"Extraordinary technology led by extraordinary people," is how Xeros 's (XSG) new chief executive describes the company. Eight weeks into the job, Mark Nichols will be hoping the market feels the same way. He has asked investors for a further £40m to fund the commercialisation of Xeros's polymer bead cleaning system.
While this fundraising was flagged at the time of the 2014 IPO, the scale of Xeros's ambitions has significantly broadened. Not only is capital required to accelerate marketing efforts in the commercial laundry division, but the company also wants to begin development of a domestic machine with a major manufacturer and build a cash-generative leather processing division within a year. Finally, Xeros wants money for research into new applications of its patented polymer science.
That leaves a lot on the agenda, especially as just 123 commercial laundry machines had been installed by the end of September. Feedback has nonetheless been - again - "extraordinary", according to Mr Nichols, who hopes the division will be cash-generative by the time the new funds have been exhausted in two-and-a-half years' time. Should Xeros fall short of that target, the new chief is confident the technology will easily attract extra funds.
XEROS TECHNOLOGY (XSG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 225p | MARKET VALUE: | £147m | |
| TOUCH: | 222-225p | 12-MONTH HIGH: | 370p | LOW: 119p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 32p | NET CASH: | £15.9m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013* | 0.1 | -3.4 | -11.1 | nil |
| 2014 | 0.3 | -6.7 | -12.9 | nil |
| 2015 | 0.5 | -10.7 | -15.6 | nil |
| % change | +48 | - | - | - |
*Pre-IPO figures | ||||
