Bremworth BRW

[Ekrub]

A little disappointing the company, in its new incarnation, couldn't have at least chipped in a 1 cent dividend, but no complaints about the rise in share price. A year ago they could have been picked up for between 26 and 30 cents, and at the time of writing this post, BRW had reached 67 cents. I guess one could always sell a few for some cash in lieu of dividend, but, better to hold methinks. It's been slow, but with the focus now on wool only carpets, the trajectory is looking good.

[Brain]

75c and quite good volume

[bull....]

doubled ya money from the fire sale prices in the 30,s , not to shabby .....

i get next resistance around 90c , not sure if get there looking bit over-brought and fundamentals would need to show there model is doing well i reckon to maintain the goodwill in the price

[Ekrub]

I've held and accumulated over some time, happy to continue and eventually see a dividend.

[Brain]

And ends the day at 84c. An impressive performance.

[nztx]

And ends the day at 84c. An impressive performance.


Indeed .. $1 by the end of the week ? ;)

[Southern_Belle]

Indeed .. $1 by the end of the week ? ;)
why the sudden drop??

[haewai]

why the sudden drop??

Why was the sudden climb?

[sb9]

Why was the sudden climb?

Yep, exactly my thoughts too. Fundamentals and numbers don't justify run upto 80c and beyond. Only good thing happened this year was appointment of CEO who was ex Icebreaker. is that enough to change the story?

[nztx]

Yep, exactly my thoughts too. Fundamentals and numbers don't justify run upto 80c and beyond. Only good thing happened this year was appointment of CEO who was ex Icebreaker. is that enough to change the story?


Can't have been buying share or could he ? ... perhaps his mates were instead ? ;)

[Lizard]

I picked a few up recently although it's tough in illiquid stocks like this, so just a small test pot as price has been moving away from me.

It's nice to finally see CAV/BRW with a better looking balance sheet, something they should have sorted out over 10 years earlier... now that they're back on solid footing, just got to see if their strategy can play out. CAV used to be a solid earner and pay good divs before they over-stretched and got caught out by pricing and marketing moves around synthetics. It's hard to know where BRW will land this year though, because they were in the "exiting synthetics" phase last year and managed to bring in cash by reducing inventory. Not too many clues in the agm presentations either. Interested in any views.

[haewai]

Highish risk I think. Unknowns about how successful the devotion to natural fibres will be, immediately and growth. Balance sheet is flush with cash from strategic disposals including land and old synthetic stock. New CEO has valuable brand experience and AGM presentation noted production back to pre-Covid levels. I recall but can't re-find a note that performance in 2022 is expected to be steady as it will take time for strategic transition and marketing to take hold.

[percy]

With retail,new houses ,new car sales and home improvements, booming it the past year BRW should have done well.
If not, I doubt they ever will.

[bull....]

this was a good buy in the 30's but the value gone now until they can prove there operating model and with the property bull facing headwinds it will be a big ask in my opinion

[Joshuatree]

I picked a few up recently although it's tough in illiquid stocks like this, so just a small test pot as price has been moving away from me.

It's nice to finally see CAV/BRW with a better looking balance sheet, something they should have sorted out over 10 years earlier... now that they're back on solid footing, just got to see if their strategy can play out. CAV used to be a solid earner and pay good divs before they over-stretched and got caught out by pricing and marketing moves around synthetics. It's hard to know where BRW will land this year though, because they were in the "exiting synthetics" phase last year and managed to bring in cash by reducing inventory. Not too many clues in the agm presentations either. Interested in any views.

Thanks, lots to like and the shift to ESG type companies is only going to accelerate.Bought some.

[tim23]

I picked a few up recently although it's tough in illiquid stocks like this, so just a small test pot as price has been moving away from me.

It's nice to finally see CAV/BRW with a better looking balance sheet, something they should have sorted out over 10 years earlier... now that they're back on solid footing, just got to see if their strategy can play out. CAV used to be a solid earner and pay good divs before they over-stretched and got caught out by pricing and marketing moves around synthetics. It's hard to know where BRW will land this year though, because they were in the "exiting synthetics" phase last year and managed to bring in cash by reducing inventory. Not too many clues in the agm presentations either. Interested in any views.

I bought recently, I recall the days when they paid 3 dividends each year. Like the new direction and CEO credentials.

[Scrunch]

I bought recently, I recall the days when they paid 3 dividends each year. Like the new direction and CEO credentials.

One of the interesting features of CAV/BRW is that they managed to sort out their balance sheet without a capital raise. This means that there is no dilution effect existing either from issuing options/rights/performance shares to management or through capital raising. Back in June 2011 CAV had 68,263,857 shares on issue. Jumping forward 10 years to June 2021, they have 69,179,098 shares on issue.

[haewai]

Sliding share price is sad
But glad to hear of these sort of deals: https://www.nzherald.co.nz/hawkes-bay-today/news/napier-wool-factory-to-make-carpet-for-new-york-skyscraper/54YMTCNOS2RTM7EXLUKZ5G2XQU/

" ... its carpet was "going out of the door" as fast as they could make it."

[nztx]

can't be much love for BRW out there at the moment by looks

Resuscitating the Woolly Floor Thread brands always looked like a potentially
difficult & troublesome project to deliver on .. BRW by the same token have
yet to learn how to get a bit more noisy in their Market announcements
to keep the retail punter's eye on the ball IMO ;)

We can see what happens when BRW ease off the PR & announcements..

It's all on the "Back to the Knitting" core activity now with no back up of undervalued
real estate onboard, if things turn to custard for a bail out to right the ship

https://www.nzx.com/companies/BRW/announcements

Just two announcements since beginning of year recorded

BRW badly need to learn how to be far more communicative to the
markets where their investors are watching .. rather than off to sleep..
An innovative & dynamic Board do far better than that :)

[bull....]

this was a good buy in the 30's but the value gone now until they can prove there operating model and with the property bull facing headwinds it will be a big ask in my opinion

timely exit indeed. share price decline not surprising macro fundamentals now negative eg building slowdown and the fact each time they spend money on marketing with out a corresponding increase in sales means the shares are valued less for the future

[Brain]

Sliding share price is sad
But glad to hear of these sort of deals: https://www.nzherald.co.nz/hawkes-bay-today/news/napier-wool-factory-to-make-carpet-for-new-york-skyscraper/54YMTCNOS2RTM7EXLUKZ5G2XQU/

" ... its carpet was "going out of the door" as fast as they could make it."

Thanks Haewai - That is good news. Maybe Cavalier can get back to the Halcyon days of 30c dividends and $3 plus sp that I remember so well. Cavalier was a great investment for me in those days and my biggest shareholding at the time.

A manufacturing plant running at full capacity is a very very good sign.

[winner69]

See Bremworth got a $798,000 hand out from the government to help them make Napier plant more energy efficient -- use heat pumps instead of gas to heat up the water

Corporate welfare in action

That's good eh

[Brain]

See Bremworth got a $798,000 hand out from the government to help them make Napier plant more energy efficient -- use heat pumps instead of gas to heat up the water

Corporate welfare in action

That's good eh

If you compare it with the $51,000,000 they shelled out for the Auckland Harbour Bridge cycle way investigation you would have to conclude that it was an outstandingly good decision

[Waltzing]

did anyone check what supplier of bikes got the contracts for the cycle way ? did the bikes actually arrive and get distributed to the public?

free bikes ! did anyone get a choice of color make and model?

just take a shareholding stake. Thats what they will do when the great recession arrives just like they did with AIR.

Nationalise the NZX.

[winner69]

Morbid fascination made me have a look at my old CAV files and updated the sales chart

Wow - don't think I've ever seen such a long consistent decline in sales

Suppose that's why not chat on ST about them

[jonu]

Which is a real shame when we are in a country that has a strong history of producing wool and should be encouraging the use of natural fibres as opposed to petrochemical synthetics. If it's logical for the government to subsidise EVs and phase out ICEs why aren't they banning synthetic carpets?

[Snoopy]

Morbid fascination made me have a look at my old CAV files and updated the sales chart

Wow - don't think I've ever seen such a long consistent decline in sales

Suppose that's why not chat on ST about them

Isn't part of the sales decline because they have stopped selling synthetic carpets?

SNOOPY

[nztx]

Isn't part of the sales decline because they have stopped selling synthetic carpets?

SNOOPY


and fierce competition etc from the other industry major who owns the bits that fell out of Feltex ?

Selling off the freehold real estate always was going to be a do or slow die - wasn't it ?


Unfortunately a resource sapping litigation from the other play has reared it's ugly head to get in the way too

[Ferg]

Which is a real shame when we are in a country that has a strong history of producing wool and should be encouraging the use of natural fibres as opposed to petrochemical synthetics. If it's logical for the government to subsidise EVs and phase out ICEs why aren't they banning synthetic carpets?
Agree it's a shame as you say but for some areas carpet beetle is a major issue. Don't ask me how I know but there is no way I will put in a new wool carpet. Definitely synthetic for me.

[haewai]

Agree it's a shame as you say but for some areas carpet beetle is a major issue. Don't ask me how I know but there is no way I will put in a new wool carpet. Definitely synthetic for me.

Funny, you were corrected on that two years ago: https://www.sharetrader.co.nz/showthread.php?6332-CAV-Cavalier-Corp-(Carpets)&p=900114&viewfull=1#post900114

[Ferg]

You have a good memory! As you know per the fine print of the sellers/manufacturers, you have to shift every piece of furniture in every room on a frequent basis and vacuum etc under that. By their own admission, the treatment does not stop the fibres from disappearing - in other words, their pre-treatment does not work.

