PEXA (PXA) -3.04%: Today announced a revised cost impairment for a one-off charge incurred this financial year. The impairment is based upon a deferred tax arrangement, they also revised tax expense:
- Specified minority impairment revised from $15-$20m range to $35-$40m
- Income tax expense revised from $13-$18m to $40-$45m
The business also announced the resignation of Australia CEO Les Vance. Given the company hired a new group CEO Russell Cohen effective 31 March, we don’t think this is a change to be concerned about.
The revisions do raise questions on the accounting side; they are substantial, however the costs are one-offs otherwise we may have seen a more significant selloff today.
- We hold the stock in our Emerging Companies portfolio – FY25 1H report 28 February.
MM remains long and bullish PXA
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