- Water-saving technology developer Xeros Technology Group said it planned to raise between £5m and £10m via a share issue and slash its headcount as part of an exit from direct sales business by the end of 2019.

The company, which counts washing machine manufacturers as clients, also said that it would reduce its cash burn rate to around £0.6m per month in the first quarter of 2020, with further reductions planned.

Staff numbers would be cut to 60 by early 2020, down from 160 last September.

'It has been a challenging journey to this point, given the maturity and size of the industry players we have to convince to adopt our technology,' chief executive Mark Nichols said.

'However, we have now reached an inflection point in the implementation of our strategy to become an asset light IP rich licensing business.'

'Switching to high-margin licensing turnover over the next two years against a backdrop of a low-cost licensing organisation provides us with a line of sight to cash breakeven.'

Xeros Technology said the capital raising, for which an issue price was not yet mentioned, was expected to fund the business through cash breakeven.

Current cash reserves at the end of July were £5.2m and were expected to fund the business through to early 2020.

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