Table of Contents
What changed
FY22 NPAT of $1,169.3m is almost entirely a non-recurring outcome: profit from continuing operations was $105.9m (versus a $87.6m loss prior), while an after-tax gain of $1,125.8m from discontinued operations — the Tilt Renewables divestment — accounts for the balance. PBT on continuing operations was $128.5m. Operating cash flow was $82.8m against $115.6m of capex, so pre-lease free cash flow was -$32.8m. Cash ballooned to $851.0m, but gross borrowings also stepped up to $3,428.1m, leaving net debt of roughly $2,577.1m. Total equity expanded to $5,140.7m. A final dividend of 12.0 cps was declared, 4.3% above the 11.5 cps prior-period comparable.
Prior-period like-for-like figures in the extraction are materially affected by restatement for discontinued operations, so the percentage changes reported there are not a clean read.
What matters
- Headline NPAT is a disposal event, not an earnings run-rate. The cleaner operating read is continuing PBT of $128.5m with an effective tax rate of 17.6%, and continuing NPAT of $105.9m. That is the swing to watch, not the $1,169.3m bottom line.
- Segment mix shifted decisively. Trustpower New Zealand remains the revenue anchor (implied current margin about 11.7%, up from about 3.2%), Diagnostic Imaging Australasia is now a meaningful $440.5m revenue contributor at ~4.4% margin, and Tilt Renewables Australasia (residual) swung from a $71.6m profit to a $22.6m loss on much lower revenue. Associates contributed $268.5m of profit with no associated revenue line, so that result is doing heavy lifting inside continuing earnings.
- Balance-sheet direction is weakening on a net-debt basis despite the equity step-up. Disposal proceeds landed in cash rather than retiring debt, and gross borrowings of $3,428.1m are now a standing feature.
Expectations
No quantitative forward-work figure or formal financial target was disclosed in the supplied excerpts. On shape, HY22 accounted for about 63.0% of FY22 revenue and about 92.4% of FY22 NPAT; even stripping the disposal gain, the implied second half looks lighter than the first. The release does not support a claim about FY23 trajectory, and the dataset does not provide EBITDAF disclosure in quantified form to cross-check the proportionate KPIs referenced in the narrative.
Quality of result
Earnings quality on a headline basis is low. Roughly 96% of reported NPAT sits in the discontinued-operations line. Stripping that out, continuing PBT of $128.5m is the durable-looking read, and the tax line at 17.6% is not distorting. However, operating cash flow of $82.8m did not cover capex of $115.6m, so the year generated negative pre-lease free cash flow of -$32.8m and a dividend that is not covered by free cash flow on a current-period basis (the payout ratio versus pre-lease FCF is negative). Working-capital disclosure was not supplied, so debtor-day or contract-asset movements cannot be tested. On a ROE basis the 22.7% figure is flattered by the same disposal gain and should not be read as a sustainable return.
Unresolved
- What is the recurring EBITDAF and proportionate EBITDAF run-rate from continuing operations after the Tilt divestment, and how is the $268.5m associates contribution composed?
- What is the intended use of the $851.0m cash position — further renewable/digital deployment, debt reduction, or capital return — given gross borrowings of $3,428.1m?
- Why is operating cash flow of $82.8m so modest relative to continuing PBT of $128.5m, and what working-capital or timing items sit behind that gap?
- How sustainable is the Trustpower New Zealand margin expansion from ~3.2% to ~11.7% given hydrology and wholesale price volatility?
- What capex trajectory should be expected as Gurīn Energy (currently a $6.5m loss with no disclosed revenue) and Diagnostic Imaging scale?
This briefing cannot assess valuation, proportionate EBITDAF, or segment-level cash generation because those figures were not supplied in the dataset.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $858.9m | $1.1m | +81004.8% ↑ |
| Net profit after tax | $1169.3m | −$0.0m | +2376726.0% ↑ |
| Net cash inflow from operating activities | $82.8m | $0.0m | +344900.0% ↑ |
| Final dividend per share | 12.0c | 11.5c | +4.3% ↑ |
| Cash and cash equivalents | $851m | $0.0m | +3850578.7% ↑ |
| Total assets | $9851.8m | $9.5m | +103198.7% ↑ |
Reference: annolyse.ai/briefings/ift-fy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Trustpower New Zealand | $1019.7m | $952.8m | $119.7m | -12.0pp |
| Tilt Renewables Australasia | $60m | $137.4m | −$22.6m | -6.8pp |
| Wellington International Airport New Zealand | $95.6m | $68.8m | $3m | +0.4pp |
| Diagnostic Imaging Australasia | $440.5m | — | $19.2m | n/a |
| Gurīn Energy Asia | — | — | −$6.5m | n/a |
| Associates | — | — | $268.5m | n/a |
| All other segments and corporate New Zealand | $87.4m | $100.2m | $923m | -2.4pp |
Reference: annolyse.ai/briefings/ift-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| Effective tax rate | 17.6% | n/a | — |
| FCF pre-lease | −$32.8m | — | — |
| FCF / NPAT | -2.8% | — | complementary conversion metric |
| Capex % revenue | 13.5% | — | — |
| Capex | $115.6m | — | — |
| Net debt | $2577.1m | $1.0m | +$2576.1m |
| Gross borrowings | $3428.1m | $1.0m | +$3427.1m |
| Payout ratio vs NPAT | 7.4% | — | — |
| Payout ratio vs FCF pre-lease | -264.6% | — | not covered |
| ROE (annualised) | 22.7% | -1.2% | Strengthening |
| HY22 share of FY22 revenue | 63.0% | — | Other half was 37.0% |
| HY22 share of FY22 NPAT | 92.4% | — | Other half was 7.6% |
| Profit from continuing operations | $105.9m | −$0.1m | +$106.0m |
| Discontinued operation after tax | $1125.8m | $0.1m | +$1125.7m |
Reference: annolyse.ai/briefings/ift-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.