PXA - PEXA Group

[Dona Ferentes]

another disappointing result. Will the next lot be any better?

seems to undo all the recovery co.e reporting time..

.
and will this come back to bite them?

 

[divs4ever]

my current holding is via the LNK divestment , and watching carefully before putting money into this ( or extra into LNK )

maybe it will come good but am NOT holding my breath

 

[divs4ever]

PEXA GROUP ACQUISITION OF SMOOVE PLC AND FINANCIAL UPDATE

Wednesday, 20th December 2023
PEXA Group Limited (ASX: PXA) (“PEXA” or “Group”) has today announced its completion of the acquisition of Smoove plc (“Smoove”) and provides an update on the impact of this transaction and other matters on PEXA’s financial outlook.
Smoove acquisition Smoove is a UK-based conveyancing technology provider. PEXA’s proposed acquisition of Smoove was previously announced to the ASX on 5 October 2023, and an updated transaction timeline was published on 4 December 2023.
PEXA’s acquisition of Smoove via a UK scheme of arrangement was approved by Smoove shareholders on 14 November 2023 and sanctioned by the court on 15 December 2023 (UK time).
Smoove will be delisted from the Alternative Investment Market of the London Stock Exchange by 7am on 20 December 2023 (UK time). The acquisition will further build our support for the UK conveyancing market and provides reach for PEXA into both the sales and purchase and re-mortgage segments of that market.
PEXA Group Managing Director and CEO, Glenn King, said: “This acquisition will further assist PEXA in bringing its world-leading technology to the UK market, which is in line with our international growth strategy.
Smoove’s position in the UK market will allow us to build additional scale and depth, while allowing the PEXA product suite to reach more customers”. Further information on the integration of Smoove will be provided as part of PEXA’s Half Year Result announcement in early 2024.
Financial update excluding Smoove PEXA Group continues to forecast that we will meet our previously announced ex-Smoove guidance for FY24:
• Group operating EBITDA1 margin of 35% or better;
• Exchange operating EBITDA margin of 50-55%;
• Net cash outflows of $70-80m for the International and Digital Growth businesses; and
• Break-even operating EBITDA for Digital Growth in June 2024.
1 Terms used in this announcement have the same definition as similar terms used in PEXA’s FY23 results announcement.
As previously described in PEXA’s recent strategy update, a range of uncertainties continue to impact the markets in which PEXA operates in Australia and the UK through the end of November and into December 2023.
Specifically, across each of our three business areas, this includes:
• Exchange: We continue to observe an improved mix of transactions, reflecting a reduction in refinancing volumes within October and to the end of November 2023.
As set out in Table 1 attached, refinancing activity comprised 22% of total activity in 2Q24 to end November 2023, relative to 28% in 1Q24. However, overall transaction volume growth has been modest during 2Q24.
We expect to see Exchange Business Revenue for 1H24 land in the range of A$145 to A$150m.
• International: Following the impact of the Capita-related technology incident in April 2023, the flow of new business instructions to Optima Legal (“Optima”) has shown pleasing signs of improvement.
Business instructions2 are 16% higher in 1H24 compared to 2H233 , and 35% higher in 2Q24 to end of November 2023, relative to 4Q234 . However, Optima’s market share has not yet recovered to its historical position. Additionally, overall remortgage market activity levels remain relatively modest, with average monthly market volumes in 1Q24 being 15%5 lower than in the prior comparative quarter. Consequently, we expect International’s Business Revenue for 1H24 to be approximately 10 to 14% lower than was achieved in 2H23.