Edit and update of my own anecdote. Separate renovation on another part of the property with synthetic carpet - zero issues. Ongoing treatment and vacuuming etc with infected areas has made zero difference - in some cases the carpet is now threadbare.

[haewai]

Isn't part of the sales decline because they have stopped selling synthetic carpets?

SNOOPY

Yes, since 2020, then Covid. And the sales decline before then was because they were attempting to compete on synthetic carpets.
I found little to worry about in their recent half year report. Well insured, sufficient cash and inventory, growing revenue and margin, and has there ever been a time when they weren't fighting Godfrey in court?

[nztx]

Link to the old CAV (Cavalier) thread -

https://www.sharetrader.co.nz/showthread.php?6332-CAV-Cavalier-Corp-(Carpets)/page120

[winner69]

If I had extended that sales chart by another six months the line would still be going down

First half sales down 3.2% v pcp

Hope second half better

[haewai]

Yes, group wise revenue was down, but sales of carpet and rugs were up - especially in Australia, and double digit growth in online sales - but sales of wool by the subsidiary were down, due to export market difficulties including in China. All disclosed in the report. Excuse the defensive tone though; I've held for several years and am patiently waiting for the strategy and CEO change to pay off.

[nztx]

SP down 55% on it's loftier heights in mid Sep 2021 .. so far

Not much love out there for a recapitalised outfit now striking headwinds every which way

Perhaps some of the realised gain should have been distributed back a while ago to keep
the Board firmly focussed aggressively on the road ahead, and not get too lazy with a cashed
up flush balance sheet to play with ? ;)

Poor old Tony Timpson would be shaking his head from upstairs, looking down at what is going on :)

[winner69]

Jeez BRW share price down to 30 cents

Was 45 cents at last results update

Obviously market not like

[Ekrub]

The latest, from Greg Smith, at 2:40 into Radio NZ's midday business bulletin, April 4th. Good to see they're not idle while waiting for Gabrielle repairs.

https://www.rnz.co.nz/audio/player?audio_id=2018884591

[haewai]

And in text
"Well positioned"...
https://www.rnz.co.nz/news/business/487322/cyclone-damage-to-bremworth-s-napier-plant-forces-outsourcing-of-some-production-processes

[nztx]

Did I see 40c among the Sale offers today ?

it could become reality tomorrow :)


even better for those who well positioned at the bottom of the dip

[nztx]

Tomorrow's news is in early:

https://www.nzherald.co.nz/nz/supply-changes-for-whanganui-plant-as-bremworth-changes-export-direction-to-overseas-markets/LZUNE4EI3ZEFRFIKXLDOB4SQIM/

Supply changes for Whanganui plant as Bremworth changes export direction to overseas markets


8 Apr, 2023 05:00 AM

Well done - Eva, the Herald earlybird

By chance do you have tomorrow's lotto numbers for folk on here ?



Lowered production in Bremworth’s Whanganui plant due to Cyclone Gabrielle damage means chief executive Greg Smith is looking to overseas markets to repair the company’s losses.

Bremworth’s Napier plant supplied dyed fibre to the Whanganui plant to be made into yarn, but Smith said the Napier plant had been out of order for seven weeks due to cyclone damage.

“It’s devastating what’s gone on in Napier, we’ve been actively cleaning up the silt, sludge, mud and biochemical waste with our teams there.”

Napier was responsible for all woollen spun yarn, which accounted for 75 per cent of Bremworth sales.

Smith said Bremworth had hired another dye house in the South Island which would begin to provide the Whanganui plant with dyed fibre.

“By the end of this month, we should be back to our normal production levels, which means back to business as usual for Whanganui.”

The 86 people employed by the Whanganui plant have still been paid throughout the lowered production level.



The ongoing impact of the Napier plant damage had forced Bremworth to look to overseas suppliers for dyed fibre, Smith said.

“Having the ability to produce yarn overseas that meets our colour and quality specifications could present an opportunity for us to compete in other markets.”

This could enable a larger production of yarn which would allow Bremworth to go for contracts in Australia and further abroad, he said.

“We can order vast quantities of yarn made with New Zealand wool from overseas, which means potentially we can start to go after bigger contracts for Government jobs, builders or retirement villages.”


Why stuff around with manufacturing onshore at all, if vast quantities can be imported ? ;)

[haewai]

@ 0.295 the company is now valued the same as its insurance payout.
Less than half its NTA.
And a fifth of revenue.

[haewai]

Helpful update on recovery, some positive wordings.
Now received $0.50 per share in insurance.

[haewai]

Lost a 'yeah but' case against Godfrey Hirst: https://adls.org.nz/godfrey-hirst-gets-a-win-over-bremworth-in-fair-trading-act-dispute/

Informative update from Rural News - https://www.farmersweekly.co.nz/news/bremworth-spins-away-from-awatoto-yarn-plant/

Going to be a complicated annual result I reckon. Maybe the glossy photos in the annual report might be less scenic this time around.

[Dlownz]

Lost a 'yeah but' case against Godfrey Hirst: https://adls.org.nz/godfrey-hirst-gets-a-win-over-bremworth-in-fair-trading-act-dispute/

Informative update from Rural News - https://www.farmersweekly.co.nz/news/bremworth-spins-away-from-awatoto-yarn-plant/

Going to be a complicated annual result I reckon. Maybe the glossy photos in the annual report might be less scenic this time around.

From what I've heard of Napier is everything is very slow going and staff are suck and tired of the uncertainty in there jobs Alot leaving as they can't wait for uncertainty. Not sure if nspier will survive or reach there pre cyclone outputs

[nztx]

How much dough will this outfit have left in kitty after it sold the real estate under itself
for a better life full of untold marketing success and prosperity going forwards ?

Any ? , much ? .. or no dividend likely ? ;)

[haewai]

Dividends have not been planned for a while. I'm invested because I appreciate the stategic turn around in recent years, and the sustainability efforts, and they had a bright few years ahead until the cyclone made its disruption.

[Joshuatree]

Dividends have not been planned for a while. I'm invested because I appreciate the stategic turn around in recent years, and the sustainability efforts, and they had a bright few years ahead until the cyclone made its disruption.
Yes could be a bit of a value trap and ducks have to line up for wool to have its day in the sun again.Speculative but I will continue to hold and may top up.

[Sideshow Bob]

https://www.nzx.com/announcements/415177

Bremworth Limited (NZX: BRW) provides the following update on its mitigation and business continuity plans following Cyclone Gabrielle which impacted its Napier yarn spinning plant on 14 February 2023.

Team wellbeing

A detailed assessment of the damage to the Napier plant and buildings, involving external engineering specialists over the last few months, has now been completed and the results are being reviewed by the loss adjustors and Bremworth. The insurance claims process is expected to take a number of months to complete.

Bremworth has been very conscious of the impact on staff during this time. While employees have been paid since the plant went offline in February 2023, the Company is aware that team members are looking for more clarity around their future at the Napier plant. In response to staff feedback, Bremworth is presenting several options to team members that may assist with their personal circumstances and wellbeing – specifically, voluntary redundancy or expressions of interest for redeployment to Bremworth’s Whanganui plant. Career and financial advice, as well as emotional support, is available to all employees.

CEO of Bremworth, Greg Smith, commented: “Since the weather event in February, our priority has been our people. While we do not yet have a definitive view around the future of the plant, we are doing all we can to support them and working through the process in good faith.”

Business continuity plans in place and progressing well

Insurance payments to date have ensured Bremworth is in a strong position to continue to implement its mitigation and business continuity plans, support affected staff and meet its ongoing obligations. Further insurance payments are expected upon completion of the assessment of damage to buildings, plant and equipment, and the loss of inventory and profit, due to the interruption to the business from Cyclone Gabrielle.

Bremworth confirms that alternative supply arrangements for dyed fibre and yarns are proving successful, putting the Company into an encouraging position to continue to supply key product ranges to its distribution partners. The new hybrid supply chain model is complementary to Bremworth’s existing operations and will insulate the Company from future events that could potentially disrupt operations.

25 July 2023
ENDS

[Rawz]

Is this a net net?

At half year they had $10m cash on balance sheet and no debt.
They have received $35 million so far from the insurance payout with more to come.

So maybe $45m in CASH ON THE BALANCE SHEET and no debt and market cap is $33M???

By the sounds of it the flooding and subsequent insurance payout has been a blessing for the company as they can source yarn from overseas and some local and it works better for the business.

I like the story. I like new CEOs coming in changing things and then you see it working, in this case much better margins. I did very well with MHJ and following their new management and watching their margins increase nicely. Could be a similar story here.
New CEO now has lots and lots of cash to invest in Aussie. Very tough market and execution risk obviously.. but with a clean balance sheet and some promising signs in recent performance i am along for a ride.

Operating cash flows slightly negative by $1m but that is put down to the investments and build out of network in Aus.

Could be a multi bagger here.

DYOR enjoy

[percy]

Is this a net net?

At half year they had $10m cash on balance sheet and no debt.
They have received $35 million so far from the insurance payout with more to come.

So maybe $45m in CASH ON THE BALANCE SHEET and no debt and market cap is $33M???

By the sounds of it the flooding and subsequent insurance payout has been a blessing for the company as they can source yarn from overseas and some local and it works better for the business.

I like the story. I like new CEOs coming in changing things and then you see it working, in this case much better margins. I did very well with MHJ and following their new management and watching their margins increase nicely. Could be a similar story here.
New CEO now has lots and lots of cash to invest in Aussie. Very tough market and execution risk obviously.. but with a clean balance sheet and some promising signs in recent performance i am along for a ride.

Operating cash flows slightly negative by $1m but that is put down to the investments and build out of network in Aus.

Could be a multi bagger here.

