Xeros to spin out on to AIM with value of £80m

The group, a Rotherham-based spin-out from Leeds University, said it has successfully raised £30m of new capital at 123p per share ahead of its admission to AIM.

The funds will be used to roll out Xeros’ technology into the commercial laundry market and to fund research and development into other areas such as the domestic laundry sector.

Xeros produces washing machines that replace most of the water with polymer beads.

The beads attract stains to the bead surface, extracting dirt and producing what the company claims is a superior result compared with traditional washing machines.

The group has developed its commercial laundry machines using existing conventional washing machine technology, with modifications to introduce the re-usable polymer beads into the wash.

Xeros will be the first UK manufacturing company to float this year.

It will be joined next month by Doncaster-based Polypipe, one of Europe’s biggest manufacturers of plastic pipe systems, as Yorkshire firms spearhead the Government’s drive to expand the manufacturing sector and rebalance the economy.

Xeros announced plans yesterday to change its name from Xeros Ltd to Xeros Technology Group following the listing on AIM.

Following the float the company’s significant shareholders will be Invesco Asset Management with a 27.1 per cent stake, IP Group with 18.6 per cent and Entrepreneurs Fund with 11.3 per cent.

In addition, Enterprise Ventures Client Funds will hold a 9.6 per cent stake, new shareholder Baillie Gifford will have 5.5 per cent and Parkwalk Advisors Funds will have 5.0 per cent.

Xeros said it will issue 65,073,549 new ordinary shares of 0.15p nominal value each at an issue price of 123p per share​.

​Xeros chief executive Bill Westwater said: “Xeros’ technology has the potential to transform a number of industries globally and our admission to AIM will help accelerate our roll-out.”

Xeros said that trials have shown its system achieves a superior cleaning performance as well as significant reductions in water, energy and chemicals compared with conventional commercial laundry methods.

Xeros claims that its system uses 70 per cent less water than conventional ​washing machines​ and said it can extend the life of garments and provide energy efficiencies that reduce the carbon footprint of the entire laundry process.

Xeros’ partners include the national laundering provider Johnsons Services Group and premium dry cleaners Jeeves of Belgravia.

Xeros has about 30 staff in Rotherham and a small office in the US which employs five people.

“We want to be the global leader in this whole new way of cleaning,” said Mr Westwater.

“We are proudly a Yorkshire company. I also hope that we can be proudly be part of renaissance as well for industries in Yorkshire.”

​The group has filed a total of 27 patents relating to various aspects of its ​​polymer bead cleaning system.

The patents cover new methods to clean a wide range of textiles, synthetic fibres, plastics, leather, metal, glass, paper, cardboard and wood.

Xeros will initially target the commercial laundry market in the US, the UK, Europe and China.

​Xeros ​is​ commercialising technology developed at the University of Leeds School of Textiles, run by a team led by textile chemist Professor Stephen Burkin- shaw.

​​The g​roup has targeted the commercial laundry market and has begun the roll-out of 25kg capacity washing machines, which exclusively use the ​g​roup’s patented system.