It's been two-and-a-half years since Xeros Technology (XSG) was admitted to London's junior market and these latest half-year results reflect the slow rollout of the group's patented polymer bead washing machines. Revenues, although up significantly from a year earlier, are yet to break above the £1m mark. But Xeros reports that it is in discussions with several global equipment manufacturers in relation to prospective distribution agreements, in addition to moves to develop domestic applications - although details remain somewhat sketchy.
We were intrigued when we first learnt about the Xeros offering; an environmentally friendly washing machine system that uses a fraction of the water, electricity and detergent needed for conventional washing machines. It's easy to appreciate the potential, particularly in an end market like the US, where a $14bn (£10.8bn) commercial laundry industry is faced with increased pressure on regional water supplies and related cost issues. As with any blue-sky technology there's market resistance and it's rarely broken overnight, but management is now attempting to leverage the group's technology beyond the existing applications in commercial laundry and leather processing.
| XEROS TECHNOLOGY GROUP (XSG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 220p | MARKET VALUE: | £189m | |
| TOUCH: | 210p-230p | 12-MONTH HIGH: | 255p | LOW: 147p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 56p | NET CASH: | £39m | |
| Half-year to 30 June | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 317 | -5.9 | -8.3 | nil |
| 2016 | 780 | -7.0 | -7.2 | nil |
| % change | +146 | - | - | - |
Ex-div: - Payment: - | ||||
