Preliminary FY23 Half Year Result

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Bremworth Limited
Reporting Period Six months to 31 December 2022
Previous Reporting Period Six months to 31 December 2021
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$47,183 (3%)
Total Revenue $47,183 (3%)
Net profit/(loss) from
continuing operations
$(778) -
Total net profit/(loss) $(778) -
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay dividends
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.43 $0.38
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to accompanying results announcement and the
1H23 report
Authority for this announcement
Name of person

authorised
to make this announcement
Victor Tan
Contact person for this
announcement
Mark Devlin
Contact phone number +64 21 509 060
Contact email address Mark@impactpr.co.nz
Date of release through MAP

1 March 2023

Unaudited financial statements accompany this announcement.

---

CONTENTS


FY23 First Half at a Glance

1
Financial Summary

3
Half Year Review – Chair and CEO Commentary

4
Condensed Consolidated Statement of Profit or Loss

9
Condensed Consolidated Statement of Comprehensive Income

10
Condensed Consolidated Statement of Changes in Equity

11
Condensed Consolidated Statement of Financial Position

13
Condensed Consolidated Statement of Cash Flows

14
Notes to the Financial Statements

16
Disclosure of Non-GAAP Financial Information

29
Corporate Directory

32

1


Bremworth Limited and subsidiary companies

FY23 First Half (1H23) at a Glance

• Revenue and gross profit for the core carpet and rug business up on 1H22.
• Carpet segment gross profit (which includes miscellaneous sales) was in line with 1H22. However,
ongoing investment in marketing and in expanding the distribution network in the key Australian
market along with technology and sustainability initiatives saw the carpet segment finish 1H23 with a
profit of $347,000 - down from $1,897,000 for 1H22.
• Revenue and gross profit for the Elco Direct wool segment were down on 1H22, largely as a result of
the slowing demand for strong wool globally, due to the ongoing war in Ukraine and China’s zero-
COVID-19 policy.
• The Company is continuing to invest for the future, with ongoing focus on building the Bremworth
brand while also investing in the key Australian market, with new products and supporting sales
growth with inventory and samples.


Reduction in miscellaneous revenue includes revenue from installation services, which the business exited from following the
exit from low-margin high-volume commercial business in Australia, and from sales of carpet yarn overseas, which the business
ceased to preserve yarn capacity for its own requirements.

2


Bremworth Limited and subsidiary companies

FY23 First Half (1H23) at a Glance (continued)

3


Bremworth Limited and subsidiary companies

Financial Summary - for the six months ended 31 December 2022 (Unaudited)

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
Audited
Year
ended
30 June 2022
$000 $000 $000

Revenue $47,183 $48,720 $95,485

EBITDA (normalised)
1
692 2,468 4,918

Depreciation – owned assets (309) (355) (683)
Depreciation – right-of-use assets (490) (441) (954)
Depreciation – recycled through inventory (39) 65 194

EBIT (normalised)
1
(146) 1,737 3,475

Finance costs (562) (519) (1,029)
Finance income 66 73 159

(Loss)/Profit before income tax (normalised)
1
(642) 1,291 2,605

Income tax credit/(expense) 153 (388) (870)

(Loss)/Profit after tax (normalised)
1
(489) 903 1,735

Abnormal net (loss)/gain after tax
1
(289) 98 505

(Loss)/Profit after tax (GAAP) $(778) $1,001 $2,240

Net cash flow from operating activities $(1,839) $(1,380) $(2,917)

Basic earnings per share (cents)
Normalised
1
(0.70) 1.31 2.51
GAAP (1.12) 1.45 3.24

Diluted earnings per share (cents)
Normalised
1
(0.68) 1.28 2.46
GAAP (1.09) 1.42 3.17

Return on average shareholders’ equity (%)
Normalised
1
(1.3)% 2.5% 4.7%
GAAP (2.0)% 2.8% 6.1%

Unaudited
As at
31 December
2022
Unaudited
As at
31 December
2021
Audited
As at
30 June 2022

Net tangible asset backing per share ($) $0.43 $0.38 $0.40


Equity to total assets (%) 50.8% 48.8% 47.9%



1
Normalised is a non-GAAP (Generally Accepted Accounting Practice) measure that provides what the Directors believe to be a more
meaningful view of the underlying financial performance of the Group. A reconciliation between GAAP and normalised earnings together with
further commentary on the disclosure of non-GAAP financial information are set out at pages 29 to 31 of the half year report.

