Assetora Slashes Losses by 54% and Reopens Key Fund for Growth
Assetora Limited reports a dramatic 54% reduction in net losses and strengthens its balance sheet, setting the stage for growth with the reopening of the DomaCom Fund.
- Net loss reduced by 54% to $3.35 million in FY25
- Net liabilities cut from $5.81 million to $2.04 million through equity conversion
- Other income boosted by $0.98 million R&D rebate
- DomaCom Fund reopened, providing stable recurring management fees
- Strategic focus on expanding Funds Under Management across multiple asset classes
Financial Turnaround
Assetora Limited (ASX – AOH) has delivered a notable improvement in its financial performance for the fiscal year ended June 30, 2025. The company reported a net loss of $3.35 million, a sharp 54% reduction from the $7.23 million loss recorded the previous year. This progress was driven by disciplined cost management and a meaningful boost from non-dilutive income streams, including a $0.98 million research and development rebate.
Despite a slight dip in revenue to $1.33 million from $1.64 million in FY24, Assetora’s strategic moves have strengthened its balance sheet considerably. Net liabilities were reduced from $5.81 million to $2.04 million, largely due to the conversion of borrowings and convertible notes into equity. This shift not only lowers financing costs but also enhances the company’s financial flexibility going forward.
Operational Momentum
A key operational highlight was the appointment of Assetora Australia Pty Ltd as trustee of the DomaCom Fund in late June 2025. The fund’s reopening to new business in August marks a pivotal step in Assetora’s growth strategy. The DomaCom Fund provides a stable base of recurring management fees, which is critical for the company’s revenue predictability and long-term sustainability.
Assetora is also focused on expanding its Funds Under Management (FUM) across several verticals, including property, private credit, and alternative assets. This diversified approach aims to capture growth opportunities in multiple sectors, potentially driving higher recurring fee income as the pipeline of new sub-funds and inflows develops.
Looking Ahead
Chairman Giuseppe Porcelli described FY25 as a turning point for Assetora, highlighting the company’s improved cash position and reset platform for growth. The outlook is cautiously optimistic, with expectations that growth in FUM will translate into increased recurring revenue. Cost discipline remains a priority to maintain operating leverage improvements, while further opportunities to convert liabilities into equity could continue to strengthen the balance sheet and reduce financing costs.
While the company has made significant strides, the path to sustainable profitability will depend on successful execution of its growth strategy and maintaining financial discipline in a competitive fund management landscape.
Bottom Line?
Assetora’s financial reset and fund reopening set the stage, but execution will determine if growth momentum can be sustained.
Questions in the middle?
- How quickly can Assetora grow its Funds Under Management to boost recurring fees?
- Will further equity conversions continue to reduce financing costs effectively?
- Can the company maintain cost discipline while scaling operations?
