Table of Contents
What changed
Revenue printed at NZD 41.5m versus NZD 68.8m in the prior comparable, a 39.7% decline on the structured comparison. Against that, profitability moved the other way: EBITDAF turned positive at NZD 1.0m (prior excerpt references a NZD 1.6m EBITDAF loss), the PBT loss narrowed 70.5% to NZD 4.6m, and the NPAT loss narrowed 67.8% to NZD 5.1m. Operating cash flow eased to NZD 4.7m from NZD 5.9m (-20.5%), but capex collapsed to NZD 2.8m from NZD 11.4m, lifting pre-lease free cash flow to NZD 1.9m from a NZD 5.5m outflow. Cash on hand rose to NZD 22.0m from NZD 14.1m. Total equity eased to NZD 112.5m, and neither gross borrowings nor a dividend were disclosed in the extracted materials.
What matters
- EBITDAF and FCF both crossed zero. The swing from a cash-negative, loss-making P&L to positive EBITDAF of NZD 1.0m and pre-lease FCF of NZD 1.9m is the central read from the release. ROE improved from -13.7% to -4.5% on the calculation pass.
- The FCF turnaround is heavily capex-driven. Capex fell from 16.6% of revenue to 6.7%, a NZD 8.7m step-down that does more of the work on free cash flow than the operating line does. OCF actually fell NZD 1.2m.
- PBT is the cleaner earnings read. A NZD 0.5m tax charge on a pre-tax loss produced a 10.6% effective rate versus 1.2% prior, widening the bottom-line loss relative to PBT; the 70.5% PBT improvement is the more representative operating signal.
Expectations
Management affirmed FY25 total-income guidance for the current business, but the supplied excerpts do not include a quantified range in parseable form, and no multi-year target was disclosed. The second-half shape implied by the structured data is problematic: HY25 revenue of NZD 35.8m against full-period revenue of NZD 41.5m leaves only NZD 5.7m of implied second-half revenue, while the release narrative describes "Total income $42.7 million, up 18% on 1H24." That pattern is more consistent with a first-half interim being compared against a full prior-year base than with a normally shaped full-year decline, and the briefing treats the revenue trajectory with that caveat.
Quality of result
The operating improvement looks real at the EBITDAF and PBT level, but the cash quality signal is mixed. Operating cash conversion deteriorated: OCF fell 20.5% even though PBT improved sharply, and receivable days lengthened to 28.7 from 18.0 on the calculation pass, pointing to working-capital drag rather than underlying cash generation strength. Free cash flow turning positive rests primarily on the NZD 8.7m capex reduction, which is a capital-allocation choice and could be partly timing-driven if capitalised development work has stepped down temporarily. No non-recurring items were identified in the extracted excerpts, and EBITDAF and free cash flow remain management-defined measures without a full statutory reconciliation provided.
Unresolved
- How the revenue comparison should be read: the release language points to a first-half result up 18% on 1H24, but the structured comparison shows -39.7%, and the supplied excerpts do not reconcile the two bases.
- Whether the capex step-down from NZD 11.4m to NZD 2.8m reflects completion of a prior development cycle or a durable lower run-rate.
- Prior-period EBITDAF, gross borrowings, net debt, dividend, forward-work balance, and any quantified FY25 guidance range are not present in the extracted materials, so leverage, payout, and run-rate-versus-target cannot be assessed.
- The receivable-days lengthening needs to be read against billing mix, which is not disclosed.
This briefing cannot assess segment economics, customer concentration, or the underlying reason for the revenue-base mismatch between the structured comparison and the release commentary.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $41.5m | $68.8m | -39.7% ↓ |
| Net profit after tax | −$5.1b | −$15.9b | +67.8% ↑ |
| Net cash inflow from operating activities | $4.7b | $5.9b | -20.5% ↓ |
| Profit before tax | −$4.6b | −$15.7b | +70.5% ↑ |
| Cash and cash equivalents | $22.0m | $14.1m | +55.3% ↑ |
| Total assets | $126.7m | $130.1m | -2.7% ↓ |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| OCF / EBITDAF (cash conversion) | 468.5% | -368.4% | deteriorated |
| FCF pre-lease | $1.9m | −$5.5m | +$7.4m |
| FCF post-lease | $1.3m | — | — |
| FCF / NPAT | -25.4% | — | complementary conversion metric |
| Capex % revenue | 6.7% | 16.6% | — |
| Capex | −$2.8b | −$11.4m | −$2.8b |
| Free cash flow | $1.3b | — | — |
| Debtor days | 28.7 | 18.0 | +10.7 days |
| Trade debtors | $3.3b | $3.4m | +$3.3b |
| ROE (annualised) | -4.5% | -13.7% | Strengthening |
| HY25 share of FY25 revenue | 86.3% | — | Other half was 13.7% |
| HY25 share of FY25 EBITDAF | -80.0% | — | Other half was 180.0% |
| HY25 share of FY25 NPAT | 140.2% | — | Other half was -40.2% |
| Profit from continuing operations | −$5.1b | −$15.9m | −$5.1b |
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.