4


Bremworth Limited and subsidiary companies

Half Year Review

Chair and CEO Commentary

Dear Shareholders

Thank you for your ongoing support of the Bremworth brand as we hit the midpoint of our five-year
transformation plan and work to deal with the adverse weather event from Cyclone Gabrielle that
impacted the woollen carpet business on 14 February 2023.

STRATEGY

The first six months of FY23 has seen us continue to invest for the future in:

• Brand awareness
• Product and design
• Distribution
• Technology
• Sustainability

We continued to run campaigns to support our mid to long term brand position as the market leader in
New Zealand made, New Zealand wool carpet and rugs.

We designed new products and introduced new colours to refresh our ranges.

Importantly, we embarked on a bold distribution expansion strategy in Australia to enhance our brand
presence and scale our revenue opportunities in this large market. Australia represents around half of
our total sales presently and we were forecasting this to grow significantly over the coming years.

We also moved to future proof the business by upgrading our technology platforms to improve plant
efficiency and have designed and launched a new direct-to-consumer (DTC) website to enable our rug
business to grow faster.

We continued to stay true to our purpose of finding a more sustainable way through investments in
reducing carbon and waste.

MARKET

Our move to all-wool has seen other brands in New Zealand and Australia launch new wool products.

This is not unexpected and indeed validates our move and the progress we have made, while also
sharpening the focus on natural carpets as an alternative to plastic-based carpet.

It also further demonstrates consumers raised awareness to the natural benefits of wool.

5


Bremworth Limited and subsidiary companies

Half Year Review (continued)

Chair and CEO Commentary (continued)

1H23 RESULTS

Pleasingly, the carpet and rug business is still growing year-on-year.

Australian carpet and rug revenue is up 8% on the previous year despite the deliberate move away from
low-margin high-volume commercial business in FY22 to focus on premium residential consumers in that
market and the well-publicised macroeconomic headwinds faced in both New Zealand and Australia.

This provides support to our decision to embark on the distribution expansion strategy to enhance our
brand presence and scale our revenue opportunities in the large Australian market.

Just as important, margins have continued to improve as brand investments start to bear fruit.

Our DTC rug business is achieving double digit growth, with the DTC model providing a lower cost to
serve with impressive margins and unparalleled consumer insights which help improve our service and
product development pipeline.

The six-month result also reflects prudent investment in, and management of, our inventory - with the
lowest level of aged inventory in 10 years and improved profile of our core ranges as we positioned
ourselves for growth in the key Australian market.

ELCO DIRECT

Our wool buying division, Elco Direct, has seen a slowdown versus last year.

The results have been impacted by geo-political issues - specifically, the war in Ukraine and the zero-
COVID-19 policy that was being observed by China up until December.

The Elco Direct business is run efficiently and continues to grow share of the direct wool buying sector.
This provides the Bremworth carpet business with a significant competitive advantage in our core raw
material inputs.

Bremworth is planning to introduce direct long-term contracts through Elco Direct to support strong
wool farmers, ensure continuity of supply of good quality wool and smooth margins, with these plans
scheduled for Q4.

6


Bremworth Limited and subsidiary companies

Half Year Review (continued)

Chair and CEO Commentary (continued)

DTC DIGITAL BUSINESS

We currently operate a DTC rug business that has shown encouraging growth and will become a
material revenue and profit contributor to Bremworth in the years ahead.

