Bremworth

[winner (n)]

Can't seem to get over my morbid fascination with 'train wrecks' ....and the Bremworth one been going for many years.


Had a look at 2016 Annual Report. First page was this bit -

We've done the hard yards and made big calls.
None were easy, but they were necessary.

The direction is clear and our Company is now completely aligned and focused on core business. The benefits are starting to show. However there is much to be done and many challenges lie ahead. But we are in the best shape to meet them.

Also they raved about going the Kaizen way. Remember that fad.

Back then sales were about $200m ...now a lot less than $100m

Probably done away with Kaizen and now doing the new management fad of a hybrid  supply chain.

Just as well this time it's different ..I watch with interest

[Basil]

Two other things worth considering.
The steady sales decline over the years is against a backdrop of a growing population.
Inflation over all that time means in real inflation adjusted terms the slowdown in sales is much worse than the grim situation that's already crystal clear.  It just seems to be in systemic decline.  Whether the new directors can turn the ship around is anyone's guess.

[winner (n)]

Two other things worth considering.
The steady sales decline over the years is against a backdrop of a growing population.
Inflation over all that time means in real inflation adjusted terms the slowdown in sales is much worse than the grim situation that's already crystal clear.  It just seems to be in systemic decline.  Whether the new directors can turn the ship around is anyone's guess.

They say Re-entering commercial market in Australia. But almost non-event in specifier market according to my industry contacts. I hear Godfrey Hirst kill them in NZ commercial so hard to see them making much of an inroad in Australia.

Here's one of Godfrey Hirst wins ...Summersets St John's complex. Pretty cool eh

https://www.ghcommercial.com/projects/summerset-st-johns-auckland-new-zealand

I heard some Bremworth went into The Helier ...Oceania prob would not have cared paying over the odds eh

[Basil]

Thanks, that was an interesting read.  I find it interesting how interior designers can change the mood of a room through the use of light, colors and mixtures of textures, floor coverings, fixtures and fittings.

We're very fortunate to have eucalyptus hard wood flooring throughout most of our home that looks almost as stunning as when out home was first built 25 years ago.  The Cavalier bremworth carpet in the bedrooms is well and truly past its best before date and badly needs to be replaced.  We'll probably go with a synthetic carpet replacement.

I think the Bremworth directors have a huge amount of work in front of them.  I bought in a little while back as a small punt based on the large insurance settlement but quickly lost all enthusiasm when I saw the atrocious rate of cash burn in the half year report.  Might have made enough to re-carpet a couple of the bedrooms, can't remember as it was so small and insignificant.

[winner (n)]

Basil ...they might still be taken over ...before they burn through that cash

[Basil]

Sure, that's a possibility.  KW reckons FBU could be a takeover target too but there's deep systemic issues there as well.  I'm playing the takeover game with MCK and I reckon that remains in play for 2026 so I am retaining a  significant sized holding there.  I like to keep things simple and try and pick the takeover target that I think has the best chance of happening and only one takeover play at a time and additionally as Gordon Gekko famously said in the movie Wall Street, pick the dog with the least fleas.  Maybe not flea's, but an awful lot of carpet beetles at Bremworth 

[winner (n)]

Thanks, that was an interesting read.  I find it interesting how interior designers can change the mood of a room through the use of light, colors and mixtures of textures, floor coverings, fixtures and fittings.

.....

Interior designers, architects, specifiers etc are key to getting decorating products (paint, fabrics, flooring etc) specified on commercial jobs and to a certain extent new home builds.

Suppliers having good relationship with them is key to success in this segment,

It seems Bremworth haven't done a good job in this segment .....and re-entering commercial in Australia is a big step. Good luck to them.

[winner (n)]

Nicola Willis confirms Kainga Ora to use wool

Good stuff ....zillions of $s for Bremworth

That'll put the hybrid supply chain a good test

And good news for taxpayers as well

Nicola says wool is 'cheaper' than nylon

And good news for Bremworth ....when Mike asked Nicola if Bremworth is the one Nicola said that we'll announce the successful tenderer at another date

The good ol' government should tretching out good news announcements to make it ookike they doing good things for the country

Of course it's Bremworth

Win win around

[winner (n)]

And Mike mentioned that there's more than 4,000 new properties planned over next few years

So 4,000 times X sqm per home times $Y per sqm equals zillions for Bremworth

Whose going to guess the X and Y

And maybe schools need wool as well

[Basil]

Whose going to guess the X and Y

I'll take a "wild guess", you hold heaps of these 
My other guess is they will put the quotes out to tender and Godfrey Hurst will win the supply contract.

[winner (n)]

I'll take a "wild guess", you hold heaps of these 
My other guess is they will put the quotes out to tender and Godfrey Hurst will win the supply contract.

Can't give a government contract for NZ houses to a Yankee company

[lorraina]

Perhaps GH will,perhaps BRW will.win Govt contracts?
BRW with a market cap of just $44.45 is looking interesting.
Cashed up with $42 mil insurance money.
Hybrid supply chain in place.
Experience interim CEO in Craig Woodford.
Focussed board under Rob Hewitt.
Govt promoting wool carpets.
BRW will also produce Synthetic Carpets,using existing plant and sales channels.

[Basil]

I hope it works out for shareholders and the new management and board can substantially reduce or completely eliminate the extraordinary rate at which this business has been burning through cash.  There's a huge amount of work to do to prove this is a viable business.

[KW]

And Mike mentioned that there's more than 4,000 new properties planned over next few years

So 4,000 times X sqm per home times $Y per sqm equals zillions for Bremworth

Whose going to guess the X and Y

And maybe schools need wool as well

I've heard that KO homes basically need to be fully refurbished every 18 months.  Because the tenants ruin them.  360 KO homes a year burn down for starters.  Another 120+ that need a full meth clean up.  

This will be like a "ministry of works" contract for Bremworth.  Hopefully the money they make from the Govt will allow them to achieve supply chain and manufacturing efficiencies that result in cheaper prices for all customers.  

[BlackPeter]

I've heard that KO homes basically need to be fully refurbished every 18 months.  Because the tenants ruin them.  360 KO homes a year burn down for starters.  Another 120+ that need a full meth clean up. 

This will be like a "ministry of works" contract for Bremworth.  Hopefully the money they make from the Govt will allow them to achieve supply chain and manufacturing efficiencies that result in cheaper prices for all customers. 

What a terrible waste. Tenants like that deserve a house with steel interior, similar to the public toilets.

They should change the rules and make companies like STU benefit from equipping these houses for eternity, instead of wasting money in refurbushing houses again and again and again ...!