Shares slide after PEXA outlines uncertain market environment
Make us a preferred source
Make us a preferred source on Google
More news: Shares in PEXA dropped more than 8% in early trading on the ASX to $11.35 after the online property settlements company said transaction volumes have been lower in the first half amid continuing uncertainties in the market environment. PEXA, which posted a net loss in FY23, expects FY24 operating earnings to come in between $109 million and $115 million.
Pexa completes Smoove buy, outlines uncertain market
The news: Online property settlements company PEXA says the financial impact of acquiring UK-based conveyancing technology provider Smoove will only be felt in the second half of the fiscal year.
The numbers: PEXA now expects FY24 revenue to be in the range of $315 million to $325 million, amid continued uncertainties in the market environment, while operating earnings will come in between $109 million and $115 million. The Smoove acquisition will have an immaterial impact in the first-half, but will add $16 million-$20 million of revenues in the second half and reduce operating earnings by $4 million-$6 million.
The context: The company said overall transaction volume growth in its main property exchange business as well as the international remortgage market has been relatively modest during the first half, while digital growth revenues are also lower. The Australian group entered the UK last year in its first overseas expansion and has been looking to build scale in the fragmented conveyancing market. It acquired Smoove to deepen its presence in the UK conveyancing market.
The source: ASX announcement
