Axiom Properties Reports $518K Cash Increase, $7M Land Sale Pending

Financial Position Strengthens with Cash Reserve Growth

Axiom Properties Limited (ASX: AXI) has reported a solid financial footing for the December 2024 quarter, with cash reserves climbing by $518,000 to a total of $1.858 million. This increase reflects the company’s ongoing efforts to balance its property development activities with its growing technology investments.

The company’s strategic management of its debt facilities played a key role in this outcome. Notably, the extension of Facility 1 to May 2025 aligns with the anticipated final settlement of the Mt Barker development, while Facilities 3 and 4, which support the ListSure and Payments Division, were extended to March 2025. These extensions provide Axiom with crucial liquidity and flexibility as it navigates its diverse operations.

ListSure Business Surges Post-Acquisition

The December quarter marked the first full financial quarter since Axiom’s complete acquisition of ListSure, a property technology business. ListSure outperformed budget expectations with record monthly loan originations, underscoring its rapid growth trajectory. The company is actively expanding its business development and go-to-market capabilities to capitalise on a robust pipeline of client and partnership opportunities projected to accelerate growth further in 2025.

Strategic integrations have been a highlight, including a partnership with a global property management technology provider managing over 500,000 properties and 2.5 million transactions across Australia. This integration supports ListSure’s diversification into payment management for residential rental properties, a move that broadens its service offering and revenue potential.

However, this expansion requires significant technology investments. Axiom anticipates additional capital expenditure over the next twelve months to support ListSure’s growth, with positive cash flow expected in the 2026 financial year.

Property Development Progress and Cash Flow Realisation

On the property development front, Axiom settled two remaining pad sites in Butler, Western Australia, generating approximately $1.3 million in net proceeds. The Mt Barker subdivision project, Glenlea, has matured sufficiently to allow joint venture partners to access surplus cash flow. To date, Axiom has received $1.7 million in development fees and proceeds, with an additional $1.2 million expected in the March 2025 quarter as lots settle and associated debt is repaid.

Significantly, the joint venture has executed an unconditional contract to divest approximately 11 hectares of development land to a Sydney-based residential property investor, with settlement scheduled for May 2025. This transaction is expected to yield around $7 million in net proceeds, half of which will accrue to Axiom.

Operational Centralisation and Strategic Outlook

Reflecting the East Coast-centric nature of its technology businesses, Axiom has centralised operations in its Sydney office to better support growth initiatives. The company continues to monitor its capital requirements closely, aiming to build a sustainable recurring income stream through its property technology investments, particularly ListSure and its payments division, which is underpinned by cornerstone customers like PropTech Labs.

While the company’s cash flow from operating activities was negative for the quarter, the combination of cash reserves, extended debt facilities, and expected proceeds from property transactions provides a runway of nearly 12 quarters of funding at current burn rates. This financial cushion positions Axiom to execute its growth strategy while managing operational risks.