• Digital Growth:
The sales pipeline in the Digital Growth business remains promising, with good levels of new business development continuing in ID, Value Australia, and Land Insight.
However, reflecting the impact of economic conditions on lengthening sales cycles and reducing some of our transaction-based product flows, together with changes to our product line up, we expect sales to be more heavily weighted to 2H24.
At this stage, we are expecting Digital Growth’s 1H24 revenues to be 5 to 10% lower than in 2H23, or broadly flat after adjusting for the effect of a large one-off fee received in the prior period.
We aim to increase Business Revenues in 2H24 relative to 1H24, assuming our product and sales pipelines, and transaction volumes, perform as we expect.
The productivity enhancement actions we have taken to deal with the impacts of these uncertainties remain on track.
Most Australian-based staff reductions as previously announced have now been undertaken, and the consultations regarding proposed reductions in the UK have also been completed.
Noting continued uncertainties in the market environment, as set out in Table 2a, our current expectations are that: 2 Instructions are a notification from an institution that one of its customers will be seeking to enter a re-mortgage transaction.
Once the remortgage work is finalised, it is known as a completion.
Optima gets paid per completion.
Not all instructions convert into a completion, and the timeframe for conversion of a given instruction into a completion can vary.
3 Based on average monthly instructions over July 2023 to November 2023, compared to average monthly instructions over January 2023 to June 2023.
4 Based solely on average monthly instructions in October and November 2023, compared to average monthly instructions in April to June 2023.
5 Based on average monthly market volumes for the period July 2023 to September 2023, compared to average monthly volumes in the period July 2022 to September 2022.
PEXA Group Limited
• Business Revenues for FY24 are expected to be in the range of A$315 to A$325m for FY24, excluding the impact of acquiring Smoove. Approximately half of those revenues are expected to be derived during 1H24;
• Group operating EBITDA for FY24 is expected to be A$109 to A$115m, and subject to completing our financial close processes, to be within the range of A$54 to A$58m in 1H24; and
• While expecting the combined net operating cashflows for International and Digital Growth to be in line with previous guidance, we also expect those net cash outflows to be lower in 2H24 than in 1H24.
This reflects the full impact of 1H24 cost reduction actions.
It also assumes that Optima volumes improve with continued improved instruction flows and market growth.
Financial implications of the Smoove acquisition Smoove’s acquisition will have an immaterial impact on PEXA’s 1H24 revenues and earnings, given only approximately half a month of Smoove’s performance will be consolidated into the Group’s first-half results.
Assuming Smoove’s trading performance continues its current trajectory, we expect that Smoove’s acquisition will add A$16-20m6 of revenues to the Group in 2H24 and reduce operating EBITDA by A$4-6m in the same period.
We note that Smoove’s cash balance was approximately A$14.9m as at 30 November 2023.
At the same date, other assets, which primarily consist of property, plant and equipment, development costs, goodwill, and trade debtors, were recorded at approximately A$17m.
Smoove has no bank debt but at 30 November 2023 it had outstanding payables and provisions of approximately A$8m, and capitalised lease liabilities valued at approximately $1.2m.

