Table of Contents
What changed
Revenue rose 2.7% to NZ$48.6m and operating profit before financing costs lifted 14.4% to NZ$16.8m, indicating operating leverage on a modest top-line gain. PBT grew 16.9% to NZ$17.2m and NPAT grew 19.7% to NZ$12.8m, with the ~2.8pp gap between the two driven by the effective tax rate easing to roughly 25.2% from 27.0% rather than by any disclosed discontinued item.
The cash picture moved in the opposite direction. Operating cash flow fell 13.5% to NZ$13.7m while capex more than doubled to NZ$23.4m (from NZ$11.1m), swinging pre-lease free cash flow from a positive NZ$4.7m to a deficit of about NZ$9.7m. Gross borrowings jumped to NZ$25.5m from NZ$9.0m, lifting net debt to roughly NZ$24.2m from NZ$7.4m, and the balance sheet expanded by 28.3% on the asset side. The final dividend was held flat at 19.5 cps.
What matters
- Capex step-change versus cash generation. Capex intensity rose to 48.1% of revenue from 23.5%, and on current earnings the investment cycle is being funded with debt, not operating cash. This is the single most consequential development for earnings quality read-through.
- Leverage direction. Net debt roughly tripled in absolute terms. Equity still grew to NZ$55.3m, but the trajectory is clearly away from the near-ungeared position at FY21.
- Operating margin expansion. Operating profit growth (14.4%) on 2.7% revenue growth points to cost leverage or mix benefit, and ROE improved to 23.2% from 21.6%. That is the genuinely positive operating signal in the result.
Expectations
No quantitative forward work, revenue target, or earnings guidance is disclosed in the extracted material. Using the HY22 interim as shape context, the first half contributed about 48.0% of full-year revenue and 45.7% of NPAT, implying a modestly second-half-weighted year. Operating cash flow was particularly back-end loaded, with HY22 at only 36.5% of the full-year figure. Without a stated FY23 target or disclosed forward work, the release supports a view that the operating business is compounding margin, but does not support any inference about when the current capex cycle peaks or when free cash flow turns positive again.
Quality of result
The P&L result looks largely durable: revenue, operating profit, PBT and NPAT all moved up together, the tax-rate tailwind is modest, and there are no flagged one-offs or non-GAAP adjustments in the extract. Receivable days improved to roughly 52.6 from 69.8, which is a genuine working-capital tightening rather than a release of reserves.
Against that, cash conversion deteriorated materially. Operating cash flow fell even as PBT rose, so OCF/PBT dropped from about 107.8% to 79.8%. Combined with the doubling of capex, pre-lease FCF of -NZ$9.7m means the NZ$12.8m NPAT is not backed by free cash this year. The flat 19.5 cps dividend is covered 39.9% by NPAT but is not covered by pre-lease free cash flow at all, and is being sustained through higher borrowings.
Unresolved
- What does the NZ$23.4m of non-current asset acquisition actually comprise, and is it a one-year peak or the first instalment of a multi-year programme?
- What return profile and timing does management attach to the new capex, and what is the expected peak in net debt?
- No EBITDA figure is disclosed, so net debt / EBITDA and a clean cash-conversion ratio cannot be computed; covenant headroom is therefore not visible from the extract.
- Volume mix — particularly the trajectory of container volumes after the 23% HY22 decline and the flagged second-half weakness in bulk cargo — is not reconciled to the full-year revenue outcome in the extract.
This briefing cannot assess the commercial merit or expected returns of the capex programme, nor the company's covenant and liquidity headroom, because those disclosures are not in the extracted material.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $48.6m | $47.3m | +2.7% ↑ |
| Net profit after tax | $12.8m | $10.7m | +19.7% ↑ |
| Net cash inflow from operating activities | $13.7m | $15.8m | -13.5% ↓ |
| Final dividend per share | 19.5c | 19.5c | flat |
| Operating profit | $16.8m | $14.7m | +14.4% ↑ |
| Profit before tax | $17.2m | $14.7m | +16.9% ↑ |
| Cash and cash equivalents | $1.3m | $1.6m | -19.9% ↓ |
| Total assets | $88.1m | $68.7m | +28.3% ↑ |
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | +16.9% | — | cleaner earnings measure |
| Effective tax rate | 25.2% | 27.0% | — |
| FCF pre-lease | −$9.7m | $4.7m | −$14.4m |
| FCF / NPAT | -75.4% | 43.9% | complementary conversion metric |
| Capex % revenue | 48.1% | 23.5% | — |
| Capex | −$23.4m | −$11.1m | −$12.2m |
| Debtor days | 52.6 | 69.8 | -17.2 days |
| Trade debtors | $0.01m | $0.01m | $0m |
| Net debt | $24.2m | $7.4m | +$16.8m |
| Gross borrowings | $25.5m | $9m | +$16.5m |
| Payout ratio vs NPAT | 39.9% | — | — |
| ROE (annualised) | 23.2% | 21.6% | Strengthening |
| HY22 share of FY22 revenue | 48.0% | — | Other half was 52.0% |
| HY22 share of FY22 NPAT | 45.7% | — | Other half was 54.3% |
| Profit from continuing operations | $12.8m | $10.7m | +$2.1m |
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.