Axtec Limited reported a 24% increase in half-year losses to $2.96 million as it accelerates its transition to a pure-play PropTech business, supported by strategic equity placements and convertible notes.
- 24% increase in half-year loss after tax to $2.96 million
- Completed $1.38 million equity placement with strategic investors
- Convertible notes worth $1.28 million committed for debt refinancing
- Annualised corporate cost reductions of approximately $400,000
- Key commercial milestones achieved in PropTech product rollouts
Financial Performance and Strategic Funding
Axtec Limited, formerly known as Axiom Properties, has reported a loss after tax of $2.96 million for the half-year ended 31 December 2025, marking a 24% increase compared to the previous corresponding period. This widening loss reflects the company’s ongoing transition from property development towards a focused PropTech business model.
During the period, Axtec successfully completed a $1.38 million equity placement involving strategic and sophisticated investors, including participation from Managing Director Ben Laurance and major shareholder Oriental University City Holdings (OUC). Additionally, a further $1.28 million was committed via convertible notes to refinance existing debt on more favourable terms and bolster the company’s balance sheet. These convertible notes, approved at the November 2025 AGM, carry a 10% annual interest rate and mature in December 2028.
Operational Highlights and Cost Management
The Group has implemented corporate head office cost reduction initiatives, trimming its annualised cost base by approximately $400,000. This cost discipline accompanies a $2.02 million repayment of debt during the half-year, signalling a focus on strengthening financial stability amid ongoing losses.
On the operational front, Axtec’s PropTech division achieved significant commercial milestones, notably launching embedded payments and lending products across enterprise partner channels. The rollout of PaySure’s Settlement Advance product through Secure Exchange and property management financing solutions with the Avi Khan Group represent important steps toward scaling distribution within established real estate ecosystems.
Strategic Outlook and Growth Prospects
Axtec is advancing strategic enterprise integrations across property management platforms and agency operating systems, aiming to expand its distribution reach and increase recurring platform licence revenues. These integrations are expected to drive higher platform utilisation and more predictable revenue streams in future periods.
Meanwhile, the company is managing the wind-down of its property development interests, including the Glenlea Estate project in Mount Barker, aligning with its strategic focus on PropTech. Directors remain confident that the current portfolio and pipeline of investments will deliver medium-term value for shareholders.
Despite the positive operational progress, the financial report highlights a material uncertainty regarding the company’s ability to continue as a going concern, given ongoing losses and cash outflows. However, management expresses confidence in raising additional funds if required and maintaining cost controls to support the next phase of growth.
Bottom Line?
Axtec’s strategic pivot to PropTech is gaining traction, but its path to profitability hinges on successful capital raises and scaling enterprise partnerships.
Questions in the middle?
- How soon will Axtec’s enterprise integrations translate into sustainable recurring revenues?
- What are the terms and investor appetite for further capital raises beyond the current convertible notes?
- How will the company manage liquidity risks given the material uncertainty around going concern?