Table of Contents
What changed
Revenue rose 3.7% to NZ$91.9m and PBT rose 3.9% to NZ$43.4m, with NPAT also up 3.9% to NZ$31.3m on an unchanged ~28% effective tax rate. The operating lines therefore moved in a narrow band. The cash statement tells a very different story: net cash inflow from operating activities fell 92.5% to NZ$4.1m from NZ$54.8m. Despite that, cash on the balance sheet jumped to NZ$53.0m from NZ$10.1m, total assets rose 12.3% to NZ$297.6m and equity rose 11.4% to NZ$286.4m. Liabilities remain small at NZ$11.2m with no borrowings disclosed. The final dividend was held at 3.5cps.
What matters
- Cash conversion collapsed while earnings grew. Free cash flow fell to NZ$4.1m (capex was immaterial at NZ$3k), so FCF/NPAT dropped from 182.0% to 13.2%. For a land-development business this is typically a working-capital/settlement-timing phenomenon rather than an earnings-quality problem, but the scale of the swing is material.
- Second-half shape was notably softer. H1 delivered 66.6% of full-year revenue and 66.4% of NPAT, so the implied H2 was roughly NZ$30.7m of revenue and NZ$10.5m of NPAT — meaningfully below H1's NZ$61.2m and NZ$20.8m. H2 operating cash flow was effectively an outflow of about NZ$38.9m against H1's NZ$43.0m inflow.
- Capital position strengthened despite weaker cash generation. Cash balance more than quintupled and equity grew NZ$29.2m, consistent with asset build-up (likely development stock) funded from prior settlements and retained earnings rather than debt.
Expectations
No numerical guidance, forward-work book, or stated targets were disclosed. The release commentary points to continued demand at Kewa Road, Dominion Road and Prestons Park but does not quantify a pipeline. On the shape evidence, H2 was the weaker half for both revenue and earnings, so the full-year outcome relied heavily on H1 settlements; the release does not provide enough context to assess whether that H2 step-down is timing-driven or signals a softer settlement cadence heading into FY22. The 3.5cps dividend is a payout of roughly 32.0% of NPAT, but 243% of current-year FCF — sustainable only because the balance sheet is carrying NZ$53.0m of cash.
Quality of result
The P&L result looks clean: no discontinued operations, no disclosed non-recurring items, tax rate stable, receivables immaterial at NZ$94k, and no non-GAAP adjustments. That argues the 3.9% NPAT growth is a fair statutory read. Durability is harder to judge. ROE slipped from 11.7% to 10.9% as equity grew faster than earnings, so incremental capital is earning less. The cash result is clearly timing-driven rather than structurally impaired — capex is negligible and there are no obvious leakages — but investors should note that reported profit in this model is recognised on settlement and can lead cash by one or more periods, which is exactly what the H1/H2 split suggests happened this year.
Unresolved
- What drove the NZ$50.7m year-on-year swing in operating cash flow — specifically the mix of land/development expenditure, deposits received, and settlement timing?
- What is the carrying value and stage-readiness of development inventory behind the NZ$32.6m asset build, and how much of it is expected to settle in FY22?
- Why did H2 revenue and NPAT step down so sharply versus H1, and is that a lumpy settlement pattern or a demand signal?
- Is there a committed sales pipeline or forward-work figure management is willing to quantify?
This briefing cannot assess underlying demand conditions, land-bank quality, or the timing of future settlements because the release discloses no forward-work book, no segment split, and no inventory detail.
Key metrics
| Metric | FY21 | FY20 | Change |
|---|---|---|---|
| Revenue | $91.9m | $88.6m | +3.7% ↑ |
| Net profit after tax | $31.3m | $30.1m | +3.9% ↑ |
| Net cash inflow from operating activities | $4.1m | $54.8m | -92.5% ↓ |
| Final dividend per share | 3.5c | — | — |
| Cash and cash equivalents | $53.0m | $10.1m | +424.4% ↑ |
| Total assets | $297.6m | $265.0m | +12.3% ↑ |
Reference: annolyse.ai/briefings/cdi-fy21
Analytical metrics
| Metric | FY21 | FY20 | Context |
|---|---|---|---|
| PBT growth | +3.9% | — | — |
| Effective tax rate | 28.0% | 28.0% | — |
| FCF pre-lease | $4.1m | $54.8m | −$50.7m |
| FCF post-lease | $4.1m | $54.8m | −$50.7m |
| FCF / NPAT | 13.2% | 182.0% | complementary conversion metric |
| Capex % revenue | 0.0% | 0.0% | — |
| Capex | −$0.0m | $0.0m | −$0.0m |
| Debtor days | 0.4 | 0.4 | +0.0 days |
| Trade debtors | $0.1m | $0.1m | +$0.0m |
| Payout ratio vs NPAT | 32.0% | — | — |
| Payout ratio vs FCF pre-lease | 243.0% | — | not covered |
| ROE (annualised) | 10.9% | 11.7% | Weakening |
| HY21 share of FY21 revenue | 66.6% | — | Other half was 33.4% |
| HY21 share of FY21 NPAT | 66.4% | — | Other half was 33.6% |
| Profit from continuing operations | $31.3m | — | — |
Reference: annolyse.ai/briefings/cdi-fy21
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.