Table of Contents
What changed
Continuing-operations revenue fell 6.4% to NZ$541.1m, but total revenue (including discontinued operations) rose 48.8% to NZ$985.0m. Net profit after tax jumped to NZ$1,080.6m from NZ$27.8m, driven overwhelmingly by a NZ$993.9m post-tax gain from discontinued operations. Stripping that out, profit from continuing operations rose to NZ$136.4m from NZ$57.0m, and the cleaner operating read, PBT, rose 214.2% to NZ$194.5m from NZ$61.9m. Operating cash flow remained negative at NZ$17.4m but improved from NZ$44.3m outflow. The balance sheet changed shape dramatically: cash rose to NZ$1,213.8m from NZ$435.2m, gross borrowings fell to NZ$789.5m from NZ$3,240.1m, and the group moved to an estimated net cash position of about NZ$424.3m. Segment mix shifted materially, with Trustpower NZ's share of revenue falling from ~76.5% to ~58.1% as Diagnostic Imaging Australasia contributed ~19.3%. The interim dividend rose 4% to 6.5cps.
What matters
- The headline is a disposal event, not run-rate earnings. The NZ$993.9m discontinued-operations gain (consistent with the Tilt Renewables divestment) explains essentially all of the NPAT/PBT divergence. PBT growth of 214.2% is the relevant operating signal, not the 3,786% NPAT move.
- Balance-sheet direction is the most durable positive. Net debt swung from NZ$2,804.9m to net cash of NZ$424.3m, and equity rose to NZ$4,852.7m from NZ$3,622.9m. That reset funding capacity for the stated platform-reinvestment strategy, though no specific redeployment targets were disclosed.
- Underlying segment quality is mixed. Trustpower NZ remains the profit engine (segment result NZ$115.1m, ~20% margin), but Tilt Renewables Australasia swung to a NZ$22.7m segment loss from a NZ$28.7m profit, and newly prominent Diagnostic Imaging ran at a slight loss (-NZ$4.3m on NZ$190.1m of revenue). Associates contributed NZ$114.1m, up from NZ$83.8m.
Expectations
No quantified guidance, forward-work or EBITDAF target is supplied in the release excerpts, so the result cannot be benchmarked against company-stated numbers. On shape: HY21 was ~48% of FY21 total revenue, implying a second-half-weighted pattern historically. HY22 annualises to ~NZ$1.97b versus FY21 of NZ$1.379b, but direct comparability is poor given portfolio changes (Tilt disposal, Diagnostic Imaging consolidation). The release supports a stronger operational half for continuing businesses and a materially recapitalised balance sheet; it does not support any claim about sustainable earnings level because the uplift is so disposal-led.
Quality of result
Earnings quality is two-tiered. The NZ$993.9m discontinued-operations gain is explicitly one-off and should be excluded from any forward view. Below that, PBT of NZ$194.5m and continuing NPAT of NZ$136.4m represent a genuine step up on HY21, helped by associate income rising to NZ$114.1m. The effective tax rate on continuing earnings normalised to ~29.9% from an unusually low 7.9%, so the continuing-operations profit is not flattered by tax. Operating cash flow remained negative at NZ$17.4m, and after NZ$37.7m of capex, pre-lease free cash flow was about NZ$55.1m outflow — so the interim dividend (~NZ$46m implied, ~85% of pre-lease FCF) is not covered by organic cash in the half and relies on portfolio and investing-activity inflows. FX on cash swung to a NZ$7.6m loss from a NZ$31.5m gain, a NZ$39m year-on-year drag that sits inside the reported numbers.
Unresolved
- Group EBITDAF/EBITDA was not supplied, so net-debt/EBITDA, cash conversion, and margin-trend analysis cannot be completed from the extraction.
- The release does not quantify how much of the NZ$1.214b cash balance is earmarked for redeployment (Diagnostic Imaging bolt-ons, renewables pipeline) versus distribution.
- Tilt Renewables Australasia segment losses and Diagnostic Imaging's slight loss margin need a forward view on path to profitability, which is not provided.
- Working-capital days cannot be computed as trade receivables were not disclosed.
- No customer concentration, hedge sensitivity or forward-work book is disclosed.
This briefing cannot assess valuation or market-implied expectations because no share price, market capitalisation or forward guidance was supplied.
Key metrics
| Metric | HY22 | HY21 | Change |
|---|---|---|---|
| Revenue | $541.1m | $578.2m | -6.4% ↓ |
| Net profit after tax | $1080.6m | $27800m | -96.1% ↓ |
| Net cash inflow from operating activities | −$17.4m | −$44300m | +100.0% ↑ |
| Interim dividend per share | 6.5c | 6.3c | +4.0% ↑ |
| Operating profit | $198.7m | $105000m | -99.8% ↓ |
| Profit before tax | $194.5m | $61900m | -99.7% ↓ |
| Cash and cash equivalents | $1213.8m | $435200m | -99.7% ↓ |
| Total assets | $9170.7m | $7937500m | -99.9% ↓ |
Reference: annolyse.ai/briefings/ift-hy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Trustpower New Zealand | $571.8m | $506.3m | $115.1m | -18.4pp |
| Tilt Renewables Australasia | $60m | $60m | −$22.7m | -3.0pp |
| Wellington International Airport New Zealand | $50.7m | $25.8m | $3.1m | +1.2pp |
| Diagnostic Imaging Australasia | $190.1m | — | −$4.3m | n/a |
| Associates | — | — | $114.1m | n/a |
Reference: annolyse.ai/briefings/ift-hy22
Analytical metrics
| Metric | HY22 | HY21 | Context |
|---|---|---|---|
| PBT growth | +214.2% | — | cleaner earnings measure |
| Effective tax rate | 29.9% | 7.9% | — |
| FCF pre-lease | −$55.1m | −$386.1m | +$331.0m |
| FCF / NPAT | -5.1% | n/m | complementary conversion metric |
| Capex % revenue | 3.8% | 51.6% | — |
| Capex | −$37.7m | $341.8m | −$379.5m |
| Net debt | −$424.3m | $2804.9m | −$3229.2m |
| Gross borrowings | $789.5m | $3240.1m | −$2450.6m |
| Payout ratio vs NPAT | 4.3% | — | — |
| Payout ratio vs FCF pre-lease | 85.3% | — | not covered |
| ROE (annualised) | 22.3% | 0.8% | Strengthening |
| HY21 share of FY21 revenue | 48.0% | — | Other half was 52.0% |
| Profit from continuing operations | $136.4m | $57.0m | +$79.4m |
| Discontinued operation after tax | $993.9m | $0.0m | +$993.9m |
Reference: annolyse.ai/briefings/ift-hy22
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.