Revenue +33.3% but NPAT swung -118.1% against HY24 one-off gain

The economic comparison is revenue up 33.3% to $1.7b and proportionate operational EBITDAF (management's preferred non-GAAP measure) of $506m, described as 7% higher on a like-for-like basis. Operating cash flow fell 44.1% to $93.1m, capex stepped up 25.9% to $207.9m, and pre-lease free cash flow was -$114.8m. The interim dividend rose 3.6% to 7.25 cents per share, and cash on hand climbed to $496.3m from $146.5m.

Annolyse's historical baseline shows PBT growth of -110.1% as an unprecedented low against a 237.5% four-period mean, with NPAT growth of -118.1% and ROE of -2.6% similarly outside recent ranges; however, that prior baseline was itself distorted by acquisition accounting. The economically meaningful read is revenue +33.3% with proportionate EBITDAF +7% on the like-for-like measure.

Cash conversion deteriorated materially. OCF/EBITDA fell from 41.6% to 18.4% as operating cash flow declined 44.1% while revenue rose 33.3%. With capex at 12.1% of revenue, pre-lease FCF of -$114.8m sits within the supplied historical range of -$286.5m to $1.3m but leaves the dividend uncovered: payout ratio versus pre-lease FCF was -52.5%, meaning the cash dividend is being funded from balance-sheet capacity rather than current-period generation.

Leverage trended favourably despite the cash gap. Net debt fell to $4.3b from $5.2b, with net debt to EBITDA improving to 8.4x from 13.1x. This remains high for a diversified infrastructure portfolio and reflects the heavy capex profile, but the direction is supportive of ongoing investment commitments at CDC and One NZ.

Second-half shape from HY24 is not a clean template: HY24 contributed 42.9% of FY24 revenue but 139% of FY24 NPAT, with implied 2H FY24 NPAT of -$329.8m. That asymmetry reflects the prior-period one-off, not an operating seasonality pattern, so it cannot be used to extrapolate FY25.

What the release supports is a 33.3% revenue lift, 7% LFL EBITDAF growth, and a step-up in capex intensity. What it does not provide is a quantified FY25 EBITDAF range, segment-level prior-period comparatives, or a dividend coverage path against forward free cash flow.

The 7% LFL proportionate EBITDAF growth is the relevant durable measure but is non-GAAP and excludes revaluations and transaction costs; the supplied data does not split the growth across CDC, One NZ, and the medical-imaging businesses. CDC's 75% disclosed gross margin and One NZ's 32% margin (54.8% revenue share) anchor the operating story, but with no prior-period segment splits and a current-period acquisition overlay, organic versus inorganic contribution to the 33.3% revenue lift is not separable in the supplied data.

Cash quality weakened in a way that matters for valuation. OCF/EBITDA at 18.4% is less than half HY24's 41.6%, FCF/NPAT at 54.1% is mechanical given the negative NPAT denominator, and capex remained heavy at 12.1% of revenue. The cash balance rose to $496.3m, but that reflects financing activity rather than operational generation, so dividend coverage is weaker than the headline cash position suggests.

This briefing cannot assess segment-level year-on-year performance because prior-period segment splits and forward EBITDAF guidance ranges are not present in the supplied extracts.