Underlying EBITDA up 2.7% but reported result swung to NZ$17.1m NPAT loss

Revenue rose 0.8% to NZ$132.6m and underlying EBITDA rose 2.7% to NZ$38.6m, but PBT fell 160.3% from NZ$32.4m profit to a NZ$19.5m loss, and NPAT fell 148.5% from NZ$35.2m profit to a NZ$17.1m loss. Annolyse's historical baseline classifies both PBT and NPAT growth at the lower edge of the recent three-period range (PBT range -197.2% to 199.4%; NPAT range -165.3% to 245.7%), so this is a large negative versus precedent.

Operating cash flow moved the other way, rising 46.6% to NZ$70.4m. The driver is a NZ$101.1m collapse in trade debtors from NZ$121.5m to NZ$20.4m, with debtor days falling from 168 to 28 (within the historical range; the prior comparable was the unusual point).

• Revenue and underlying EBITDA both grew modestly, but depreciation, financing and fair-value items below EBITDA turned a NZ$32.4m PBT into a NZ$19.5m loss — a NZ$51.9m swing on essentially flat operating activity. PBT is the cleaner read here because the effective tax rate flipped from -8.6% (a benefit) to +12.5% (an expense), narrowing the NPAT decline relative to PBT by 11.8 percentage points. For an investor, this means the deterioration is real at the IFRS level but does not show up in the underlying EBITDA management chooses to highlight.
• Cash conversion looks strong but is balance-sheet-assisted. OCF/EBITDA jumped to 182.0% from 127.5%, almost entirely on the NZ$101.1m receivables release. Strip that out and the underlying cash run-rate is closer to last year's, not 46.6% higher. This matters because the NZ$70.4m headline cash inflow will not recur on the same basis once the working-capital normalisation has played through.
• Leverage is unchanged at a high level. Net debt sits at NZ$628.9m and net debt to EBITDA is 16.3x, essentially flat versus 16.2x in the prior comparable. Management cites gearing of 37.5% versus 38.3% at FY24, but on an earnings-coverage basis there is no improvement. Debt reduction is a stated strategic priority, but this period did not deliver it.

The supplied second-half shape shows HY24 contributed 49.6% of FY24 revenue, 45.6% of FY24 EBITDA, and 111.7% of FY24 NPAT, implying the FY24 second half was loss-making at the bottom line (-NZ$3.7m implied 2H NPAT). Annualising HY25 revenue gives NZ$265.2m, broadly in line with FY24's NZ$265.5m.

The read is that flat top-line plus a loss-making 1H sets a low bar for FY25 reported NPAT, and the result does not yet show traction on the company's stated FY25 sales focus.

Beyond that, the quality signals are mixed.

Payout ratio versus pre-lease FCF is suppressed because the source-backed cash-dividend bridge is unavailable.

This briefing cannot assess the composition of items below EBITDA or the sustainability of the receivables collection without the detailed fair-value and segment-cash disclosures.