Table of Contents
What changed
Revenue rose 11.6% to NZ$157.7m, with operating profit up 23.5% to NZ$64.2m. Profit before tax grew 15.4% to NZ$43.1m while reported NPAT rose 24.4% to NZ$30.9m, helped by the effective tax rate falling from 33.5% to 28.3%. The company also quotes an underlying NPAT of NZ$28.3m, up 36.5%. Operating cash flow rose 18.0% to NZ$63.6m, but capex nearly doubled to NZ$25.3m (16.1% of revenue, from 9.3%), so pre-lease free cash flow slipped to NZ$38.3m from NZ$40.8m. Gross borrowings eased to NZ$107.0m and net debt fell to NZ$103.5m. The final dividend was lifted to 8.0 cps (up 33.3% on the 6.0 cps prior-year final).
What matters
- H2 was materially softer than H1. HY25 NPAT was NZ$20.2m; the implied H2 NPAT is just NZ$10.7m, versus a roughly even revenue split (H1 49.5% of full-year revenue). The earnings run-rate exiting FY25 is well below the H1 pace and sits behind the headline growth story.
- Tax, not operations, drove the NPAT growth gap. PBT grew 15.4% versus NPAT at 24.4%. With no discontinued operation disclosed, the 9pp gap is a tax-rate benefit rather than underlying operating leverage; PBT is the cleaner read.
- Capex intensity has stepped up. Capex of NZ$25.3m is nearly 2x FY24 and now consumes 16.1% of revenue. This is the reason cash earnings improved but free cash flow did not, and it tightens the FCF coverage of the increased dividend (43.0% payout vs 30.4%).
Expectations
No quantitative targets or forward-work disclosures were provided in the release excerpts, so the result cannot be benchmarked against formal guidance. The internal shape is the main signal: with H1 accounting for 65.3% of full-year NPAT on a roughly balanced revenue split, H2 unit profitability clearly deteriorated. The release does not explain the H2 margin compression in the supplied excerpts, which limits confidence in extrapolating H1 profitability forward.
Quality of result
Revenue growth and OCF growth look genuinely operational, supported by a small improvement in receivable days (28.9 from 30.0) and lower gross borrowings. However, the result is less durable than the headline suggests: the NPAT beat versus PBT is a tax effect, the H2 earnings step-down is not reconciled, and pre-lease FCF went backwards despite stronger reported earnings. The NZ$28.3m underlying NPAT figure — roughly NZ$2.6m below reported — is referenced without a reconciliation in the supplied material, which also constrains quality assessment.
Unresolved
- What drove the sharp H2 NPAT compression (cost, volume mix, one-offs)?
- What is the bridge between reported NPAT of NZ$30.9m and underlying NPAT of NZ$28.3m?
- Is the stepped-up capex (16.1% of revenue) a one-year catch-up or a new baseline, and what return profile is expected?
- Why did the effective tax rate fall more than 5pp, and is the 28.3% rate sustainable?
This briefing cannot assess container volume trends, yield progression, EBITDA-based leverage, segment-level profitability, or the underlying-NPAT reconciliation because those disclosures were not supplied in the extraction.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $157.7m | $141.4m | +11.6% ↑ |
| Net profit after tax | $30.9m | $24.8m | +24.4% ↑ |
| Net cash inflow from operating activities | $63.6m | $53.9m | +18.0% ↑ |
| Final dividend per share | 8.0c | 6.0c | +33.3% ↑ |
| Operating profit | $64.2m | $52m | +23.5% ↑ |
| Profit before tax | $43.1m | $37.3m | +15.4% ↑ |
| Cash and cash equivalents | $3.5m | $1.9m | +80.4% ↑ |
| Total assets | $593.7m | $578.9m | +2.6% ↑ |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +15.4% | — | cleaner earnings measure |
| Effective tax rate | 28.3% | 33.5% | — |
| FCF pre-lease | $38.3m | $40.8m | −$2.5m |
| FCF / NPAT | 124.0% | 164.3% | complementary conversion metric |
| Capex % revenue | 16.1% | 9.3% | — |
| Capex | −$25.3m | −$13.1m | −$12.2m |
| Debtor days | 28.9 | 30.0 | -1.1 days |
| Trade debtors | $12.5m | $11.6m | +$0.87m |
| Net debt | $103.5m | $107.6m | −$4m |
| Gross borrowings | $107m | $109.5m | −$2.5m |
| Payout ratio vs NPAT | 53.3% | — | — |
| Payout ratio vs FCF pre-lease | 43.0% | — | covered |
| ROE (annualised) | 7.2% | 5.9% | Strengthening |
| HY25 share of FY25 revenue | 49.5% | — | Other half was 50.5% |
| HY25 share of FY25 NPAT | 65.3% | — | Other half was 34.7% |
| Profit from continuing operations | $30.9m | — | — |
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.