Xeros surges on licensing deal with German components maker

Laundry technology developer Xeros announced the signing of a licensing agreement for its ‘XFilter’ filtration technology with Hanning Elektro-Werke.

The AIM-traded firm described Hanning, based in Oerlinghausen, Germany, as a “world-leading” manufacturer of components for the appliance industry, including pumps and motors for some of the world's largest domestic washing machine manufacturers.

It said Hanning components are incorporated in the washing machines of some of the world's leading brands, leading the board to describe the deal as “transformational” for Xeros, with the potential to deliver “significant revenues” from late 2023 onwards.

Under the terms of the 10-year, non-exclusive agreement, Hanning will manufacture and sell filters incorporating Xeros' proprietary XFilter technology, enabling washing machine manufacturers to provide consumers with the ability to capture and dispose of over 90% of microfibres, including microplastics, released during laundry cycles.

The filters are built into the washing machine, and are designed to last for the life of a machine, the company explained.

It said Hanning would establish a production line to meet demand from customers ahead of new legislation in France requiring the fitting of microfibre filters in all domestic washing machines by 1 January 2025.

Similar legislation was currently being developed in the UK, with Xeros already working with Hanning on integrating XFilter within the washing machines of a number of its existing customers.

Under the terms of the agreement Xeros will receive a royalty per filter device sold by Hanning.

The royalty amount was said to be “commercially sensitive”, but Xeros confirmed that the commercial terms were in line with its expectations.

“The ambition we have been working towards is for Xeros' XFilter technology to establish the de facto standard for legislators and to be the device of choice for all washing machine manufacturers,” said chairman Klaas de Boer.

“Our solution is designed to be the most efficient, most reliable, most durable and the easiest to use.

“This agreement with Hanning is testament to the fact that our solution achieves these objectives. Hanning's customers are now working with us and Hanning for incorporation into their machines.”

De Boer said doing so would enable them to meet the legislation in France, with the expectation that filtration would also be mandated across the EU and in the UK.

“Through their adoption of this technology, the washing machine industry will radically reduce the largest source of primary microplastic pollution which is from washing our clothes at home.”

At 1504 BST, shares in Xeros Technology Group were up 111.94% at 68.88p.

Reporting by Josh White at Sharecast.com.