Table of Contents
What changed
Revenue rose 40.3% to $16.6m and EBITDA rose 40.7% to $8.2m, with PBT up 31.9% to $9.2m. Below the tax line, the picture inverts: NPAT fell 45.4% to $2.7m because income tax expense climbed to $6.5m from $2.0m, lifting the effective tax rate to roughly 70.2% from 28.0%. Operating cash flow swung from +$2.5m to –$6.5m, a $9.0m reversal, and cash on hand fell to $10.7m from $45.0m. Residential land development carried the result, contributing 92.2% of revenue with a segment profit of $5.9m, while investment property swung from a $0.5m profit to a $3.2m loss.
What matters
- Tax distortion, not operational weakness, drives the NPAT decline. The 77pp gap between PBT growth (+31.9%) and NPAT growth (–45.5%) is entirely a tax-line phenomenon. The cleaner read on trading performance is PBT up 31.9% on revenue up 40.3%, consistent with management's stated "taxation adjustment masks revenue and profit growth" framing.
- Cash conversion collapsed. OCF/EBITDA fell to –79.9% from +43.0%. Trade receivables almost doubled to $6.9m (receivable days from 56 to 76), and the investment property segment result swung negative. Pre-lease free cash flow was –$6.6m versus +$2.2m.
- Segment quality is bifurcating. Residential land development margins remain strong but the investment property segment flipped from a 40.6% margin to a –243.9% result, dragging group earnings quality even as headline revenue grew.
Expectations
No quantitative guidance or forward-work target was disclosed. The HY23/FY23 shape was heavily second-half weighted, with HY23 producing only 38.5% of FY23 revenue and 37.3% of FY23 NPAT. Annualising HY24 revenue naively gives $33.2m, about 7.9% above FY23's $30.8m, but that understates the likely full-year if the second-half weighting persists. The release does support a read of improved trading momentum at the PBT level; it does not support a view on full-year NPAT because the driver of the 70.2% effective tax rate is not explained in the supplied excerpts.
Quality of result
Mixed. The PBT line reflects genuine operational improvement from higher property sales and is consistent with segment data. However, several features reduce the durability of the reported NPAT:
- Operating cash flow of –$6.5m against EBITDA of $8.2m indicates profits are not converting to cash this half, driven by a $3.3m build in receivables and working-capital/inventory investment in development sites.
- The investment property segment loss of $3.2m materially depressed group earnings quality, offsetting part of the residential development strength.
- Cash fell $34.3m, funding the development pipeline; the group remains in a net-cash position ($10.7m) but the buffer has narrowed sharply and total liabilities rose to $6.4m from $1.3m.
The result is therefore stronger at the trading line than at the cash line, and the tax step-up makes the NPAT number a poor proxy for the half's operational performance.
Unresolved
- What explains the effective tax rate jumping to 70.2%? The excerpts reference a "taxation adjustment" but do not quantify or characterise it (one-off, deferred tax revaluation, prior-year true-up, or recurring).
- What drove the investment property segment into a $3.2m loss, and is the swing a revaluation, an impairment, or an operating deterioration?
- Is the 20-day increase in receivable days a timing effect around settlement of property sales, or a structural change in collection terms?
- The supplied excerpts mention an interim dividend heading but the declared amount is not captured in the extraction; payout policy relative to negative FCF cannot be assessed.
- How much of the $34.3m cash drawdown represents committed development spend that will unwind as sales settle in H2?
This briefing cannot assess the nature of the tax adjustment, the cause of the investment property segment loss, or the interim dividend quantum, because those disclosures are not present in the supplied material.
Key metrics
| Metric | HY24 | HY23 | Change |
|---|---|---|---|
| Revenue | $16.6m | $11.8m | +40.3% ↑ |
| EBITDA | $8161m | $5799m | +40.7% ↑ |
| Net profit after tax | $2742m | $5024m | -45.4% ↓ |
| Net cash inflow from operating activities | −$6520m | $2495m | -361.3% ↓ |
| Operating profit | $7862m | $5271m | +49.2% ↑ |
| Profit before tax | $9207m | $6978m | +31.9% ↑ |
| Cash and cash equivalents | $10.7m | $45.0m | -76.2% ↓ |
| Total assets | $313.5m | $306.5m | +2.3% ↑ |
Reference: annolyse.ai/briefings/cdi-hy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Residential land development | $15.3m | $10.7m | $5.9m | +1.4pp |
| Investment property | $1.3m | $1.2m | −$3.2m | -2.4pp |
Reference: annolyse.ai/briefings/cdi-hy24
Analytical metrics
| Metric | HY24 | HY23 | Context |
|---|---|---|---|
| PBT growth | +31.9% | — | cleaner earnings measure |
| Effective tax rate | 70.2% | 28.0% | — |
| OCF / EBITDA (cash conversion) | -79.9% | 43.0% | deteriorated |
| FCF pre-lease | −$6.6m | $2.2m | −$8.8m |
| FCF / NPAT | -241.1% | 43.9% | complementary conversion metric |
| Capex % revenue | 0.5% | 2.5% | — |
| Capex | $87.0m | $292.0m | −$205.0m |
| Debtor days | 76.1 | 55.9 | +20.2 days |
| Trade debtors | $6945.0m | $3638.0m | +$3307.0m |
| Net debt | −$10.7m | −$45.0m | +$34.3m |
| Net debt / EBITDA | -1.31x | -7.76x | Weakening |
| Payout ratio vs NPAT | 0.0% | — | — |
| Payout ratio vs FCF pre-lease | 0.0% | — | covered |
| ROE (annualised) | 1.8% | 3.3% | Weakening |
| HY23 share of FY23 revenue | 38.5% | — | Other half was 61.5% |
| HY23 share of FY23 NPAT | 37.3% | — | Other half was 62.7% |
| Profit from continuing operations | $2742.0m | $5024.0m | −$2282.0m |
Reference: annolyse.ai/briefings/cdi-hy24
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.