Table of Contents
What changed
Revenue halved, falling 47.6% to NZ$646.9k from NZ$1,234.9k, which the company attributes to COVID-19 disruption and stock impairment. Despite that top-line contraction, the statutory loss narrowed: PBT improved 21.0% to NZ$(925.2k) from NZ$(1,170.6k), and NPAT improved 26.0% to NZ$(455.6k) from NZ$(615.6k).
The cash picture moved decisively the other way. Net operating cash outflow widened to NZ$(481.8k) from NZ$(149.8k), a 221.5% deterioration, and cash and equivalents fell 98.3% to NZ$3.4k from NZ$197.9k. Gross borrowings of NZ$53.4k are now disclosed; no comparable prior figure is given. Total equity dropped 36.1% to NZ$1.64m, broadly consistent with the year's total comprehensive loss, and inventories were written down 23.8% to NZ$674.2k. No dividend was declared in either period.
What matters
- Liquidity is effectively exhausted. With NZ$3.4k of cash against NZ$53.4k of borrowings and a NZ$481.8k FY21 operating outflow, the business cannot fund another year on the current run-rate without either external capital, a sharp revenue recovery, or cost compression. This dominates every other line in the release.
- The narrower loss is not a cash-quality story. PBT improved by NZ$245.4k while operating cash outflow worsened by NZ$332.0k. The accounting improvement therefore flowed the wrong way into cash — cash conversion deteriorated materially.
- Equity base shrank by more than the reported NPAT. Equity fell NZ$925.2k against a reported NPAT loss of NZ$455.6k, pointing to additional charges taken through reserves or minority attribution that are not separately quantified in the extracts.
Expectations
No quantified FY22 target, forward order book, or management guidance figure was disclosed. Commentary references updated pricing and a livestreaming marketing strategy at AFCLV, but without revenue or margin targets these are narrative rather than testable claims. The release therefore supports neither a base-case recovery trajectory nor a defined break-even point.
What the release does support: revenue needs to multiply by a large factor — not grow incrementally — for the current cost base to be covered, given a PBT loss (NZ$925.2k) that exceeds annual revenue (NZ$646.9k).
Quality of result
Low. The reported earnings improvement is not translating into cash: operating outflow tripled while PBT improved only NZ$245.4k. The inventory write-down (inventories down NZ$210.4k) is a real non-cash hit but also explains part of why P&L losses narrowed relative to cash burn — impairment charges do not consume cash in the period. A NZ$6.9m translation-level FX adjustment disclosed in the cash flow statement is also material relative to the size of the P&L and suggests reported comparatives are sensitive to currency movement.
No non-GAAP or underlying profit reconciliation is provided, so there is no management-adjusted measure to test against the statutory numbers. The NPAT-versus-PBT gap (NZ$469.5k) is not tax-driven (effective tax is 0% in both years) and likely reflects non-controlling interest attribution, but this is not separately quantified in the extracts.
Unresolved
- What funding bridge, if any, is in place between the NZ$3.4k cash balance and the NZ$53.4k borrowings maturity profile?
- Why did equity fall NZ$925.2k when the attributable NPAT loss was only NZ$455.6k — specifically, what sits in the NZ$469.5k gap below PBT?
- Is the inventory write-down a one-off clean-up or indicative of further stock at risk in the remaining NZ$674.2k book?
- Are there any related-party receivables or payables inside the NZ$181.8k trade and related-party receivables line that affect the true liquidity position?
- What is the FY22 cash runway under management's own assumptions, and is capital raising contemplated?
This briefing cannot assess going-concern risk, recapitalisation plans, or solvency implications beyond what is arithmetically visible in the disclosed balance sheet.
Key metrics
| Metric | FY21 | FY20 | Change |
|---|---|---|---|
| Revenue | $646.9m | $1.2b | -47.6% ↓ |
| Net profit after tax | −$455.6m | −$615.6m | +26.0% ↑ |
| Net cash inflow from operating activities | −$481.8m | −$149.8m | -221.5% ↓ |
| Declared dividend per share | — | 0.0c | — |
| Operating profit | −$855.8m | −$1.1b | +23.7% ↑ |
| Profit before tax | −$925.2m | −$1.2b | +21.0% ↑ |
| Cash and cash equivalents | $3.4m | $197.9m | -98.3% ↓ |
| Total assets | $3.1b | $4b | -23.1% ↓ |
Analytical metrics
| Metric | FY21 | FY20 | Context |
|---|---|---|---|
| FCF pre-lease | −$481.8m | −$154m | −$327.8m |
| FCF / NPAT | 105.7% | 25.0% | complementary conversion metric |
| Capex % revenue | 0.0% | 0.3% | — |
| Capex | $0m | −$4.2m | +$4.2m |
| Net debt | $50m | — | — |
| Gross borrowings | $53.4m | — | — |
| Payout ratio vs NPAT | 0.0% | — | — |
| Payout ratio vs FCF pre-lease | 0.0% | — | covered |
| ROE (annualised) | -27.8% | -24.0% | Weakening |
| Profit from continuing operations | −$925.2m | — | — |
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.