Table of Contents
What changed
Revenue declined 8.4% to NZ$56.6m and EBITDA fell 17.2% to NZ$7.3m, indicating operating deleverage on the lower top line. The pre-tax loss narrowed from NZ$2.9m to NZ$1.4m (PBT +49.5%), but reported NPAT swung from a NZ$0.7m profit to a NZ$1.2m loss. The divergence is driven by tax: FY24 included a NZ$3.5m tax benefit (effective rate of 122.8%) that lifted reported NPAT above the pre-tax line, versus only a NZ$0.2m benefit in FY25. Operating cash flow rose 10.9% to NZ$7.1m, cash rebuilt to NZ$1.8m from zero, gross borrowings held near NZ$9.0m, and net debt fell to NZ$7.2m (net debt/EBITDA 0.99x vs 1.03x). Equity declined to NZ$17.4m on the reported loss. Hospitality remained 100% of revenue at an implied ~18.1% segment margin; Corporate is overhead only.
What matters
- Tax-driven NPAT optics. PBT is the cleaner operating read and improved materially. The headline swing into statutory loss reflects the non-recurrence of FY24's NZ$3.5m tax benefit, not a deterioration in underlying profitability.
- Top-line erosion versus cash resilience. Revenue contracted 8.4% and EBITDA fell further on negative operating leverage, yet OCF/EBITDA improved from 72.9% to 97.7%. The cash engine held up even as the P&L weakened.
- Balance-sheet direction. Net debt/EBITDA sits just under 1.0x despite lower earnings, because cash rebuilt from zero to NZ$1.8m and gross borrowings eased. Leverage is directionally strengthening on management's own "<1x" framing, but the cushion is thin and tangible equity per share remains negative (NZ$(0.09) NTA).
Expectations
No FY26 guidance, backlog, or quantitative target was provided, and no prior guidance range is disclosed for the current period. Seasonality context from HY25 shows H1 delivered 51.3% of full-year revenue but only 43.2% of full-year EBITDA, so the implied H2 run was NZ$27.6m revenue and NZ$4.1m EBITDA — an EBITDA uplift of roughly 31% half-on-half. That supports management's "strong turnaround in the second half" characterisation, but in the absence of a stated target or forward-work disclosure, the release does not support a quantitative view on FY26 trajectory.
Quality of result
Quality is mixed. The operating cash result is genuine: cash conversion to EBITDA improved to 97.7% without working-capital assistance (the receivables-plus-inventory proxy actually declined NZ$0.05m). Capex rose to NZ$1.1m from NZ$0.5m, so pre-lease free cash flow was essentially flat at NZ$6.0m. Lease payments are not separately disclosed in the excerpt, so post-lease FCF cannot be verified. The reported NPAT swing is largely a tax-line artefact rather than an operational event, while the EBITDA decline is real and reflects volume deleverage on the 8.4% revenue drop. H2 strength is encouraging but unaudited against any stated run-rate target.
Unresolved
- What drove the 8.4% revenue decline — venue closures, pricing, volume, or one-off events?
- Why did FY24 carry a NZ$3.5m tax benefit, and is any portion (deferred tax asset recognition, prior-period true-up) at risk of reversal?
- Lease payment quantum, which is needed to bridge pre-lease FCF of NZ$6.0m to a post-lease figure relevant for dividend and debt coverage.
- The status of dividends: the release lists "Final Dividend — Not Applicable," so the full-period distribution shape is unclear from the excerpt.
- Customer/venue concentration within Hospitality, given the segment carries 100% of revenue.
This briefing cannot assess market valuation, share-price reaction, or FY26 trading trends, as no share price, guidance, or post-balance-date update was supplied.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $56.6m | $61.9m | -8.4% ↓ |
| EBITDA | $7.3m | $8.8m | -17.2% ↓ |
| Net profit after tax | −$1.2m | $0.65m | -286.5% ↓ |
| Net cash inflow from operating activities | $7.1m | $6.4m | +10.9% ↑ |
| Final dividend per share | −9.0c | −8.0c | -12.5% ↓ |
| Profit before tax | −$1.4m | −$2.9m | +49.5% ↑ |
| Total assets | $51.6m | $53.8m | -3.9% ↓ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Hospitality | $56.6m | $61.9m | $10.2m | +0.0pp |
| Corporate | $0m | $0m | −$3m | +0.0pp |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| OCF / EBITDA (cash conversion) | 97.7% | 72.9% | stable |
| FCF pre-lease | $6m | $5.9m | +$0.06m |
| FCF / NPAT | -493.4% | 911.5% | complementary conversion metric |
| Capex % revenue | 2.0% | 0.8% | — |
| Capex | $1.1m | −$0.48m | +$1.6m |
| Debtor days | 0.5 | 0.6 | -0.1 days |
| Inventory days | 5.6 | 5.3 | +0.3 days |
| Operating working capital | $0.95m | $0.99m | −$0.05m absorbed |
| Trade debtors | $0.08m | $0.1m | −$0.02m |
| Net debt | $7.2m | $9.1m | −$1.8m |
| Net debt / EBITDA | 0.99x | 1.03x | Strengthening |
| Gross borrowings | $9m | $9.1m | −$0.06m |
| ROE (annualised) | -7.0% | 3.5% | Weakening |
| HY25 share of FY25 revenue | 51.3% | — | Other half was 48.7% |
| HY25 share of FY25 EBITDA | 43.2% | — | Other half was 56.8% |
| HY25 share of FY25 NPAT | 34.7% | — | Other half was 65.3% |
| Profit from continuing operations | −$1.2m | $0.65m | −$1.9m |
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.