To complement this digital business, we are planning to open brand experience stores, giving consumers
the opportunity to learn more about wool, design, trends, Bremworth and ultimately the chance to design
and purchase their own rug instore.

This platform will further enhance the consumer experience of Bremworth and raise awareness to the
benefits of Bremworth carpet and rugs. Brands that are omni-channel have proven to increase loyalty to
the brand, average spend across all channels and lifetime value.

LITIGATION

Profits have been impacted by litigation, including the ongoing defence required to fight American-
owned Godfrey Hirst which continues to be a drag on resources and costs.

Godfrey Hirst dropped their damages claim last year but have sought court orders in the form of
corrective statements and an injunction over alleged misleading statements in Bremworth’s Going Good
marketing campaign. Godfrey Hirst allege that Bremworth has been misleading the public by
representing that synthetic carpet has a materially worse environmental impact than wool carpet. In
essence, Godfrey Hirst do not want us to say that synthetic carpet has a worse environmental impact
than wool carpet across the life cycle of the products.

More recently, Godfrey Hirst amended their claim in an attempt to capture the whole of Bremworth's
marketing campaign and require Bremworth to either publish corrective statements or stop its
marketing campaign.

Bremworth considers that the new orders Godfrey Hirst seek are inequitable, anti-competitive and
unconscionable, especially in light of Godfrey Hirst's own advertising and conduct and has raised these
arguments in its defence to Godfrey Hirst's amended claim.

The Board will keep shareholders apprised of developments, with the court hearing set down for later in
the year.

7


Bremworth Limited and subsidiary companies

Half Year Review (continued)

Chair and CEO Commentary (continued)

OUTLOOK

Macro-economic conditions in both markets remain a consideration in our outlook, with inflation in both
our key markets expected to put a drag on growth. However, the recent significant weather events in
New Zealand may cushion some of those headwinds over the next four to 12 months.

The Board and management remain committed to the ongoing investment in Bremworth to build a high
performing, sustainable business for the long term.

Wool business

Operating conditions for the Elco Direct wool acquisition business are expected to improve with the
removal of COVID-19 related restrictions in China meaning a rise in demand and prices is expected in
the second half of the year.

Carpet business and event subsequent to balance date

On 14 February 2023, the Napier yarn spinning plant suffered widespread flooding as Cyclone Gabrielle
struck the Hawke’s Bay region.

The Napier yarn spinning plant is a key plant within the Group’s woollen carpet operation, supplying
woollen spun yarn to the Auckland carpet plant for conversion into carpet and dyed fibre to the
Whanganui yarn spinning plant for processing into felted yarns for carpet manufacturing.

The Napier yarn spinning plant has not been operating since that adverse weather event, with
preliminary assessments confirming:

• widespread flooding throughout the plant;

• significant damage to services within the building and to plant and equipment; and

• loss of inventory.

The initial stages of the clean-up have just got underway – with access to the plant only just becoming
possible for that to occur.

It is expected that the plant will likely be offline for a yet to be determined, but significant, amount of time
– given the extent of the damage and the work required to reinstate buildings, plant and equipment.

A full discussion of the impact of Cyclone Gabrielle on the woollen carpet business can be found in Note
1 (Going concern) to the 1H23 financial statements, while the risks posed by these weather events are
considered in Note 12 (Climate-related disclosures) to the 1H23 financial statements.

8


Bremworth Limited and subsidiary companies

Half Year Review (continued)

Chair and CEO Commentary (continued)

As a consequence of the assessments that have been undertaken and after having considered the
uncertainties relating to some of the assumptions underlying these assessments – more particularly, the
time it could take for the clean-up and reinstatement of buildings, plant and equipment and to switch to
alternative sources of yarn and dyed fibre - the Board has concluded that these uncertainties are not
significant and able to be managed.

