Increased investment meant losses more than doubled in the first half of FY17.
Companies: Xeros Technology Group Plc
Xeros Technologies' (LON: XSG) half-year report out today detail the amount the Group has spent on its R&D programme and towards commercialising its polymer-based technologies.
The Group, who focuses on developing products for the cleaning, textiles and tanning industries reported a widening EBITDA loss of £13.2m against £7.4m in H1 16.
Group income did, however, increase 33% to £1.1m, bolstered by a 36% increase in installations of its commercial washing machines.
Xeros also signed its first commercial contract with Wolsdorf for its tanning products.
The Interims left the market slightly deflated this morning, with shares trading down around 5% at 285p per share.
Xeros continues to invest in both its R&D programme and its commercialisation programme, with R&D costs in the period increasing to £2.8m from the £2.3m spent in H1 16.
Management remains positive about the long-term prospects of the Group, commenting:
"In the first six months, the Group has achieved a number of key milestones in its transition from a designer and seller of polymer technology commercial washing machines towards an IP-rich, capital-light licenser of polymer-based technologies to multiple scale industries.
These milestones amply demonstrate the attraction of Xeros to global companies, whom we expect to become allies in commercialising and distributing our technologies in the cleaning, tanning and textile markets, to our mutual benefit."
Xeros' market cap is currently c. £260m despite the Group yet to issue a dividend and FY16 Revenue of £2.4m. Prior to today's update, consensus forecast this figure to increase to £6m and £14m in FY17 and FY18 respectively.
