NZ$7 million debt reduction accompanies Accordant's smaller first-half loss

Revenue Growth Comes Before Profit Recovery

Accordant Group Limited (NZX:AGL) has narrowed its first-half loss sharply, but the New Zealand staffing company remains in the red and has again withheld dividends. Revenue rose 7.9% to NZ$88.5 million in the six months ended 30 September 2026, while the net loss after tax fell to NZ$234,000 from NZ$1.12 million a year earlier.

The improvement was supported by both operating divisions, although White Collar did most of the heavy lifting. Revenue from the segment increased 11% to NZ$51.4 million, with temporary placements up 9% and permanent placement revenue up 23%. Blue Collar revenue rose 4% to NZ$37.1 million, as activity remained broadly similar to FY26 levels but demand increased for workers with more specialised skills.

Debt Reduction Strengthens the Balance Sheet

Accordant generated NZ$2.8 million in operating cash flow, an 11% improvement on the prior corresponding period. Net bank debt fell to NZ$21.5 million at 30 September, down NZ$7 million from 31 March and NZ$5.5 million from a year earlier.

That reduction reflects both trading cash generation and the NZ$5 million capital raise completed in May through the May rights offer. Borrowings in the interim balance sheet stood at NZ$21.6 million, while cash remained modest at NZ$149,000. Equity rose to NZ$22.7 million from NZ$17.9 million at year-end, but net tangible assets per quoted security remained negative at NZ$0.2952, albeit improved from negative NZ$0.7324.

EBITDA Tracking Ahead of FY27 Half-Year Target

Management said first-half EBITDA of NZ$1.8 million was modestly ahead of the period target established during the capital raise process. Accordant also said its FY27 guidance remains unchanged, while noting that the economic recovery is uneven and that an upcoming election could affect the timing of client decisions.

“Jason Cherrington, Group CEO”

The company’s immediate priorities are improving profitability and reducing debt, rather than returning capital to shareholders. The board resolved not to pay an interim dividend, the latest in a run of dividend-free periods. Chief executive Jason Cherrington is also due to retire next year, adding a leadership transition to the execution task ahead.

Uneven Recovery Leaves the Second Half to Prove Itself

Accordant expects opportunity and continued variability in the second half. It points to deferred hiring, transformation work, infrastructure activity and specialist replacement needs, but does not present those factors as a guaranteed recovery. The result shows a business with improving revenue, cash flow and debt metrics; it has not yet produced a sustained after-tax profit.