Table of Contents
What changed
Revenue rose 20.8% to NZ$901.2m from NZ$746.0m, and profit before tax grew 65.9% to NZ$40.7m from NZ$24.5m. Net profit after tax was a more modest NZ$24.8m, up 13.8%, because the effective tax rate moved to about 27.5% from about 5.9% in the prior year. Operating cash flow fell sharply to NZ$28.9m from NZ$64.2m, a 55.0% decline, while inventories climbed 17.3% to NZ$163.4m. Gross borrowings ended the year at NZ$118.8m, cash at NZ$14.7m (down from NZ$17.0m), and implied net debt was around NZ$104.0m. Total equity rose to NZ$265.8m. The declared final dividend is 40.0 cps (up 25.0% on the prior final of 32.0 cps); the release also notes full-year dividends of 55.0 cps versus 32.0 cps.
What matters
- PBT is the cleaner read, not NPAT. PBT growth of 65.9% versus NPAT growth of 13.8% is a 52.1pp gap driven almost entirely by tax normalisation (5.9% → 27.5%). The underlying trading step-up is considerably stronger than the NPAT headline suggests.
- Cash conversion deteriorated materially. Operating cash flow is roughly 71% of FY20's despite PBT being 66% higher, and the HY21 disclosure shows NZ$31.3m of OCF in the first half — implying the second half actually consumed about NZ$2.4m of operating cash. Inventory build of NZ$24.1m is the most visible driver in the extracted data.
- Dividend lifted against a weakening ROE. Full-year DPS of 55.0 cps implies a payout ratio of about 52.6% of NPAT (up from 47.9%), even as ROE slipped slightly to 9.3% from 9.5%. The dividend increase is being funded from a year in which the balance sheet, not operations, provided the cash.
Expectations
No forward-work metric or quantified guidance was disclosed in the extracted materials, and no prior stated target exists to benchmark against. On shape, HY21 was 48.6% of full-year revenue but 51.5% of full-year NPAT, so the profit profile was actually first-half-weighted despite the revenue being marginally second-half-weighted. Implied second-half NPAT of NZ$12.0m ran slightly below the NZ$12.8m first half, and the second half alone appears to have consumed operating cash. The release supports a view that FY21 benefited from a demand rebound and a low prior-year base; it does not support a view of accelerating momentum into the second half.
Quality of result
The trading recovery looks genuine — PBT up NZ$16.2m on revenue up NZ$155.2m is consistent with operating leverage in a motor-dealership model returning from a suppressed base. However, several quality markers cut the other way. The 52.1pp PBT-to-NPAT growth gap is entirely a tax comparison artefact rather than operating strength. Operating cash flow conversion to PBT fell from approximately 2.6x to 0.7x, and an inventory build of NZ$24.1m is doing meaningful work in that gap. Capex for FY21 was not disclosed in the extracted data, so free cash flow cannot be reconstructed and dividend coverage on a cash basis cannot be tested. Net debt of roughly NZ$104.0m against NZ$118.8m of gross borrowings signals the inventory and working-capital swing has been absorbed on the balance sheet rather than funded from operations.
Unresolved
- What were FY21 capex and lease payments, and therefore what is pre- and post-lease free cash flow?
- What is the split of the NZ$24.1m inventory build between new vehicles, used vehicles, and parts, and how much of it reflects supply-chain timing versus demand positioning?
- What were FY21 trade debtors and payables, so that the full working-capital movement behind the OCF decline can be identified?
- What is net debt a year earlier, so the leverage direction can be characterised rather than merely stated in absolute terms?
- What drove the second-half profit softness relative to the first half, and is the absence of rental-car contribution flagged at HY21 still the explanation into year-end?
This briefing cannot assess competitive share, franchise-specific dynamics, or any post-balance-date trading update beyond what is in the extracted release excerpts.
Key metrics
| Metric | FY21 | FY21 | Change |
|---|---|---|---|
| Revenue | $901.2m | $746.0m | +20.8% ↑ |
| Net profit after tax | $24.8m | $21.8m | +13.8% ↑ |
| Net cash inflow from operating activities | $28.9m | $64.2m | -55.0% ↓ |
| Final dividend per share | 40.0c | 32.0c | +25.0% ↑ |
| Profit before tax | $40.7m | $24.5m | +65.9% ↑ |
| Cash and cash equivalents | $14.7m | $17.0m | -13.3% ↓ |
| Total assets | $447.7m | $384.2m | +16.5% ↑ |
Reference: annolyse.ai/briefings/cmo-fy21
Analytical metrics
| Metric | FY21 | FY21 | Context |
|---|---|---|---|
| PBT growth | +65.9% | — | cleaner earnings measure |
| Effective tax rate | 27.5% | 5.9% | — |
| Capex | — | $13.6m | — |
| Inventory days | 66.1 | 68.2 | -2.0 days |
| Trade debtors | — | $37.4m | — |
| Net debt | $104.0m | — | — |
| Gross borrowings | $118.8m | — | — |
| Payout ratio vs NPAT | 52.6% | — | — |
| ROE (annualised) | 9.3% | 9.5% | Weakening |
| HY21 share of FY21 revenue | 48.6% | — | Other half was 51.4% |
| HY21 share of FY21 NPAT | 51.5% | — | Other half was 48.5% |
| Profit from continuing operations | $27.9m | — | — |
Reference: annolyse.ai/briefings/cmo-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.