Bremworth BRW

[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