Xeros Technology Group PLC (AIM:XSG) is starting to show signs that its long-awaited shift from technology development to commercial adoption may be gaining momentum.
In a new update, Cavendish highlights the company’s recent operational strides, calling FY24 a “clear inflexion point” as pre-commercial orders were secured across all three divisions, Filtration, Care and Finishing.
Most notably, Xeros has formalised a deal with Russell Hobbs for its XF3 external filter system, marking the first brand-led initiative to bring its microfibre filtration technology into consumers’ homes.
Donlim, a Chinese appliance maker, will manufacture the units, with Xeros receiving royalties on each sale.
In India, long-term partner IFB has placed its first XOrbs order ahead of launching a co-branded domestic washing machine later this year. And in Turkey, Yilmak has placed its initial order for use in textile finishing — a market where Xeros’s reusable polymer beads aim to reduce water and chemical use.
Despite a drop in revenue, the adjusted EBITDA loss narrowed slightly, helped by a 10% cut in headcount and tight cost control.
Cavendish reiterates its 16p target, a 13-fold increase on the current price, but notes that the company still needs to convert early-stage traction into recurring revenue.