Xeros Technology Group shares fell 1.6% to 40.8p in late afternoon trading on Wednesday following an adjusted EBITDA loss of £6.3 million against £6.8 million, and a pre-tax operating loss of £6.9 million compared to £7.6 million in FY 2021.
The group reported a revenue growth of 23.1% to £500,000 from £400,000 year-on-year as a result of licence partner sales in HY2 2022 driving revenue growth and margin increase.
Xeros Technology noted a reduction in administrative expenses of 4.8% to £7.2 million compared to £7.6 million and a net cash outflow from operations reduction of 8.3% to £5.8 million against £6.3 million. The company mentioned cash at 31 May 2022 of £4.3 million.
The firm announced a selection of highlights across the year, including the first licence of its XFilter to a leading domestic washing machine component supplier and the planned domestic launch of its machine technology by a leading Indian manufacturer in Q4 2022.
Xeros Technology also reported its Denim Finish technology had been trialled by multiple major retail brands and its new Xeros brand identity and marketing programme had been launched to drive growth.
The group confirmed its cash burn rate remained at planned levels of £500,000 per month in the financial year.
The company mentioned its revenue was entirely in the hands of third parties, which rendered its intake difficult to predict. However, Xeros Technology said it expected to achieve EBITDA profitability and cash breakeven in 2024 based on its existing and targeted contracts.
The firm added that it expected further levels of investment to fund its business in FY 2023, with its board currently working on plans to secure the necessary investments.
“This has been a year of significant progress in embedding Xeros’ technologies into product lines of key licensing partners laying a strong foundation for future growth,” said Xeros chairman Klaas de Boer.
“The transformation of the Xeros brand and the supporting marketing programme are key to accelerating the commercialisation of our transformational technologies.”