DYOR enjoy

Certainly looks interesting.Still have my doubts about wool carpets.
I looked at it a few weeks ago,but think I was concentrating on another company [2cc] at the time.
ERG in Aussie is the same,ie having more cash on hand than their market cap.
However HMY's announcement made me put in a buy order to top up.

[Rawz]

Certainly looks interesting.Still have my doubts about wool carpets.
I looked at it a few weeks ago,but think I was concentrating on another company [2cc] at the time.
ERG in Aussie is the same,ie having more cash on hand than their market cap.
However HMY's announcement made me put in a buy order to top up.

I was late to the party too because my attention was with 2CC. However on it now and seems like some deep value here and SP is in a nice uptrend. I have read all the recent reports etc and really like the direction they are going in. What makes it super attractive and low risk investment for me is the huge insurance payout that seems to be one of those events that is a huge blessing. From what i can tell the business just got a whole lot more capital efficient not having to run and maintain this plant

[Rawz]

And credit to Haewai. Seems to be the first punter to highlight the deep value at 29cent sp level. well done!!

Sharetrader is amazing. If I didn't have sharetrader it would be impossible to be across every company on the NZX and find these interesting investments opportunities.

[Rawz]

For the SP to get to the Rawz guess of cash on balance sheet it needs to get to $0.64 per share or 34% above todays price.

$45,000,000 cash/ 70069425 no. of shares= $0.64

And then it is only trading half its revenue. A lot to like

[haewai]

I might be undermining my own investment in this post, but it's inevitable that BRW has incurred a lot of expense in recovering from the cyclone, including clean up, equipment and plant replacement, staff support and redesign of input channels and operations. Let alone impact on revenue from reduced offerings. There's a lot of uncertainty in valuation as a result.

[Rawz]

I might be undermining my own investment in this post, but it's inevitable that BRW has incurred a lot of expense in recovering from the cyclone, including clean up, equipment and plant replacement, staff support and redesign of input channels and operations. Let alone impact on revenue from reduced offerings. There's a lot of uncertainty in valuation as a result.

You spooked the market :scared:

But yes all fair points.

Looking forward to see next result update and seeing how much cash is on the balance sheet.

FY24 earnings per share forecast to be 0.046 as per Jarden website so trading on a forward P/E of 9.85. Excluding the cash its error?

[winner69]

You spooked the market :scared:

But yes all fair points.

Looking forward to see next result update and seeing how much cash is on the balance sheet.

FY24 earnings per share forecast to be 0.046 as per Jarden website so trading on a forward P/E of 9.85. Excluding the cash its error?

No worries ……all back on track with share price

Prob one of those ‘profit takers’ yesterday

[haewai]

Annual results out. Gabrielle hit to production, revenue and normalised NPAT is nowhere near as bad as I was fearing. Crazy amount of cash held ($0.56/share) with potentially >$100m more to come from insurance. New business model seems to be working well and offering flexibility, Napier staffing issues resolved.

[Rawz]

Yes this has a market cap of $28m and cash on hand of $39m.

And they say: “ Smith says the company has $271.3m in material damage and business
interruption insurance cover for the Napier operation and is anticipating
significant further payouts. An independent assessment has placed the
estimated cost of remediation of buildings and plant and equipment at between
$112.7m and $162.0m. Claims under the business interruption policy are
expected to occur in FY24 and into FY25”

Does that mean another $100m+ cash to come. Wtf

[Dlownz]

Annual results out. Gabrielle hit to production, revenue and normalised NPAT is nowhere near as bad as I was fearing. Crazy amount of cash held ($0.56/share) with potentially >$100m more to come from insurance. New business model seems to be working well and offering flexibility, Napier staffing issues resolved.
Napier staffing issues resolved.....
The basically made everyone redundant.
The offered redundancy then those that didn't take it were let go. Doesn't sound like they are planning on reopening Napier at all

[Rawz]

Napier staffing issues resolved.....
The basically made everyone redundant.
The offered redundancy then those that didn't take it were let go. Doesn't sound like they are planning on reopening Napier at all
And it seems a blessing in disguise based on managements previous commentary. Looks like they can exit manufacturing with a handsome payout and focus on retailing.

With GP margins around 30% something needed to change

[Rawz]

This has got to be a takeover target surely

[winner69]

This has got to be a takeover target surely

Big story in media rawz

Only a matter of time before a raider comes along …pockets the cash, sells the stuff in Napier and then sells the remaining Wanganui business at which seems to be a pretty solid business ….something like that

Seems worth a punt …..as long as you view it as a punt and not an investment we’ll be OK

[Rawz]

Big story in media rawz

Only a matter of time before a raider comes along …pockets the cash, sells the stuff in Napier and then sells the remaining Wanganui business at which seems to be a pretty solid business ….something like that

Seems worth a punt …..as long as you view it as a punt and not an investment we’ll be OK

Yes a pretty good punt. Cant lose buying potentially $140m? cash for $30m... and get the business for free

they did make a profit last year. and their explanation for the negative cashflow (investing and building out the aussie market) is acceptable for now.

I think its one of those, very small downside but very large upside bets

[Fortunecookie]

Yep it's a asymmetric bet.

Another possibility is that they continue with the hybrid supply option. The return on asset is terrible so I cannot see how they will set up new plants. So potentially the insurance payout distributed as a special div.

[Rawz]

Yep it's a asymmetric bet.

Another possibility is that they continue with the hybrid supply option. The return on asset is terrible so I cannot see how they will set up new plants. So potentially the insurance payout distributed as a special div.

That’s exactly how I see it

[winner69]

Stop buying for a while rawz and let others get in cheap …you pushing the price up too fast

[Rawz]

Is this a net net?

At half year they had $10m cash on balance sheet and no debt.
They have received $35 million so far from the insurance payout with more to come.

So maybe $45m in CASH ON THE BALANCE SHEET and no debt and market cap is $33M???

By the sounds of it the flooding and subsequent insurance payout has been a blessing for the company as they can source yarn from overseas and some local and it works better for the business.

I like the story. I like new CEOs coming in changing things and then you see it working, in this case much better margins. I did very well with MHJ and following their new management and watching their margins increase nicely. Could be a similar story here.
New CEO now has lots and lots of cash to invest in Aussie. Very tough market and execution risk obviously.. but with a clean balance sheet and some promising signs in recent performance i am along for a ride.

Operating cash flows slightly negative by $1m but that is put down to the investments and build out of network in Aus.

Could be a multi bagger here.

DYOR enjoy


For the SP to get to the Rawz guess of cash on balance sheet it needs to get to $0.64 per share or 34% above todays price.

$45,000,000 cash/ 70069425 no. of shares= $0.64

And then it is only trading half its revenue. A lot to like

Still cheap W69, have to update my thinking from these posts earlier in the month. Potential for another $100m+ cash payout = $1.42 per share in cash to hit the balance sheet. Plus the $39m cash already on the balance sheet which is $0.55 in value.

Total cash something like $2 in value. and get the business for free. wow

[Fortunecookie]

Hey Rawz, you mentioned a few months back that you had insurance experience.

Do you have any special insight regarding the insurance payout. They have given a range.

The cyclone was bad for the community. But this is truly is a positive random event for the company.

[Rawz]

Hey Rawz, you mentioned a few months back that you had insurance experience.

Do you have any special insight regarding the payment.

No nothing special. All guess work so far. When they say an independent advisor has assessed $112m-$162m in damages I guess that is the potential payout and then there will be costs BRW have to come out of this amount.. so idk just throwing $100m out there

[silverblizzard888]

We have a situation here of how Warren Buffett built Berkshire Hathaway, buy a textile mill below asset value, take the cash and invest it for massive returns.

In honest truth I think the carpet business is terrible sector to be in, they should take the cash and change to a different sector while they can. Or atleast diversify into something else. Go acquire Ice Breaker or something, still NZ and still wool.

[Fortunecookie]

No nothing special. All guess work so far. When they say an independent advisor has assessed $112m-$162m in damages I guess that is the potential payout and then there will be costs BRW have to come out of this amount.. so idk just throwing $100m out there

Yeah true. I went ultra conservative based it on asset book value at cost in light of the estimates given. Which works to be close to the $100m But like you said they have the sales network included as well.

[Joshuatree]

My top-up buy @ 44c got hit today.Mkt cap re $30,000,000 or less,feels way more upside risk over the next year with little downside, with lots of insurance funds to come ,imo.

[Rawz]

Decent volume today 6% gain. Somethings afoot

[haewai]

"One of the key factors in achieving our objectives is the ability to increase our supply availability. Currently, we sell almost everything we manufacture. Our supply is often pre-sold, leaving no room for further growth. However, as we continue tocommercialise our offshore made yarn, we will see a rise in our ability to meet demand, in turn growing volumes. We expect these increased volumes to translate to solid revenue growth in FY25."

+

"Growing volume and margin and lowering costs may sound ambitious but the reality is our new mixed supply chain model enables unconstrained supply to meet demand with lower fixed and total costs."

Thumbs up. Quotes from AGM materials.

[Ekrub]

https://www.nzherald.co.nz/the-country/news/move-to-support-woollen-fibres-will-transform-rural-sector-says-bremworth/FVSHOJPLHVFE3GO7YUOWTNQXPU/

[silverblizzard888]

Probably ends up being a mix use of local and imported wool depending on the government building use and budget available. If NZ wool is 20% more expensive due to being higher quality its a tough sell to solely use NZ wool, which could amount to tens of millions more spending; that just ain't happening in this economy. Overall its a win for BRW with the extra demand.

