Revenue up 83.7% but PBT and NPAT both fell 62.5% to NZ$0.3m

The effective tax rate was 0.0% in both periods, so tax did not drive the divergence. The PBT margin movement is not a clean like-for-like trend because the reporting basis has a discontinuity flagged on the prior comparable, so the year-on-year margin shift should be read with that caveat.

Operating cash flow turned positive at NZ$0.5m (FY25: NZ$-0.3m), but the cash balance fell 58.2% to NZ$1.1m as gross borrowings were cut by NZ$1.5m to NZ$2.9m. Operating working capital absorbed NZ$0.7m, which Annolyse's historical baseline classifies as above the normal range; the three-prior-period mean was a NZ$1.1m release. Trade receivables grew 42.4% to NZ$2.3m. Net debt/EBITDA of 1.33x sits below the company's historical range (3-period mean 3.67x).

Revenue nearly doubled but reported EBITDA grew only marginally and earnings below EBITDA halved. The FY26 EBITDA margin of 10.5% is in line with the company's historical mean (range 8.6%-11.5%), so the more useful read is that the FY25 base appears to have been unusually high relative to recent history rather than that margins structurally collapsed in FY26. PBT-margin commentary is set aside here because its historical basis is flagged as not analytically comparable. Either way, this period's scale did not translate to earnings.

The prior comparable is a corrected FY25 filing. Event overlays flag the FY25 base as a correction to the previously released annual report, which means the 83.7% revenue and 62.5% earnings movements should not be read as clean like-for-like changes without understanding what the correction restated.

Cash position deteriorated despite positive OCF. Operating cash flow of NZ$0.5m and NZ$1.5m of debt repayment together drained the cash balance by NZ$1.6m. Leverage looks favourable on the EBITDA multiple, but liquidity headroom is now thinner.

HY26 NPAT was a NZ$0.151m loss, so the implied second-half NPAT of NZ$0.466m carried the full-year result. With HY26 contributing 45.3% of full-year revenue and a negative share of full-year NPAT, the result was heavily second-half weighted, and the half-year release also flagged a discontinued operation that is not present in the FY26 income statement. This combination means HY26 is a poor predictor of FY27 phasing, and the release does not provide enough forward information to triangulate a run-rate.

The absolute earnings level is modest (PBT NZ$0.3m) and sits below the FY25 operating profit of NZ$1.1m even on the corrected basis. Any read on PBT-margin direction carries the same basis caveat and should not be treated as a directly comparable trend.

Cash conversion of 38.1% (OCF/EBITDA) is within the company's historical range, but historical conversion has been volatile (-64.5% to 170.0% across the three prior periods), so describing current conversion as within range is not the same as calling it strong. Receivables built faster than the working-capital release pattern Annolyse's historical baseline would imply; combined with the NZ$1.5m debt paydown, this is why cash fell despite positive OCF. Reported "normalised EBITDA up 27%" in the commentary is a non-GAAP measure with no reconciliation supplied here, so it cannot independently confirm an underlying improvement in operating economics.

This briefing cannot assess same-store sales economics, unit-level franchise profitability, or the underlying drivers of the FY25 correction, because none of those are disclosed in the supplied material.