HP NZ books higher FY2025 earnings, stronger cash position

Hewlett-Packard New Zealand reported a higher net profit in FY2025, while revenue increased slightly.

Net profit for the year ended 31 October 2025 rose to NZD $5.1 million from NZD $3.5 million a year earlier. Profit before income tax increased to NZD $7.5 million from NZD $5.1 million, while income tax expense rose to NZD $2.4 million from NZD $1.5 million.

Total operating revenue reached NZD $177.1 million, up from NZD $174.2 million in the previous year. Revenue from contracts with customers increased to NZD $175.0 million from NZD $172.4 million, and finance revenue rose to NZD $2.1 million from NZD $1.7 million.

No other income was recorded in FY2025, compared with NZD $0.1 million in the prior year. Cost of sales edged up to NZD $139.3 million from NZD $139.1 million, lifting gross profit to NZD $37.8 million from NZD $35.1 million.

Administrative expenses rose to NZD $30.3 million from NZD $29.9 million, while finance costs fell to NZD $0.1 million from NZD $0.2 million.

Balance sheet

Total assets stood at NZD $153.8 million at year end, up from NZD $118.6 million in FY2024. Current assets increased to NZD $122.3 million from NZD $87.3 million, driven partly by a sharp rise in trade and other receivables, which nearly doubled to NZD $93.5 million from NZD $48.1 million.

Cash and cash equivalents rose to NZD $10.4 million from NZD $9.3 million. Inventories fell to NZD $6.9 million from NZD $20.6 million, while contract assets increased to NZD $3.6 million from NZD $2.0 million.

Non-current assets were broadly flat at NZD $31.5 million, compared with NZD $31.2 million a year earlier. Deferred tax assets increased, while property, plant and equipment declined.

Total liabilities rose to NZD $118.0 million from NZD $87.2 million, with current liabilities increasing to NZD $79.7 million from NZD $55.5 million.

Trade and other payables climbed to NZD $41.3 million from NZD $19.9 million. Deferred revenue was little changed at NZD $30.4 million versus NZD $29.5 million, while non-current liabilities increased to NZD $38.3 million from NZD $31.8 million, mainly because of deferred revenue.

Equity position

Net assets increased to NZD $35.9 million from NZD $31.3 million. Share capital was unchanged at NZD $327.2 million, while accumulated losses narrowed to NZD $147.7 million from NZD $152.8 million.

Reserves shifted slightly to negative NZD $143.6 million from negative NZD $143.0 million. The increase in net assets reflected the year's profit, partly offset by movements in reserves.

Cash flow

Operating cash flow improved markedly. Net cash generated from operations was NZD $52.19 million, compared with an outflow of NZD $4.68 million in the previous year.

Customer receipts totalled NZD $186.09 million. Payments to suppliers and employees were NZD $133.80 million, while interest income was NZD $1.97 million and income tax paid was NZD $1.99 million.

Investing outflows totalled NZD $639,000, including NZD $305,000 related to a business combination. Financing activities recorded a NZD $50.47 million outflow, largely due to a withdrawal from a related-party cash pool account, reversing an inflow reported a year earlier.

Lease liability payments were NZD $896,000, slightly above the previous year. Cash and cash equivalents at period end were NZD $10.42 million, up from NZD $9.34 million.

The results indicate modest top-line growth and stronger earnings, alongside a larger balance sheet shaped by movements in receivables, payables and deferred revenue. Accumulated losses also narrowed, although retained deficits remain substantial relative to share capital.