PEXA Group recorded a net loss after tax of $11.8 million for the 2021 financial year, despite an 85 per cent surge in its group earnings before interest, tax, depreciation and amortisation (EBITDA), to $85 million.
The group’s revenue had also rocketed by 42 per cent to $221 million, powered by a rise in transaction volumes and positive market conditions.
However, there were 3.3 million PEXA Exchange transactions during the year, 37 per cent more year-on-year – with growth in both transfer volumes and refinances reported across all states. PEXA reported the growth was particularly strong in Queensland and South Australia.
The exchange contributed $116.9 million in EBITDA, 102 per cent more than the year before.
It also recorded 19 per cent growth in total market volumes between FY20 and FY21, to 4.2 million.
NSW contributed the highest amount of exchange revenue ($76 million, 25 per cent higher year-on-year), followed closely by Victoria ($73 million, 11 per cent more year-on-year).
PEXA has estimated that it has cornered 80 per cent of the transfer market and 90 per cent of refinances in all of its jurisdictions.
Total property values settled through the PEXA exchange surpassed $1.5 trillion during the year.
The results were PEXA’s first as a listed company, following its $3-billion initial public offering in July.
PEXA managing director and group chief executive Glenn King commented the strong market conditions in the second half of FY21 have continued into FY22, as he outlined the group’s growth ambitions.
PEXA has signalled plans to expand into other jurisdictions, outside of the five states it already operates in (NSW, Victoria, Western Australia, Queensland and South Australia) and to launch new products and services.
“Supported by a sound balance sheet, we look forward to further progressing our growth initiatives in the coming year, with momentum building in the UK to support our international strategy,” Mr King said.
“Meanwhile, we continue to see excellent opportunities to leverage our existing platforms, insights and relationships to create new products and services to meet the changing needs of our members, consumers and government.”
PEXA’s UK market entry strategy is underway, with commitments to participate in product testing with the Bank of England secured with lender pilot-groups.
Going off the current market movements, the group has forecast positive results for the 2022 financial year, despite the ongoing lockdowns.
PEXA expects its revenue will increase by 11 per cent to $246.1 million, while its net loss is slimmed to $2.5 million.
The group’s overall EBITDA is predicted to drop to $75.6 million, while the exchange earnings are tipped to grow by 8 per cent to $126.3 million.
Sarah Simpkins is the news editor across Mortgage Business and The Adviser.
Previously, she reported on banking, financial services and wealth for InvestorDaily and ifa.