Bremworth

[lorraina]

Hewett, who replaced former chair George Adams, said there was strong demand from major New Zealand and Australian carpet retailers for Bremworth to produce both synthetics and wool.

He said by not having synthetics in their portfolio they had made things more difficult.

"The challenge that we have with the business is about 85 percent of the carpet floor covering market is not wool and we're missing out on it. We need to spread our costs across a wider base. Our customers are clearly looking for a synthetic product."

He said they were also very mindful of stakeholders.

"I am a farmer of wool and I do this with a heavy heart but the company's viability quite frankly is

[Basil]

"The challenge that we have with the business is about 85 percent of the carpet floor covering market is not wool

A very sad indictment on the previous directors they ignored this highly relevant fact.  Just ran the business, almost into the ground while ignoring the elephant that was not only in the room, but just about trod them to death.  The previous directors were total Muppets.  At least shareholders have a chance now.  Good luck.

[lorraina]

The new board are looking to make the business viable.
There will be no call on shareholders for new capital,as they have the $42 mil insurance money,which is the same amount as their current market cap.
So far Rob Hewett and the new board are making good decisions,so as you point out shareholders have a chance now..

[winner (n)]

The floods were a blessing for Bremworth ....saved them from oblivion and has given them a chance to do it all over again

 No worries as this time it's different

[lorraina]

Off course its different this time.
New hybrid supply chain now in place,new board bringing back manufacturing of synthetic carpets,and with a pot full of cash ready to make it work.

[winner (n)]

Off course its different this time.
New hybrid supply chain now in place,new board bringing back manufacturing of synthetic carpets,and with a pot full of cash ready to make it work.

I'd hazard a guess your enthusiasm about Bremworth will wane at about the same speed as their financial performance disappoints

[Basil]

Must admit, on looking through the financials a while back and the way they have been burning through cash in the past, its scary how badly they have been performing.  Yes, the companies viability is very much in question.  Has been a systemic underperformer for so long now...one wonders how realistic the prospects are of a decent turnaround ?  Time will tell, too many unknowns and too much risk for me.  I am sure the new directors will give it their best shot.  Thankfully no new capex to make synthetic carpet.  Hope they don't burn through much of that insurance payout so shareholders have something left if it all gets too hard.  Its good that the recent fire at the Whanganui plant was quickly contained.  https://www.nzherald.co.nz/whanganui-chronicle/news/investigation-into-fire-at-bremworths-whanganui-plant/CBVBJP5FPZGNPFLDXDEODID2NY/

[lorraina]

I'd hazard a guess your enthusiasm about Bremworth will wane at about the same speed as their financial performance disappoints

Most probably correct...lol

[winner (n)]

I even have a file on Cavalier/Bremworth ....started when I was working in a related industry and had regular discussions about market conditions etc

Also from a personal perspective kept monitoring financial performance and the morbid fascination was how they usually managed to have a low ROIC

Anyway here's an interesting chart. That 2016 was one if their best years profit wise and it's been downhill ever since

I don't think that will change ...too many things against them. I wouldn't be holding in the hope of much better financial performance

But no doubt a good speculative punt ....betcha they hoping for that white knight to turn up.

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Fnasil this reflects your post...fom a month or so ago

Wonder what's going to change

[Basil]

Picture says a thousand words mate.  That's a bloody grim image and its going to take an enormous effort to turn the ship around. 
Sales barely one third of what they were a decade ago.

[lorraina]

Picture says a thousand words mate.  That's a bloody grim image and its going to take an enormous effort to turn the ship around. 
Sales barely one third of what they were a decade ago.

Plenty of room for growth with the heavy lifters now in place.
So far positive announcements.
No capital raise,or heavy borrowings, as they have more cash than their market cap.
Hybrid supply chain in place, as is their wholesale retail outlets in both NZ and Australia wanting both wool and synthetic carpets.
A lot of goodwill in the market place for BRW.
Now they have to provide what the market is wanting.
Can they do it.?

[BlackPeter]

Fnasil this reflects your post...fom a month or so ago

Wonder what's going to change

We had a carpet project in 2023. While the quoted Bremworth carpet looked good, We found a very similar look and quality for about 2/3 rd of the Bremworth price.

Guess which carpet we choose? Ah yes, this is why their revenue keeps dropping.

[winner (n)]

We had a carpet project in 2023. While the quoted Bremworth carpet looked good, We found a very similar look and quality for about 2/3 rd of the Bremworth price.

Guess which carpet we choose? Ah yes, this is why their revenue keeps dropping.

I understand that about 75% of homeowners would prefer wool in their homes,...but 75% are not purchasing wool ...synthetics instead
 
They should have known this but a bit sad that carpet retailers had to tell them this

Never mind Chief Product Officer leaving next week

And raving about this new hybrid supply chain what can go wrong

[BlackPeter]

I understand that about 75% of homeowners would prefer wool in their homes,...but 75% are not purchasing wool ...synthetics instead
 
They should have known this but a bit sad that carpet retailers had to tell them this

Never mind Chief Product Officer leaving next week

And raving about this new hybrid supply chain what can go wrong

Just for the record - we did prefer wool, and we did buy wool. Just not from Bremworth.