Finexia Financial Group has revised its FY25 financial results, increasing impairment losses on its Stayco investment and raising its total loss before tax to $6.82 million.
- Additional $2.2 million impairment on Stayco investment
- Total FY25 impairment on Stayco reaches $6.21 million
- Reported loss before tax rises to $6.82 million from $4.62 million
- Write-down of $543,039 on Dragonfly Biosciences receivable
- Audited FY25 financial statements to be released on 24 October 2025
Context of the Adjustment
Finexia Financial Group Limited has updated its preliminary financial statements for the fiscal year ended 30 June 2025, revealing a significant increase in impairment losses related to its investment portfolio. The company has recognised an additional $2.2 million impairment on its holding in The Stay Company Income Fund (Stayco), bringing the total impairment for this investment to $6.21 million for FY25.
This adjustment follows the initial impairment of $4 million disclosed in August 2025, reflecting ongoing challenges in the valuation of Stayco amid market uncertainties. The updated valuation information prompted the board to reassess and increase the impairment charge, signalling a more cautious outlook on the asset's recoverable value.
Financial Impact and Broader Write-Downs
The increased impairment has pushed Finexia’s reported loss before tax to $6.82 million, a notable rise from the previously announced $4.62 million. This widening loss underscores the pressures on the company’s investment portfolio and highlights the volatility in asset valuations within the financial services sector.
In addition to the Stayco impairment, Finexia has also written down a $543,039 receivable related to Dragonfly Biosciences, citing the unlikelihood of recovery. This write-down further weighs on the company’s balance sheet and reflects ongoing credit risk concerns within its loan assets.
Looking Ahead
The audited full-year financial statements incorporating these adjustments are expected to be released on 24 October 2025. Investors and analysts will be keen to review the detailed disclosures and assess the implications for Finexia’s future earnings and risk profile. The company’s cautious approach to valuation adjustments may signal a conservative stance amid uncertain market conditions, but it also raises questions about the underlying health of its investment holdings.
While the announcement does not elaborate on the drivers behind the further impairment or the strategic response, it sets the stage for a critical examination of Finexia’s asset quality and recovery prospects in the coming months.
Bottom Line?
Finexia’s increased impairments deepen FY25 losses, spotlighting asset valuation risks ahead.
Questions in the middle?
- What specific factors led to the additional $2.2 million impairment on Stayco?
- How will these write-downs affect Finexia’s investment strategy going forward?
- What is the outlook for recovery on the Dragonfly Biosciences receivable?