Additional matters
We anticipate providing information on further productivity enhancement actions during our 1H24 results update.
At the same time, we also expect to update investors on PEXA’s capital management framework and approach.

This announcement was approved by Glenn King, Group Managing Director and Chief Executive Officer.

- ENDS -

my current holding is via the LNK divestment , and watching carefully before putting money into this ( or extra into LNK )

maybe it will come good but am NOT holding my breath

i still have memories from Slater&Gordon's rush into expanding in the UK

as far as i am concerned i think the UK is a train-wreck sliding towards the abyss and cheered on by a group of over-paid clowns ( like Bozo )

but maybe PXA can actually see the end of the tunnel ( not an express train )


.. maybe CCE can sell them ( UK ) enough wave-generators to fuel their climate fantasies ( and keep the digital networks running )

 

[Dona Ferentes]

from a family member:
Settlement has been rebooked for tomorrow 20 December 2023 due to issues with the online PEXA settlement platform

As the entire system , conveyancing, banks, etc, shuts from a few days before Xmas to the second / third week in Jan, pressure for outcomes gets intense. But better than stuffing up what are million dollar transactions

 

[Dona Ferentes]

something isn't gelling, down 10 per cent this morning.

there was an update included, and it wasn't inspiring.

Financial update excluding Smoove
PEXA Group continues to forecast that we will meet our previously announced ex-Smoove guidance for FY24:
• Group operating EBITDA1 margin of 35% or better;
• Exchange operating EBITDA margin of 50-55%;
• Net cash outflows of $70-80m for the International and Digital Growth businesses; and
• Break-even operating EBITDA for Digital Growth in June 2024.

DNH

 

[divs4ever]

the dip didn't inspire me into reaching for my wallet

 

[Dona Ferentes]

from a family member:
Settlement has been rebooked for tomorrow 20 December 2023 due to issues with the online PEXA settlement platform

and a fail... ongoing ... today's update
"As you may already be aware, settlement failed again today due to ongoing issues with pexa. We have now decided to convert this to a paper settlement to try ensure it settles before christmas.."
that means cheques

 

[eskys]

PXA....I chose this one for some peanuts today

 

[divs4ever]

PEXA UK and NatWest Group move closer to 48-hour remortgaging solution

Please see attached an announcement by PEXA Group Limited (PEXA) and NatWest Group.

NatWest is one of two banks that were identified to commence transacting with PEXA this year via our Optima Legal platform.

This release was authorised by the Managing Director and CEO of PEXA Group Limited.

PEXA and NatWest Group move closer to delivering 48-hour remortgaging solution for UK home owners PEXA Group Limited (PEXA)

today announced it is progressing a strategic partnership with NatWest that will see the UK lender utilise PEXA’s world-leading digital property exchange technology to deliver 48-hour remortgage transactions to its customers - before extending its use of the PEXA platform to speed up the handling of sale and purchase transactions.

Miguel Sard, Managing Director, Homebuying and Ownership at NatWest, said good progress was already being made with PEXA, having tested PEXA’s payment scheme with the Bank of England, and said the technology would help make the bank simpler and faster for its customers.

“At the heart of our strategy for growth is anticipating and meeting our customers’ needs, using data and technology to ensure we are simple to deal with.
PEXA has already proven in Australia that remortgaging processes that ordinarily take months, can take just a couple of days, or even hours in some cases,” Mr Sard said.
“We are delighted to be partnering with PEXA and will be working with the team closely over the coming months to help us deliver on our strategy by enabling its world-leading digital property exchange platform for the benefit of our customers and the broader UK property ecosystem,” he said. Joe Pepper, UK CEO of PEXA, expressed his excitement to be working with NatWest Group.
“As one of the UK’s major lenders, NatWest shares a common goal of driving digital innovation and transforming the customer experience to address the chronically long time it takes to transact property in the UK market, with all the associated pitfalls of transaction fall-through and stress.”

“The property settlement process in the UK is highly challenged.
Relative to similar markets, transaction fail rates are unacceptably high and the time to complete transactions is overly long.”
“We welcome the opportunity to work with NatWest Group and partner with a lender committed to solving these issues with us.
We look forward to helping implement our technology to improve the NatWest customer experience” he said.

This release was authorised by the Managing Director and CEO of PEXA Group Limited.

-Ends-

i hold PXA ( courtesy of the LNK divestment )

hmmm the UK and property .. i may abandon any top up plans here (unless Farage wins the election )

 

[Dona Ferentes]

Pexa Group is up 13 per cent to a 10-month high of $13.68 after progressing its strategic partnership with NatWest in the UK.

The UK lender will use PEXA’s world-leading digital property exchange technology to deliver 48-hour remortgage transactions to its customers and extend its use of the PEXA platform to speed up property transactions.

NatWest is one of two banks that were identified to commence transacting with PEXA UK this year via its Optima Legal platform. NatWest serves 19 million UK customers

PEXA sees it as a significant step towards extending its UK market reach.
.

 

[Dona Ferentes]

Pexa is up 13 per cent to a 10-month high of $13.68 after progressing its strategic partnership with NatWest in the UK.

still heading higher.

