Table of Contents
What changed
Revenue rose 283.3% to $6.6m (FY21: $1.7m) as UK trading restrictions eased from mid-July 2021 and café sales recovered. Profit before tax swung to $0.3m from a $2.6m loss, and NPAT to $0.3m from a $2.5m loss. Continuing operations alone earned $0.6m after tax versus a $2.5m loss prior, with a $0.3m after-tax loss from discontinued operations taking group NPAT back down to $0.3m. Despite the P&L recovery, net operating cash flow turned negative at –$0.1m (FY21: +$0.04m). The balance sheet was rebuilt: gross borrowings fell 56.7% to $3.2m, derived net debt dropped to $2.1m from $6.6m, and total equity moved to +$3.1m from a –$1.7m deficit. Cash ended higher at $1.2m (FY21: $0.9m), funded by financing rather than operations.
What matters
- UK & Ireland franchising is the business. The segment generated $6.3m of revenue (≈87.8% of disclosed segment revenue) and a $1.2m segment result at an implied ~19.6% operating margin. New Zealand ($1k revenue, –$1.1m result) and UK Retail (–$0.3m result on $0.6m revenue) are dragging on group profitability, so the headline earnings quality sits entirely with one geography.
- Balance-sheet repair is real. The move from negative equity to $3.1m of positive equity, alongside a $4.3m reduction in gross borrowings, materially de-risks the capital structure from the FY21 starting point.
- Cash conversion deteriorated. With PBT of $0.3m, OCF of –$0.1m means earnings did not translate to cash. Against a smaller reported profit base this gap is magnified by working-capital movement, specifically the $3.6m (73.3%) fall in trade receivables that flatters days-receivable but does not appear to have flowed through OCF as expected.
Expectations
No quantified guidance or forward-work balance was disclosed. The interim shape is informative, however: HY22 contributed 55.8% of full-year revenue but only 17.4% of NPAT, implying an H2 NPAT of roughly $0.3m on $2.9m of revenue – a materially higher-margin half. The release notes UK store sales reached 123% of FY19 levels, suggesting trading momentum was still building into period-end, but with no stated FY23 targets the durability of that H2 margin run-rate is not something this filing directly supports or refutes.
Quality of result
Mixed. The operating recovery in UK & Ireland franchising appears genuine and is consistent with reopening, and the swing to positive equity and lower borrowings is balance-sheet-real. Against that, three features temper the read:
- OCF of –$0.1m versus PBT of +$0.3m indicates the profit is not yet cash-backed at the group level.
- The $3.6m drop in trade receivables should normally be a cash release; its absence from OCF raises questions about what was collected versus written off or reclassified, and inventory was not separately disclosed for FY22.
- Segment profitability is concentrated: strip out UK & Ireland franchising and the remaining segments are loss-making, so reported NPAT depends on one revenue stream holding up.
Tax is immaterial in both periods (FY22 tax credit $0.002m, FY21 credit $0.08m), so PBT and NPAT track each other; PBT growth of 112.9% is the cleaner operating read, and the NPAT/PBT gap is driven by the disclosed $0.3m loss from discontinued operations rather than tax.
Unresolved
- Why did a $3.6m decline in trade receivables coincide with operating cash flow turning negative? Was there a write-off, reclassification, or change in group perimeter?
- What is the capex run-rate in FY22? It was not separately disclosed, so free cash flow cannot be derived.
- What drove the $1.1m New Zealand segment loss on near-zero revenue, and is it being wound down?
- What are the terms and maturity profile of the remaining $3.2m of borrowings, and how much is related-party?
- No dividend was declared; capital-return policy is not articulated.
This briefing cannot assess store-level KPIs (store count, same-store sales trajectory, franchisee health) or forward-year trading given no guidance or forward-work disclosure was supplied.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $6.6m | $1.7m | +283.3% ↑ |
| Net profit after tax | $0.3m | −$2.5m | +113.3% ↑ |
| Net cash inflow from operating activities | −$0.1m | $0.0m | -363.9% ↓ |
| Operating profit | −$0.1m | −$1.7m | +91.7% ↑ |
| Profit before tax | $0.3m | −$2.6m | +112.9% ↑ |
| Cash and cash equivalents | $1.2m | $0.9m | +30.5% ↑ |
| Total assets | $35.1m | $45.0m | -22.0% ↓ |
Reference: annolyse.ai/briefings/ccc-fy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Global Franchising & Retail | $0.3m | — | $0.0m | n/a |
| UK & IRE Franchising | $6.3m | — | $1.2m | n/a |
| New Zealand | $0.0m | — | −$1.1m | n/a |
| UK Retail | $0.6m | — | −$0.3m | n/a |
Reference: annolyse.ai/briefings/ccc-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| Effective tax rate | -0.6% | n/m (loss period) | prior loss period |
| Capex | — | −$0.1m | — |
| Debtor days | 72.4 | 1039.2 | -966.8 days |
| Trade debtors | $1.3m | $4.9m | −$3.6m |
| Net debt | $2.1m | $6.6m | −$4.5m |
| Gross borrowings | $3.2m | $7.5m | −$4.3m |
| Payout ratio vs NPAT | 0.0% | — | — |
| HY22 share of FY22 revenue | 55.8% | — | Other half was 44.2% |
| HY22 share of FY22 NPAT | 17.4% | — | Other half was 82.6% |
| Profit from continuing operations | $0.6m | −$2.5m | +$3.2m |
| Discontinued operation after tax | −$0.3m | −$0.0m | −$0.3m |
Reference: annolyse.ai/briefings/ccc-fy22
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.