NSX Limited Posts 5.1% Revenue Rise but Net Loss Edges Up to $4.15M
NSX Limited reported a 5.1% rise in revenue to $1.55 million for FY2025, yet its net loss edged up slightly to $4.15 million amid a significant joint venture divestment and ongoing financial uncertainties.
- Revenue increased 5.1% to $1.55 million
- Net loss after tax rose 1.0% to $4.15 million
- No dividends declared or paid for the year
- Divestment of 41% stake in ClearPay Pty Ltd joint venture
- Audit report flagged material uncertainty on going concern
Financial Performance Overview
NSX Limited, the operator of the National Stock Exchange, has released its preliminary final report for the year ended 30 June 2025, showing a modest revenue increase alongside a slightly higher net loss. Revenues from ordinary activities rose by 5.1% to $1.55 million, reflecting some growth in the company’s core operations.
However, this revenue growth was not enough to offset expenses, with the net loss after tax increasing by 1.0% to $4.15 million. This marks a continuation of losses for the company, which has yet to return to profitability.
Strategic Divestment and Asset Position
During the year, NSX Limited divested its 41% interest in ClearPay Pty Ltd, a joint venture that had previously contributed to the group’s activities. The divestment, completed in December 2024, signals a strategic shift away from this associate, though the financial impact on the group’s overall results was not separately disclosed.
The company’s net tangible assets per ordinary security declined further to negative 0.76 cents, down from negative 0.17 cents the previous year. This deterioration underscores ongoing balance sheet pressures and raises questions about the company’s capital structure and asset base.
Audit and Going Concern Considerations
NSX’s financial statements were audited with an unmodified opinion, indicating compliance with accounting standards. However, the auditor’s report included a material uncertainty paragraph regarding the company’s ability to continue as a going concern. This disclosure highlights risks related to liquidity and operational sustainability that investors should monitor closely.
No dividends were declared or paid during the year, consistent with the company’s loss-making position and cautious capital management approach.
Looking Ahead
While NSX Limited has managed to grow its revenue modestly, the persistence of losses and the going concern warning suggest that the company faces significant challenges ahead. Investors will be keen to see management’s plans to improve profitability, strengthen the balance sheet, and clarify the company’s strategic direction following the ClearPay divestment.
Bottom Line?
NSX’s modest revenue gains are overshadowed by rising losses and financial uncertainty, setting the stage for a critical year ahead.
Questions in the middle?
- What specific measures is management taking to address the going concern uncertainty?
- How will the ClearPay divestment impact NSX’s future revenue streams and cost structure?
- Is there any prospect or timeline for returning to profitability or resuming dividends?
