Bremworth BRW

[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