Table of Contents
What changed
Revenue was essentially flat at $52.6m versus $52.3m, with bulk cargo revenue up 26.5% to $20.2m offsetting static container volumes of 135,000 TEU. Operating profit slipped 1.9% to $21.3m, but profit before tax fell 30.3% to $14.8m. NPAT dropped 17.6% to $10.6m, with the gap between PBT and NPAT growth explained by a fall in the effective tax rate to 28.6% from 39.7% (no discontinued operations disclosed). Operating cash flow dropped 32.9% to $14.6m. Cash on hand collapsed from $16.1m to $2.7m and gross borrowings rose to $34.7m, flipping the balance sheet from net cash of $16.1m to net debt of approximately $32.1m. An interim dividend of 2.8 cps was declared (none in HY20).
What matters
- PBT is the cleaner read, and it is down 30.3%. Operating profit moved only slightly, so the deterioration is concentrated below the EBIT line (interest/finance costs consistent with a newly levered balance sheet). NPAT's shallower decline rests on a tax-rate tailwind of roughly 11 percentage points, which is not repeatable.
- Balance sheet direction has reversed. In a single period the group moved from net cash to $32m net debt while equity eased from $387.2m to $346.7m and total assets fell 18.8% to $425.0m. This is the structural change in the release.
- Capex intensity remains extreme. At $45.8m, capex absorbed 87% of revenue and ran at roughly 3.1x operating cash flow, producing pre-lease free cash flow of about -$31.2m versus -$24.3m prior. Capital allocation (including the 2.8 cps dividend, ~56% of NPAT) is being funded from the balance sheet, not from organic cash generation.
Expectations
No quantified FY21 guidance or forward-work backlog is disclosed in the supplied excerpts, and no stated targets accompany the release. On shape, HY20 was mildly first-half weighted (52.1% of FY20 revenue, 58.3% of FY20 NPAT), so a naive annualisation of HY21 revenue to $105.2m – about 4.7% above FY20's $100.4m – likely overstates the full-year trajectory. The release itself flags a "subdued" outlook tied to labour and export conditions. Nothing in the filing supports an improvement in the PBT trend in the second half absent either a cost reversal or a capex/finance-cost step-down.
Quality of result
The revenue line is genuine but flat; the NPAT number is tax-assisted and overstates underlying durability. The drop in operating cash flow to $14.6m, against barely changed accounting profit, is largely a working-capital story: trade debtors almost doubled from $9.0m to $17.2m, stretching receivable days from about 31 to 60. That conversion gap of roughly $6.7m between operating profit and operating cash flow is timing-driven rather than earnings-driven, and should reverse – but it is flagged directly as a material deterioration in cash conversion this half. Combined with a tax-rate tailwind that won't repeat and a below-EBIT cost step-up, the quality of the reported $10.6m NPAT is weaker than the headline suggests.
Unresolved
- The "underlying NPAT" of $10.6m (-5.2%) is referenced but not reconciled in the supplied excerpt – the specific adjustment items and their size are not disclosed.
- Segment-level results for HY21 beyond bulk cargo revenue are not extracted, so it is not possible to judge whether container margin compressed, cruise contribution was lost, or bulk simply carried the period.
- The drivers of the ~11pp fall in the effective tax rate are not identified.
- The full HY21 capex program, its funding mix going forward, and the borrowing headroom (versus a previously disclosed $180m facility) are not quantified here.
- Whether the receivables build is a single-customer timing issue or a broader collection trend is not addressed.
This briefing cannot assess the underlying NPAT adjustments, the status and funding path of the capital program, or management's forward commentary beyond the short excerpts supplied.
Key metrics
| Metric | HY21 | HY20 | Change |
|---|---|---|---|
| Revenue | $52.6m | $52.3m | +0.6% ↑ |
| Net profit after tax | $10.6m | $12.8m | -17.6% ↓ |
| Net cash inflow from operating activities | $14.6m | $21.7m | -32.9% ↓ |
| Interim dividend per share | 2.8c | — | — |
| Profit before tax | $14.8m | $21.3m | -30.3% ↓ |
| Cash and cash equivalents | $2.7m | $16.1m | -83.5% ↓ |
| Total assets | $425.0m | $523.2m | -18.8% ↓ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Container Services | — | $30.9m | — | n/a |
| Bulk & Other Cargo | $20.2m | $16.0m | — | +7.8pp |
| Cruise | — | $4.2m | — | n/a |
| Port & Property | — | $1.2m | — | n/a |
Analytical metrics
| Metric | HY21 | HY20 | Context |
|---|---|---|---|
| PBT growth | -30.3% | — | cleaner earnings measure |
| Effective tax rate | 28.6% | 39.7% | — |
| FCF pre-lease | −$31.2m | −$24.3m | −$6.9m |
| FCF / NPAT | -295.1% | -189.4% | complementary conversion metric |
| Capex % revenue | 87.0% | 88.1% | — |
| Capex | −$45.8m | $23.2b | −$23.2b |
| Debtor days | 59.6 | 31.2 | +28.4 days |
| Trade debtors | $17.2m | $9.0m | +$8.2m |
| Net debt | $32.1m | −$16.1m | +$48.2m |
| Gross borrowings | $34.7m | — | — |
| Payout ratio vs NPAT | 56.0% | — | — |
| HY20 share of FY20 revenue | 52.1% | — | Other half was 47.9% |
| HY20 share of FY20 NPAT | 58.3% | — | Other half was 41.7% |
| Profit from continuing operations | $10.6m | $12.8m | −$2.3m |
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.