Table of Contents
What changed
Revenue rose 7.5% to NZD 5.9m (FY21: NZD 5.5m), with management attributing the uplift to community General Practice acquisitions and 23.5% growth at the existing Hawkes Bay Wellness Centre. Gross margin expanded 300bps to 63% from 60%. Profit before tax was broadly flat at NZD 1.561m (FY21: NZD 1.553m, +0.5%), while NPAT rose 12.6% to NZD 1.173m because the effective tax rate fell to 24.9% from 32.9%. Operating cash flow declined 31% to NZD 1.063m from NZD 1.550m, and cash on hand dropped to NZD 1.124m from NZD 1.829m. A final dividend of 4.05 cents per share was declared. No gross borrowings were disclosed in either period.
What matters
- PBT is the cleaner read, and it barely moved. Revenue grew 7.5% and gross margin widened 300bps, yet PBT grew only 0.5%. Operating cost growth absorbed almost all of the revenue and margin benefit. The 12.6% NPAT headline is substantially a lower-tax-rate artefact rather than improved operating leverage.
- Cash conversion deteriorated materially. Operating cash flow fell NZD 0.5m while NPAT rose, so cash conversion (OCF/NPAT) dropped from roughly 149% to 91%. Receivable days lengthened from about 20.9 to 23.9. Pre-lease FCF still covered the declared dividend (payout ratio ~37.7% of FCF), but the gap between accounting profit and cash has narrowed sharply.
- Strategy shift toward GP is visible in the mix. Management cites 61% GP revenue growth and an October 2021 acquisition contributing NZD 0.3m. In FY21 GP was only ~13.4% of segment revenue; the acquisition pipeline is the explicit growth lever but FY22 segment splits were not disclosed in the excerpts.
Expectations
No quantified FY23 guidance or medium-term financial targets were provided in the supplied material. The half-year shape is mixed: HY22 represented 48.1% of full-year revenue but 57.3% of full-year NPAT, implying the second half was weaker on profitability than the first despite full-period contribution from the October 2021 GP acquisition. That pattern is not supportive of an accelerating earnings trajectory into FY23 on the information disclosed, though acquisition integration timing could explain part of it.
Quality of result
Low-to-moderate quality. The durable positives are the 300bps gross margin expansion and the broadened GP footprint, both of which should carry into FY23. Against that: (i) PBT growth of 0.5% indicates the operating-cost base absorbed the margin gains; (ii) the 12.6% NPAT increase is mostly a tax-rate reduction of ~8 percentage points, which is not repeatable as a growth driver; (iii) operating cash flow fell 31% against rising accounting profit, and receivable days rose. Capex remained negligible at NZD 3k, so the cash decline is working-capital and operating-cost driven rather than investment-driven.
Unresolved
- What drove the effective tax rate from 32.9% to 24.9%, and is the lower rate sustainable?
- Why did operating cash flow fall NZD 0.5m when PBT was flat — beyond the modest receivables stretch, what other working-capital or timing items contributed?
- What was the FY22 segment revenue and result split between Aged medical care and General Practice, given FY21 was 86.6%/13.4%?
- What are the acquisition economics: purchase price, goodwill, and contribution margin of the community GPs acquired?
- Was the HY22-to-2H22 profit step-down a function of integration costs, seasonality, or underlying margin pressure?
This briefing cannot assess valuation, management guidance for FY23, or leverage capacity, because NTA per share, forward targets, and any debt-facility detail were not disclosed in the supplied extraction.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $5.9m | $5490.4m | -99.9% ↓ |
| Net profit after tax | $1.2m | $1041.5m | -99.9% ↓ |
| Net cash inflow from operating activities | $1.1m | $1550.3m | -99.9% ↓ |
| Final dividend per share | 4.0c | — | — |
| Profit before tax | $1.6m | $1553.0m | -99.9% ↓ |
| Cash and cash equivalents | $1.1m | $1829.2m | -99.9% ↓ |
| Total assets | $4.9m | $3570.5m | -99.9% ↓ |
Reference: annolyse.ai/briefings/tah-fy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Aged medical care services NZ | — | $4.8m | — | n/a |
| General practice medical services | — | $0.7m | — | n/a |
Reference: annolyse.ai/briefings/tah-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | +0.5% | — | cleaner earnings measure |
| Effective tax rate | 24.9% | 32.9% | — |
| FCF pre-lease | $1.1m | $1.6m | −$0.5m |
| FCF / NPAT | 90.4% | 148.8% | complementary conversion metric |
| Capex % revenue | 0.1% | 0.0% | — |
| Capex | −$0.0m | $0.0m | −$0.0m |
| Debtor days | 23.9 | 20.9 | +3.0 days |
| Trade debtors | $0.4m | $314.3m | −$313.9m |
| Gross borrowings | — | $0.0m | — |
| Payout ratio vs NPAT | 34.0% | — | — |
| Payout ratio vs FCF pre-lease | 37.7% | — | covered |
| ROE (annualised) | 50.2% | 73.4% | Weakening |
| HY22 share of FY22 revenue | 48.1% | — | Other half was 51.9% |
| HY22 share of FY22 NPAT | 57.3% | — | Other half was 42.7% |
| Profit from continuing operations | $1.2m | $1041.5m | −$1040.3m |
| Discontinued operation after tax | — | $0.0m | — |
Reference: annolyse.ai/briefings/tah-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.