Being AI winds down to a shell after divesting all operating assets

This is not a like-for-like trading result: it reflects the final unwind of a group that generated $40.99 million of revenue in FY25.

Reported NPAT swung to $7.0 million from a loss of -$11.5 million, a headline gain of +160.8%, but this was driven almost entirely by profit recognised on discontinued operations rather than by any operating improvement. Profit before tax improved by +87.3% to -$1.5 million from -$12.0 million, and this is the cleaner read given the continuing-operations loss of -$1.6 million that sat alongside the discontinued-operations gain.

Total assets fell to $0.1 million from $21.6 million and gross borrowings fell to zero from $16.2 million, consistent with a company that has sold down its balance sheet rather than delevered an ongoing business.

Asset sale adds balance-sheet context, with NZ$3.9m disclosed value, but borrowings and gearing are the direct leverage evidence.

With revenue at zero and total assets of $0.1 million, prior-period segment results, margins, and cash-flow patterns are not predictive of anything going forward; the entity's economic reality is now a residual-value question, not an operating one.

The NPAT headline overstates underlying performance. The +160.8% NPAT growth and +87.3% PBT growth are driven by discontinued-operations gains rather than continuing trading, so anyone reading NPAT alone would materially misjudge the state of the core business, which still lost -$1.6 million from continuing operations.

Cash conversion deteriorated even as losses narrowed. Operating cash flow was -$0.8 million against an EBITDA loss of -$1.5 million, a conversion ratio of 55.6%, down from 121.6% in the prior year, while cash on hand fell -78.3% to $0.1 million from $0.4 million. This matters because the company now has minimal liquid resources to fund any residual activity or wind-down costs.

The half-year context period showed an operating EBITDAI profit of $0.7 million from continuing operations on $17.4 million of revenue, underscoring how completely the group's shape changed within the year; the FY26 full-year revenue and asset base cannot be reconciled to that interim shape as a continuing trend.

The positive NPAT is a one-off accounting outcome of gains recognised on disposals, not evidence of recurring earnings power.

Working capital normalised only because there is almost nothing left on the balance sheet to manage: trade debtors fell -100.0% to zero and inventories fell -99.8%, alongside total liabilities down -99.0% to $0.3 million. None of these balance-sheet movements should be read as an efficiency gain; they are the mechanical result of asset and liability disposal, and the cash position of $0.1 million leaves very little cushion for any further costs.

This briefing cannot assess the company's post-divestment strategy or the ultimate cash realisable for shareholders, because no forward plan or valuation basis was disclosed in the reviewed materials.