[nztx]

https://www.nzherald.co.nz/nz/wool-power-hawkes-bay-federated-farmers-says-initiative-sends-good-signals-to-industry/YB464XZQWVA7VHWWNLTXSURD24/

Wool power: Hawke’s Bay Federated Farmers says initiative sends ‘good signals’ to industry



Farmers, buyers and carpet makers are warming to an initiative to reinvigorate the struggling wool industry.

A new directive to prefer the use of woollen fibres in government agency buildings “where practical” has the potential to transform the rural sector.

The New Zealand wool industry has been at an all-time low in the last five years, however, this new move could be the boost the industry needs, according to PGG Wrightson North Island wool manager Allan Jones.



Galloway said farmers have hardly broken even when it came to shearing and it became a matter of health for the animal rather than profitable exercise.

“It costs to shear your sheep, we get less for the wool than what it costs to shear it and if we can increase that to break even for a start, and then start to make a profit on it would be something worthwhile.”

That's from a Wool Growers perspective

[haewai]

"Of course it's New Zealand wool, for goodness sake!" https://www.newshub.co.nz/home/politics/2023/11/the-key-detail-missing-from-national-nz-first-coalition-agreement-on-wool.html

"The carpet maker has decided to reinstate a dyehouse in its flooded-out Napier building, in what its chief executive has described as phase one of its Hawkes Bay reinstatement." https://newsroom.co.nz/2023/11/29/carpet-maker-brings-business-back-to-napier/

[percy]

"Of course it's New Zealand wool, for goodness sake!" https://www.newshub.co.nz/home/politics/2023/11/the-key-detail-missing-from-national-nz-first-coalition-agreement-on-wool.html

"The carpet maker has decided to reinstate a dyehouse in its flooded-out Napier building, in what its chief executive has described as phase one of its Hawkes Bay reinstatement." https://newsroom.co.nz/2023/11/29/carpet-maker-brings-business-back-to-napier/

Thank you for posting.
Moving forwards slowly.

[Rawz]

Last decent sell side volume got taken out this morning...

Bugger all sellers left.

When is the next big insurance payout. SP be over $1 soon

[percy]

Last decent sell side volume got taken out this morning...

Bugger all sellers left.

When is the next big insurance payout. SP be over $1 soon

Chart looks great.
Share price moving up on good volume.

[haewai]

When is the next big insurance payout. SP be over $1 soon

They were paid $10m very recently for further recovery costs.

Regarding the larger claim, best to read page 3 of the speeches to the AGM:
The larger claim relates to the material damage to the Napier plant, building andstock on hand. As you can see, and as advised in our Annual Report, we are insuredfor up to $49.4m for the building, $116.1m for the plant and $3.8m for stock on hand.
etc

https://announcements.nzx.com/detail/422427

[silverblizzard888]

Insurance is going to make this take as long as possible, even giving them a much lower figure and then having to negotiate over it. Thats a huge amount of money and the more time they hold onto it the more extra money they earn on it unless its coming from re-inruance with another company, then you're having to deal with an insurance company who is also dealing with an insurance company and it takes forever for the very same reason mentioned.

[sb9]

Insurance is going to make this take as long as possible, even giving them a much lower figure and then having to negotiate over it. Thats a huge amount of money and the more time they hold onto it the more extra money they earn on it unless its coming from re-inruance with another company, then you're having to deal with an insurance company who is also dealing with an insurance company and it takes forever for the very same reason mentioned.

Yeah, fair assessment. Insurers will always try to delay the payout when large sums involved, to try and find loopholes to pay as less as possible. Too many contingencies in play here.

[nztx]

Last decent sell side volume got taken out this morning...

Bugger all sellers left.

When is the next big insurance payout. SP be over $1 soon


the cockies probably are looking for an increased chop of the action to offset cost of taking the wooly stuff
off the backs of the sheeps :)

Bremworth might be extra cautious going forward and keep the hoard buried at a reasonable depth
in more turbulent times going forwards

Let's face it - no real need to jack the price up with large dividends, no need for a Cap Raise either ..
It might be more of the same - 'suck eggs' on any sort of respectable payout for stakeholders while the
show meanders onwards.. No sense in clearing out the coffers to have to borrow it back for operating capital at hiked up interest rates either..

A bit disappointing so far given all the thousands of extra homes built and very little tangible hitting the
bottom line, aside from extraordinary gains .. with plenty of painting large glowing pictures of things to come ..

What sort of story is likely to be being reported this time next year ?

Much interest here in taking out the whole Wooly show at near current reported NTA, not paying a Div and really just replacing it's past Capital seepage with extraordinaries in recent times after liquidating some of the real estate to fix the balances in the books to more respectable levels for further adventures into the unknown ;)

[mike2020]

Yeah Na. Market caps only 42ml and its trading at NTA. That leaves a buck here and there, preferably here.

[silverblizzard888]

Bremworth opens Auckland retail store"Smith said the opening of the store was designed to help Bremworth diversify into a growing segment of the market and address the complexity that could be associated with rugs."

https://www.nzherald.co.nz/the-country/news/wool-carpet-bremworth-opens-auckland-retail-store/HDQG2PV2WRCK3PRPO47MICV6GA/

[nztx]

Bremworth opens Auckland retail store"Smith said the opening of the store was designed to help Bremworth diversify into a growing segment of the market and address the complexity that could be associated with rugs."

https://www.nzherald.co.nz/the-country/news/wool-carpet-bremworth-opens-auckland-retail-store/HDQG2PV2WRCK3PRPO47MICV6GA/


Now we get an idea where the surplus dough is going:


Bremworth said the “prototype brand experience and retail concept store” would expand throughout New Zealand and Australia - if the trial proved successful.

Some might have a few ideas on what can happen when a non-Retail Manufacturer goes vertical, particularly in more volatile times descending into retail with all sorts of grand marketing hopes.

Let's hope the trial doesn't turn it's tail up later down the track if the tide turns on the concept after it gets a green light into an expansionary mode.

What will BRW's other wholesale customers be thinking of this ?

Will the Aussie owned competition - Godfrey's also follow suit or will they be too busy frying larger fish to be bothered with the troublesome small stuff sizing out custom rugs ?

Is this BRW's answer to not making all the anticipated hay while the sun was shining with all the new builds and then what should have been a follow on avalanche of repair/replacement jobs out of the weather disasters ? ;)

What have BRW been up to to miss out on all the extra action in recent years ? ;)

Sure some of the plant might have been out for a swim or clean up, a bit of disruption, but incoming raw material has never been cheaper, and the market should have been there ready to gobble up what was coming out the other end too ..


Were the phone lines on divert to 'Phone an Aussie for pass the job over' while everyone was busy drawing pretty pictures of what Custom Rug Surgery at a Retail level in Auckland looked like ? ;)

[Rawz]

Excellent margins in rugs.

Management team relatively new with a plan.

Pivot away from synthetics into wool.

Enough cash to see what the new business looks like and pay us all a special dividend of $0.60!!

[percy]

Excellent margins in rugs.

Management team relatively new with a plan.

Pivot away from synthetics into wool.

Enough cash to see what the new business looks like and pay us all a special dividend of $0.60!!

They are certainly taking advantage of the huge opportunities in the rug market.
As you rightly point out excellent margins too.

[malreid]

Insurance is going to make this take as long as possible, even giving them a much lower figure and then having to negotiate over it.

Many months and countless hours will be spent to and fro between assessors, underwriters, consultants and Bremworth trying to agree how much of the insured value will actually be paid out on the basis of like-for-like replacement/rebuild versus the real cost of what makes commercial sense if the plant is to be rebuilt.

For example the cost of replacing an old poorly insulated hot water tank with a single level instrument with a new tank of the same volume but properly insulated and with multiple level instruments allowing better energy efficiency, greater reliability and better process safety. The difference in cost will be considered as value added or improvement and won't be paid out. The only time that won't play out is when compliance costs have increased such as changes in seismic design requirements means the tank needs more anchor bolts for instance.

A long and frustrating road lies ahead...

[Rawz]

BRW always said they expected insurance payouts to be completed by FY24 OR FY25.

This suited me as it gives a low risk ride to see how the new wool only business develops here and over the ditch. I am already in the green by 26% and feel my money is protected by the fact that there is possibly another $100m in payouts to hit. Remembering this has a market cap of $40m currently.

Very low downside but decent upside.
Bit like my recent TWR investment. But BRW could double. TWR not so much

[Rawz]

Someone wanted some shares in a hurry

[Rawz]

Chart looks great.
Share price moving up on good volume.

Im no TA guru but i can see higher highs and higher lows

[nztx]

Many months and countless hours will be spent to and fro between assessors, underwriters, consultants and Bremworth trying to agree how much of the insured value will actually be paid out on the basis of like-for-like replacement/rebuild versus the real cost of what makes commercial sense if the plant is to be rebuilt.

For example the cost of replacing an old poorly insulated hot water tank with a single level instrument with a new tank of the same volume but properly insulated and with multiple level instruments allowing better energy efficiency, greater reliability and better process safety. The difference in cost will be considered as value added or improvement and won't be paid out. The only time that won't play out is when compliance costs have increased such as changes in seismic design requirements means the tank needs more anchor bolts for instance.

A long and frustrating road lies ahead...


With all the extra effort needed - will insurance recoveries need to be reclassified as a normalised actity ? ;)

[nztx]

Im no TA guru but i can see higher highs and higher lows


SP Pattern since May doesn't look too bad.

Not a share that huge volumes get traded - only 70m on issue, so if the lid comes off .. :)

[Rawz]

Another good day..

Hope Tower doesn’t insure these guys since own a few TWR shares lol

[JSwan]

Another good day..

