Table of Contents
What changed
Operating revenue rose 13.9% to $10.7M, driven by higher royalty income as system sales recovered from prior COVID lockdown disruption. PBT increased about 41.5% to $746.6K and NPAT rose about 36.5% to $552.3K, both well ahead of the top line, pointing to meaningful operating leverage at group level. Operating cash flow swung from roughly breakeven in HY21 to an inflow of $1.25M, while capex stepped up to $484.4K (about 4.5% of revenue, versus an immaterial level a year ago). The balance sheet remains debt-free with $7.4M of cash, and total equity sits at $11.5M.
What matters
- Margin expansion is concentrated in New Zealand. The dominant New Zealand segment generated a result margin of about 9.7% on $11.3M of segment revenue, versus roughly 4.1% in HY21. That is the main reason earnings grew faster than revenue.
- International went backwards sharply. On just $39.6K of revenue, the international segment delivered a $349.8K loss, versus a small prior-period profit. It is immaterial to revenue mix (about 0.3%) but a real drag on reported profit; without it, group PBT would have been materially higher.
- Net-cash position strengthened. Cash of $7.4M against no debt implies strongly negative net debt. With positive free cash flow of roughly $0.77M in the half, capital capacity is rising, though no dividend was disclosed in the supplied excerpts.
Expectations
No forward guidance, backlog, or stated target was provided in the release excerpts, so this briefing judges the half against seasonality only. Annualising HY22 revenue gives roughly $21.5M, about 11.4% above the FY21 anchor of $19.3M — a modest uplift in run-rate. Historically the second half has carried the bulk of earnings (HY21 was only about 7% of FY21 NPAT), so on pattern, the full year should deliver a materially larger profit than this first half. The release does not support a more precise FY22 shape call than that.
Quality of result
The result looks operationally driven rather than timing-assisted. The effective tax rate of about 26.0% (versus 23.2%) is normal, so PBT growth of 41.5% is the cleaner read and it is actually stronger than NPAT growth. Cash conversion improved sharply: OCF/EBITDA of about 76.5% and FCF covering NPAT roughly 1.4x. The main quality caveats are: receivable days lengthened from about 25.3 to 30.8, which consumed some working capital; the revenue growth headline is an adjusted figure (excluding IFRS 16 and government support income) without a full reconciliation in the extracted text; and the International loss, if it persists, is a recurring structural drag rather than a one-off.
Unresolved
- What is driving the $349.8K International loss on a trivial revenue base, and is it a step-up in investment, an impairment-like charge, or ongoing operating losses?
- What portion of statutory revenue reflects IFRS 16 and government support income, and how would growth look on a clean basis?
- Why did receivable days extend by roughly 5.5 days against a royalty-based revenue model, and is this a collection or timing issue?
- With $7.4M of cash, no debt, and positive FCF, what is the intended capital allocation — reinvestment in International, dividends, or accumulation?
This briefing cannot assess valuation, dividend policy, or customer/franchisee concentration because NTA per share, dividends, and concentration disclosures were not provided in the supplied materials.
Key metrics
| Metric | HY22 | HY21 | Change |
|---|---|---|---|
| Revenue | $10727.5m | $9.4m | +113671.8% ↑ |
| EBITDA | $1638.6m | $1.4m | +113141.9% ↑ |
| Net profit after tax | $552.3m | $0.4m | +136274.3% ↑ |
| Net cash inflow from operating activities | $1253.2m | −$0.2m | +716234.3% ↑ |
| Operating profit | $960.7m | $0.8m | +125651.4% ↑ |
| Profit before tax | $746.6m | $0.5m | +141576.5% ↑ |
| Cash and cash equivalents | $7360.9m | $6.8m | +108741.2% ↑ |
| Total assets | $40139.2m | $42.6m | +94110.1% ↑ |
Reference: annolyse.ai/briefings/bfg-hy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand | $11296.2m | $10.3m | $1096.4m | +1.5pp |
| International | $39.6m | $0.2m | −$349.8m | -1.5pp |
Reference: annolyse.ai/briefings/bfg-hy22
Analytical metrics
| Metric | HY22 | HY21 | Context |
|---|---|---|---|
| PBT growth | n/m | — | cleaner earnings measure |
| Effective tax rate | 26.0% | 23.2% | — |
| OCF / EBITDA (cash conversion) | 76.5% | -12.1% | stable |
| FCF pre-lease | $768.8m | −$0.3m | +$769.1m |
| FCF post-lease | $768.8m | −$0.3m | +$769.1m |
| FCF / NPAT | 139.2% | -76.8% | complementary conversion metric |
| Capex % revenue | 4.5% | 1.4% | — |
| Capex | $484.4m | −$0.1m | +$484.6m |
| Debtor days | 30.8 | 25.3 | +5.5 days |
| Inventory days | 12.1 | 13.3 | -1.2 days |
| Operating working capital | $2526.3m | $2.0m | +$2524.3m absorbed |
| Trade debtors | $1815.6m | $1.3m | +$1814.3m |
| Net debt | −$7360.9m | −$6.8m | −$7354.2m |
| Net debt / EBITDA | -4.49x | -4.67x | Strengthening |
| ROE (annualised) | 4.8% | 3.8% | Strengthening |
| HY21 share of FY21 revenue | 0.0% | — | Other half was 100.0% |
| HY21 share of FY21 EBITDA | 0.1% | — | Other half was 99.9% |
| HY21 share of FY21 NPAT | 0.1% | — | Other half was 99.9% |
Reference: annolyse.ai/briefings/bfg-hy22
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX 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.