In forming these views, the Board has taken into account the following:

• the cash surplus of $10.4 million as at balance date along with positive equity and positive working
capital, with the negative cash flows from operations the result of the Group’s ongoing investment to
support sales growth and service levels – particularly in the large Australian market - and to build a
high-performing, sustainable business for the long term;

• the strong inventory position and the quality and profile of that inventory, with 94% of uncommitted
inventory as at balance date made up of current stock-keeping units (SKUs);

• the scope and extent of the Group’s insurance programme and the comprehensive policies in place
to protect itself against losses from such events, the discussions the Company has had with
representatives of the insurers and our own claims advisors and the expected timing of insurance
payments;

• the steps that have been taken to reduce discretionary spending and to protect its cash resources
during the period of interruption to the business; and

• the Group's ongoing ability to resort to other sources of funding.

The Board is also reassessing whether original expectations around realising the full benefits of the
transformation from FY25 onwards is still possible and will provide an update to shareholders once it is
able to complete a detailed assessment.


For and on behalf of the Board of Directors:





George Adams Greg Smith
Chairman Chief Executive Officer

1 March 2023

9


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Profit or Loss


Six months ended 31 December 2022 (Unaudited)

Note Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000


Revenue from contracts with customers 4 47,183 48,720
Cost of sales (32,478) (33,537)

Gross profit 14,705 15,183

Other income and gains 5 383 245
Distribution expenses (9,296) (8,114)
Administration expenses (5,938) (5,472)
Restructuring costs - (105)

(146) 1,737

Finance costs 6 (562) (519)
Finance income 66 73

(Loss)/Profit before income tax (642) 1,291

Income tax expense (136) (290)

(Loss)/Profit after tax for the period $(778) $1,001

Basic earnings per share (cents) 2 (1.12) 1.45

Diluted earnings per share (cents) 2 (1.09) 1.42
























This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual
financial statements.

10


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Comprehensive Income


Six months ended 31 December 2022 (Unaudited)

Note Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000


(Loss)/Profit after tax for the period (778) 1,001

Other comprehensive income that may be reclassified
subsequently to profit or loss

Effective portion of changes in fair value of cash flow hedges 1,870 44
Net change in fair value of cash flow hedges transferred to profit
or loss



289

(46)
Total other comprehensive income 2,159 (2)

Total comprehensive income for the period $1,381 $999





































This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual
financial statements.

11


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Changes in Equity


Six months ended 31 December 2022 (Unaudited) Note Share
Capital
Cash Flow
Hedging
Reserve
Foreign
Currency
Translation
Reserve
Share-based
Payment
Reserve
Retained
Earnings
Total Equity
$000 $000 $000 $000 $000 $000

Total equity at 1 July 2022 22,054 (576) (1,420) 413 17,300 37,771

Total comprehensive income for the period

Loss after tax - - - - (778) (778)

Other comprehensive income that may be reclassified
subsequently to profit or loss

Changes in fair value of cash flow hedges (net of income tax, if any) - 2,159 - - - 2,159

Total comprehensive income for the period - 2,159 - - (778) 1,381

Transactions with owners in their capacity as owners
Share-based payments – value of employee services 7 - - - 104 - 104

Total equity at 31 December 2022 $22,054 $1,583 $(1,420) $517 $16,522 $39,256













This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual financial statements.

12


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Changes in Equity (continued)


Six months ended 31 December 2021 (Unaudited) Note Share
Capital
Cash Flow
Hedging
Reserve
Foreign
Currency
Translation
Reserve
Share-based
Payment
Reserve
Retained
Earnings
Total Equity
$000 $000 $000 $000 $000 $000

Total equity at 1 July 2021 21,846 55 (1,420) 51 15,060 35,592

Total comprehensive income for the period

Profit after tax - - - - 1,001 1,001

Other comprehensive income that may be reclassified
subsequently to profit or loss

Changes in fair value of cash flow hedges (net of income tax, if any) - (2) - - - (2)

Total comprehensive income for the period - (2) - - 1,001 999

Transactions with owners in their capacity as owners
Issue of shares to employees pursuant to the Bremworth Equity
Plan

7

208

-

-

-

-

208
Share-based payments – value of employee services 7 - - - 254 - 254

Total equity at 31 December 2021 $22,054 $53 $(1,420) $305 $16,061 $37,053











This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual financial statements.

