Rotherham-based washing machine firm in a spin over £40m share placing

Bill Westwater CEO of Xeros based at Evolution Advanced Manufacturing Park Rotherham''3 January 2014'Image � Paul David Drabble'www.pauldaviddrabble.co.uk

Bill Westwater CEO of Xeros based at Evolution Advanced Manufacturing Park Rotherham''3 January 2014'Image � Paul David Drabble'www.pauldaviddrabble.co.uk

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Rotherham-based ‘waterless washing machine’ manufacturer Xeros is to raise £40 million to fund its global ambitions.

The £40m share placing is for new and existing institutional investors and is priced at 225p per share. The AIM-listed business traded flat at around 250p since August until yesterday, when its price dropped ahead of this morning’s announcement.

The funding will be used to “maintain momentum” over the next two and a half years as it seeks to maximise its potential, particularly in the commercial laundry market, where it says it is “rapidly gaining traction.”

Mark Nichols, who became chief executive officer of Xeros in September, said: “In the short term, we are focusing on driving our commercial laundry business to meet the growing demand, particularly in the US, for our energy and water efficient solutions with superior cleaning performance.

“In the medium term, we plan to capitalise on the excellent progress we continue to make with our application in leather processing.

“We are also developing the opportunity in the global domestic laundry market.

“In the longer term, we have the opportunity to commercialise a number of further applications in parallel.

“The fundraising announced today will support the execution of our strategies over these horizons. We look forward to the future with confidence.”

The company has developed patented polymer bead technology and it is seeking to extend its use to a range of applications.

In washing machines, it reduces water usage by 70% and energy by 50%, that makes it particularly attractive to commercial laundry operators such as hotels and leisure groups.