Hope Tower doesn’t insure these guys since own a few TWR shares lol

Lol wouldn’t TWR already have that considered 😂

[winner69]

NBR recognises Bremworth in it’s annual gongs -

This one is part good, part bad, but the Serendipitous Clusterf*** award goes to Bremworth, which had to find an alternate dyed fibre and yarn supply after its Napier plant was wrecked as a result of Cyclone Gabrielle and its insurance resolution dragged out, ending up with a cheaper and more plentiful supply of yarn from offshore with which to help power the company’s now expanded ambitions. Not that anyone wants to see people lose their jobs, of course.


https://www.nbr.co.nz/shoeshine/2023-in-review-the-annual-shoeshine-awards/?utm_source=ActiveCampaign&utm_medium=email&utm_content=NBR+HEADS+UP%3A+2023+in+review%3A+The+ annual+Shoeshine+Awards&utm_campaign=NBR+Newsletter%3A

[Rawz]

Yes a pretty good punt. Cant lose buying potentially $140m? cash for $30m... and get the business for free

they did make a profit last year. and their explanation for the negative cashflow (investing and building out the aussie market) is acceptable for now.

I think its one of those, very small downside but very large upside bets

Post this back in August last and so far up 48%. Market cap now still only $43m and we getting $100m+ more insurance payments to come?

And yes still get the business for free.

What am I missing?

[Snoopy]

Market cap now still only $43m and we getting $100m+ more insurance payments to come?

And yes still get the business for free.

What am I missing?


That the $100m will be spent on the business, not paid out to you. This is not insider information - everybody knows it, including Mr Market. Markets don't like uncertainty, and there is definite execution risk in the new business plan going forwards. To take account of this risk, Mr Market is discounting the present value of the future pans by about 50c in the dollar (or a bit more in this case). So the $100m cash which is not coming to you is valued by Mr Market at $43m.

SNOOPY

[Rawz]

That the $100m will be spent on the business, not paid out to you. This is not insider information - everybody knows it, including Mr Market. Markets don't like uncertainty, and there is definite execution risk in the new business plan going forwards. To take account of this risk, Mr Market is discounting the present value of the future pans by about 50c in the dollar (or a bit more in this case). So the $100m cash which is not coming to you is valued by Mr Market at $43m.

SNOOPY

They won’t need it all, Snoopy.

At the AGM they said it’s one of the strategic priorities of the board to figure out how best return surplus cash to shareholders. So it’s all ready assumed they won’t be using it all. Additionally they say by FY26 they will be FCF positive so the business will be finally adding to the pile of cash rather than dipping into it.

I agree about the execution risk. The PnL is ugly but then it’s been knocked around by the cyclone disruption and pivot to hybrid supply model. So it’s hard to get a gauge on what the true numbers could be. The dog company risk imo can be mitigated by the big cash pile on the balance sheet. This is why I say you get the business for free.

[Rawz]

Found this thread on page 6.

SP down 27% from 52week high.

Market cap $39m.

wonder how the insurance claims are going?

[Rawz]

Found this thread on page 6.

SP down 27% from 52week high.

Market cap $39m.

wonder how the insurance claims are going?

Must be about $30m cash in bank right now

[haewai]

In the speeches to the last AGM: "Much as I would like to give you a definitive timeline for the settlement of our claim,I’m sure you understand, that is not possible, but we undertake to keeping youinformed of material progress as it happens."

I guess nothing material has happened. Slow progress on insurance claims doesn't bode well for a speedy operationalising of the AGM announced strategic review.

We'll know more after the half year report due next week.

[Rawz]

In the speeches to the last AGM: "Much as I would like to give you a definitive timeline for the settlement of our claim,I’m sure you understand, that is not possible, but we undertake to keeping youinformed of material progress as it happens."

I guess nothing material has happened. Slow progress on insurance claims doesn't bode well for a speedy operationalising of the AGM announced strategic review.

We'll know more after the half year report due next week.

Not doubt about it we will be seeing some red ink next week.

Will be interesting to see Aussie progress and yes if any update on the big insurance payout which is the only reason im hanging around. I want a 30-40cent special dividend or a takeover of 80cent per share

[Sideshow Bob]

https://www.nzx.com/announcements/427072

Reporting Period: 6 months to 31 December 2023

Previous Reporting Period (PRP): 6 months to 31 December 2022
Figures in $000's

Revenue from continuing operations: $38,994; (17%) on PRP
Total Revenue: $38,994; (17%) on PRP

Net loss from continuing operations: $(1,677); 116% on prior period loss of $(778)
Total net loss: $(1,677); 116% on prior period loss of $(778)

CHAIR AND CEO COMMENTARY

Dear Shareholders

We are pleased to present Bremworth’s FY24 First Half (1H24) report, reflecting on our progress as we enter the final stages of implementing our new hybrid supply model and outlining our strategic initiatives moving forward.

Severe capacity constraints due to the damage to our Napier plant caused by Cyclone Gabrielle have impacted our ability to grow revenue during this half year. The message from our retail partners is that brand-driven demand for our product continues. With the pending near-term return of full production volumes, a strong cash balance and the release of new ranges, a corresponding lift in revenue is anticipated for FY25.

As supply improves, at the quality and quantity required, we will be able to meet existing demand and rebuild our inventory position. This then supports participation in larger commercial developments and the expansion of our in-store presence in over 100 Australian retail stores.

In 1H24, we have focused on reducing administration and distribution costs to better match our reduced revenue while noting that administration costs would have been approximately $1.0 million less after excluding litigation costs and the costs relating to the Board-led strategic review. Once we have the ability to match supply with demand in each of our markets, we believe that our post-cyclone adaptation will yield a meaningful improvement to our financial results.

Yarn Supply

Since the forced closure of our Napier yarn plant, which supplied 100% of our dyed fibre needs and 70% of our yarn, we have worked hard to establish a fully functioning hybrid supply chain. It is exceptionally difficult. The Napier plant made unique yarns that are hard to recreate anywhere in the world. That said, we have had no choice but to embark on this mitigation strategy. At the end of 2023, we had replaced around 60% of our yarn requirements and expects this to be at around 90% by the end of Q3 FY24 and fully recovered by the end of FY24.

The hybrid supply chain we have created minimises the ongoing yarn supply constraints and revenue losses. A return to yarn production in Napier would offer further security to our supply chain.

Our yarn plant in Whanganui, which produces world-leading specialty yarn, has been fortified by strategic partnerships with both domestic and overseas yarn manufacturers who align with our quality standards, whilst Napier remains offline. These collaborations will enable us to scale production and help insulate our supply chain from potential future shocks.

Chief Operating Officer

We have appointed Nicola Simpson as Chief Operating Officer, with Nicola having overall responsibility for all aspects of supply, planning and manufacturing in order to create alignment and focus across our entire supply chain to ensure our growth targets are achieved.

Insurance

We continue to work closely with our insurers concerning reinstatement at Napier under our material damage policy. Stage 1 of the rebuild, involving the reopening of our dyehouse, has been completed, with dyeing operations now underway. The staged approach to reinstatement of the plant is consistent with our objective of providing security of supply for the future while complementing the hybrid supply chain. The loss of our continuous finishing line at Napier has been particularly hard to find a solution for and is the next stage being considered.

Loss of sales, margin losses and ongoing fixed costs incurred during the indemnity period will form the basis of our business interruption insurance claim.
Investment has also been made in machinery in Whanganui to strengthen our capability to make new products and increase production volumes.

Strategic Review

The Board-led strategic review has highlighted several opportunities across our core markets for management to execute in FY25. These opportunities are expected to drive volume and margin growth across New Zealand and Australia, while also streamlining costs to enhance business focus and profitability. Specifically, we are implementing a new go-to-market strategy in Australia, leveraging new digital platforms to accelerate revenue growth in our direct-to-consumer rug business, and reducing our fixed cost base.

The benefits of these growth and cost reduction strategies are expected to be realised in FY25.

Looking beyond FY25 and with greater certainty in our supply chain emerging, we are poised to embark on a new strategy in export markets. Further details on these new geographies will be announced over time.

Growth

Yarn constraints have significantly impacted volume and revenue growth in 1H24 and will continue to impact FY24 results.

Tufting capacity is anticipated to exceed pre-cyclone levels by Q4 of FY24, as we aim to bolster stock levels to meet demand in both New Zealand and Australia.
Increased demand for New Zealand’s strong wool has contributed to the Elco Direct wool-buying business posting pleasing results for the half-year. Our world-first, 10-year, strong wool contracts are also set to contribute to improved long-term outcomes for farmers. We anticipate the Elco Direct business will continue to grow revenue and margin in the second half of FY24.

Outlook

We anticipate a return to full production volumes for the carpet business in Q4 FY24.

Bremworth’s uniquely designed new carpet ranges will be released across New Zealand and Australia. These highly anticipated product innovations are expected to be well received by retailers and consumers.

While the weather events of last year forced the rationalisation of some of our ranges, these new releases, our first since the cyclone, are expected to provide a welcome boost to revenue in FY25.

In November 2023, we unveiled our first Bremworth brand experience store which was designed to offer an immersive sanctuary for our consumers - a space that not only inspires creativity but also fosters a seamless flooring selection experience for our customers and a deep connection to the Bremworth brand. This is a first for the industry and is a part of a trial omnichannel strategy that aims to bring us closer to the end consumer as we look to refine our offer and grow our business. While still in its infancy, we have received positive feedback to date and are closely monitoring store performance.

We look forward to providing further guidance in our FY24 annual reporting, reflecting the advancements made in insurance, supply chain management, distribution, and cost efficiencies post Cyclone Gabrielle.

29 February 2024
ENDS

[Rawz]

Yes another retailer reporting struggling numbers. BRW have to deal with the business interruption as well from the cyclone.

