Table of Contents
What changed
FY24 revenue rose 59.4% to NZ$49.1m, driving operating profit up 60.5% to NZ$24.4m and PBT up 43.1% to NZ$26.8m. NPAT, however, grew only 14.2% to NZ$15.4m because the effective tax rate jumped to 42.5% from 28.0%, reflecting a disclosed NZ$3.9m non-cash deferred tax charge tied to the removal of commercial-building depreciation. EBITDA of NZ$24.99m was disclosed for FY24 but not on a comparable basis for FY23.
Cash rose sharply to NZ$32.8m from NZ$2.2m, yet operating cash flow remained negative at NZ$8.1m (prior: NZ$10.3m) and capex of NZ$1.0m left pre-lease free cash flow at about NZ$(9.1)m. The final dividend was held flat at 3.5 cps. Revenue mix was even more concentrated in residential land development (94.4% vs 91.9%), with investment property contributing NZ$2.7m.
What matters
- PBT is the cleaner read. The 28.9 percentage-point gap between PBT growth (+43.1%) and NPAT growth (+14.2%) is fully explained by the deferred tax adjustment. Underlying earnings quality is materially better than the headline NPAT suggests, and the effective tax rate should normalise back toward 28% from here.
- Cash position vs cash generation are telling different stories. The NZ$30.6m jump in cash is not reconciled by operations: OCF was still a NZ$8.1m outflow and FCF pre-lease was NZ$(9.1)m. With NZ$15.4m of NPAT and only ~NZ$5.9m of equity accretion, some combination of dividends, working-capital release on property inventory, or other financing movements bridges the gap — and the release does not spell this out.
- Mix concentration is rising, not diversifying. Residential land development now contributes 94% of revenue, with implied segment margins of ~53%. That leaves the earnings trajectory tightly coupled to NZ residential section demand and the interest-rate cycle the Chair credits for the 2024 turnaround.
Expectations
No quantified targets or forward-work metrics were disclosed, so the result cannot be judged against explicit guidance. The HY24 comparison is the useful shape check: the first half delivered only 33.9% of FY revenue and 17.8% of FY NPAT, meaning H2 carried implied revenue of NZ$32.4m and implied NPAT of NZ$12.6m. That is a materially second-half-weighted outcome and sets a high H2 bar as the comparable for 1H25 reporting. The release supports a view of improving property demand but does not commit to FY25 volumes.
Quality of result
PBT growth of 43.1% on a 59.4% revenue uplift is a genuine operating recovery, and the tax distortion is explicitly identified and one-off in nature. Balance-sheet direction is favourable — equity up to NZ$319.7m, no disclosed borrowings, and cash up sharply — and ROE improved to 4.9% from 4.3%.
Against that, durability questions are real. The business remains cash-consumptive at the operating line (OCF/EBITDA of -32.5%), the dividend is not covered by FCF pre-lease, and the 66.3% NPAT payout ratio is flattered by the depressed NPAT denominator. Receivable days crept up only modestly (5.0 vs 3.9), so the cash outflow is more likely property-inventory build than collection slippage, but inventory days were not disclosed to confirm this.
Unresolved
- What drove the NZ$30.6m cash build when OCF was NZ$(8.1)m and no borrowings are disclosed? The filing does not reconcile this.
- What is FY24 gross margin and how much of the segment-margin step-up reflects price versus mix versus lower inflation/finance costs?
- What is the forward sales pipeline and how many sections are contracted but not settled going into FY25?
- How sensitive is the FY25 result to any reversal of the interest-rate tailwind the Chair credits?
- Is the 3.5 cps final part of a flat full-year distribution or a change to the prior cadence? The extraction identifies only the announcement component.
This briefing cannot assess valuation or per-share asset backing because NTA per share and share-count data were not disclosed in the supplied materials.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $49.1m | $30.8m | +59.4% ↑ |
| EBITDA | $25.0m | — | — |
| Net profit after tax | $15.4m | $13.5m | +14.2% ↑ |
| Net cash inflow from operating activities | −$8.1m | −$10.3m | +21.1% ↑ |
| Final dividend per share | 3.5c | 3.5c | flat |
| Operating profit | $24.4m | $15.2m | +60.5% ↑ |
| Profit before tax | $26.8m | $18.7m | +43.1% ↑ |
| Cash and cash equivalents | $32.8m | $2.2m | +1419.4% ↑ |
| Total assets | $328.6m | $319.2m | +2.9% ↑ |
Reference: annolyse.ai/briefings/cdi-fy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Residential land development | $46.3m | $28.3m | $24.6m | +2.5pp |
| Investment property | $2.7m | $2.5m | $2.2m | -2.5pp |
Reference: annolyse.ai/briefings/cdi-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| PBT growth | +43.1% | — | cleaner earnings measure |
| Effective tax rate | 42.5% | 28.0% | — |
| OCF / EBITDA (cash conversion) | -32.5% | — | stable |
| FCF pre-lease | −$9.1m | −$10.3m | +$1.2m |
| FCF / NPAT | -59.5% | -76.7% | complementary conversion metric |
| Capex % revenue | 2.1% | 0.0% | — |
| Capex | $1.0m | $0.0m | +$1.0m |
| Debtor days | 5.0 | 3.9 | +1.1 days |
| Trade debtors | $0.7m | $0.3m | +$0.3m |
| Payout ratio vs NPAT | 66.3% | — | — |
| ROE (annualised) | 4.9% | 4.3% | Strengthening |
| HY24 share of FY24 revenue | 33.9% | — | Other half was 66.1% |
| HY24 share of FY24 EBITDA | 32.7% | — | Other half was 67.3% |
| HY24 share of FY24 NPAT | 17.8% | — | Other half was 82.2% |
| Profit from continuing operations | $15.4m | $13.5m | +$1.9m |
Reference: annolyse.ai/briefings/cdi-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.