PEXA enacts strategic review for digital solutions business, cuts guidance
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The news: E-conveyancing company PEXA has commenced a strategic review of its digital solutions business and lowered its full year earnings guidance as a result of a non-cash impairment charge.
The numbers: The company said it will take a non-cash hit of between $31 million to $35 million during the second half of the 2025 fiscal year.
It is weighing potential divestments as part of a strategic review of its Digital Solutions segment under new chief executive Russell Cohen. The review will assess the fit of digital products within the group, it said.
The impairment charge, mostly from outdated software assets and strategic exits, has lifted the company’s forecast for specified items to between $66 million and $70 million.
Full results are due August 29.
What they said: “During my initial review of the businesses within our Group, we took a critical look at all our operating businesses and assets, assessing their fit as well as the capital required for each to thrive.” PEXA CEO Russell Cohen said in a statement to the stock exchange.
“It became apparent that we wouldn’t benefit from a deeper dive into the Digital Solutions business to ensure we are focusing on our cover strengths. Importantly, the existing teams, quality of technology and customer relationships is strong in our Digital Solutions assets, and we will continue to invest in these businesses as needed to ensure we maximise their potential while the review is underway.”
The source: PEXA release
