PEXA’s 2022 Annual General Meeting took place in Melbourne today, on the back of good operational and financial performance in FY22 and a positive start to FY23.
Favourable market conditions, combined with transfer market sharing growth to 85%, saw a 22% increase in PEXA Exchange volumes across the financial year.
This result was spearheaded by a strong first 12 months in the ACT and continued success in the Queensland market, which saw record-highs in property settlements.
This helped contribute to overall revenue totalling $280 million – up 27% year-on-year and 13% on the Prospectus forecast.
International expansion continuing to ramp up
Q1 FY23 saw PEXA officially go live in the UK, with the first remortgaging transaction completed by Hinckley & Rugby Building Society – inside two years of the initiative’s launch.
Shawbrook Bank is slated to follow suit before the end of the calendar year.
Additionally, PEXA acquired British remortgage processing firm Optima Legal – one of the largest mortgage processing firms in the UK, with completion expected at the end of this month. It holds approximately 22% share of the remortgage market and has relationships with six of the UK’s top eight lenders.
Looking forward, PEXA is working towards having four lenders transacting on the PEXA UK platform, as well as having signed up lenders representing 20% of the England and Wales remortgage market volumes by the end of FY23.
Positive outlook for FY23
While the Australian property market continues to navigate a series of interest rate increases, its foundations remain robust, underpinned by strong economic fundamentals – high household savings rates, low levels of unemployment and increasing inward migration.
Q1 FY23 PEXA Exchange volumes experienced marginal declines, down 7% from FY22 but were up 36% from FY21 – while refinancing volumes remain continued to hold firm, on the back of longer-term fixed mortgage rates now falling.
Speaking after the event, PEXA Group Managing Director and CEO Glenn King said: “PEXA is well positioned for the remainder of FY23. EBITDA growth is set to be generated by continued market share growth in Queensland and Western Australia, entering new markets in Tasmania and Northern Territory, potential reforms to stamp duty and further enhancements to our platform, which will drive operational efficiencies.
“This is in addition to the three key growth initiatives that we believe will deliver significant revenue in the years ahead: PEXA International, PEXA Insights and PEXA Ventures. Our focused growth strategy and commitment to our values, our people and our community was the catalyst behind our performance in FY22 and will be the driving force behind the progression of these initiatives throughout the rest of the financial year and beyond.”
To access both the AGM presentation and Chairman/CEO address, please visit our Investor Centre.