13


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Financial Position


As at 31 December 2022 (Unaudited)
Note Unaudited
31 December
2022
Audited
30 June 2022
$000 $000

ASSETS

Property, plant and equipment - owned 15,683 14,306
Property, plant and equipment – right-of-use 8,840 9,280
Deferred tax asset 511 532

Total non-current assets 25,034 24,118

Cash and cash equivalent 10,369 10,874
Short-term deposits - 4,000
Trade receivables, other receivables and prepayments 10,587 12,201
Inventories 9 29,033 27,263
Derivative financial instruments 1,738 8
Advance to employees 7 166 160
Income tax receivable 338 278

Total current assets 52,231 54,784

Total assets $77,265 $78,902

EQUITY

Share capital 22,054 22,054
Cash flow hedging reserve 1,583 (576)
Foreign currency translation reserve (1,420) (1,420)
Share-based payment reserve 7 517 413
Retained earnings 16,522 17,300

Total equity 39,256 37,771

LIABILITIES

Lease liabilities 17,156 17,820
Employee benefits 720 720
Provisions 711 711

Total non-current liabilities 18,587 19,251

Trade payables and accruals 11,184 12,210
Customer deposits 132 203
Employee benefits 53 53
Employee entitlements 5,006 5,376
Lease liabilities 1,687 1,938
Provisions 746 988
Derivative financial instruments - 694
Deferred income 614 418

Total current liabilities 19,422 21,880

Total liabilities 38,009 41,131

Total equity and liabilities $77,265 $78,902

This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual
financial statements.

14


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Cash Flows


Six months ended 31 December 2022 (Unaudited)

Note Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 49,666 49,226
Cash paid to suppliers and employees (50,620) (49,933)
Government grants received 118 107
Other receipts 3 3
GST paid (316) (140)
Interest paid – loans and borrowings (112) (18)
Interest component of lease payments (450) (501)
Interest received 47 41
Income tax paid (175) (165)

Net cash flow from operating activities (1,839) (1,380)


CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of plant and equipment 10 7
Acquisition of plant and equipment (1,696) (1,586)
Short term deposits 4,000 10,000
Advance to employees pursuant to the Bremworth Equity
Plan

-

(208)

Net cash flow from investing activities 2,314 8,213


CASH FLOWS FROM FINANCING ACTIVITIES
Principal component of lease payments (964) (1,011)
Issue of shares to employees pursuant to the Bremworth
Equity Plan

-

208

Net cash flow from financing activities (964) (803)


NET INCREASE IN CASH AND CASH EQUIVALENTS (489) 6,030

Cash and cash equivalents at beginning of the period 10,874 10,508

Effect of exchange rate changes on cash (16) (25)

CASH AND CASH EQUIVALENTS AT END OF THE
PERIOD



$10,369

$16,513










This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual
financial statements.

15


Bremworth Limited and subsidiary companies

Condensed Consolidated Statement of Cash Flows (continued)


Reconciliation of profit/(loss) with net cash flow from operating activities

Six months ended 31 December 2022 (Unaudited)

Note Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000

(Loss)/Profit after tax for the period (778) 1,001

Add/(Deduct) non-cash items:
Depreciation – owned assets 309 355
Depreciation – right-of-use assets 490 441
Share-based payments – value of employee services 104 254
Deferred tax 21 (13)
Net gain on sale of plant and equipment - (1)
Net loss on foreign currency balance 16 25

Changes in working capital items:
Trade and other receivables and prepayments 1,674 355
Inventories (1,770) (1,001)
Advance to employees (6) -
Income tax receivable (60) 138
Trade payables and accruals (1,086) (3,183)
Customer deposits (71) -
Employee benefits and entitlements (370) 235
Provisions (242) -
Deferred income 196 50
Derivative financial instruments (266) (36)

Net cash flow from operating activities $(1,839) $(1,380)





















This statement is to be read in conjunction with the Notes on pages 16 to 28 and the previous year’s annual
financial statements.

