The company has developed a patented polymer bead cleaning system that significantly reduces water, energy and chemical use while also delivering a superior cleaning result, but has a challenge on its hands supplanting ages-old tried & trusted technology.
Results for the five months to the end of 2015 – the company is in the process of changing its year-end – indicate that the number of early adopters is growing apace, with the group's earned income rising to £744,000 from just £95,000 in the same period of 2014.
As at 31 December 2015 contracted future revenues amounted to £2.1mln (2014: £0.7mln) and average contract length remaining is 77 months (2014: 68 months).
The company is accelerating the roll-out of its Commercial Laundry offering, having racked up 56 commercial washing machine installations in the five month period and a further 38 in the first two months of 2016, bringing the total up to 200.
“The roll out of Commercial Laundry continues at a good pace. We are now installing machines at an approximate rate of one per working day and expect this rate to progressively increase,” said Mark Nichols, chief executive of Xeros.
The technology is not just applicable to the laundry market; the company is working on full-scale leather processing trials in a leading European leather tannery, while detailed studies are in progress to analyse other potential uses for its technology.
"In Leather Processing, our full scale trials are on track and are scheduled to be completed around the middle of the year. We anticipate that these trials will show that our polymer beads, which were specifically designed for this application, deliver economic, operational and sustainability improvements.
"Studies to identify new potential applications are also progressing on schedule and are providing further evidence that we possess a platform technology," Nichols added.
The company's operations are not yet at a scale that would generate a profit, and it posted an interim pre-tax loss of £5.61mln versus a loss of £3.84mln in the same period of the previous year.
The group continued to invest heavily in its research & development programme, with R&D costs up to £1.9mln in the latest period from £0.8mln the year before.
The group said it expects cash use to continue to accelerate over the coming years as it continues to invest in R&D and roll out its commercial laundry systems.
In the five-month period to the end of 2015 net cash outflow totalled £5.7mln, versus £4.3mln the year before.
At the end of the year the company had cash of £49.5mln, up from £25.3mln at the end of 2014, following a £40mln fund-raising in November.