This article is from the Australian Property Journal archive
ONLINE conveyancing platform PEXA expects to take a bigger impairment charge in the first half year.
The $15 million charge relates to impairment of a minority investment and is in addition to previously announced specified items guidance for FY25.
As a result, the group expects its impairment charge will range between $35-$40 million, up from the previous guidance of $15–20 million.
Furthermore following a review of the company’s deferred tax assets and the ongoing development of the business, PEXA expects to de-recognise approximately $19 million of total DTA in the first half year.
PEXA explained that this is primarily due to new non-exchange revenue streams, which have caused the group to fail the stricter same business test which these losses were subject to.
As a result, the group’s tax rate is higher than anticipated and is expected to impact the company’s bottom line.
PEXA has revised its income tax loss guidance to $40-45 million from a loss of $13-18 million.
Meanwhile following the pause of the interoperability program by ARNECC2 in June 2024, Titles Queensland commenced a review of the program.
The group currently recognises an interoperability intangible software asset of carrying value $14.1 million. PEXA will review whether there will be any impairment to the carrying value once the review is complete.