16


Bremworth Limited and subsidiary companies

Notes to the Financial Statements
For the six months ended 31 December 2022

1. General information

Reporting entity

Bremworth Limited (“Bremworth” or “the Company”) is a limited liability company that is domiciled and
incorporated in New Zealand.

The Company is registered under the Companies Act 1993 and is an FMC reporting entity (by virtue of it
being a listed issuer) for the purposes of the Financial Reporting Act 2013 and the Financial Markets
Conduct Act 2013.

The interim financial statements contained in this half year report have been prepared in accordance with
these Acts and are for Bremworth and its subsidiaries (“the Group”) as at, and for the six months ended, 31
December 2022.

The Company is listed on the New Zealand Exchange and is required to comply with the provisions of the
NZX Listing Rules which require it to present half year reports incorporating, among other things, the
interim financial statements covering the Group.

The principal activities of the Group comprise the Elco Direct wool acquisition business and woollen carpet
and rug manufacturing and sales.

All Group subsidiaries are wholly-owned.

Basis of preparation

The interim financial statements are condensed financial statements that have been prepared in
accordance with NZ IAS 34 Interim Financial Reporting. The disclosures normally required by other
standards within New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) to be
included in a complete set of annual financial statements are not required to be incorporated into a
condensed set of interim financial statements prepared under NZ IAS 34. As a consequence, the interim
financial statements do not comply with NZ IFRS.

These interim financial statements are presented in New Zealand dollars ($), which is the Company’s
functional currency. Unless otherwise indicated, all financial information presented in New Zealand dollars
has been rounded to the nearest thousand.

The interim financial statements, and the comparative information for the six months ended 31 December
2021, are unaudited. The comparative information as at 30 June 2022 is audited.

The interim financial statements were approved for issue by the Board of Directors (“Board”) of the
Company on 1 March 2023.

Critical accounting judgements, estimates and assumptions

In preparing the interim financial statements, the Group has consistently applied the judgements, estimates
and assumptions adopted in the preparation of the annual financial statements for the year ended 30 June
2022.

Accounting policies

The interim financial statements should be read in conjunction with the annual financial statements for the
year ended 30 June 2022 and the accounting policies set out therein.

All accounting policies adopted in the preparation of the interim financial statements are consistent with
those adopted in the preparation of the annual financial statements.

17


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

1. General information (continued)

Going concern

The Group prepares its consolidated financial statements on a going concern basis and expects to be able
to realise its assets and meet its financial obligations in the normal course of business.

31 December 2022 marked the midpoint of its five-year transformation plan. For 1H23, net cash flow from
operations was a negative $1,839,000 and a loss after tax of $778,000 was recorded.

These results reflected:

— the ongoing investment in marketing, samples and inventories to support the expansion of the
distribution network in the key Australian carpet market along with technology and sustainability
initiatives;

— a slowdown in the global demand for strong wool adversely impacting the results from the Elco Direct
wool acquisition business.

Cash and cash equivalent at balance date of $10.4 million remains within the range of sensitivity scenarios
considered by management when assessing liquidity forecasts at 30 June 2022 – with the difference
attributable largely to the ongoing investment in the business as discussed above but with projected growth
in woollen carpet sales volumes taking longer than anticipated to materialise as a consequence of
disruptions to trans-Tasman supply chain at the start of 1H23 and the economic headwinds encountered
during the period.

Net working capital employed by the Group remains in line with that as at 30 June 2022.

