Assetora Cuts Losses to $3.35M as Revenue Falls 18% in FY2025
Assetora Limited reported a reduced loss of $3.35 million for FY2025 despite an 18% revenue decline, focusing on capital raising and fund growth to stabilize operations.
- Loss after tax narrowed to $3.35 million from $7.23 million
- Revenue fell 18% to $1.33 million due to slower fund growth
- Negative net liabilities improved but remain at $2.04 million
- Raised $1.75 million via convertible notes and equity injections
- No dividends declared; report unaudited but prepared on going concern basis
Financial Performance Overview
Assetora Limited has released its preliminary final report for the year ended 30 June 2025, showing a significant reduction in losses compared to the previous year. The company posted a loss after tax of $3.35 million, an improvement from a $7.23 million loss in FY2024. However, revenue declined by 18% to $1.33 million, reflecting a slowdown in the growth of funds under management (FUM) and a reduction in campaign management fees.
Revenue and Operational Challenges
The dip in revenue was primarily driven by slower expansion in FUM, which is crucial for Assetora’s fee income. Campaign management fees, which are charged on the initiation of new sub-funds, also decreased, impacting overall top-line performance. Despite these headwinds, the company remains focused on growing its FUM, particularly through its wholly owned subsidiary, Assetora Australia Pty Limited, which was appointed trustee of the DomaCom Fund in June 2025. The fund was re-opened in August 2025, signaling a strategic push to drive future revenue growth.
Capital Structure and Liquidity
Assetora’s balance sheet shows a net liability position of $2.04 million, an improvement from a $5.81 million deficit the prior year. This progress was supported by capital raising activities, including the issuance of $1.75 million in convertible notes and equity injections totaling over $3 million. The company also converted some unsecured convertible notes into shares, further strengthening its equity base. Despite these efforts, the company’s cash flow remains under pressure, with operating cash outflows of $3.03 million for the year.
Going Concern and Future Outlook
The report is unaudited and prepared on a going concern basis, with management emphasizing the importance of ongoing capital management and cost control. The company acknowledges material uncertainty regarding its ability to continue without successful capital injections and growth in fee revenue. Nonetheless, Assetora’s management is confident in its strategy to increase FUM and carefully monitor expenses to improve financial stability.
Dividend Policy and Investor Implications
No dividends were declared or paid during the year, consistent with the company’s focus on preserving cash and funding growth initiatives. Investors should note the company’s reliance on capital markets and operational turnaround to achieve profitability. The next phase will be critical in demonstrating the effectiveness of Assetora’s growth strategy and capital management.
Bottom Line?
Assetora’s narrowing losses and capital raises set the stage for a pivotal year focused on fund growth and financial stability.
Questions in the middle?
- Will Assetora successfully grow its funds under management to boost fee revenue?
- How will the company manage liquidity pressures amid ongoing operating losses?
- What impact will the upcoming audit report have on investor confidence?