Market cap $37m
Cash on balance sheet $30m
No debt

I think this will be taken over in due course. Private equity could do a good ole strip job on this

[percy]

"We continue to work closely with our insurers concerning reinstatement at Napier under our material damage policy. Stage 1 of the rebuild, involving the reopening of our dyehouse, has been completed, with dyeing operations now underway. The staged approach to reinstatement of the plant is consistent with our objective of providing security of supply for the future while complementing the hybrid supply chain. The loss of our continuous finishing line at Napier has been particularly hard to find a solution for and is the next stage being considered."

I wrongly thought the hybrid supply chain would mean Napier would not be rebuilt.

[Rawz]

"We continue to work closely with our insurers concerning reinstatement at Napier under our material damage policy. Stage 1 of the rebuild, involving the reopening of our dyehouse, has been completed, with dyeing operations now underway. The staged approach to reinstatement of the plant is consistent with our objective of providing security of supply for the future while complementing the hybrid supply chain. The loss of our continuous finishing line at Napier has been particularly hard to find a solution for and is the next stage being considered."

I wrongly thought the hybrid supply chain would mean Napier would not be rebuilt.

yes same. definitely a change in this regard today

[haewai]

This might be over-simplifying, but if a rebuild is fully paid for by insurance, and no rebuild=no payout, then perhaps the decision is easy?

[Rawz]

This might be over-simplifying, but if a rebuild is fully paid for by insurance, and no rebuild=no payout, then perhaps the decision is easy?

Surely the customer should get the option to take the cash if they want it. Makes no difference to the insurance company.

[haewai]

Surely the customer should get the option to take the cash if they want it. Makes no difference to the insurance company.

We are both correct in our own ways. This from the AGM speech:


The larger claim relates to the material damage to the Napier plant, building andstock on hand. As you can see, and as advised in our Annual Report, we are insuredfor up to $49.4m for the building, $116.1m for the plant and $3.8m for stock on hand.These values insured for plant and building were arrived at in conjunction withindependent consulting engineers. The values for the building and plant are basedon reinstatement cost – that is, if we elect to reinstate our Napier site, we can claimour costs of doing so up to these amounts. At this stage we are still in discussionswith our insurers as to what work would be undertaken in reinstatement and at whatcost.

If we elect not to reinstate the Napier site, we still have a claim for the damage to thebuildings and plant but the amount we can claim is yet to be determined. As we havepreviously advised, it is impracticable to estimate an amount because of the extent ofestimation uncertainty around the amounts that would be receivable.

[Rawz]

We are both correct in our own ways. This from the AGM speech:

so by the looks of it they will reinstate the critical parts of the manufacturing process, outsource the other parts and claim as much cash from the insurers as they can.

[winner69]

Jeez just noticed share price down to 45 cents ..that’s quite a fall from 64 cents a monthbago

Hope it’s a jolly good webcast on Thursday

[Rawz]

Jeez just noticed share price down to 45 cents ..that’s quite a fall from 64 cents a monthbago

Hope it’s a jolly good webcast on Thursday

tiny volumes moving it. basically more cash on the balance sheet than market cap right now

[percy]

Today's presentation.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/BRW/427544/414388.pdf

[nztx]

The ins & outs of growing things seem to be an ongoing issue, no matter how it's dressed up.

Will "Pull together a Rug" work out or will it turn into Pull the Rug out from Under, if it doesn't ?

Maybe Joe Public just aren't into & who knows may not be tomorrow, next year or ever into
the Woolly things this outfit goes to great lengths to spit out in the hope ? :)

This outfit have a long track record, with good part of it spiralling downwards, followed
by an equally long track record of feel good propaganda on how the most recent downwards
squiggles are intended to be arrested in their tracks and rapidly heaved northwards.

Yet to really be seen isn't it .. and the brave continue hoping the strategies deliver something ;)

Maybe next year, maybe the year after .. maybe in 5 years time or maybe there is an eager buyer
out there waiting to pick up the can and put the whole painful process of having to explain why
it didn't happen, isn't expected to etc under private wraps and out of sight ;)

[winner69]

Losing share to Godfrey Hirst been going on for years but first time they’ve admitted it …yeah I know it’s a capacity issue but……

Wool carpet maker4 Bremworth says flooring giant Godfrey Hirst has eaten into its market share as it struggles to meet demand after damage to its Napier yarn plant from Cyclone Gabrielle.

https://www.rnz.co.nz/news/business/511100/godfrey-hirst-eating-into-bremworth-s-market-shares-ceo-says

[Rawz]

Once the capacity issue is resolved im expecting revenue to bounce back.
The market cap is $32m and $30m cash on the balance sheet.

FY25 is the year to wait for imo

[winner69]

Once the capacity issue is resolved im expecting revenue to bounce back.
The market cap is $32m and $30m cash on the balance sheet.

FY25 is the year to wait for imo

Even then will they be profitable rawz ..on past history probably not ….profit not in their DNA

[nztx]

Hey, didn't this mob say they were importing more quality woolly stuff than they could eat to fill
a gap ? So maybe it's not a matter of production capacity at all, but the marketing side getting
their heads down & tails up to start making a difference that matters ;)

If it's taken so long to come out with the new initiative of bricks & mortar 'Cobble together your own carpet mat' test outlets phase and finally realise there might be a gap in the woolly market .. then is there any hope for things ? ;)

I mean - Stuff it - where have the marketing maestros at BRW all been hiding for so long to finally wake up to that one after all this time ? Was it something one of marketing assistant's kids brought home from school one day ? :)

Maybe it's just not in their genes to break & recover ground- with some enjoying the lifestyle for long periods while the sales stats mysteriously continued sailing backwards and the Board squatters were happy to ignore it & swallow the excuses ? ;)

It does happen when the ones onboard become too entrenched in their own mini empires within, to know what making a real difference actually is or requires :)

Wonder if some of the participants within responsible for offering up the excuses are some of the same ones who scored generous performance bonus allotments not so long ago or was that another ship lurching from side to side before finding it's feet swallowing a Cap Raise and then recommencing spitting out divies to accompany their many excuses for only a few cylinders firing in new found alleged greener times ? ;)

[haewai]

Hey, didn't this mob say they were importing more quality woolly stuff than they could eat to fill a gap ?

No. Didn't read the rest of your post.

[winner69]

Hey, didn't this mob say they were importing more quality woolly stuff than they could eat to fill
a gap ? So maybe it's not a matter of production capacity at all, but the marketing side getting
their heads down & tails up to start making a difference that matters ;)
I
Maybe it's just not in their genes to break & recover ground- with some enjoying the lifestyle for long periods while the sales stats mysteriously continued sailing backwards and the Board squatters were happy to ignore it & swallow the excuses ? ;)
It does happen when the ones onboard become too entrenched in their own mini empires within, to know what making a real difference actually is or requires :)

Wonder if some of the participants within responsible for offering up the excuses are some of the same ones who scored generous performance bonus allotments not so long ago or was that another ship lurching from side to side before finding it's feet swallowing a Cap Raise and then recommencing spitting out divies to accompany their many excuses for only a few cylinders firing in new found alleged greener times ? ;)

That’s how I see it as well nztx

I know that in specification market they hardly get a look in v Godfrey Hirst / Feltex …….and ranked that highly by retailers

Never mind ….sometimes hard for an ‘iconic’ NZ brand to compete against a global giant

[winner69]

Rawz, we’re doing out best to get the BRW share price back to 60 cents plus.

Reaction to down ramping always works

Bremworth weren’t this bad when they were Cavalier

[nztx]

I'm sure that Tony Timpson would be more than amused to see the saga of Woolly tales
being spun continuously while the ship sinks lower in the water tradewise, bar
the odd extraordinary recovery along the way to somewhat recover things.

In his days - this was indeed a very much different ship, probably a leader
in it's field, paying regular dividends, profitable, without the excuses.

Some might enjoy the tales, salivate over the millions of spare loot on the balance sheet,
but in reality did anyone really expect on past performances that much or any of that
would land in stakeholders hot little hands ? ;)

[Rawz]

Rawz, we’re doing out best to get the BRW share price back to 60 cents plus.

Reaction to down ramping always works

Bremworth weren’t this bad when they were Cavalier

Thanks, I sold my 18,000 shares earlier today. Made 13% gain in 8 months. $1,075 after fees. Pay for 2 weeks groceries lol wow..

The thing for me is the change in tune on the insurance payouts. And the so called hybrid supply model backtrack as they now look to rebuild Napier.
The investment was:
1) business is becoming capital lite with hybrid supply model.
2) $100m+ in insurance proceeds to be banked.

After HY update:
1) Sorry actually we need to rebuild Napier as we cant source enough from overseas
2) we are now claiming business interruption insurance. Talk of huge insurance cash proceeds seem to have disappeared.

I still believe its value is north of here due to the cash on balance sheet and potential in the business. only a matter of time until some savvy business person/group/PE firm takes a shot at it. I just cant be bothered sitting around for it. Would rather move the money to TWR.

This is the change of tune:


FY August 2023

Greg Smith, Bremworth CEO, says it was pleasing to see revenue remain relatively stable, despite the disruption caused by the cyclone on their yarn-making operation.
He says while Bremworth’s Napier facility remains offline following the impact of the cyclone in February, to date, the company has received $35.5m of progress payments from its insurers - helping to lift the company’s profit by $8.8m over the previous year and increase cash on hand by 164% to $39.3m. Cyclone related expenses incurred by the firm totalled $14.5m while write offs of cyclone-damaged assets totalled $7.6m.
Smith says the company has $271.3m in material damage and business interruption insurance cover for the Napier operation and is anticipating significant further payouts. An independent assessment has placed the estimated cost of remediation of buildings and plant and equipment at between $112.7m and $162.0m. Claims under the business interruption policy are expected to occur in FY24 and into FY25.

