PEXA Group shares fell more than 3% after the digital property settlement platform increased its estimate of accounting charges for the first half of the 2025 financial year (FY25).
PEXA revised ‘specified items’ guidance to between A$35 million and $40 million from between $15 million and $20 million after it decided to recognise a non-cash impairment charge of about $15 million related to the impairment of a minority investment.
PEXA (ASX: PXA) shares had fallen 40 cents or 3.12% to $12.44 by 12.50pm (1.50am GMT), implying a market capitalisation of $2.21 billion.
The company said the revised guidance for 1H25 also reflected an expectation that total other specified items would be at the upper end of previous guidance.
PEXA also updated its H1 FY25 tax expense to between $40 million and $45 million from between $13 million and $18 million after deciding to de-recognise about $19 million of deferred tax assets (DTA).
This was mainly because new non-Exchange revenue streams in the half year had caused the group to fail the stricter same business test to which these losses were subject.
“Additionally, the Group’s effective Australian tax rate is higher than anticipated in 1H25,” PEXA said in ASX announcement.
PEXA also said management would decide if an impairment to the $14.1 million carrying value of an interoperability intangible software asset was appropriate once Titles Queensland completed a review of the interoperability program.
It also announced the resignation of PEXA Australia Chief Executive Officer Les Vance effective from 21 February 2025.
