Exclusive: Cisco Systems Capital NZ posts higher profit
The finance division of Cisco achieved a stronger financial result for it s New Zealand operations for the period ending July 26, 2025, with profit before income tax rising to NZD $6.1 million. This compares to NZD $4.8 million in the previous year. Net profit attributable to the head office increased to NZD $4.0 million from NZD $3.5 million the previous year.
Revenue decreased year on year to NZD $7.3 million from NZD $7.9 million. The drop was due to lower income from operating leases over the period. Other income climbed marginally to NZD $0.3 million, partially offsetting the sales decline.
Cost movements
Total expenses declined notably to NZD $1.5 million, from NZD $3.4 million in the previous period. Operating expenses were lowered to NZD $2.7 million from NZD $3.4 million. The improvement represented tighter cost control and fewer administrative expenses.
The outcome was further helped by a strong net foreign exchange gain of NZD $1.2 million. This compares to the previous year's minor foreign exchange loss. Finance costs were reduced, contributing to an increase in profitability.
Income tax expense rose to NZD $2.0 million from NZD $1.3 million, reflecting greater pre-tax earnings.
Balance sheet strength
As of July 26, 2025, the New Zealand branch's total assets were NZD $150.0 million, up from NZD $115.6 million the previous year. The growth was mainly driven by an increase in lease and loan receivables, which rose to NZD $135.8 million from NZD $99.3 million.
Cash and cash equivalents rose to NZD $12.1 million from $11.3 million. Trade and other receivables decreased significantly to NZD $44,209, indicating changes in receivables management over the year.
Property, plant and equipment decreased to NZD $2.1 million from NZD $3.2 million, reflecting asset disposals and depreciation.
Liabilities position
Total liabilities increased to NZD $5.9 million from $2.3 million. Current liabilities rose to NZD $5.8 million due to greater trade payables and income tax payable. Deferred tax obligations fell to NZD $136,385 from NZD $239,831.
Despite the rise in liabilities, net assets increased to NZD $144.1 million from NZD $113.3 million. The movement reflects retained earnings and new capital support from the headquarters.
Head office funding
The statement of changes in the head office account revealed a net advance of NZD $26.7 million from the head office throughout the period. This followed a NZD $23.0 million advance the previous year. The ending head office account balance was NZD $144.1 million.
The net profit for the quarter was fully retained, adding NZD $4.0 million to the head office account. The structure shows the New Zealand branch's role as a finance and leasing vehicle for the larger Cisco Systems Capital group.
Cash flow trends
Operating activities resulted in a net cash outflow of NZD $25.9 million, compared with NZD $15.9 million in the prior period. The movement reflected repayments of lease and loan receivables, as well as customer advances.
Interest received increased to NZD $5.4 million from NZD $4.5 million, partially offsetting higher operating cash requirements. Tax payments increased to NZD $1.1 million, reflecting higher profitability.
Investing activities recorded a net cash outflow of NZD $47,016, compared with NZD $1.9 million in the prior year. Financing activities generated a net inflow of NZD $26.7 million, aligned with the head office advance.
Cash and cash equivalents at the end of the period rose to NZD $12.1 million.
Local Outlook
The 2025 results show that sales declined at Cisco Systems Capital's New Zealand office, while improved cost control, favourable currency movements, and continued support from headquarters increased profitability and strengthened the balance sheet. The increase in lease and loan receivables demonstrates the branch's sustained support for equipment financing and leasing in the New Zealand market.