HY Feb 2024

Severe capacity constraints due to the damage to our Napier plant caused by Cyclone Gabrielle have impacted our ability to grow revenue during this half year.....
.....Since the forced closure of our Napier yarn plant, which supplied 100% of our dyed fibre needs and 70% of our yarn, we have worked hard to establish a fully functioning hybrid supply chain. It is exceptionally difficult. The Napier plant made unique yarns that are hard to recreate anywhere in the world....

We continue to work closely with our insurers concerning reinstatement at Napier under our material damage policy. Stage 1 of the rebuild, involving the reopening of our dyehouse, has been completed, with dyeing operations now underway. The staged approach to reinstatement of the plant is consistent with our objective of providing security of supply for the future while complementing the hybrid supply chain. The loss of our continuous finishing line at Napier has been particularly hard to find a solution for and is the next stage being considered.
Loss of sales, margin losses and ongoing fixed costs incurred during the indemnity period will form the basis of our business interruption insurance claim.

[haewai]

I don't see any inconsistency between "stable revenue" and "inabilty to grow revenue".
But people see what they want to see I guess, including on 'huge cash payouts'

[Rawz]

I don't see any inconsistency between "stable revenue" and "inabilty to grow revenue".
But people see what they want to see I guess, including on 'huge cash payouts'

I may have not articulated my point well.. but basically im just following my gut and my gut is telling me there is a change in the way the company is communicating to us around the whole supply chain and insurance payout.
I understand the situation is fluid.

Ill give you another example:

27/11/2023 AGM Presentation
Board-led strategic reviewObjectives
• What decisions must be taken to ensure a sustainable, profitable business model?
• Once insurance is settled, what are the investment choices that should be considered?
• How should any surplus funds be efficiently returned to shareholders?

07/03/2024 1h24 Investor presentation
Board-led strategic reviewObjectives
• What decisions must be taken to ensure a sustainable, profitable business model?
• Once insurance is settled, what are the investment choices that should be considered?

So you can see black and white how they dropped the last bullet point from their objective. This change of tune in the space of 3 and a bit months..

Anyways, like i say true value still north of here due to large cash balance and some more payouts to come. Its just not going to be anywhere near the $100m i was thinking. And my fault for reading into that and the potential for new capital lite business model

[malreid]

"...The loss of our continuous finishing line at Napier has been particularly hard to find a solution for and is the next stage being considered..."

I read this as meaning that they are finding it hard to justify the cost of reinstating finishing in Napier vs the cost of sending dyed yarn off elsewhere (i.e. offshore) and bringing it back subject to variables such as shipping and forex and in either case being able to get that cost locked in at a level that allows them to be competitive enough to win back market share over the longer term. ROI no longer stacking up.

[haewai]

"...The loss of our continuous finishing line at Napier has been particularly hard to find a solution for and is the next stage being considered..."

I read this as meaning that they are finding it hard to justify the cost of reinstating finishing in Napier vs the cost of sending dyed yarn off elsewhere (i.e. offshore) and bringing it back subject to variables such as shipping and forex and in either case being able to get that cost locked in at a level that allows them to be competitive enough to win back market share over the longer term. ROI no longer stacking up.

Market share was lost through inability to supply enough to meet demand. Nothing to do with cost. It's a positive thing. They're planning to ramp up production rapidily and increase demand in Au, which might have large financial positives.

[winner69]

Market share was lost through inability to supply enough to meet demand. Nothing to do with cost. It's a positive thing. They're planning to ramp up production rapidily and increase demand in Au, which might have large financial positives.

Bremworth should have said we lost more market than we would have done if times were normal

Market share been going down for years …not a new thing

[haewai]

Bremworth should have said we lost more market than we would have done if times were normal

Market share been going down for years …not a new thing

Yes to first point.
Which market- wool or synthetic carpets, or both? Because they're out of synthetics now, so past market share change is potentially not a relevant measure.

[winner69]

Yes to first point.
Which market- wool or synthetic carpets, or both? Because they're out of synthetics now, so past market share change is potentially not a relevant measure.

Wool as well as what they had in synthetics

Specifier market in particular not good

[haewai]

Wool as well as what they had in synthetics

Specifier market in particular not good

Can you share your data? There's nothing in company reports or aggregated and reported elsewhere. I still think that there is risk in attributing a trend over abnormal and restructuring periods. [edit: guess not, just take your word I suppose]

[winner69]

Can you share your data? There's nothing in company reports or aggregated and reported elsewhere. I still think that there is risk in attributing a trend over abnormal and restructuring periods. [edit: guess not, just take your word I suppose]

Industry insights I have access to……products specified by architects/designers on construction activity. Morbid fascination with Feltex, Cavalier and Bremworth over the years keeps me looking at floor covering segment trends

Trend over time for Bremworth not good ……and as you point out recent challenges won’t be helping.

I was surprised Bremworth actually admitted to losing share …like saying share gone for good ….or lost share and we won’t recapture it.

[haewai]

Ok thanks. I'm still feeling positive given massive amount of cash, looming insurance payouts, near profitability despite headwinds, and plan to increase production to meet and exceed excess demand and then grow that demand. Guess I'm looking forwards, not back.

[winner69]

Ok thanks. I'm still feeling positive given massive amount of cash, looming insurance payouts, near profitability despite headwinds, and plan to increase production to meet and exceed excess demand and then grow that demand. Guess I'm looking forwards, not back.

Fair enough haewai.

I’ve had a morbid fascination with Cavalier/Bremworth since last century.

They did very well in the 2000’s and performance was re-elected in share price

But lost 10 years or so you’d have to say they’ve underperformed badly and that’s reflected in the share price as well

So looking back pretty miserable …and looking forward i see very little that’s going to change that will reverse that ‘trend’ …..ie performance wise going to continue to underperform

But wishing you good luck on getting your hands on the insurance money. Hope they don’t squander it but good that natural disasters might have benefited them

[winner69]

Looking back through stuff I have things have been going downhill since 2016. That’s when they sold the tile division and went through the Wool Holdings merger

The 2017 ASM was a pretty gloomy affair …. The CEO started his address -

To state the obvious it has been a tough year for Cavalier. There’s no shirking from the fact that we aren’t yet where we we’d like to be, or indeed where we said we’d be this time last year.

For that I apologise.

Been several tough years since …..again I ask what’s changed

[haewai]

Been several tough years since …..again I ask what’s changed

I haven't been on the register that long, but from my impression what has changed is what they make, how they make it, and how they sell it. Anything important in there?

[winner69]

Haewai …..got to say that a chunk of recent share loss is from their strategic decision not to ‘chase’ big commercial contracts

Focus on consumers and residential ….hmmm

[haewai]

I'm not inclined to criticise another person's decisions unless I know the all the facts and reasons. Maybe once production really gets going again, they will be able to offer more volume to the commercial sector. Until then, if the firm can only supply a limited amount, why not focus on the presumably higher margin market?

[winner69]

Up inútil 2011 I admired Cavalier ……they were consistently making high returns on capital employed …way above their cost of capital and as such were creating a lot of economic value added.

It all turned to custard in F12 when they were confronted by a flood of synthetic carpet imports borne on the tide of the weak US dollar at the time. Its been a struggle since

Some years they made what seemed to be a reasonable profit but then profit after tax was less than 3% of sales. Profit margins since 2017 have been non-existent …even on a normalised basis.

Again looking forward has anything changed to reverse this entrenched trend.

Maybe they can convince consumers that synthetic carpets are really really bad for the environment and that the new carpet should be from the Most Trusted Carpet people. You never know by 2030 this might be case

In the meantime they can play around with the insurance money ….hope it doesn’t get squandered.

Might update a business paper I did on Cavalier ……could be a good case study

[nztx]

Up inútil 2011 I admired Cavalier ……they were consistently making high returns on capital employed …way above their cost of capital and as such were creating a lot of economic value added.

It all turned to custard in F12 when they were confronted by a flood of synthetic carpet imports borne on the tide of the weak US dollar at the time. Its been a struggle since

Some years they made what seemed to be a reasonable profit but then profit after tax was less than 3% of sales. Profit margins since 2017 have been non-existent …even on a normalised basis.

Again looking forward has anything changed to reverse this entrenched trend.

Maybe they can convince consumers that synthetic carpets are really really bad for the environment and that the new carpet should be from the Most Trusted Carpet people. You never know by 2030 this might be case

In the meantime they can play around with the insurance money ….hope it doesn’t get squandered.

Might update a business paper I did on Cavalier ……could be a good case study


Agreed .. since then the resident squatters around the Boardroom table may have become more entrenched.

My thoughts as well - this outfit were fast to hock off the estate around the Auckland factory etc to pull themselves
out of a ditch that they had been digging for years. Throw them a large pile of pingers like they never seen
before and will it be gurgling sounds .. more of the 'wheels getting warming up' to try a further series of repeats
to see if the consistency of the hole is the same as last time ? ;)

I mean ******** - all we seen so far is the glossed up "We found a market gap for hocking off Custom pieces
in our very own Factory Shops - not exactly the sort of brain science sort of thing to make this outfit fly
around the ceiling or get many over excited for the Long wait and possibly digging further ditches, if it
all turns to custard in volatile times - just dig into the large pile in the larder - ignore the poor suckers
who bought their holdings & feed them doom & gloom stories for as long as the trail along the garden
path as is convenient ;)

Might be quite a few chapters of pulling the wool still to come, if they think they are likely to make any
sort of impression on the competition in current times or in distant future.. or am I wrong ? :)


If Mr Godfrey is doing so well - then what is it that this outfit haven't quite woken up to to get their own nuts & bolts up to speed on while Mr Godfrey gets to come in and eat their lunch for them while they weren't looking ? :)

[winner69]

Flagship Bremworth Experience store eh ….concepts Dave from Comvita rave about

Getting closer to the consumer good strategy …maybe they could use the insurance money to set up / acquire a chain of retail outlets?

