• Commenced strategic review of Digital Solutions business
• Revised guidance for specified items, depreciation & amortisation, and income tax expense
• Exiting some non-core, minority investments within Digital Solutions

PEXA Group Limited (ASX: PXA) has announced that it has commenced a strategic review of its Digital Solutions businesses. The review follows an initial assessment by the new CEO, Russell Cohen, who has realigned PEXA's capital allocation strategy to take a more targeted approach and no longer invest in non-core digital products or investments. As part of the strategic review, PEXA is considering a number of outcomes, including the review of divestment opportunities of selected majority and minority investments, as well as the need to contribute further investment in the underlying business to maximize profitable growth. The strategic review has already resulted in the decision to exit some select non-core, minority investments within the Digital Solutions business. PEXA has also revised its guidance for specified items, depreciation & amortisation, and income tax expense for FY25. The company will recognize a non-cash impairment charge of between $31 million to $35 million, largely related to interoperability intangible software, Digital Solutions investments and related products, and other less material intangible assets. Additionally, PEXA has revised its depreciation and amortisation guidance upwards and its income tax expense guidance downwards. The company will also make minor changes to the presentation of its Profit and Loss account to provide additional transparency to investors.

PEXA has revised its guidance for specified items to $66m to $70m for FY25 (from $35m to $40m), its depreciation & amortisation guidance to $103m-$105m (from $98m-$102m), and its income tax expense guidance to $36m-$37m (from $40m-$45m) for FY25.