How Is Axiom Properties Transforming with $30M PropTech Boost?

Financial Performance and Strategic Shift

Axiom Properties Limited (ASX, AXI) has reported a significant improvement in its financial results for the year ended 30 June 2025, reducing its net loss by 55% to $2.25 million. This marks a notable step forward from the $5.25 million loss recorded in the previous year, reflecting the company’s ongoing efforts to streamline operations and pivot towards the burgeoning Property Technology (PropTech) sector.

The company’s traditional property development activities remain a core part of its business, with the successful completion and sale of the Glenlea Estate residential subdivision project in Mount Barker, South Australia. The sale of the remaining allotments and surplus land to a third party generated gross revenues of approximately $15.8 million for the joint venture, providing substantial cash flow and enabling distributions to partners. This milestone effectively concludes Axiom’s active development role in the project, allowing management to focus on finalising remaining construction and administrative tasks.

PropTech Expansion and Operational Consolidation

Parallel to its property development activities, Axiom has intensified its focus on PropTech investments, aiming to build a scalable, recurring revenue business model. The company’s technology division has made significant progress, highlighted by a 78% year-on-year revenue growth in its PaySure platform. PaySure, a payments and lending solution tailored for the real estate sector, secured a $30 million wholesale debt facility from Manning, a domestic credit fund manager, to support its expansion and loan origination activities.

In addition to financial backing, Axiom has expanded PaySure’s product suite to include property management solutions, positioning the company as a provider of comprehensive, pay-on-success technology offerings. The company is also actively pursuing distribution partnerships and client agreements, with initial revenue impacts from these collaborations expected to materialise in FY26. This strategic consolidation aims to improve operational efficiencies and accelerate adoption of AI-enabled workflow solutions across the property industry.

Corporate Governance and Leadership Changes

The year also saw notable changes in Axiom’s leadership and board composition. Long-serving executives Paul Rouvray (former CEO of Property Development) and Paul Santinon (former CFO) departed, with Michael Alperstein stepping in as the new CFO. On the board, non-executive directors John Sylvester Howe and Tracy Le resigned, while the company continues to benefit from the guidance of Chairman James Glen Service AM and other directors.

These changes reflect Axiom’s strategic evolution and the company’s commitment to aligning its leadership with its dual focus on property development and technology innovation. The board expressed confidence in the management team’s ability to execute the company’s vision and create long-term shareholder value.

Financial Position and Outlook

As at 30 June 2025, Axiom reported total assets of $38.4 million and net assets of $8.1 million, with cash and cash equivalents increasing to $3.1 million. The company continues to manage its capital structure prudently, having repaid $2 million in borrowings shortly after the reporting period. Despite the improved financial position, the auditors noted a material uncertainty regarding the company’s ability to continue as a going concern, highlighting the need for ongoing capital management and operational discipline.

Looking ahead, Axiom remains optimistic about its prospects in both property development and PropTech. The company plans to leverage its technology investments to generate recurring revenues and reduce reliance on the cyclical nature of property development earnings. Strategic partnerships, product innovation, and market expansion are expected to drive growth as the real estate industry increasingly embraces digital solutions.