[nztx]

Flagship Bremworth Experience store eh ….concepts Dave from Comvita rave about

Getting closer to the consumer good strategy …maybe they could use the insurance money to set up / acquire a chain of retail outlets?


Cripes - Vertical expansion when the mainstream Manufacturing Op still looks like a continuing disaster
with lots of feel good and plenty of larger circling piranhas circling in the same pool ? ;)

Will Retail fare any better or both under the same Structure amount to 1, 1/2, 2 or 4 disasters if something
stalls anywhere within ? ;)


Have they seconded in any Retail bones who know what they are doing yet or is that still a trial mode
with repurposed bods experimenting on custom chopped woolly stuff when an eager punter just happens to fly in the door wondering what the h4ll has just landed & is going on. in the midst of a process of iron out
any knots & creases as they go ? ;)


Perhaps buying out an existing Retail job might have been easier, but that might p!ss off some of the remaining Wholesale custies trying to make a buck in the same centres :)

[winner69]

Nztx, Bremworth do have a Director Emeritus though ..not many of those eh

[nztx]

Nztx, Bremworth do have a Director Emeritus though ..not many of those eh


Oh Okay - so they wont be needing any ST advisers from off here ? :)

Nothing like new in tune talent though to get the wheels turning in ways they never
thought possible in times when the Competition is running rings around them :)

[winner69]

Oh Okay - so they wont be needing any ST advisers from off here ? :)

Nothing like new in tune talent though to get the wheels turning in ways they never
thought possible in times when the Competition is running rings around them :)

Suppose the recent offer I made to help them out with a bit of strategic thinking will be rejected (kindly I hope)

When Metro Glass weren’t doing too badly shortly after IPO I offered to help them out as well ….rejected the offer …..and look where they are now

Come to think of it lot if similarities between Metro Glass and Bremworth

[winner69]

About 30,000/35,000 dwellings a year built in NZ

Westpac says “New Zealand is going to need around 125,000 additional homes over the next five years to keep up with population growth”

Note additional

All those dwellings …all that carpet that will be needed

Hope Bremworth get their act together

[nztx]

About 30,000/35,000 dwellings a year built in NZ

Westpac says “New Zealand is going to need around 125,000 additional homes over the next five years to keep up with population growth”

Note additional

All those dwellings …all that carpet that will be needed

Hope Bremworth get their act together


If they're not awake & still dreaming on, Mr Godfrey will be in, long done on eating their lunch
for them and by the time they realise it - there will only be the crumbs left in the lunchbox ;)

[malreid]

New dwellings mass built to a budget with synthetic carpets, not much scope for BRW there. Higher spec'd homes have the option as we did of similar quality wool shipped offshore, processed and shipped back at a considerably better price than we were quoted for BRW product. Whichever way you cut it BRW have taken their eye off the ball and face an uphill battle I doubt they can win unless competitors somehow drop out.

[haewai]

The company says they cannot produce enough to meet demand. I trust that statement more than malreid's anecdote or whatever it is that nztx is saying.

[nztx]

The company says they cannot produce enough to meet demand. I trust that statement more than malreid's anecdote or whatever it is that nztx is saying.


you're not falling for more of the pulling of the wool as fed out repeatedly in the recent & medium past ? ;)

how many more practice sessions (most in past possibly unsuccessful & dreaming about seeing better ) at trying to put more goals onto their P&L Statement - do they need to make for the ink lever to change colour ? ;)

[winner69]

Losing share and not meeting demand is a bad combo

[kiwical]

The company says they cannot produce enough to meet demand. I trust that statement more than malreid's anecdote or whatever it is that nztx is saying. Yes, but you can read that another way. You have a demand of 6 customers. But you can only provide 5 carpets. Sounds good. But all it means is that your manufacturing / raw material sourcing / production / labour whatever is crappy. You aren't producing enough product to be profitable. You can't live off selling 5 carpets per day.

[winner69]

Yes, but you can read that another way. You have a demand of 6 customers. But you can only provide 5 carpets. Sounds good. But all it means is that your manufacturing / raw material sourcing / production / labour whatever is crappy. You aren't producing enough product to be profitable. You can't live off selling 5 carpets per day.

..and if they hadn’t lost market share you would have 7 customers ….so missing out on 2 instead of the 1 in your example

But then one could say heck how good is the future when they sort everything out …regain share loss and then grow it more while machines keep up with all that demand

[haewai]

Yes, but you can read that another way. You have a demand of 6 customers. But you can only provide 5 carpets. Sounds good. But all it means is that your manufacturing / raw material sourcing / production / labour whatever is crappy. You aren't producing enough product to be profitable. You can't live off selling 5 carpets per day.

I suspect you have no idea about the production challenges and changes specifically at BRW

[nztx]

Hahaha .. going Vertical into Retail to try to rescue Revenue & Market share when the Manufacturing
still has many serious issues & the hungry sharks are circling ripping off strips of BRW's hopes
for a piece of market share. Good luck with that :)

Have seen the "Go Vertical" script all before on a number of occasions & in most cases it doesn't end well.. usually seen in the period before executing a business death spiral & a few summersaults on the way out

Usually the sign of desperation with a Management so well entrenched, they want & know for no major change, know they have a major problem but have no real workable forward plan or answers to deliver
up significant change. With such entrenched Management, even the ultimate & final sale can be problematic
or too difficult for them to pull off in interests of their usually long suffering lenders and/or backers ;)


BRW may have a wad of cash to underwrite the play for now, but at end of the day if it all
unravels which is likely looking at the unique factors currently - then who is really paying ?

Who got to pull the wool ? who got a free lunch for the exercise while sitting completely
oblivious to the company's banquet lunch being eaten in front of them while no-one was awake
to it and weaving fluffies on how a little dive into the world of fancy factory shop carpet squares
was likely to be the B-All Save all solution to all the issues ? ;)

[mike2020]

Grief, this is starting to sound like the TWR thread used to when we were waiting for the eqc payment. TWR holders were trapped back then, now you wouldn't show up at a party without a few in your pocket.

[nztx]

Grief, this is starting to sound like the TWR thread used to when we were waiting for the eqc payment. TWR holders were trapped back then, now you wouldn't show up at a party without a few in your pocket.


Are they giving away a few with each new policy already ? :)


Perhaps free carpet squares to anyone who wanders in to Carpet Factory Shop might work after all ..

[winner69]

I like “Let’s Go Good Together” as a vision

[winner69]

Thought I’d try out their website and a bit of ‘shopping’ on line

First how about getting 3 Free Samples …..well 22 of 36 were OUT OF STOCK …….no free samples for me I thought but picked 3 at random because i’ll will go in the draw to win a beautiful handcrafted NZ wool rug valued up to $1,499 NZD

Next exercise was to put a couple of rugs in the shopping cart …jeez $800 to $1100 for a 500cm X 700cm rug is a lot of money but obviously out of touch with such things.. but a bit of a worry that Estimated Dispatch Date is April 1st …didn’t go the Checkout lol

Bit worried about that Dispatch Date ….. 2 weeks to get it ready seems a long time

[mike2020]

Ok I followed you with that, will see exactly how long that takes. I did notice the darker colors were the most likely out of stock. And anything I would actually like. I recently bought a house with very white new carpet. I want rugs, for the rugrats.

edit, mine says 3 to 5 working days.

[winner69]

Ok I followed you with that, will see exactly how long that takes. I did notice the darker colors were the most likely out of stock. And anything I would actually like. I recently bought a house with very white new carpet. I want rugs, for the rugrats.

edit, mine says 3 to 5 working days.

Samples 3 to 5 working days …..actual rug April 1st

[haewai]

I wonder how this will be quantified: Loss of sales, margin losses and ongoing fixed costs incurred during the indemnity period will form the basis of our business interruption insurance claim

And when it will be paid.

https://www.ruralnewsgroup.co.nz/rural-news/rural-general-news/carpet-maker-rolls-out-more-optimistic-future

[winner69]

I see WoolWorks have their wool scouring plant at Awatoto back up and running after last years floods

[Joshuatree]

Thought I’d try out their website and a bit of ‘shopping’ on line

First how about getting 3 Free Samples …..well 22 of 36 were OUT OF STOCK …….no free samples for me I thought but picked 3 at random because i’ll will go in the draw to win a beautiful handcrafted NZ wool rug valued up to $1,499 NZD

Next exercise was to put a couple of rugs in the shopping cart …jeez $800 to $1100 for a 500cm X 700cm rug is a lot of money but obviously out of touch with such things.. but a bit of a worry that Estimated Dispatch Date is April 1st …didn’t go the Checkout lol

Bit worried about that Dispatch Date ….. 2 weeks to get it ready seems a long time

It's a very cool,snazzy fashionable ,classy website though aimed at the more well off folks

https://www.facebook.com/share/Vgc8j3kZfzdQdTZL/?mibextid=qi2Omg

[haewai]

@ $0.435 / share, market is saying the company is is worth less than the cash in the bank ($0.44 / share)
Oh well

[winner69]

@ $0.435 / share, market is saying the company is is worth less than the cash in the bank ($0.44 / share)
Oh well

Market must be assuming Bremworth going to spend/waste all that cash