Table of Contents
What changed
Per the release's own year-on-year figures, FY24 revenue fell 10.5% to NZ$80.3m (a NZ$9.4m decline from an NZ$89.7m base), and NPAT fell 56.8% to NZ$4.6m from NZ$10.7m. Management attributes the top-line decline to inability to meet demand with depleted inventory following prior-period cyclone disruption.
The cash story moved in the opposite direction to reported profit:
- Operating cash flow: -NZ$27.3m for the year, with -NZ$15.8m absorbed in H1 and a further -NZ$11.4m in H2.
- Capex lifted to NZ$4.0m (5.0% of revenue) from NZ$1.7m (3.6%), leaving pre-lease free cash flow at roughly -NZ$31.3m.
- Cash on hand nevertheless rose to NZ$26.6m from NZ$10.4m, and equity rose NZ$15.2m to NZ$54.4m against only NZ$4.6m of earnings — implying roughly NZ$10.5m of other equity inflow (consistent with a capital raise, though this is not directly extracted).
- Trade debtor days improved sharply to 37.9 from 81.9; inventory was essentially flat at NZ$29.3m.
Note on the extraction: the like-for-like table compares FY24 to what appears to be a half-year FY23 base, so the headline "+70.2% revenue" and "+697% NPAT" figures in that table overstate the true year-on-year movement. The release's own stated comparatives (−10.5% revenue, −56.8% NPAT) are used above.
What matters
- Profit quality is weak relative to cash. A reported NZ$4.6m NPAT against a -NZ$27.3m operating cash outflow is a material divergence that is not explained by trade receivables (which released cash) or inventory (broadly flat). The source of the cash drain is the key missing piece.
- Balance sheet was reinforced, apparently through equity. Cash up NZ$16.3m and equity up NZ$15.2m despite modest earnings points to external funding doing most of the work. Total liabilities rose only NZ$2.5m, so this is not leverage-led.
- Strategy signal: dividends flagged for 2026. Management has stated a return to dividends by 2026, framing FY24 as the final stages of recovery. There is no quantified earnings or revenue target attached to this signal.
Expectations
No forward guidance, forward-work backlog, or quantified FY25 target is disclosed in the extracted materials, so this release cannot be judged against a stated goal other than the 2026 dividend reinstatement intent.
On shape, H2 FY24 was materially stronger than H1 FY24: implied H2 revenue of NZ$41.3m (H1 NZ$39.0m) and implied H2 NPAT of NZ$6.3m against an H1 loss of NZ$1.7m. The exit run-rate therefore sits above the reported annual average, supporting the "final stages of recovery" framing — but the H2 operating cash outflow was still around -NZ$11.4m, so the earnings recovery has not yet carried through to cash.
Quality of result
Two things reduce the durability of the reported NPAT:
- Tax tailwind. The effective tax rate was roughly 6.1% on NZ$4.9m of PBT, compared with a more normal prior rate. PBT of NZ$4.9m is the cleaner operating read; a normalised tax charge would have produced a lower NPAT.
- Cash conversion is poor. Pre-lease FCF was about -NZ$31.3m on NZ$4.6m of NPAT. Since receivables and inventory were not the cause, the outflow must be concentrated in payables, accruals or other operating items that are not separately extracted. Until that is resolved, the profit should be treated as accounting-positive but cash-negative.
The balance-sheet strengthening is real but funding-assisted rather than earned, which is a different quality of result than if cash had been generated organically.
Unresolved
- What specifically drove the NZ$27.3m operating cash outflow, given receivables released cash and inventory was flat? Payables, prepayments, or insurance-related movements are plausible but not confirmed in the extract.
- Was there a capital raise, and if so at what price and for what use of proceeds? The equity movement strongly implies one but it is not captured in the extracted data.
- What is the Carpet vs Wool segment revenue and margin split? Segment reporting exists but is not quantified in the extract.
- Are there any disclosed insurance recoveries or one-off items relating to cyclone disruption that inflate or depress the reported NPAT?
- What is gross borrowings and covenant headroom? Net debt cannot be computed from the extract.
This briefing cannot assess underlying demand trends, segment-level margins, or the sustainability of the H2 run-rate because the extracted release does not provide the necessary segment, cost-line, or forward-work detail.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $80.3m | $47.2m | +70.2% ↑ |
| Net profit after tax | $4.6m | −$0.8m | +696.8% ↑ |
| Net cash inflow from operating activities | −$27.3m | −$1.8m | -1383.7% ↓ |
| Profit before tax | $4.9m | −$0.6m | +870.1% ↑ |
| Cash and cash equivalents | $26.6m | $10.4m | +157.0% ↑ |
| Total assets | $94.9m | $77.3m | +22.8% ↑ |
Reference: annolyse.ai/briefings/brw-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| Effective tax rate | 6.1% | n/m (loss period) | prior loss period |
| FCF pre-lease | −$31.3m | −$3.5m | −$27.8m |
| FCF / NPAT | -674.6% | 454.4% | complementary conversion metric |
| Capex % revenue | 5.0% | 3.6% | — |
| Capex | −$4.0m | −$1.7m | −$2.3m |
| Debtor days | 37.9 | 81.9 | -44.0 days |
| Trade debtors | $8.3m | $10.6m | −$2.2m |
| ROE (annualised) | 9.9% | -2.0% | Strengthening |
| HY24 share of FY24 revenue | 48.6% | — | Other half was 51.4% |
| HY24 share of FY24 NPAT | -36.1% | — | Other half was 136.1% |
| Profit from continuing operations | $4.6m | −$0.8m | +$5.4m |
Reference: annolyse.ai/briefings/brw-fy24
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.