Axiom Faces Uncertainty Amid Digital Classifieds Group Administration Despite Strong Cash Flow

Strong Cash Position and Operational Highlights

Axiom Properties Limited (ASX, AXI) has reported a solid quarter ending June 2025, with cash reserves increasing by $1.67 million to $3.325 million. This improvement reflects a combination of operational successes and strategic financial management across its property development and technology divisions.

PaySure Driving Growth and Innovation

The company’s fully integrated PaySure business, acquired last year, continues to be a key growth engine. PaySure’s net operating results exceeded budget expectations this quarter, underpinned by the launch and ongoing development of a bridging loan product called Settlement Advance. This product aims to assist property owners in managing the timing gap between buying and selling homes, aligning with Axiom’s broader strategy to support property owners throughout their ownership lifecycle.

Notably, PaySure is in advanced commercial discussions with a leading legal technology provider to secure exclusive referral rights to their extensive network of property owners, potentially expanding PaySure’s market reach significantly.

Financial Backing to Accelerate Growth

To fuel this expansion, PaySure secured a new $30 million wholesale debt facility in April 2025, replacing previous credit arrangements. This facility, secured against PaySure’s assets, carries an interest rate of approximately 9.25% plus a benchmark rate and matures in 2028 with an option to extend. The new funding structure enables Axiom to capitalise on its distribution agreements and accelerate operational growth.

Completion of Mt Barker Development and Project Updates

On the property development front, Axiom completed settlements for Stages 7 and 8 of its Glenlea Estate subdivision in Mt Barker, along with the remaining development land. This milestone generated approximately $3.7 million in development fees and proceeds, marking the successful conclusion of this project. The company is now managing the return of bank guarantees related to the project, with construction elements expected to wrap up over the next year.

Conversely, Axiom exited the Mt Gambier Large Format Retail project after stakeholder disagreements over access and servicing arrangements proved irresolvable. The company received a full refund of its $500,000 deposit, removing any further exposure to this venture.

Other Investments and Outlook

While most of Axiom’s other property technology investments performed as expected, its stake in Digital Classifieds Group entered administration during the quarter. The final outcome remains uncertain, though the company remains hopeful of recovering value through the ongoing process.

Overall, Axiom maintains a strong liquidity position with total available funding of $31.1 million, combining cash reserves and unused financing facilities. The company continues to focus on building sustainable recurring income streams, particularly through its PaySure platform, which has attracted significant interest from industry players in payments processing and lending.