Table of Contents
What changed
Reported group revenue fell 57.8% to $16.1m from $38.3m, but this reflects the exit of the Brewing segment rather than a collapse in the ongoing business. On a continuing-operations basis, revenue was $16.1m versus $24.2m (-33%). EBITDA swung to a positive $1.0m from -$2.0m, and the PBT loss narrowed 23.5% to -$3.1m. NPAT, however, deteriorated to -$6.6m from -$4.0m, driven by a $3.5m after-tax loss on discontinued operations. Operating cash flow essentially disappeared at $0.012m (FY20: $2.2m), yet cash on hand rose to $3.4m (from a $0.6m overdraft) and gross borrowings fell 12.6% to $7.0m, taking net debt to roughly $3.6m from $8.6m. No dividend was declared.
What matters
- The PBT-to-NPAT divergence is fully explained. The 86.5pp gap between PBT growth (+23.5%) and NPAT growth (-63%) is driven by the $3.5m discontinued-operations charge, not tax (tax was nil in both years). PBT is therefore the cleaner operating read and it improved.
- Portfolio has been reshaped. FY20 reporting carried Hospitality (63% of revenue) and Brewing (37%); FY21 is Hospitality plus Corporate, with Hospitality delivering a $3.6m segment result on $16.1m revenue (~22% margin) against a $1.7m corporate overhead. The implied continuing economics are materially better than the consolidated loss suggests.
- Balance sheet direction is favourable but cash generation is not. Net debt nearly halved and the overdraft position reversed, but OCF of $0.012m against $0.9m of capex produced pre-lease free cash flow of -$0.9m. Cash build therefore appears to be financing- or working-capital-driven rather than operationally generated.
Expectations
No forward-work book, medium-term revenue target, or earnings guidance was disclosed in the extracted material, so there is no explicit bar to measure this result against. Shape context from HY21 shows the first half contributed 61.4% of FY21 revenue and 69.1% of full-year EBITDA, implying a softer second half (H2 revenue ~$6.2m, H2 EBITDA ~$0.3m). Against HY21's -$0.4m NPAT, the full-year NPAT of -$6.6m implies an H2 loss of roughly $6.2m, almost entirely the discontinued-operations charge booked in the second half. The release does not support a view on FY22 trajectory beyond the observation that Hospitality is now the sole revenue-producing segment.
Quality of result
Mixed and heavily dependent on which line is examined. The continuing-operations EBITDA turnaround and narrower PBT loss look real, and the Hospitality margin inference (~22%) is defensible. Against that:
- Cash conversion deteriorated materially. OCF/EBITDA is just 1.2% and pre-lease FCF is negative $0.9m despite EBITDA turning positive.
- Working capital is a significant tailwind rather than a durable gain: trade debtors fell from $1.5m to $0.2m and inventories from $2.3m to $0.5m, with debtor days dropping to 4.7 from 14.5 and inventory days to 10.4 from 21.9. Part of this reflects the smaller revenue base and the loss of Brewing inventory, but it is a one-time release.
- Management's own commentary flags that reported operating cash flow was helped by a delayed settlement of payables from the prior year; adjusting for that, management cites $1.0m of operating cash flow, still well below the prior $2.2m.
Unresolved
- What drove the $3.5m discontinued-operations loss beyond the Brewing exit label, and is the disposal now complete with no residual liabilities?
- What explains the cash build from $3.4m when OCF was essentially nil and capex was $0.9m? The release excerpts point to financing activity but the extracted data does not disclose capital raised or debt drawn.
- Hospitality's 22% implied segment margin on $16.1m revenue is encouraging, but the absence of a like-for-like continuing-operations comparison in earlier years makes it hard to judge whether this is a new baseline or a rebound from COVID-affected trading.
- No gross margin, customer concentration, or FX disclosure was extracted, and no forward guidance or targets were provided.
This briefing cannot assess valuation, liquidity runway, or the terms and completeness of the Brewing divestment, as none of those details were present in the extracted material.
Key metrics
| Metric | FY21 | FY20 | Change |
|---|---|---|---|
| Revenue | $16.1m | $38.3m | -57.8% ↓ |
| EBITDA | $993m | −$1962m | +150.6% ↑ |
| Net profit after tax | −$6586m | −$4041m | -63.0% ↓ |
| Net cash inflow from operating activities | $12m | $2183m | -99.5% ↓ |
| Final dividend per share | −3.0c | — | — |
| Profit before tax | −$3090m | −$4041m | +23.5% ↑ |
| Total assets | $36.4m | $40.9m | -10.9% ↓ |
Reference: annolyse.ai/briefings/svr-fy21
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Hospitality | $16.1m | $24.1m | $3.6m | +37.0pp |
| Corporate | — | — | −$1.7m | n/a |
| Brewing | — | $14.2m | — | n/a |
Reference: annolyse.ai/briefings/svr-fy21
Analytical metrics
| Metric | FY21 | FY20 | Context |
|---|---|---|---|
| OCF / EBITDA (cash conversion) | 1.2% | — | deteriorated |
| FCF pre-lease | −$0.9m | $1.3m | −$2.3m |
| FCF / NPAT | 13.8% | -33.1% | complementary conversion metric |
| Capex % revenue | 5.7% | 2.2% | — |
| Capex | $924.0m | −$0.8m | +$924.8m |
| Debtor days | 4.7 | 14.5 | -9.8 days |
| Inventory days | 10.4 | 21.9 | -11.5 days |
| Operating working capital | $0.7m | $3.8m | −$3.1m absorbed |
| Trade debtors | $208.0m | $1.5m | +$206.5m |
| Net debt | $3.6m | $8.6m | −$5.0m |
| Net debt / EBITDA | 3.64x | — | Strengthening |
| Gross borrowings | $7021.0m | $8.0m | +$7013.0m |
| ROE (annualised) | -51.8% | -31.4% | Weakening |
| HY21 share of FY21 revenue | 61.4% | — | Other half was 38.6% |
| HY21 share of FY21 EBITDA | 69.1% | — | Other half was 30.9% |
| HY21 share of FY21 NPAT | 6.3% | — | Other half was 93.7% |
| Profit from continuing operations | −$3090.0m | — | — |
| Discontinued operation after tax | −$3496.0m | — | — |
Reference: annolyse.ai/briefings/svr-fy21
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.