Table of Contents
What changed
Revenue from continuing operations fell 31.7% to NZD $2.6m in HY26, stripping out the King Honey segment that was exited during the period. The like-for-like comparison is complicated by the fact that HY25 reported revenue of $3.7m included King Honey, so the apparent decline overstates the deterioration in the ongoing business — the release notes Me Today continuing revenue actually grew 21% on the equivalent prior period base of $2.151m.
The EBITDA loss from continuing operations narrowed materially to -$0.8m from -$1.8m, and PBT from continuing operations improved 62.9% to -$0.9m from -$2.4m. These are the cleanest operational reads; tax was nil in both periods.
Reported NPAT swung to a profit of $3.2m from a loss of $2.4m, but this is entirely explained by the $4.1m after-tax profit from discontinued operations (King Honey disposal). The continuing business remained loss-making.
On the balance sheet, the King Honey exit triggered a dramatic restructuring: gross borrowings collapsed from $15.6m to $2.3m, total assets fell from $19.0m to $6.6m, and equity more than doubled to $3.1m. Net debt is now essentially nil at approximately $0.024m.
What matters
1. The disposal-driven balance sheet reset is the most consequential development. The King Honey exit eliminated $13.4m of debt and converted a highly leveraged, near-distressed balance sheet into one with positive working capital of $5.0m and net debt close to zero. This materially reduces financial risk for the continuing business, even though that business continues to lose money operationally.
2. The continuing-operations improvement is real but needs context. The narrowing of the EBITDA loss from -$1.8m to -$0.8m, and of PBT from -$2.4m to -$0.9m, reflects genuine cost reduction rather than a revenue uplift. The Me Today brand segment generated about $2.3m of revenue on a roughly -11.5% segment margin, while agency services contributed $0.3m at roughly -5.6%. Neither segment is profitable. The business is still consuming cash — operating cash outflow was -$1.0m in HY26, barely changed from -$1.0m in HY25.
3. Receivable days expanded materially. Days receivable rose to approximately 114 days from 91 days, a 22.6-day deterioration. With revenue of only $2.6m, a debtor balance of $1.6m represents a meaningful working capital overhang and raises a question about collection quality or terms.
Expectations
Management has guided to gross revenue exceeding $6.5m for the full year. With $2.6m of continuing revenue in H1, the annualised run rate of approximately $5.1m sits well below that target, implying H2 needs to deliver at least $3.9m — roughly 53% more than H1. No forward-order book or contracted pipeline was disclosed to support the expected acceleration.
The FY25 shape provides limited comfort: H1 and H2 contributed roughly equally to full-year revenue, so there is no established strong seasonal weighting to H2 that would make this step-up automatic.
The company's previous forecast in HY25 was for gross revenue exceeding $5.0m for that full year; the FY25 outturn was $7.45m including King Honey, so the prior track record of hitting targets is blended. It is not possible from this filing to assess how much of the >$6.5m target derives from confirmed orders versus aspirational pipeline.
Quality of result
The reported NPAT of $3.2m is not a quality earnings result — it is driven by a one-time $4.1m disposal gain from King Honey that will not recur. Stripping that out, the continuing business produced a PBT loss of -$0.9m.
The improvement in EBITDA and PBT from continuing operations is more credible, reflecting a cost base that has been reduced, but it is not yet translating into cash generation. Operating cash outflow of -$1.0m closely mirrors the EBITDA loss, suggesting working capital movements were approximately neutral rather than a source of cash benefit.
Inventory days fell sharply (to ~174 from ~655), largely reflecting the disposal of King Honey rather than an organic inventory turn improvement in the continuing business. The receivable-days expansion is a mild negative quality signal. The balance sheet improvement is structurally genuine — debt retirement through the disposal is permanent — but the underlying business still requires cash to operate.
Unresolved
- The $4.1m King Honey disposal gain is described as a discontinued-operations profit, but the release does not disclose the disposal proceeds, any retained liabilities, or whether the gain is fully cash-backed.
- Receivable days of 114 days are high relative to a small revenue base; no ageing disclosure or credit quality commentary was provided.
- The >$6.5m full-year gross revenue target implies a sharp H2 acceleration with no disclosed contracted order book, pipeline breakdown, or channel-specific commentary to support it.
- The Me Today China partnership is cited as a priority growth avenue but no financials, timelines, or contractual milestones are disclosed.
- Share count and NTA per share were not provided, making it impossible to assess whether the equity rebuild translates into per-share value recovery.
This briefing cannot assess whether the second-half revenue acceleration required to meet the >$6.5m target is supported by confirmed demand or represents management aspiration.
Key metrics
| Metric | HY26 | HY25 | Change |
|---|---|---|---|
| Revenue | $2.6m | $3.7m | -31.7% ↓ |
| EBITDA | −$0.8m | −$1.8m | +53.8% ↑ |
| Net profit after tax | $3.2m | −$2.4m | +232.4% ↑ |
| Net cash inflow from operating activities | −$1.0m | −$1.0m | +4.6% ↑ |
| Profit before tax | −$0.9m | −$2.4m | +62.9% ↑ |
| Cash and cash equivalents | $2.2m | $1.6m | +36.8% ↑ |
| Total assets | $6.6m | $19.0m | -65.3% ↓ |
Source: annolyse.ai/briefings/mee-hy26
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Me Today brand | $2.3m | — | −$0.3m | n/a |
| Agency services | $0.3m | — | −$0.0m | n/a |
| King Honey | — | — | $4.1m | n/a |
Source: annolyse.ai/briefings/mee-hy26
Analytical metrics
| Metric | HY26 | HY25 | Context |
|---|---|---|---|
| OCF / EBITDA (cash conversion) | 120.8% | 58.5% | deteriorated |
| FCF pre-lease | −$1.0m | −$1.0m | +$0.0m |
| FCF / NPAT | -31.4% | 43.1% | complementary conversion metric |
| Capex % revenue | 0.5% | 0.0% | — |
| Capex | −$0.0m | $0.0m | −$0.0m |
| Debtor days | 113.7 | 91.1 | +22.6 days |
| Inventory days | 173.5 | 655.2 | -481.7 days |
| Operating working capital | $5.0m | — | — |
| Trade debtors | $1.6m | $1.9m | −$0.3m |
| Net debt | $0.0m | $14.0m | −$14.0m |
| Net debt / EBITDA | 0.03x | 7.82x | Strengthening |
| Gross borrowings | $2.3m | $15.6m | −$13.4m |
| HY25 share of FY25 revenue | 50.1% | — | Other half was 49.9% |
| HY25 share of FY25 EBITDA | 37.6% | — | Other half was 62.4% |
| HY25 share of FY25 NPAT | 40.4% | — | Other half was 59.6% |
| Required CAGR | 51.9% | — | gross revenue to exceed $6.5m for the full year |
| Profit from continuing operations | −$0.9m | −$2.4m | +$1.5m |
| Discontinued operation after tax | $4.1m | — | — |
Source: annolyse.ai/briefings/mee-hy26
This analysis was generated using Annolyse, an AI-powered tool that extracts and analyses NZX/ASX company announcements. The underlying data is extracted from official company filings and verified against source documents. 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.