Table of Contents
What changed
Revenue rose 265.1% to NZ$57.2m from NZ$15.7m, with PBT up 308.5% to NZ$51.7m and NPAT up 317.7% to NZ$52.3m. For an investment vehicle of this shape (total assets NZ$188.5m, equity NZ$185.7m, trade receivables of NZ$0.008m, disclosed dividend income of only NZ$2.8m), the revenue line is overwhelmingly portfolio revaluation and gains rather than operating turnover. Operating cash flow swung to a NZ$6.7m inflow from a NZ$10.6m outflow, but on-hand cash fell to NZ$0.9m from NZ$2.4m. Total equity expanded 31.2% to NZ$185.7m. The announced final dividend rose 26.1% to 1.69 cents per share.
What matters
- Earnings composition. NPAT of NZ$52.3m dwarfs disclosed dividend income of NZ$2.8m, so the headline result is dominated by investment revaluations. ROE of 32.0% (vs 9.6%) is a market-cycle outcome rather than an operating uplift, and should not be extrapolated.
- Cash vs accounting profit gap. Operating cash flow of NZ$6.7m is only 12.8% of reported NPAT, consistent with most of the profit being non-cash mark-to-market. Cash on hand actually declined NZ$1.5m year on year.
- Dividend cover against realised cash. The FY21 payout ratio against NPAT is just 6.8% (vs 20.8% in FY20), which looks comfortable; measured against the NZ$6.7m operating cash inflow, however, the distributions disclosed in the extract (FY20 comparative NZ$10.95m dividends paid) point to a structure that relies on portfolio realisations and capital, not income, to fund distributions.
Expectations
No stated targets, forward-work backlog, or guidance were disclosed in the extract, so the result cannot be benchmarked against management-set milestones. The H1/FY shape is informative: HY21 delivered 60.5% of full-year revenue and 60.4% of full-year NPAT, meaning the second half decelerated on both lines (H2 revenue NZ$22.6m vs H1 NZ$34.6m; H2 NPAT NZ$20.7m vs H1 NZ$31.6m). That pattern is consistent with a stronger market through the first half and a softer second half, and it argues against simply annualising H1 momentum.
Quality of result
Low durability. The profit is largely unrealised, as evidenced by the gap between NZ$52.3m NPAT and NZ$2.8m dividend income and the modest NZ$6.7m operating cash inflow. PBT grew 308.5% versus NPAT growth of 317.7% — the 9.2pp gap reflects a small tax benefit rather than an expense (effective tax rate −1.2% vs +1.1%), which is not large in dollar terms but is the kind of item that will not repeat. Working capital and capex are not meaningful here and cannot be used to test the result. On the cash side, the swing from a NZ$10.6m outflow to a NZ$6.7m inflow is a genuine improvement, but it reflects investment portfolio activity rather than trading performance.
Unresolved
- How much of the NZ$57.2m revenue line is realised gains versus unrealised mark-to-market, and therefore how exposed the NAV is to reversal if markets retrace.
- Whether any borrowings, warrant issuance, or buyback activity sit behind the 31.2% equity increase, given no gross borrowings or net debt figures are disclosed.
- Portfolio concentration, sector exposure, and FX sensitivity — none disclosed in the extract.
- Full-year dividend total (the 1.69cps appears to be the announcement component; the prior-year dividends-paid line of NZ$10.95m suggests a materially higher total distribution stream than the final alone).
- Capex, management fees, and any performance fee accrual associated with the NAV uplift.
This briefing cannot assess portfolio composition, realised versus unrealised gain split, manager fee structure, or NAV-based valuation, none of which are present in the extract.
Key metrics
| Metric | FY21 | FY20 | Change |
|---|---|---|---|
| Revenue | $57.2m | $15.7m | +265.1% ↑ |
| Net profit after tax | $52.3m | $12.5m | +317.7% ↑ |
| Net cash inflow from operating activities | $6.7m | −$10.6m | +163.3% ↑ |
| Final dividend per share | 1.7c | 1.3c | +26.1% ↑ |
| Operating profit | $51.7m | $12.7m | +308.5% ↑ |
| Profit before tax | $51.7m | $12.7m | +308.5% ↑ |
| Cash and cash equivalents | $0.9m | $2.4m | -60.7% ↓ |
| Total assets | $188.5m | $142.8m | +32.0% ↑ |
Reference: annolyse.ai/briefings/brm-fy21
Analytical metrics
| Metric | FY21 | FY20 | Context |
|---|---|---|---|
| PBT growth | +308.5% | — | cleaner earnings measure |
| Effective tax rate | -1.2% | 1.1% | — |
| Debtor days | 0.1 | 0.2 | -0.1 days |
| Trade debtors | $0.0m | $0.0m | +$0.0m |
| Payout ratio vs NPAT | 6.8% | — | — |
| ROE (annualised) | 32.0% | 9.6% | Strengthening |
| HY21 share of FY21 revenue | 60.5% | — | Other half was 39.5% |
| HY21 share of FY21 NPAT | 60.4% | — | Other half was 39.6% |
| Profit from continuing operations | $52.3m | $12.5m | +$39.8m |
Reference: annolyse.ai/briefings/brm-fy21
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX 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.