PEXA Group shares rise as it posts mixed FY24 result, CEO retirement
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The news: PEXA Group shares lifted after the online property settlements company reported a mixed full-year result and announced its managing director and CEO Glenn King will retire by the end of FY25.
The numbers: PEXA shares were up 0.8% to $13.71 by 3pm AEST, having gained more than 20% since the turn of the year.
PEXA reported group NPATA of $21.1 million, up 22% year on year, but 17% behind consensus forecasts. Revenue climbed 21% to $343.5 million, 1.7% above average analysts' estimates, while EBITDA of $87.7 million, 3.7% short of consensus, marked a 5% rise compared to FY23.
Meanwhile, operating EBITDA of $114.9 million was ahead of PEXA's FY24 guidance range of $105 million to $109 million.
The context: The company noted that improved revenue during the year reflected the strength of its online property settlement platform PEXA Exchange, with higher transfer volumes and CPI-linked repricing, as well as growth within the group's digital solutions business.
PEXA, which warned about the impact of interest rate movements on the real estate market in May, also said that operating costs across the group have benefitted from efficiencies generated through its new productivity enhancement program.
The Australian group entered the UK last year as its first overseas expansion, and has been looking to build scale in the fragmented conveyancing market. It acquired Smoove in October to deepen its presence in the UK conveyancing market.
King, who joined PEXA in 2019 and led the business through its initial public offering in 2021, will stay on until his replacement is appointed. The company said its board is advanced in its CEO succession planning process.
What they said: "While the result was robust at the operating EBITDA line vs guidance, PXA's FY24 result materially missed vs consensus estimates," Jarden analysts said.
"Further, FY25E guidance statements suggesting significant downside risk to consensus FY25E estimates," they noted. "The UK expansion progress, as well as the path to profitability for Smoove/Optima/Digital, will likely be a key focus for the market today."
The sources: ASX announcement, ASX announcement
