Pexa shares bolstered by guidance, buyback

The news: Online property settlements company PEXA has widened its half-year net loss after recognising an impairment charge relating to an investment, and announced a share buyback of up to $50 million.

The numbers: PEXA reported a net loss of $32.7 million for the six months to December, compared to a $4.6 million loss a year ago. It included a non-cash impairment of $15 million relating to a minority investment. Revenue rose 25% to $202.5 million, while the company will not pay any interim dividend.

The context: PEXA, which entered the UK market last year in its first overseas expansion, said the half-year result was bolstered by a solid uplift in Exchange revenue, and improved revenues in the international and digital solutions segments. The company announced an on market share buyback of up to $50 million. It also reaffirmed guidance to grow full-year revenue by 13% to 19% despite anticipating the macroeconomic and property market outlook in Australia and the UK to remain uncertain.

“The group’s strategic position and operating performance improved during the half, with all businesses contributing. Although statutory profits were impacted by non-cash charges, underlying cash generation grew, supporting a stronger balance sheet. Pleasingly, this means we can return up to $50 million to our shareholders,” outgoing CEO Glenn King said.