Table of Contents
What changed
Revenue fell 17.2% to $13.8m and EBITDA dropped 37.4% to $5.1m, with PBT down 45.1% to $5.1m. Reported NPAT rose 30.0% to $3.6m, but that is a tax-driven optical gain: the effective tax rate normalised to 29.4% in HY25 from roughly 70.2% in HY24 (when a one-off deferred tax adjustment from the commercial-buildings depreciation policy change inflated the tax line). Operating cash outflow deepened to $12.2m from $6.5m. Residential land development, the core segment, generated $12.3m of revenue (down from $15.3m) with segment result of $3.6m (down from $5.9m), an implied EBITDA margin compression to about 29.2% from 38.7%. Cash was broadly flat at $10.4m, while total liabilities rose 58.5% to $10.2m off a small base.
What matters
- PBT is the cleaner operating read, and it collapsed 45%. The 30% NPAT uplift is almost entirely a tax normalisation; underlying trading deteriorated sharply, consistent with management's own characterisation of the first half as "subdued" and "unexpected".
- Core segment margin has compressed, not just volume. Residential land development revenue fell 19.8% but segment result fell 39.4%, indicating operating deleverage rather than a pure volume story.
- Cash conversion deteriorated materially. OCF of -$12.2m against EBITDA of $5.1m implies significant development-stock absorption; pre-lease free cash flow was -$12.6m. With no disclosed borrowings and cash essentially unchanged, the funding of this working-capital build is not resolved in the supplied material.
Expectations
No quantified guidance or forward-work pipeline is provided. The business has historically been second-half weighted — HY24 delivered only 33.9% of FY24 revenue and 17.8% of FY24 NPAT — so a seasonal rebound is plausible in shape terms. However, HY25 annualises to roughly $27.5m of revenue versus FY24's $49.1m, and management's explicit commentary that it has "not been able to grow revenue and profit so far this year" does not support a return to the FY24 run-rate without a visible pickup in section sales in H2. The release does not support, or refute, any specific FY25 outcome.
Quality of result
Low on operating quality. The headline NPAT growth is a tax artefact, not a trading outcome; the cleaner PBT line fell 45%, and segment data shows margin as well as volume decline in the core business. The result is balance-sheet-assisted in the sense that cash was held stable despite a heavy operating outflow, and trade receivable days improved meaningfully to about 50 days from 76 days — a genuine working-capital positive, but one that does not offset the $12.2m operating outflow. Capex was modest at $0.4m, so the cash drain is an inventory/development phenomenon rather than investment-driven. ROE of 1.1% for the half is slim relative to the equity base.
Unresolved
- How is the $12.2m operating outflow being funded given cash is only flat and no borrowings are disclosed? The step-up in total liabilities to $10.2m is a partial but incomplete answer.
- What is the section sales pipeline and settlement timing for H2, and is the margin compression in residential land development pricing-driven or cost-driven?
- Why was no interim dividend quantified in the announcement form, and what is the board's stance on distributions given the cash outflow?
- Is inventory (development land) rising, and by how much? That disclosure would reconcile EBITDA to OCF.
This briefing cannot assess section pricing, settlement cadence, or the company's actual inventory position because those disclosures are not present in the supplied material.
Key metrics
| Metric | HY25 | HY24 | Change |
|---|---|---|---|
| Revenue | $13.8m | $16.6m | -17.2% ↓ |
| EBITDA | $5109m | $8161m | -37.4% ↓ |
| Net profit after tax | $3565m | $2742m | +30.0% ↑ |
| Net cash inflow from operating activities | −$12.2m | −$6.5m | -87.6% ↓ |
| Operating profit | $4812m | $7862m | -38.8% ↓ |
| Profit before tax | $5050m | $9207m | -45.2% ↓ |
| Total assets | $323.9m | $313.5m | +3.3% ↑ |
Reference: annolyse.ai/briefings/cdi-hy25
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Residential land development | $12.3m | $15.3m | $3.6m | -3.3pp |
| Investment property | $1.5m | $1.3m | $1.5m | +3.2pp |
Reference: annolyse.ai/briefings/cdi-hy25
Analytical metrics
| Metric | HY25 | HY24 | Context |
|---|---|---|---|
| PBT growth | -45.1% | — | cleaner earnings measure |
| Effective tax rate | 29.4% | 70.2% | — |
| OCF / EBITDA (cash conversion) | -239.4% | -79.9% | deteriorated |
| FCF pre-lease | −$12.6m | −$6.6m | −$6.0m |
| FCF / NPAT | -353.9% | -240.9% | complementary conversion metric |
| Capex % revenue | 2.8% | 0.5% | — |
| Capex | $383.0m | $87.0m | +$296.0m |
| Debtor days | 50.0 | 76.1 | -26.1 days |
| Trade debtors | $3780.0m | $6945.0m | −$3165.0m |
| Payout ratio vs NPAT | 0.0% | — | — |
| ROE (annualised) | 1.1% | 0.9% | 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 | $3565.0m | $2742.0m | +$823.0m |
Reference: annolyse.ai/briefings/cdi-hy25
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.