PEXA’s plans for offshore expansion, and the UK in particular, have been around since it floated three years ago. If PEXA is good enough for NatWest, the UK’s third-biggest lender, then perhaps it will be good enough for the other big banks. Six banks control more than three-quarters of the mortgage market; get one or two, and the rest may join the rush.

If that happens, PEXA’s past few years of reinvesting earnings from its highly profitable Australian business wouldn’t be a bad idea, after all. It would establish PEXA as a pioneer Australian tech story, and raise hopes it could do the same in Canada and other markets with Torrens land title systems.

PEXA has spent about $200 million in the UK, or about two times forecast group earnings for this year. There are no dividends for shareholders; just reinvestment, promises and NatWest.

CBA is PEXA’s biggest investor with a 23.9 per cent stake, worth $620 million

 

[divs4ever]

PEXA Group Ltd (ASX: PXA)Request for Trading Halt

PEXA Group Ltd (ASX: PXA) (PEXA) requests an immediate halt to the trading of PEXA’s ordinary shares(PXA) quoted on the Australian Securities Exchange (ASX) in accordance with ASX Listing Rule 17.1.
The trading halt is requested pending a public announcement by the Australian Registrars National Electronic Conveyancing Council (ARNECC) it understands is to be made later today (stated purpose).In accordance with ASX Listing Rule 17.1, the Company provides the following information in relation to the request:
• the trading halt is necessary to allow PEXA to reasonably manage its continuous disclosure
obligations;
• PEXA requests that the trading halt remains in place until the earlier of a further announcement to the market by PEXA in relation to the stated purpose or the commencement of trading on Friday,28 June 2024; and
• PEXA is not aware of any reason why the trading halt should not be granted or of any further information necessary to inform the market about the trading halt.

Yours sincerely Hany Messieh
General Manager Investor Relations

i hold PXA ( courtesy of the LNK divestment )

 

[divs4ever]

PEXA Group Response to ARNECC Ministerial Forum:

National eConveyancing Statement

PEXA Group (“PEXA or “the Group”) acknowledges the statement released today by the Australian Registrars National Electronic Conveyancing Council (ARNECC).ARNECC advised industry that the interoperability program has been paused, and they are in the process of standing down their project team.


We continue to participate constructively with our regulators and industry participants to support and evolve an ecosystem that operates in the best interests of Australian home and property owners.



The statement can be viewed, here: www.arnecc.gov.au

https://www.arnecc.gov.au/wp-content/uploads/2024/06/Ministers-Statement-Forum-11-June-2024.pdf

-ENDS


i hold PXA ( courtesy of the LNK divestment )

 

[Ferret]

Can't say I understood what this announcement meant.

I thought it sounded like bad news, but PXA ended today up 2% when the market was down.

 

[divs4ever]

Can't say I understood what this announcement meant.

I thought it sounded like bad news, but PXA ended today up 2% when the market was down.

well after seeing the outcome ( a rally )

i guess the market saw it as an escape from another layer of regulations ( as opposed to a failed attempt at sanity in property conveyancing )

some announcements are like that , the market interprets them very differently than i did

so was this a genuine rally or a 'sigh of relief ' rally ?

 

[Dona Ferentes]

a recent announcement:

PEXA Group Response to ARNECC Ministerial Forum:
National eConveyancing Statement

PEXA Group acknowledges the statement released today by the Australian Registrars National Electronic Conveyancing Council.
ARNECC advised industry that the interoperability program has been paused, and they are in the process of standing down their project team.

We continue to participate constructively with our regulators and industry participants to support and evolve an ecosystem that operates in the best interests of Australian home and property owners.

... all sounds a bit terse; are the regulators trying to improve a low volume, high stakes transaction ecosystem? PEXA works well, there is a fallback option so, do we need competition?
For a million dollar property settlement, cost is about $125 . All accounts are squared, trust accounts, conveyancers and seller / purchaser, money is there on the day.
.
PXA appeared on MIR top20 in May, but they've dropped a bit so timing wasn't spot on.