensive
expense - - - (16) - (16)
------------------------------ --------- --------- --------- ------------- ---------- --------
Loss and total comprehensive
income for the period - - - (16) (3,352) (3,368)
------------------------------ --------- --------- --------- ------------- ---------- --------
Transactions with
Owners recorded directly
in equity:
Issue of shares following
placing and open
offer 562 8,438 - - - 9,000
Exercise of share
options 6 23 29
Cost of share issues (526) - - - (526)
Share based payment
expense - - - - 403 403
------------------------------ --------- --------- --------- ------------- ---------- --------
Total contributions
by and distributions
to owners 568 7,935 - - 403 8,906
------------------------------ --------- --------- --------- ------------- ---------- --------
At 30 June 2021 3,565 121,008 15,443 (2,221) (127,735) 10,060
------------------------------ --------- --------- --------- ------------- ---------- --------
Consolidated statement of financial position
As at 30 June 2021
Unaudited Unaudited
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ------------
Assets
Non-current assets
Property, plant and equipment 181 366 272
Trade and other receivables 37 87 63
------------------------------- ---------- ---------- ------------
218 453 335
------------------------------- ---------- ---------- ------------
Current assets
Inventories 85 316 96
Trade and other receivables 760 698 475
Cash on deposit 8,093 - -
Cash and cash equivalents 2,134 7,045 5,158
------------------------------- ---------- ---------- ------------
11,072 8,059 5,729
------------------------------- ---------- ---------- ------------
Total assets 11,290 8,512 6,064
------------------------------- ---------- ---------- ------------
Liabilities
Non-current liabilities
Right of use liabilities - (55) (19)
Deferred tax (38) (38) (38)
(38) (93) (57)
Current liabilities
Trade and other payables (1,192) (1,193) (1,485)
(1,192) (1,193) (1,485)
------------------------------- ---------- ---------- ------------
Total liabilities (1,230) (1,286) (1,542)
------------------------------- ---------- ---------- ------------
Net assets 10,060 7,226 4,522
------------------------------- ---------- ---------- ------------
Equity
Share capital 3,565 2,976 2,997
Share premium 121,008 112,999 113,073
Merger reserve 15,443 15,443 15,443
Foreign currency translation
reserve (2,221) (2,256) (2,205)
Accumulated losses (127,735) (121,936) (124,786)
------------------------------- ---------- ---------- ------------
Total equity 10,060 7,226 4,522
------------------------------- ---------- ---------- ------------
Consolidated statement of cash flows
For the six months ended 30 June 2021
Unaudited Unaudited
6 months to 6 months to 12 months to
30 June 30 June 31 December
2021 2020 2020
GBP000 GBP000 GBP000
----------------------------------------------------- ------------ ------------ -------------
Operating activities
Loss before tax (3,352) (3,466) (7,632)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 101 113 221
Share based payment 403 342 653
Decrease in inventories 11 25 246
(Increase)/decrease in trade and other receivables (281) (123) 3
Decrease in trade and other payables (270) (879) (342)
Finance income (3) (5) (9)
Finance expense 2 3 6
Cash used in operations (3,389) (3,990) (6,854)
Tax (payments)/receipts - - 698
Cashflow from discontinued operations - (119) (195)
Net cash outflow used in operations (3,389) (4,109) (6,351)
----------------------------------------------------- ------------ ------------ -------------
Investing activities
Finance income 3 5 9
Finance expense (2) (3) (6)
Cash placed on deposit (8,093) - -
Purchases of property, plant and equipment (10) - (13)
Cashflow from discontinued operations - - 193
----------------------------------------------------- ------------ ------------ -------------
Net cash inflow/(outflow) from investing activities (8,102) 2 183
----------------------------------------------------- ------------ ------------ -------------
Financing activities
Proceeds from issue of share capital, net of costs 8,504 5,573 5,667
Payment of lease liabilities (36) (34) -
Net cash inflow/(outflow) from financing activities 8,468 5,539 5,667
----------------------------------------------------- ------------ ------------ -------------
(Decrease)/increase in cash and cash equivalents (3,023) 1,432 (501)
Cash and cash equivalents at start of year 5,157 5,625 5,625
Effect of exchange rate fluctuations on cash held - (12) 34
Cash and cash equivalents at end of the period 2,134 7,045 5,158
----------------------------------------------------- ------------ ------------ -------------
Notes to the interim financial information
for the six months ended 30 June 2021
1. General information
The principal activity of Xeros Technology Group plc ("the
Company") and its subsidiary companies (together "Xeros" or the
"Group") is the development and licensing of platform technologies
which transform the sustainability and economics of clothing and
fabrics during their manufacture and over their lifetime of
use.
