Bremworth

winner (n) · Mar 03, 2025, 08:56 AM

Seems some disgruntled shareholders ....wanting entire board to bugger off

https://announcements.nzx.com/attachment/438803.pdf

Gerald · Mar 03, 2025, 09:06 AM

Maybe not too happy with all that cash burn at the latest report?

Good news is the language in the release today on "soliciting an attractive offer" and "interest from multiple parties" seems positive.

Basil · Mar 03, 2025, 09:14 AM

Quote from: Gerald on Mar 03, 2025, 09:06 AMMaybe not too happy with all that cash burn at the latest report?

Good news is the language in the release today on "soliciting an attractive offer" and "interest from multiple parties" seems positive.

Yes I agree. Thanks for your write-up mate.

I have however translated this corporate speak into real world language for people
Independent chair of Bremworth, George Adams, said: "The interest from a number of
offshore and domestic parties reflects the value and high regard of our company.
The interest has been created because we have a fair bit of cash on hand and some of our competitors believe they can asset strip / self fund a breakup of this company and get some of the parts that are worth something for next to nothing.

winner (n) · Mar 03, 2025, 09:25 AM

Maybe the four are 'convinced' that the Board will think the biz is heaps more valuable than prospective offers and reject them as being 'opportunistic'

Interesting one of 4 'Mr Robert Hewett, is currently the Chair of Woolworks, which has previously publicly stated its interest in acquiring certain assets of Bremworth.'

Basil · Mar 03, 2025, 09:37 AM

https://www.rnz.co.nz/news/business/543536/bremworth-leadership-faces-rebellion-over-slumping-profits

winner (n) · Mar 03, 2025, 09:48 AM

Quote from: Basil on Mar 03, 2025, 09:37 AMhttps://www.rnz.co.nz/news/business/543536/bremworth-leadership-faces-rebellion-over-slumping-profits

Hope Hewitt didn't see that chart I posted yesterday ...things started going downhill since 2009

Honestly I doubt whether a change in board or management will make much difference ....wool carpets not a good biz to be in

Sell it for a buck a share best outcome for shareholders

Basil · Mar 04, 2025, 10:50 AM

Agree Winner. I don't see a successful future for the company with just some tinkering with the operational model. Your image says it all and on smaller margins.

Brief review of the financials yesterday got me thinking that I am not surprised there is an attempted board coup, announced the day after those financials were released because the cash burn of 34 cents per share in just 6 months is really shocking. Frankly, It won't take them long to burn through that insurance payout (59 cps) if the board are left to their own devices.

I got to thinking too, how many times have we seen boards reject offers for poorly performing companies before because it's below their assessment of fair intrinsic value? It happens more often than not, right? Taking into account this high risk, the prospect the shares could easily halve if interested parties are spurned, the extraordinary cash burn rate and the fact their business model is basically broken, this is a riskier situation than I originally envisaged.
Basically, a binary outcome heads you win and tails you lose, and you are trusting the board to do the right thing, IF they end up getting a half decent offer for the company. Hmmm Plenty of risk here that's for sure.

Ferg · Mar 04, 2025, 01:48 PM

Quote from: Basil on Mar 04, 2025, 10:50 AMbecause the cash burn of 34 cents per share in just 6 months is really shocking.

I wonder with the insurance payout if there were strings attached. Was a portion of it earmarked by the insurers for reinstating lost plant etc.....have there been any statements around that?

lorraina · Mar 04, 2025, 01:58 PM

No mention of attached strings.
Insurance and dividends

We are pleased to have reached a final settlement in relation to Cyclone Gabrielle insurance claims. Earlier in February, we received final cash proceeds of $42m.

We are nearing completion of the key works required in Napier. No further reinstatement of machinery is planned at this stage. We will focus on existing assets to produce products and new revenue streams through the plant including contract dyeing. There is also potential for subleasing to support cashflow being investigated.

While we experienced cash outflows in 1H25, we are confident in materially reducing our cash outflow to enable the return of excess cash to shareholders. The amount returned to shareholders and timing of this depends on the performance of the business, as well as the outcome of the Strategic Review.

lorraina · Apr 09, 2025, 01:07 PM

https://www.stuff.co.nz/politics/360605837/stuff-politics-live-blog

BRW are "well positioned."

winner (n) · May 09, 2025, 08:48 AM

Back into synthetics

Good move as they weren't going to survive long just on wool ....that was just a dream

https://announcements.nzx.com/attachment/443025.pdf

lorraina · May 09, 2025, 10:08 AM

The company will recommence production of synthetic carpet at its Auckland-based facility in
the next financial year.
I note their year ends 30th June.
Therefore start synthetic production July this year.?

Cod · May 09, 2025, 10:52 AM

Misleading Consumers With Past Advertising
May 1, 2025, 12:40 GMT+12Less than 1 min read

BRW0
Bremworth

BRW admitted that certain of its past advertising from its 2020 marketing campaign may have misled some consumers, according to a Wednesday New Zealand bourse filing.
Godfrey Hirst had alleged in a court proceeding that aspects of that campaign mischaracterised the relative environmental and health impacts of synthetic and wool carpets and breached the Fair Trading Act.
Bremworth has denied breaching the act but said it will remove the advertisements and will not use them again.
The parties have settled the court proceedings.
Bremworth's shares were down almost 2% in recent Thursday trade.

Chart self explanitory - The board tried to create a differential between themselves and other manufactures which kinda bit the big one and are now back manufacturing the full range.
You cannot view this attachment.You cannot view this attachment.

lorraina · May 09, 2025, 03:34 PM

Liked this statement so much I added to my holding this afternoon,after getting the wife onboard this morning..
"The company will recommence production of synthetic carpet at its Auckland-based facility in
the next financial year."
No new capital expenditure is required as the company
already has all necessary equipment and capability within its existing business. The company
anticipates a minor increase in headcount to support the additional volume.

lorraina · May 13, 2025, 03:41 PM

https://www.rnz.co.nz/news/business/560769/carpet-maker-bremworth-reverses-wool-only-policy

Andy Caughey, chief executive of industry group Wool Impact, said Bremworth manufacturing synthetic carpets again didn't minimise their commitment to wool or their wool carpet offering.

"This range extension, which includes synthetics, will strengthen the company's operating model by optimising its manufacturing capacity and generating more revenue as it continues to invest and expand its wool business," he said.