Table of Contents
What changed
Note on comparables: the supplied like-for-like block appears to compare FY25 full-year figures against an HY24 prior, inflating the apparent growth rates. The release text itself provides the reliable year-on-year shape and is used below.
- Revenue of $162.1m was essentially flat on FY24 (-0.1%), and EBITDA of $16.1m was broadly unchanged versus $16.0m prior.
- NPAT rose 5.1% to $6.4m; PBT was $8.6m on an effective tax rate of 26.5% (vs 28.3% prior).
- The intra-year pivot is the story: H1 revenue was down 1.9% to $82.2m, while H2 revenue grew 5% on a normalised basis to roughly $79.9m.
- Net debt fell by $4.9m to $6.9m, with gross borrowings down to $8.5m (from $14.3m) and cash lifting to $1.5m.
- Operating cash flow stepped up to $13.2m and free cash flow was $7.6m, helped by capex being cut to $0.5m from $2.5m.
- A fully-imputed final dividend of 0.85 cps was declared; the release excerpts do not disclose an interim, so this may not represent the full-period payout.
What matters
- H2 revenue reacceleration. After years of revenue contraction, an H2 normalised +5% is the first tangible evidence of stabilisation. It is the single swing factor in the read on FY26.
- Deleveraging is material. Net debt/EBITDA fell from roughly 1.9x to 0.4x, and equity grew 13.0% to $68.7m. That removes a meaningful overhang and gives capital-allocation flexibility the company did not have a year ago.
- Capex discipline did heavy lifting. Capex fell ~$2.0m year-on-year to just $0.5m (0.3% of revenue, vs 3.0% prior). That is the primary mechanical reason FCF to NPAT stepped up to roughly 200% from a sub-100% level.
Expectations
No numeric guidance or forward-work target is disclosed in the supplied materials. Seasonality context shows FY25 revenue split 50.7% / 49.3% between halves and NPAT 46.5% / 53.5% – a balanced profile rather than a second-half-weighted one, so there is no obvious tailwind or hangover shape embedded in FY25. The release supports a narrative of stabilisation plus deleveraging; it does not, by itself, support a claim of durable growth reacceleration beyond the single-half H2 print.
Quality of result
The trading result is mixed to flat-to-positive: EBITDA grew less than 1% and the NPAT gain was driven more by lower capital-charge items (depreciation, interest, tax rate) than by operating leverage. What clearly improved is cash conversion – OCF-to-EBITDA rose to 82% from 67% – but two balance-sheet-assisted elements warrant flagging:
- Capex at $0.5m looks unusually low. Whether this is a sustainable run rate or a pause before reinvestment is not addressed in the excerpts.
- Working capital tightened materially. Inventory days fell from 8.4 to 0.9 and receivable days from 2.4 to 0.7. Year-end inventory of $0.4m is very lean, and without payables disclosure it is hard to tell how much of the OCF step-up is durable versus a timing release.
The trading improvement in H2 and the deleveraging look real; the FCF headline is real but flatters the underlying operating picture.
Unresolved
- Is the $0.5m capex run-rate sustainable, or is FY26 reinvestment materially higher (for fleet, software, or facilities)?
- Does H2's +5% revenue extend into FY26, and at what gross margin? No gross-margin disclosure is included in the supplied excerpts.
- What is the payables position and the full normalised working-capital baseline, given how lean year-end inventory looks?
- Customer count, average order value, and frequency for the full year are not captured in the excerpts.
- What is the full-period dividend, and is the 0.85 cps final part of a policy or a one-off?
This briefing cannot assess valuation, competitive positioning, or management's unstated plans for capital return and reinvestment, because the supplied data includes no share count, NTA, guidance, or forward-work disclosure.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $162.1m | $83.8m | +93.4% ↑ |
| EBITDA | $16.1b | $7.4b | +117.6% ↑ |
| Net profit after tax | $6.3m | $2.5m | +153.4% ↑ |
| Net cash inflow from operating activities | $13.2m | $4.9m | +168.4% ↑ |
| Final dividend per share | 0.9c | — | — |
| Profit before tax | $8.6m | $3.5m | +147.0% ↑ |
| Cash and cash equivalents | $1.5m | $0.2m | +909.2% ↑ |
| Total assets | $103.5m | $107.6m | -3.8% ↓ |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +147.1% | — | — |
| Effective tax rate | 26.5% | 28.3% | — |
| OCF / EBITDA (cash conversion) | 82.2% | 66.6% | stable |
| FCF pre-lease | $12.7m | $2.4m | +$10.3m |
| FCF post-lease | $7.6m | — | — |
| FCF / NPAT | 200.5% | 97.5% | complementary conversion metric |
| Capex % revenue | 0.3% | 3.0% | — |
| Capex | −$0.5m | −$2.5m | +$2.0m |
| Free cash flow | $7.6m | — | — |
| Debtor days | 0.7 | 2.4 | -1.7 days |
| Inventory days | 0.9 | 8.4 | -7.5 days |
| Operating working capital | $0.7m | $2.5m | −$1.8m absorbed |
| Trade debtors | $0.3m | $0.6m | −$0.2m |
| Net debt | $6.9m | $14.1m | −$7.2m |
| Net debt / EBITDA | 0.43x | 1.91x | Strengthening |
| Gross borrowings | $8.5m | $14.3m | −$5.8m |
| ROE (annualised) | 9.2% | 4.1% | Strengthening |
| HY25 share of FY25 revenue | 50.7% | — | Other half was 49.3% |
| HY25 share of FY25 NPAT | 46.5% | — | Other half was 53.5% |
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX 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.