Table of Contents
What changed
Revenue fell 27.0% to NZ$67.1m from NZ$91.9m, yet profit before tax was effectively flat at NZ$43.3m (down 0.2%) and NPAT held at NZ$31.2m (down 0.2%). The PBT-to-revenue ratio therefore expanded sharply, from roughly 47% to roughly 65%, implying materially higher gross profitability per dollar of revenue on the year's section sales mix. Operating cash flow rose to NZ$11.2m from NZ$4.1m, but cash on the balance sheet still fell NZ$21.4m to NZ$31.7m. Total liabilities dropped to NZ$4.8m and equity rose to NZ$308.9m, leaving the balance sheet essentially debt-free. The final dividend was held at 3.5 cents per share fully imputed.
What matters
- The H1/H2 shape is the central read. HY22 delivered 70.9% of FY22 revenue and 73.4% of FY22 NPAT, implying an H2 of just NZ$19.5m revenue and NZ$8.3m NPAT — a marked step down from the first-half run-rate. Management's own outlook comment that FY23 "would be very different" and that "new sales" are needed is consistent with that exit-rate.
- Earnings quality on the year was genuinely high in margin terms — PBT held flat on a 27% smaller top line — but the durability of that margin is unclear because no segment, gross margin or section-mix data was disclosed in the extract. The flat PBT looks like favourable mix on a smaller volume rather than a repeatable run-rate.
- Capital allocation remained conservative. The dividend was covered by pre-lease free cash flow this year (payout ratio ~89.9% of FCF) versus uncovered last year (243%). ROE eased to 10.5% from 11.5% as equity grew faster than earnings.
Expectations
No quantified forward-work backlog, settlement schedule or formal FY23 target was provided, so the release cannot be benchmarked against guidance. The only forward signal is qualitative: a "very different" environment in 2023 and a stated reliance on new sales. Against that, the FY22 second-half implied run-rate (NZ$19.5m of revenue and NZ$8.3m of NPAT in six months) is the most relevant anchor, and it is well below the FY22 full-year shape. The release does not support an assumption that FY22's full-year earnings level is a repeatable base.
Quality of result
The PBT outcome is high quality on a margin basis — minimal tax distortion (effective rate ~28% in both years), no disclosed non-recurring items and no non-GAAP adjustments. However, the result is not balance-sheet assisted in cash terms: operating cash flow of NZ$11.2m converted to only ~36% of NPAT, and cash fell NZ$21.4m over the year, indicating a material build in non-cash working items (likely development inventory, though payables and inventory were not disclosed in the extract). Receivable days rose from 0.4 to 1.2 on a tiny base and are not material. The dominant durability question is mix, not accounting: a 27% smaller revenue base producing the same profit is not a steady-state outcome on the disclosed information.
Unresolved
- What was the section-by-section mix and gross margin profile that allowed PBT to hold flat on 27% lower revenue, and how repeatable is it?
- Where did the NZ$21.4m of cash go? Operating cash flow plus minimal capex and a flat dividend do not bridge the cash decline; land acquisition (the disclosed Hamilton parcel) and inventory build are likely candidates but are not quantified in the extract.
- What is the forward sales pipeline and settlement timing into FY23 given the visibly weaker H2 exit-rate?
- Why the sharp drop in total liabilities to NZ$4.8m, and what does it imply about deferred revenue, payables or tax positions?
This briefing cannot assess section-level demand, land-bank composition, or any unannounced settlements scheduled into FY23, none of which were disclosed in the supplied material.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $67.1m | $91.9m | -27.0% ↓ |
| Net profit after tax | $31.2m | $31.3m | -0.2% ↓ |
| Net cash inflow from operating activities | $11.2m | $4.1m | +172.6% ↑ |
| Final dividend per share | 3.5c | 3.5c | flat |
| Cash and cash equivalents | $31.7m | $53.0m | -40.3% ↓ |
| Total assets | $313.7m | $297.6m | +5.4% ↑ |
Reference: annolyse.ai/briefings/cdi-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | -0.2% | — | — |
| Effective tax rate | 28.0% | 28.0% | — |
| FCF pre-lease | $11.2m | $4.1m | +$7.1m |
| FCF / NPAT | 36.0% | 13.2% | complementary conversion metric |
| Capex % revenue | 0.0% | 0.0% | — |
| Capex | −$0.0m | −$0.0m | −$0.0m |
| Debtor days | 1.2 | 0.4 | +0.8 days |
| Trade debtors | $0.2m | $0.1m | +$0.1m |
| Payout ratio vs NPAT | 32.4% | — | — |
| Payout ratio vs FCF pre-lease | 89.9% | — | covered |
| ROE (annualised) | 10.5% | 11.5% | Weakening |
| HY22 share of FY22 revenue | 70.9% | — | Other half was 29.1% |
| HY22 share of FY22 NPAT | 73.4% | — | Other half was 26.6% |
| Profit from continuing operations | $31.2m | $31.3m | −$0.1m |
Reference: annolyse.ai/briefings/cdi-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.