Nexion Group Cuts FY25 Loss by 60%, Raises $730K in Convertible Notes
Nexion Group Ltd has reported a significantly reduced net loss for FY25, driven by major asset sales and a strategic pivot towards AI and business intelligence. The company’s divestments are expected to strengthen its balance sheet and provide steady cash inflows.
- Net loss narrowed to $768K from $1.92M in prior year
- Datacentre and managed services classified as discontinued operations
- Sale of Nexion W1 DC to Carrier Connect completed for $2.5M
- Pending sale of Nexion Networks and Blue Sky Telecom to Pier DC
- Convertible notes raised $730K; further notes issued post year-end
Financial Performance and Asset Sales
Nexion Group Ltd (ASX, NNG) has reported a net loss of $768,139 for the year ended 30 June 2025, a marked improvement from the $1,922,780 loss recorded in FY24. This progress comes amid significant restructuring, including the classification of its datacentre and managed services businesses as discontinued operations following sale agreements.
In July 2025, Nexion completed the sale of its wholly owned subsidiary Nexion W1 DC Pty Ltd to Carrier Connect Data Solutions Inc. for $2.5 million. This transaction included upfront cash payments and a vendor finance loan, providing the company with a recurring revenue stream. Subsequently, Nexion entered into a Share Purchase Agreement to sell Nexion Networks Pty Ltd and Blue Sky Telecom Pty Ltd to Pier DC Pty Ltd, with completion expected by the end of Q1 FY26.
Strategic Shift and Capital Raising
These divestments are designed to significantly reduce Nexion’s liabilities, leaving the company with vendor finance loans totaling $2.88 million and ongoing contracts such as the maintenance of the Belmont datacentre. The company also raised $730,000 through convertible notes during the year, with additional notes issued after year-end, bolstering its liquidity position.
Looking forward, Nexion plans to focus on its AI and business intelligence operations through its subsidiary FuseForward Pty Ltd. The company aims to leverage cutting-edge technology to enhance enterprise efficiency and data-driven decision-making, while actively pursuing new acquisitions aligned with its strategic objectives.
Governance and Market Status
The company remains suspended from trading on the ASX since April 2024 but is working diligently to meet listing requirements for reinstatement. The audited financial statements highlight material uncertainty regarding Nexion’s ability to continue as a going concern, primarily due to net liabilities and negative working capital. However, management is confident that the completed and pending transactions will strengthen the financial position sufficiently to support ongoing operations.
Governance disclosures reveal a board comprising three directors, with Executive Chairman Peter Christie leading the company through this transitional phase. The board continues to monitor risk management, corporate governance, and compliance with ASX continuous disclosure obligations.
Bottom Line?
Nexion’s successful asset sales and pivot to AI mark a critical turning point, but investors will watch closely for timely completion of pending deals and ASX reinstatement.
Questions in the middle?
- Will the Pier DC transaction complete on schedule and on terms favorable to Nexion?
- How will the company’s AI and business intelligence focus translate into revenue growth?
- Can Nexion meet its convertible note obligations without further dilution or refinancing?