Xeros Technology Group plc is domiciled in the UK and
incorporated in England and Wales (registered number 8684474), and
its registered office address is Unit 2 Evolution, Advanced
Manufacturing Park, Whittle Way, Catcliffe, Rotherham, S60 5BL. The
Company's principal activity is that of a holding company.
The interim financial information was approved for issue on 23
September 2021.
2. Basis of preparation
The interim financial information has been prepared under the
historical cost convention and in accordance with the recognition
and measurement requirements of International Accounting Standards
in conformity with the Companies Act 2006.
The interim financial information has been prepared on a going
concern basis and is presented in Sterling to the nearest
GBP'000.
The accounting policies used in the financial information are
consistent with those used in the prior year with the exception of
the following addition:
Cash on deposit
Bank deposits where maturity is greater than three months from
the date of investment are disclosed as cash on deposit.
The following adopted IFRSs have been issued but have not been
applied by the Group in these financial statements. Their adoption
is not expected to have a material effect on the financial
statements unless otherwise indicated:
-- IFRS 17 Insurance Contracts, including Amendments to IFRS 17, effective 1 January 2023
-- Amendments to IAS 1 Presentation of Financial Statements,
Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities and Current or Non-Current,
Amendments to IAS 8 Accounting Policies: Changes in Accounting
Estimates and Errors and Amendments to IAS 12 Income Taxes, all
effective 1 January 2023
Further IFRS standards or interpretations may be issued that
could apply to the Group's financial statements for the year ending
31 December 2021. If any such amendments, new standards or
interpretations are issued then these may require the financial
information provided in this report to be changed. The Group will
continue to review its accounting policies in the light of emerging
industry consensus on the practical application of IFRS.
The preparation of financial information in conformity with the
recognition and measurement requirements of IFRS requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of the amount, event or
actions, actual events ultimately may differ from those
estimates.
The interim financial information does not include all financial
risk management information and disclosures required in annual
financial statements. There have been no significant changes in any
risk or risk management policies since 31 December 2020. The
principal risks and uncertainties are materially unchanged and are
as disclosed in the Annual Report for the year ended 31 December
2020.
The interim financial information for the six months ended 30
June 2021 and for the six months ended 30 June 2020 does not
constitute statutory financial statements as defined in Section 434
of the Companies Act 2006 and is neither reviewed nor audited. The
comparative figures for the year ended 31 December 2020 are not the
Group's consolidated statutory accounts for that financial year.
Those accounts have been reported on by the Group's auditor and
delivered to the Registrar of Companies. The report of the auditor
was (i) unqualified, (ii) did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a
statement under Sections 498(2) or 498(3) of the Companies Act
2006.
3. Taxation
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Current tax:
R & D tax credits - - (698)
Total tax (charge)/credit - - (698)
-------------------------- ----------- ----------- -----------
The Group accounts for Research and Development tax credits
where there is certainty regarding HMRC approval. There is no
certainty regarding the claim for the year ended 31 December 2020
and as such no relevant credit or asset is recognised.
4. Trade and other receivables
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Due within 12 months:
Trade receivables 172 196 116
Other receivables 248 200 218
Prepayments and accrued income 340 300 141
760 700 475
-------------------------------- ----------- ----------- -----------
Due after more than 12 months
Other receivables 37 87 63
-------------------------------- ----------- ----------- -----------
There is no material difference between the lease receivable
amounts as in other receivables noted above and the minimum lease
payments or gross investments in the lease as defined by IFRS
16.