On 14 February 2023, the Napier yarn spinning plant suffered widespread flooding as Cyclone Gabrielle
which struck New Zealand from 13 to 15 February 2023 brought severe winds and rain and extensive
flooding to parts of the North Island - including Hawkes’ Bay where the Napier yarn spinning plant is
situated.

The Napier yarn spinning plant is a key plant within the Group’s woollen carpet operation, supplying
woollen spun yarn to the Auckland carpet plant for conversion into carpet and dyed fibre to the Whanganui
yarn spinning plant for processing into felted yarns for carpet manufacturing.

The Napier yarn spinning plant has not been operating since 14 February 2023, with preliminary
assessments confirming:

— widespread flooding throughout the plant;

— significant damage to services within the building and to plant and equipment; and

— loss of inventory.

The initial stages of the clean-up have just got underway – with access to the plant only just becoming
possible for that to occur. It is expected that the plant will likely be offline for a yet to be determined, but
significant, amount of time – given the extent of the damage and the work required to reinstate buildings,
plant and equipment.

18


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

1. General information (continued)

Going concern (continued)

Without the Napier yarn spinning plant, and until alternative sources of yarn and dyed fibre come on
stream, the Whanganui yarn spinning plant is expected to run out of work in the next week or so and the
Auckland carpet plant in about three to four weeks – depending on production rates.

The Company has activated its risk mitigation and business continuity plans as a consequence of the
impact of this unprecedented adverse weather event on the business, with these plans including, but not
limited to:

— the mobilisation of the programme that was put in place in December 2021 to seek out alternative
supplies of key raw materials including yarns and dyed fibre, with the following progress having been
made:

o confirmation of supply of yarns from an independent New Zealand commission yarn spinner for
some of its woolen carpet ranges;

o advancement of negotiations relating to the use of third-party dyeing facilities to enable the
Whanganui yarn spinning plant to continue to access dyed fibre for processing into felted yarns;
and

o acceleration of discussions for supply of yarns from overseas yarns suppliers for some of its
woollen carpet ranges;

— the review, and cancellation or postponement, of all:

o capital projects that had been planned for the Napier yarn spinning plant;

o outstanding purchase orders and commitments for raw materials, consumables and other goods
and services which are no longer required; and

o discretionary spends.

To assess the ongoing liquidity of the Group and its ability to meet its other financial commitments as they
fall due in the normal course of business as a consequence of this event, management has prepared
forecasts of the Group’s cash flows and financial position as part of its management and monitoring of the
Group’s operations through to 30 June 2024.

In preparing these forecasts, management considered and, where required made assumptions, in relation
to:

— the costs, and time it could take, for the clean-up and reinstatement of buildings, plant and equipment
and to return production capacity to pre-Cyclone Gabrielle levels;

— the additional costs, and time it could take, to switch to alternative sources of supply of yarns and dyed
fibre and be able to maintain inventory at, or otherwise return inventory to, levels required to meet
current demand;

19


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

1. General information (continued)

Going concern (continued)

— the ongoing costs relating to the business and the other actions that have been taken to reduce
discretionary spending during the period of interruption to the business; and

— the insurances taken out by the Group to protect itself against losses from such events, including the
types of insurance cover, their key terms, the sums insured and, in the case of its business interruption
policy, the indemnity period.

The Board notes that there are uncertainties relating to some of the assumptions underlying the forecasts
– more particularly, the time it could take for the clean-up and reinstatement of buildings, plant and
equipment and to switch to alternative sources of yarn and dyed fibre. However, these uncertainties are
not considered to be significant and would not lead to a material uncertainty relating to going concern.

In forming these views, the Board has taken into account the following:

— the cash surplus of $10.4 million as at balance date along with positive equity and positive working
capital, with the negative cash flows from operations the result of the Group’s ongoing investment to
support sales growth and service levels – particularly in the large Australian market - and to build a
high-performing, sustainable business for the long term;

— the strong inventory position and the quality and profile of that inventory, with 94% of uncommitted
inventory as at balance date made up of current stock-keeping units (SKUs);

— the scope and extent of the Group’s insurance programme and the comprehensive policies in place to
protect itself against losses from such events, the discussions the Company has had with
representatives of the insurers and our own claims advisors and the expected timing of insurance
payments;

— the steps that have been taken to reduce discretionary spending and to protect its cash resources
during the period of interruption to the business; and

— the Group's ongoing ability to resort to other sources of funding.

