Highlights

  • For the half-year ended 31 December 2025, Axtec reported no revenue from customer contracts, reflecting the near-complete exit from its legacy property development operations.
  • The company recorded a net loss after tax of $2.985 million, alongside net operating cash outflows of $2.099 million.
  • BDO Audit Pty Ltd included an emphasis of matter regarding material uncertainty related to going concern.

Axtec Limited (ASX:AXI), formerly known as Axiom Properties Limited, is an ASX-listed company undergoing a strategic transformation from traditional property development to property technology (PropTech).

Historically focused on residential land development, the company has progressively wound down its legacy property projects to concentrate on building and commercialising a technology platform aimed at digitising and automating elements of the property transaction lifecycle.

At the time of writing on 27 February 2026, AXI share price jumped 7.14% to AUD 0.015 per share.

Financial Performance: Losses Widen as Revenue Falls to Zero

For the six months ended 31 December 2025, Axtec reported:

  • Net loss after tax: $2.985 million
  • Loss attributable to owners: $2.962 million
  • Revenue from contracts with customers: $0

The absence of revenue marks a significant shift from the prior corresponding period, when property development activities — particularly the Glenlea Estate project in South Australia — generated sales and rental income.

The company’s primary income sources during the half-year were:

  • Finance income: $391,000
  • Other income: $396,000 (including grant income and fair value movements)

The result reflects the near-complete exit from property development operations, with the business now primarily incurring costs associated with its technology platform and corporate structure.

Expense Profile: Cost Reductions Offset by Technology Charges

Axtec reported mixed movements across expense categories:

  • Employee benefits expense: Reduced to $944,000
  • Legal and consulting costs: Reduced to $226,000
  • Depreciation and amortisation: Increased to $299,000
  • Other expenses: $1.288 million
  • Finance costs: $744,000

The decline in employee and advisory costs aligns with management’s cost reduction initiatives following the corporate restructuring. However, amortisation of technology-related intangible assets and fair value adjustments contributed to ongoing losses.

Finance costs remain elevated, reflecting the company’s continued reliance on debt funding during its transition phase.

Balance Sheet: Lower Cash, Rebalanced Debt

As at 31 December 2025:

  • Total assets: $13.006 million
  • Cash and cash equivalents: $1.250 million
  • Total liabilities: $6.621 million
  • Net assets: $6.386 million

Cash balances declined materially during the half, while restricted cash increased. Trade and other receivables rose, partly due to a convertible note receivable linked to funding commitments from the Managing Director and a major shareholder.

Intangible assets — primarily the company’s technology platform and goodwill — declined due to amortisation. Investments accounted for under the equity method also decreased following distributions and share of losses from joint ventures and associates.

Borrowings shifted in structure during the period, with current debt reduced and non-current borrowings increasing following refinancing arrangements.

Net tangible assets per security fell to 0.73 cents.

Going Concern Disclosure

The half-year report includes a material uncertainty related to going concern.

In its review, BDO Audit Pty Ltd highlighted that Axtec’s financial position and operating cash outflows may cast significant doubt on the group’s ability to continue as a going concern. The auditor’s conclusion was not modified, but an emphasis of matter paragraph was included.

During the half-year, the group recorded net operating cash outflows of $2.099 million.

Management identified funding commitments — including unsecured convertible notes bearing 10% interest and maturing in December 2028 — as part of its liquidity planning. Existing debt facilities were extended into early 2026.

PropTech Division: Platform Development and Commercial Rollout

Axtec’s strategic focus is now centred on its technology platform, described as an AI-enabled system integrating payments, lending, and workflow automation across the property lifecycle.

During the period, the company reported:

  • Launch of embedded payments and lending products through enterprise partner channels
  • Deployment of settlement advance and property management financing solutions
  • Ongoing integrations with property management and transaction workflow platforms

Technology-related intangible assets were reported at $2.037 million (net of amortisation and impairment).

While commercial integrations are progressing, the technology segment did not generate material revenue during the half-year.

Segment Reporting: Property Wind-Down Near Completion

Segment disclosures show the continued contraction of the Property division:

  • Property segment: Loss of $523,000; assets of $337,000
  • Technology segment: Loss of $967,000; assets of $9.917 million
  • Corporate segment: Loss of $1.494 million

The property segment is approaching completion as remaining development activities are finalised.

Capital Management: Equity Placement Completed

During the half-year, Axtec completed a $1.379 million equity placement at 1.5 cents per share, issuing approximately 91.9 million new shares. After transaction costs, net proceeds were $1.280 million.

Total shares on issue increased to 524,613,658.

  • Basic and diluted loss per share: 0.65 cents
  • Dividends: None declared

Joint Ventures and Associates

Axtec maintains interests in several entities associated with its legacy property and technology investments:

  • 50% interest in MB Estate Pty Ltd (land subdivision joint venture)
  • 50% interest in Proffer Group Pty Ltd (technology venture)
  • 33.33% associate interest in PointData Holdings Ltd (property data and analytics)

Carrying values declined during the period due to distributions, impairments, and share of losses.

Axtec Limited’s H1 FY26 results reflect the final stages of its exit from property development and its transition toward a technology-focused business model. The financial statements show widening losses, zero operating revenue, declining cash reserves, and a material going concern uncertainty.

At the same time, the company continues to invest in and commercialise its PropTech platform, with integrations and embedded finance products progressing through partner channels.

Frequently Asked Questions (FAQs)

  1. Why did Axtec report zero revenue?

The company has wound down its property development activities, which previously generated land sales and rental income. Its technology platform has not yet generated material customer revenue during the half-year.

  1. What is the company’s current business focus?

Axtec is now focused on its PropTech platform, which integrates payments, lending, and workflow automation tools designed for property transactions and management.

  1. What does the going concern disclosure mean?

The going concern disclosure indicates that there is material uncertainty regarding the company’s ability to continue operating without raising additional capital or securing further funding. The auditor did not modify its opinion but highlighted this risk.

  1. How is Axtec funding its operations?

During the period, the company completed an equity placement and secured convertible note commitments. It also extended certain debt facilities to manage near-term liquidity.

  1. What segments does Axtec currently report?

The company reports three segments:

  • Technology
  • Property (winding down)
  • Corporate

The Property segment is expected to be phased out as remaining activities conclude.

  1. Did the company pay a dividend?

No dividends were declared or paid for the half-year ended 31 December 2025.