Axiom Faces Cash Flow Pressure Despite PaySure Expansion and Pending Land Sale

Strong Momentum in Property Technology Division

Axiom Properties Limited (ASX:AXI) has delivered a robust quarterly update for the period ending 31 March 2025, with its Property Technology division, anchored by the fully integrated PaySure business, outperforming expectations. PaySure, acquired in June 2024, not only exceeded its net operating budget but also launched an innovative bridging loan product called Settlement Advance. This product is designed to assist property owners in managing the timing gap between buying and selling homes, aligning with Axiom’s strategic goal to support property owners throughout the homeownership lifecycle.

Late-stage discussions are underway with a leading legal technology provider to exclusively refer this product to their extensive network, signaling potential for significant distribution growth. Additionally, PaySure is expanding its embedded payment and lending solutions in partnership with a global property management technology provider, servicing over 500,000 properties and processing more than 2.5 million transactions across Australia.

Capitalising Growth with New $30 Million Debt Facility

To underpin this rapid expansion, PaySure secured a new $30 million wholesale debt facility on 10 April 2025, replacing previous smaller facilities. The facility carries a blended interest rate of 9.25% plus the midpoint of the 1-month BBSW, is secured, and matures in April 2028 with a two-year extension option. This substantial capital injection is expected to accelerate PaySure’s growth trajectory, although the business anticipates reaching positive cash flow only in the 2026 financial year due to ongoing technology investments.

In parallel, Axiom has negotiated extensions and new short-term loans totaling approximately $1 million to manage near-term liquidity, with repayments scheduled by late June 2025. These moves reflect a prudent approach to balancing growth ambitions with financial discipline.

Mount Barker Development Nears Completion, Unlocking Cash Flow

On the Property Development front, the Mount Barker subdivision project, Glenlea Estate, has matured sufficiently to generate surplus cash flow for the joint venture partners. During the quarter, Axiom received around $1.1 million in development fees and proceeds, with further settlements expected in the June quarter as lots from Stages 7 and 8 begin to settle. These proceeds have enabled the joint venture to fully repay the BankSA project financing used for constructing 28 allotments.

Significantly, the joint venture executed an unconditional contract to divest approximately 11 hectares of remaining development land to a Sydney-based residential property investor, with settlement anticipated by 20 June 2025. This transaction is expected to yield net proceeds of about $7.6 million, half of which will accrue to Axiom, providing a substantial liquidity boost.

Strategic Focus on Sustainable Recurring Income

Axiom continues to monitor its capital requirements closely, aiming to optimize its financial structure across its diverse activities. The company is actively pursuing initiatives to build a more sustainable recurring income stream, particularly through its property technology investments like PaySure. This strategic pivot reflects a broader industry trend where technology-enabled services offer scalable, predictable revenue compared to traditional property development cycles.

Despite a modest $200,000 decrease in cash reserves to $1.658 million during the quarter, Axiom’s total available funding stands at $2.733 million when factoring in unused finance facilities. The company’s management remains confident in its ability to meet operational needs and business objectives as it navigates the transition to a technology-driven growth model.