Xeros Technology Group plc (XSG) Earnings Call Transcript & Summary

We've been working very hard to establish relationships with those big global wash machine brands. And actually, I'm really pleased to be able to say that at this moment in time, we are in what we call tech verification process with 4 of the top 10 global wash machine groups.

Hello. You watching Proactive, joining me is Xeros' Technology Group's CEO, Neil Austin. Neil. Very good to meet you. You're off the trading update this week and use of potentially transformational discussions. Before we delve into those, for viewers not familiar with the company, tell us what you do?

Sure. Stephen. Thank you. Glad to be here. Yes, in a kind of a nutshell, we, at Xeros, we consider ourselves as the future of laundry as kind of catch all. In a very kind of basic sense. What we do is we introduce new innovative ways to kind of advance pretty much any and all industries that use a large rotating drum and lots of water and energy, which is primarily laundry services. So whether that's a domestic in your home, washing machine, whether that's a larger format kind of commercial laundry machine, which you might get kind of hotels, obviously, dry cleaners. And equally, in the final stages of garment manufacturer as well. So most people don't realize, but every single article clothing that we wear always go through a final kind of laundry and wash phase as well. So our core technology which is what we call a care, Fabric Care technology, is really all about trying to introduce and innovate that.

And it looks like interest in your Fabric Care technology is really gaining momentum deal. So you're up the trading update yesterday, as mentioned. Probably more interesting were some of the discussions you talked about in that trading update and also the letter of intent with the major electronics distributor and that's with an initial order of one of your technologies.

Yes. So yes, I mean, I've only been with the business Stephen for just over kind of 2 years from the appliances industry. I'm a washing machine guy, kind of born and bred. And before I joined Xeros, I always had a very clear sense that the opportunity for this business was actually globalization. So, our technology, as I said, really has the opportunity to be able to transform that business. What's really working well, first in more efficient years is that we've had that kind of fast fashion phase has started to fall out of fashion. If you'll excuse the pun. People are increasingly becoming frustrated by the fact that their garments really aren't lasting very long at all and actually the washing machine industry, the big players have started to realize it as a really good opportunity for them to be able to capitalize upon that if they can find a way to extend the garment life and that is absolutely center of targets for what the Xeros technology does. So a combination of myself and some of the key guys that brought into the business in the last kind of 18 months, we've been working very hard to establish relationships with those big global washing machine brands. And actually, I'm really pleased to be able to say that at this moment in time, we are in what we call tech verification process with 4 of the top 10 global wash machine groups and the fourth of which we were able to announce as of yesterday. So we got 2 of the largest European, very large North American and a very large Southeast Asian. And the tech verification process is basically us saying, give us your machine, and we'll demonstrate those benefits on your platform that is the kind of final stage before we move to at JDA will then, in turn, move to commercialization. So we announced the European one yesterday as the latest that have joined backs the pre-existing cohort, the North American and one of the others are very close to moving to full blown JDA and with a very serious intent, which is that they want to be able to commercialize in the early part of 2026. So, yes, we were discussing beforehand, Stephen that absolutely feels as though this is the moment, this is the year for Xeros to be able to finally fulfill its promise of that core technology.

So we could see your XF3 External Microfiber Filter plug, then in washing machines at major retail outlets.

Yes. So that's the second piece that we announced yesterday, Stephen. Another bit of our technology is addressing microfiber pollution. So most people know about microplastics and the issue that it caused. What most people don't realize is that actually about 35% of the total emissions that end up in the world's oceans come from the laundry process. So the washing, the agitation of garments in that process is actually releasing significant amounts of those micro fibers. We announced back in September that we had signed a quite significant manufacturing and distribution deal with a company called Donlim Xinbao, one of the largest consumer electronics manufacturers in the world. And we're starting to see the fruition of that. The first of which we talked about yesterday, which is a distributor global consumer electronics brand who has agreed to take our XF3, our external microfibers filtration device technology when it comes off the production line in the summertime. But that is one, but we're in very serious conversations with others as well. And my goal, as I said, for this business is globalization. So we're well set in terms of U.K. and to degree Europe but we're in advanced conversations with companies in North America, in Southeast Asia and others within Europe as well.

So Neil, what else does 2025 hold in store for Xeros?

So I mean, beyond obviously, the execution on those key deals, the other bit of our technology that I haven't spoken about is our -- what we call our finish technology. And this, again, is the same idea. We're adding XOrbs in to improve the process, and we have a license in place with a company called Yilmak Makina. They are the world's largest denim manufacturing processors. And we are in the final stages of being able to go live commercially with them as well. So we will really have coverage by the end of this year in terms of that final stage garment manufacture, moving into consumers' homes where they going to be able to use the technology as well to clean clothes themselves. So yes, really exciting times for us to business. And yes, we're a very close now Stephen.

Well, I hope you'll keep us posted on any progress. Thank you very much for the introduction today.

Thank you very much.

That's Xeros Technology Group CEO, Neil Austin.