The minimum lease payment is receivables as follows:
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Not later than one year 86 93 90
Later than one year not later
than five years 37 87 63
123 180 153
------------------------------ ----------- ----------- -----------
Contractual payment terms with the Group's customers are
typically 30 to 60 days. The Directors believe that the carrying
value of trade and other receivables represents their fair value.
In determining the recoverability of trade receivables the
Directors consider and change in the credit quality of the
receivable from the date credit was granted up to the reporting
date.
5. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity holders by the weighted average number of
shares in issue during the period. The Group was loss-making for
the 6-month periods ended 30 June 2021 and 30 June 2020 and also
for the year ended 31 December 2020. Therefore, the dilutive effect
of share options has not been taken account of in the calculation
of diluted earnings per share, since this would decrease the loss
per share reported for each of the periods reported.
The Group underwent a 100:1 share consolidation during the year
ended 31 December 2020. The weighted average number of ordinary
shares in issue for the period ended 30 June 2020 and for the year
ended 31 December 2020 has been calculated assuming that the 100:1
consolidation was in effect throughout those periods, and the loss
per share figure for those periods has been restated
accordingly.
The calculation of basic and diluted loss per ordinary share is
based on the loss for the period, as set out below. Calculations of
loss per share are calculated to two decimal places.
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Total loss from continuing operations (3,352) (3,466) (6,934)
Total loss from discontinued
operations - (344) (37)
Total loss attributable to the
equity holders of the parent (3,352) (3,810) (6,971)
-------------------------------------- ----------- ----------- -----------
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Issued ordinary shares at the
start of the period 19,976,090 7,837,621 7,837,621
Effect of shares issued for
cash 2,023,873 3,116,028 7,611,462
---------------------------------- ----------- ----------- -----------
Weighted average number of shares
at the end of the period 21,999,963 10,953,649 15,449,084
---------------------------------- ----------- ----------- -----------
Unaudited Unaudited
6 months to 6 months to Year ended
30 June 30 June 31 December
2021 2020 2020
Basic and diluted on loss from
continuing operations (15.24)p (31.64)p (44.88)p
Basic and diluted on loss from
discontinued operations - (3.14)p (0.24)p
Basic and diluted on loss from
total loss for the period (15.24)p (0.04)p (45.12)p
------------------------------- ----------- ----------- -----------
6. Seasonality
The Group experiences no material variations due to
seasonality.
7. Availability of interim statement
This interim statement will be available on Xeros' website at
www.xerostech.com .
Forward-looking statements
This announcement may include certain forward-looking
statements, beliefs or opinions, including statements with respect
to Xeros' business, financial condition and results of operations.
These forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes",
"estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology. These statements are made by the
Xeros Directors in good faith based on the information available to
them at the date of this announcement and reflect the Xeros
Directors' beliefs and expectations. By their nature these
statements involve risk and uncertainty because they relate to
events and depend on circumstances that may or may not occur in the
future. A number of factors could cause actual results and
developments to differ materially from those expressed or implied
by the forward-looking statements, including, without limitation,
developments in the global economy, changes in government policies,
spending and procurement methodologies, and failure in health,
safety or environmental policies.
No representation or warranty is made that any of these
statements or forecasts will come to pass or that any forecast
results will be achieved. Forward-looking statements speak only as
at the date of this announcement and Xeros and its advisers
expressly disclaim any obligations or undertaking to release any
update of, or revisions to, any forward-looking statements in this
announcement. No statement in the announcement is intended to be,
or intended to be construed as, a profit forecast or to be
interpreted to mean that earnings per Xeros share for the current
or future financial years will necessarily match or exceed the
historical earnings. As a result, you are cautioned not to place
any undue reliance on such forward-looking statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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contained in this communication, and to share such analysis on an
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use the personal data you provide us, please see our Privacy
Policy.
END
IR SEEFUEEFSESU
(END) Dow Jones Newswires
September 23, 2021 02:00 ET (06:00 GMT)
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