Table of Contents
What changed
FY22 revenue rose 34.1% to NZ$172.0m, with the release attributing part of the uplift to chip-shortage-related demand alongside "core" growth. Operating profit jumped 265.9% to NZ$41.4m and profit before tax rose 275.2% to NZ$41.9m, driving NPAT to NZ$33.1m (+243.5%). Operating cash flow grew 50.7% to NZ$30.2m — a much slower pace than earnings. The balance sheet strengthened materially: cash climbed to NZ$39.2m from NZ$15.1m and net cash rose to NZ$23.2m from NZ$5.0m, even as gross borrowings lifted to NZ$16.0m. Inventory was the standout balance-sheet move, up 52.0% to NZ$57.3m. Segment-wise, NZ contributes ~70% of revenue at an underlying EBITDA margin near 34.9%, well above France/India (~12.5%) and HiRel (~7.3%).
What matters
- PBT, not NPAT, is the cleaner read. The effective tax rate rose to ~21.0% from 13.7%, which mechanically widens the gap between PBT growth (+275.2%) and NPAT growth (+243.5%). The underlying operating step-up is the PBT figure.
- Inventory build is the central earnings-quality question. Inventory days stretched to ~122 from ~107 even as receivable days improved sharply (~68 from ~89). Working capital on a receivables-plus-inventories proxy absorbed an extra NZ$20.3m year on year. Given management's own language separating "core" revenue from "chip-shortage-related" revenue, whether this inventory supports durable demand or cyclical demand matters more than the headline growth rate.
- Leverage direction is unambiguously positive. Net cash roughly quadrupled and ROE jumped to 24.5% from 9.3%. The group is funding strong growth while still de-gearing on a net basis.
Expectations
No quantitative targets or forward-work/backlog disclosures are supplied, so this release cannot be benchmarked against management guidance. Half-year shape shows HY22 delivered 49.7% of full-year revenue and 57.2% of full-year NPAT — profit was slightly first-half weighted, so the business did not accelerate further in H2 on an earnings basis. Operating cash flow, however, was heavily second-half weighted: only NZ$4.5m in HY22 versus an implied NZ$25.7m in H2 (~85% of full-year OCF), consistent with working-capital unwind late in the year. Without a stated FY23 target, the release supports a strong exit posture but does not set a run-rate the skeptical reader can anchor to.
Quality of result
Mixed. The PBT step-up is real and the balance sheet is genuinely stronger, but the earnings-to-cash relationship weakened: free cash flow pre-lease was NZ$21.8m against NZ$33.1m NPAT, a 65.7% conversion rate versus 164.6% in FY21. Capex also stepped up to 4.9% of revenue from 3.3%. The 52.0% inventory lift and extended inventory days indicate a portion of the FY22 earnings is balance-sheet-assisted in the sense that stock has been built to service a demand environment the company itself has flagged as partly shortage-related. Cash conversion deterioration warrants explicit attention. The offsetting positive is the clean improvement in receivable days, which rules out aggressive end-of-period revenue pull-forward via debtor extension.
Unresolved
- How much of the 34.1% revenue growth and 265.9% operating profit growth is "core" versus chip-shortage tailwind? The release references the distinction but the supplied excerpts do not quantify the split.
- Is the NZ$57.3m inventory position supported by firm orders, or is it speculative build against shortage pricing? No forward-work or order-book figure is disclosed.
- Why did the effective tax rate rise ~7.3pp, and is 21% the right forward assumption?
- No group-level reconciliation from underlying EBITDA to statutory earnings is provided, leaving the non-GAAP bridge opaque.
- No dividend disclosure is quantified in the supplied data, so payout policy and capital-return intent cannot be read.
This briefing cannot assess the durability of shortage-driven demand, the composition of the order book, or any post-balance-date trading update, as none of those are contained in the supplied extraction.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $172.0m | $128.3m | +34.1% ↑ |
| Net profit after tax | $33.1m | $9.6m | +243.5% ↑ |
| Net cash inflow from operating activities | $30.2m | $20.1m | +50.7% ↑ |
| Operating profit | $41.4m | $11.3m | +265.9% ↑ |
| Profit before tax | $41.9m | $11.2m | +275.2% ↑ |
| Cash and cash equivalents | $39.2m | $15.1m | +160.3% ↑ |
| Total assets | $199.9m | $154.4m | +29.5% ↑ |
Reference: annolyse.ai/briefings/rak-fy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| NZ | $120.4m | — | $42.0m | n/a |
| France/India | $29.9m | — | $3.7m | n/a |
| HiRel | $18.9m | — | $1.4m | n/a |
| T’maker | $0m | — | $4.6m | n/a |
| Other | $2.7m | — | $2.7m | n/a |
Reference: annolyse.ai/briefings/rak-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | +275.2% | — | cleaner earnings measure |
| Effective tax rate | 21.0% | 13.7% | — |
| FCF pre-lease | $21.8m | $15.9m | +$5.9m |
| FCF / NPAT | 65.7% | 164.6% | complementary conversion metric |
| Capex % revenue | 4.9% | 3.3% | — |
| Capex | $8.5m | $4.2m | +$4.3m |
| Debtor days | 68.2 | 89.3 | -21.1 days |
| Inventory days | 121.7 | 107.3 | +14.4 days |
| Operating working capital | $89.4m | $69.1m | +$20.3m absorbed |
| Trade debtors | $32.1m | $31.4m | +$0.7m |
| Net debt | −$23.2m | −$5.0m | −$18.2m |
| Gross borrowings | $16.0m | $10.0m | +$5.9m |
| ROE (annualised) | 24.5% | 9.3% | Strengthening |
| HY22 share of FY22 revenue | 49.7% | — | Other half was 50.3% |
| HY22 share of FY22 NPAT | 57.2% | — | Other half was 42.8% |
| Profit from continuing operations | $33.1m | $9.6m | +$23.5m |
Reference: annolyse.ai/briefings/rak-fy22
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.