Table of Contents
What changed
Revenue rose 28.1% to $7.7m, PBT rose 78.3% to $0.4m, and NPAT rose 83.0% to $0.4m versus HY25. Operating cash flow, however, was flat at just $0.006m — identical to the prior comparable half — while cash on hand fell to $3.0m from $3.468m at HY25. The balance sheet shows where the earnings went: inventories more than doubled to $1.917m (up $1.1m, or 133.8%) and trade debtors grew 33.1% to $1.386m. Total assets expanded to $14.8m and equity to $12.8m; no interest-bearing borrowings were disclosed.
What matters
- Cash conversion is the dominant read. Reported profit accelerated meaningfully, but OCF of $0.006m against NPAT of $0.419m means essentially none of the reported earnings converted to cash this half. The offset is visible: operating working capital (receivables plus inventory, payables not disclosed) rose by roughly $1.4m.
- Inventory days jumped from 24.9 to 45.5. That is the single biggest swing in the working-capital picture and the mechanical reason cash did not follow the P&L. Whether this reflects a deliberate stock build ahead of a second-half revenue step-up, or slower-moving product, is the key quality question.
- PBT is the cleaner operating read. The effective tax rate of 5.6% (versus 8.0% in HY25) flatters NPAT growth slightly; PBT growth of 78.3% is the more conservative measure of underlying improvement.
Expectations
No quantitative guidance, forward-work balance, or stated target was disclosed. The seasonality context does, however, matter: in FY25 the first half carried only 47.4% of full-year revenue and 27.3% of full-year NPAT, so the business is demonstrably second-half-weighted. Annualising HY26 revenue gives $15.3m, about 21% above FY25's $12.6m, but that understates the likely full-year figure if the second-half skew repeats. Equally, FY25 operating cash flow of $1.794m was almost entirely earned in the second half ($1.788m implied), so today's $0.006m first-half OCF is not by itself evidence of deterioration versus shape — but it leaves the full-year cash outcome entirely dependent on a second-half unwind of inventory.
Quality of result
The P&L improvement looks real at the revenue line — 28.1% growth is well clear of any plausible pricing or FX noise — but the earnings quality is mixed. Three flags stand out. First, cash conversion has deteriorated materially: the OCF/NPAT relationship collapsed despite stronger profits. Second, the release references $0.8m of one-off items adjusted out of EBITDA, but no reconciliation was supplied, so the underlying EBITDA trajectory cannot be independently verified. Third, the low effective tax rate adds a small amount of lift to NPAT that will not necessarily repeat. The durable portion of the result is the revenue acceleration; the cash-quality portion is timing-driven and will only be validated if inventory converts to sales and receivables in the second half.
Unresolved
- What is the composition of the $0.8m of one-off EBITDA adjustments, and is the adjusted figure up or down year-on-year?
- Is the $1.1m inventory build a committed pre-build against confirmed second-half orders, or a demand-side slowdown?
- What is the B2B/B2C split this half, and how did each grow — the headline fragments mention both but no figures were supplied here.
- Why did the effective tax rate fall to 5.6%, and is a more normal rate likely in FY26 full year?
- With no borrowings disclosed and cash down $0.5m year-on-year, what is the internal view on liquidity headroom through the working-capital cycle?
This briefing cannot assess segment-level profitability, gross margin direction, or the underlying (ex one-off) EBITDA trajectory, because the supplied materials do not contain those disclosures.
Key metrics
| Metric | HY26 | HY25 | Change |
|---|---|---|---|
| Revenue | $7.7m | $6.0m | +28.1% ↑ |
| Net profit after tax | $0.4m | $0.2m | +83.0% ↑ |
| Net cash inflow from operating activities | $0.0m | $0.0m | flat |
| Profit before tax | $0.4m | $0.2m | +78.3% ↑ |
| Cash and cash equivalents | $3m | $3.5m | -13.5% ↓ |
| Total assets | $14.8m | $13.4m | +10.5% ↑ |
Reference: annolyse.ai/briefings/blt-hy26
Analytical metrics
| Metric | HY26 | HY25 | Context |
|---|---|---|---|
| PBT growth | +78.3% | — | cleaner earnings measure |
| Effective tax rate | 5.6% | 8.0% | — |
| Debtor days | 32.9 | 31.7 | +1.2 days |
| Inventory days | 45.5 | 24.9 | +20.6 days |
| Operating working capital | $3.3m | $1.9m | +$1.4m absorbed |
| Trade debtors | $1.4m | $1.0m | +$0.3m |
| Payout ratio vs NPAT | 0.0% | — | — |
| ROE (annualised) | 6.7% | 3.8% | Strengthening |
| HY25 share of FY25 revenue | 47.4% | — | Other half was 52.6% |
| HY25 share of FY25 NPAT | 27.3% | — | Other half was 72.7% |
| Profit from continuing operations | $0.4m | $0.2m | +$0.2m |
Reference: annolyse.ai/briefings/blt-hy26
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.