Table of Contents
What changed
Revenue fell 9.2% to $239.3m from $263.5m, driven almost entirely by New Zealand (revenue $159.6m versus $186.7m, down 14.5%) while Australia edged up to $79.7m from $76.8m. EBITDA (pre IFRS) declined to $12.3m from $18.2m. The statutory NPAT loss widened to $27.5m from $10.5m, a deterioration of roughly $17.0m, with the release flagging significant items including restructuring costs and impairments (the HY24 commentary referenced a $9.1m intangibles impairment tied to the NZ construction outlook). Operating cash flow rose to $18.9m from $5.7m, aided by lower trade receivables (-$4.7m) and inventories (-$6.2m). Gross borrowings fell to $59.7m from $67.4m and stated net debt fell ~$7m to $53.0m, but equity contracted 35.1% to $49.0m. Management has stated it is "looking at capital raising and other alternatives to reduce debt."
What matters
- Leverage direction, not absolute level. Net debt fell in dollars, but net debt/EBITDA rose to 4.3x from 3.3x because EBITDA shrank faster than debt. The explicit reference to capital raising signals the balance sheet is the binding constraint.
- H2 profitability collapse. HY24 carried 134.1% of full-year EBITDA, implying H2 EBITDA of approximately -$4.2m and H2 NPAT of roughly -$18.3m. This is a sharp intra-year deterioration, not a flat decline.
- Segment mix is hollowing out. Australia ($6.8m segment result on $79.7m revenue) now carries the group's economics, while New Zealand segment result collapsed to $1.3m from $6.4m on materially lower volumes. The group's dominant revenue segment has become its weakest earner.
Expectations
No forward revenue, earnings, or capex targets were provided, and no forward-work/order-book disclosure is available in the supplied material. On seasonality, HY24 at 54.4% of full-year revenue but well over 100% of full-year EBITDA confirms a back-half that was materially worse than the first — the opposite of what a typical construction-linked H2 weighting would imply, and not something a reader could infer from the headline print alone. The release does not support a view on when EBITDA re-accelerates; it supports only that the current run-rate sits below FY24 reported EBITDA.
Quality of result
The operating cash flow jump from $5.7m to $18.9m is flattered by working-capital release: operating working capital fell ~$10.9m, with inventory days down 5.0 to 39.1 and receivable days down 1.9 to 50.9. That improvement reflects a smaller business (revenue down 9.2%) as much as tighter management, and is not a repeatable source of cash at current activity levels. OCF/EBITDA at 153.8% would normally be a quality indicator, but with a negative H2 EBITDA implied, the ratio flatters rather than informs. The NPAT loss widening against a PBT loss narrowing in FY23 is driven by disclosed significant items (restructuring and impairments) rather than trading; management disclosed adjusted EBITDA (pre IFRS) and EBIT before significant items but did not publish a complete bridge to statutory NPAT in the supplied excerpts. Durable read: Australia profitability is holding; NZ earnings power has structurally stepped down.
Unresolved
- Size and structure of the capital raise. Dilution magnitude, pricing framework, and whether the raise is underwritten are not disclosed.
- Covenant headroom. With leverage at ~4.3x EBITDA and equity down 35%, the release does not quantify banking covenant thresholds or current headroom.
- H2 exit run-rate. Implied H2 EBITDA of -$4.2m raises the question of whether March 2024 exit trading is closer to breakeven or to the H2 average.
- Quantum of significant items. The FY24 split between restructuring, impairments, and other non-recurring charges driving the $17.0m NPAT deterioration is not broken out in the supplied excerpts.
- Capex intensity. Capex was not disclosed, so free cash flow and maintenance-versus-growth capex cannot be assessed.
This briefing cannot assess covenant position, raise terms, or post-balance-date trading because none of those items are disclosed in the supplied material.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $239300m | $263520m | -9.2% ↓ |
| EBITDA | $12300m | — | — |
| Net profit after tax | −$27500m | −$10548m | -160.7% ↓ |
| Net cash inflow from operating activities | $18.9m | $5.7m | +230.8% ↑ |
| Operating profit | $7200m | −$208m | +3561.5% ↑ |
| Total assets | $218.9m | $254.6m | -14.0% ↓ |
Reference: annolyse.ai/briefings/mpg-fy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand | $159.6m | $186.7m | $1.3m | -4.2pp |
| Australia | $79.7m | $76.8m | $6.8m | +4.2pp |
Reference: annolyse.ai/briefings/mpg-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| OCF / EBITDA (cash conversion) | 153.8% | — | stable |
| Debtor days | 50.9 | 52.8 | -1.9 days |
| Inventory days | 39.1 | 44.1 | -5.0 days |
| Operating working capital | $59.0m | $69.9m | −$10.9m absorbed |
| Trade debtors | $33.3m | $38.1m | −$4.7m |
| Net debt | $53.0m | $60.1m | −$7.0m |
| Net debt / EBITDA | 4.30x | 3.30x | Weakening |
| Gross borrowings | $59.7m | $67.4m | −$7.7m |
| ROE (annualised) | -56.1% | -14.0% | Weakening |
| HY24 share of FY24 revenue | 54.4% | — | Other half was 45.6% |
| HY24 share of FY24 EBITDA | 134.1% | — | Other half was -34.1% |
| HY24 share of FY24 NPAT | 33.5% | — | Other half was 66.5% |
| Profit from continuing operations | — | −$10.5m | — |
Reference: annolyse.ai/briefings/mpg-fy24
This analysis was generated using Annolyse, an AI-powered tool that extracts and analyses NZX 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.