Pre-lease FCF fell to NZ$-7.2m as gross borrowings rose 61.9% to NZ$34.0m

Operating cash flow turned from +NZ$2.1m to -NZ$5.4m, and capex rose 80% to NZ$1.8m (12.7% of revenue). To bridge the gap, gross borrowings rose 61.9% to NZ$34.0m and net debt nearly doubled to NZ$30.4m; cash slipped to NZ$3.6m from NZ$4.3m.

Revenue rose to NZ$14.2m from NZ$13.2m on what the release describes as record HY volumes, predominantly from Brazil (NZ$14.1m, 99.3% of revenue). EBITDA worsened to NZ$-2.1m from NZ$-0.5m and PBT widened to NZ$-2.0m from NZ$-1.5m. Total equity fell to NZ$125.5m from NZ$148.6m.

Operating working capital rose NZ$5.0m to NZ$48.5m and inventory built NZ$2.1m to NZ$48.8m, consistent with a seasonally weighted 2H selling period, but the resulting pre-lease FCF of NZ$-7.2m sits below the supplied historical HY range. This matters because prior HY working-capital builds have not consumed cash to this extent.

Leverage stepped up sharply. Gross borrowings rose to NZ$34.0m from NZ$21.0m and net debt nearly doubled to NZ$30.4m from NZ$16.7m. The NZ$13.0m of new debt exceeds the NZ$8.3m year-on-year FCF gap, suggesting funding was raised ahead of further 2H working-capital and inventory needs rather than just covering the HY shortfall.

Brazil now carries effectively the entire business. US revenue was NZ$0.1m against Brazil's NZ$14.1m. The release flags that the bulk of US sales are recognised in 2H26, so concentration may normalise across FY26, but the HY26 read-through to underlying earnings is single-geography.

If a similar shape holds, FY26 revenue should materially exceed the HY annualisation. However, FY25 NPAT was NZ$-21.5m with only NZ$-0.1m booked in HY25, meaning effectively the entire FY25 loss landed in 2H.

No FY26 guidance, quantified 2H expectation, or stated target was provided. The seasonal shape means an HY26 loss does not by itself signal FY26 deterioration, but it also offers no early read on whether 2H26 will repeat the heavy 2H25 NPAT outcome.

PBT margin at -14.1% is at the upper edge of the supplied historical HY range (mean -17.5%), and EBITDA of NZ$-2.1m, while weaker than HY25, is broadly consistent with the company's HY loss pattern given second-half-weighted revenue. The effective tax rate of 70.0% is above the historical baseline (mean -16.3%) and reflects tax accounting on a small pre-tax loss; PBT is therefore the cleaner read on underlying operating performance.

Where the result looks lower quality is the cash side. The NZ$7.5m OCF swing, the 80% step-up in capex, and a pre-lease FCF position below the historical HY range together pushed equity down NZ$23.1m and total assets to NZ$187.2m, below the company's historical HY asset baseline of NZ$198.6m. These movements need to reverse meaningfully in 2H26 for FY26 cash and balance-sheet metrics to look comparable to recent years.

This briefing cannot assess management's specific 2H26 revenue, margin, or working-capital expectations because no quantitative forward guidance or target was disclosed in the release.