Table of Contents
What changed
Revenue rose 25.4% to NZ$5.989m (HY24: NZ$4.777m), with the release describing both B2B and B2C contribution (B2C +29% to NZ$2.2m per excerpt). PBT swung by NZ$0.919m from a NZ$0.670m loss to a NZ$0.249m profit, and NPAT swung by NZ$0.899m to NZ$0.229m. EBITDA, per the release commentary, was approximately NZ$0.3m compared with a NZ$0.6m loss in HY24.
Against this P&L turnaround, net cash inflow from operating activities was unchanged at NZ$0.006m. Closing cash fell to NZ$3.468m from NZ$3.902m at HY24, although the balance sheet remains ungeared with no borrowings disclosed. Total equity increased to NZ$11.713m (HY24: NZ$10.165m) and total assets to NZ$13.361m.
What matters
- Operating leverage is real at the EBITDA line but has not reached cash. A NZ$1.2m revenue uplift produced roughly NZ$0.9m of EBITDA improvement, yet operating cash flow did not move. Receivable days actually improved (31.6 vs 37.9) and inventory days tightened (24.9 vs 31.0), so the cash result is not a working-capital build — it points to non-cash items or timing within payables that are not disclosed.
- The bottom line is flattered slightly by a low tax charge. PBT growth of 137.2% is the cleaner read; NPAT growth of 134.2% benefits from an effective tax rate of only 8.0% in the current half versus no tax expense on the prior loss. The gap is small but worth noting if tax normalises.
- Balance sheet direction is stable rather than strengthening. Equity grew NZ$1.5m on retained earnings and other reserve movements, but cash shrank NZ$0.4m. There is no debt to service and no dividend declared, so the cash drawdown reflects investing/financing activity not quantified in the supplied excerpts.
Expectations
No quantitative HY25 or FY25 guidance, forward-work balance, or stated target has been disclosed in the supplied materials.
On shape, FY24 was heavily second-half weighted: HY24 contributed only 41.4% of FY24 revenue and NPAT was negative in HY24 before swinging to a NZ$1.316m implied H2 figure. If that seasonality repeats, HY25 at NZ$5.989m annualises to NZ$11.978m — only marginally above FY24's NZ$11.526m — which would understate the run-rate. The release does not state whether the same H2 skew is expected.
Quality of result
The earnings improvement looks genuine at the revenue and gross-profit level — top line grew 25.4% with working-capital days tightening rather than loosening, which argues against channel stuffing or receivables stretch. However, the durability case is weakened by two observations. First, operating cash flow did not follow EBITDA, and no reconciliation from the stated NZ$0.3m EBITDA to the NZ$0.006m operating cash figure is provided. Second, the release excerpt notes EBITDA and the surplus are "both stated after inclusion of NZ$0.3m" of something (excerpt truncated) — without the full sentence the nature of that item, and whether it is recurring, cannot be judged. The effective tax rate of 8.0% is unlikely to persist if profitability continues.
Unresolved
- What is the NZ$0.3m item the release says is "included" in both surplus and EBITDA, and is it recurring?
- Why did operating cash flow stay at NZ$0.006m when EBITDA improved by roughly NZ$0.9m, given receivable and inventory days both improved?
- What drove the NZ$0.4m year-on-year decline in closing cash given there is no dividend and no debt repayment?
- Will the historical H2 revenue weighting repeat in FY25, and does management have any forward-work or royalty pipeline visibility?
- Is the 8.0% effective tax rate a function of prior losses being utilised, and when does it normalise?
This briefing cannot assess segment-level profitability, capex intensity, free cash flow, customer concentration, or the specific composition of the NZ$0.3m item referenced in the release commentary, as none were disclosed in the supplied materials.
Key metrics
| Metric | HY25 | HY24 | Change |
|---|---|---|---|
| Revenue | $6.0m | $4.8m | +25.4% ↑ |
| Net profit after tax | $0.2m | −$0.7m | +134.2% ↑ |
| Net cash inflow from operating activities | $0.0m | $0.0m | flat |
| Profit before tax | $0.2m | −$0.7m | +137.2% ↑ |
| Cash and cash equivalents | $3.5m | $3.9m | -11.1% ↓ |
| Total assets | $13.4m | $12.0m | +11.8% ↑ |
Reference: annolyse.ai/briefings/blt-hy25
Analytical metrics
| Metric | HY25 | HY24 | Context |
|---|---|---|---|
| Effective tax rate | 8.0% | n/m (loss period) | prior loss period |
| OCF / EBITDA (cash conversion) | 2.0% | -1.0% | stable |
| Debtor days | 31.6 | 37.9 | -6.3 days |
| Inventory days | 24.9 | 31.0 | -6.1 days |
| Operating working capital | $1.9m | $1.8m | +$0.1m absorbed |
| Trade debtors | $1.0m | $1.0m | +$0.0m |
| Net debt | −$3.5m | −$3.9m | +$0.4m |
| Net debt / EBITDA | -11.56x | — | Weakening |
| Gross borrowings | — | $0.0m | — |
| Payout ratio vs NPAT | 0.0% | — | — |
| ROE (annualised) | 2.1% | -6.2% | Strengthening |
| HY24 share of FY24 revenue | 41.4% | — | Other half was 58.6% |
| HY24 share of FY24 NPAT | -103.7% | — | Other half was 203.7% |
| Profit from continuing operations | $0.2m | −$0.7m | +$0.9m |
Reference: annolyse.ai/briefings/blt-hy25
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.