20


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

2. Earnings per share

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000

Basic earnings per share (Basic EPS)

(Loss)/Profit after tax ($000) $(778) $1,001

Weighted average number of ordinary shares outstanding 69,479,100 68,986,163

Basic EPS (cents) (1.12) 1.45

Diluted earnings per share (Diluted EPS)

(Loss)/Profit after tax ($000) $(778) $1,001

Weighted average number of ordinary shares outstanding 71,550,494 70,352,340

Diluted EPS (cents) (1.09) 1.42

In calculating the diluted earnings per share, the Company has taken into account the maximum number of
shares that could be issued under the Company’s long term incentive schemes and the Company’s share
option scheme as further discussed at Note 7 (Share-based payment arrangements).

21


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

3. Segment performance

Unaudited Carpet Elco Direct wool Total

Six months
ended
31 December
2022
Six months
ended
31 December
2021
Six months
ended
31 December
2022
Six months
ended
31 December
2021
Six months
ended
31 December
2022
Six months
ended
31 December
2021
$000 $000 $000 $000 $000 $000
External revenue 39,564 39,989 7,619 8,731 47,183 48,720
Inter-segment revenue - - 1,161 1,520 1,161 1,520
Total revenue $39,564 $39,989 $8,780 $10,251 48,344 50,240

Elimination of inter-segment revenue (1,161) (1,520)
Consolidated revenue $47,183 $48,720

Segment result before depreciation
and restructuring costs

1,040

2,596

57

529

1,097

3,125
Depreciation – owned assets (230) (276) (79) (79) (309) (355)
Depreciation - right-of-use assets (424) (383) (66) (58) (490) (441)
Depreciation – recycled through
inventory

(39)

65

-

-

(39)

65
Segment result before
restructuring costs

347

2,002

(88)

392

259

2,394
Restructuring costs - (105) - - - (105)
Segment result after restructuring
costs

347

1,897

(88)

392

259

2,289

Elimination of inter-segment profits - (7)
Unallocated corporate costs (405) (545)
Result from operating activities (146) 1,737

Finance costs (562) (519)
Finance income 66 73
(Loss)/Profit before income tax (642) 1,291

Income tax expense (136) (290)
(Loss)/Profit after tax for the period $(778) $1,001


Carpet Elco Direct wool Total

Unaudited
As at
31 December
2022
Audited
As at
30 June 2022
Unaudited
As at
31 December
2022
Audited
As at
30 June 2022
Unaudited
As at
31 December
2022
Audited
As at
30 June 2022
$000 $000 $000 $000 $000 $000
Reportable segment assets 62,962 59,122 3,934 4,906 66,896 64,028
Unallocated assets – cash and bank 10,369 14,874
Total assets $77,265 $78,902

Reportable segment liabilities 18,196 20,229 970 1,144 19,166 21,373
Unallocated liabilities – lease liabilities 18,843 19,758
Total liabilities $38,009 $41,131

The Group’s reportable and operating segments are:
• Carpet, with this segment involved in the manufacturing and sales of carpet and rugs in New Zealand,
Australia and rest of world; and
• Elco Direct wool, with this segment involved in the acquisition of wool for the carpet segment and for
sales to external customers in New Zealand.

22


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

3. Segment performance (continued)

Inter-segment transactions

All inter-segmental transactions included in revenue and operating expenses for each segment are on an
arm’s-length basis. Inter-segmental sales during the period and intercompany profits on stocks at balance
date are eliminated on consolidation.

Information about geographical areas

In presenting information on the basis of geographical areas, revenue is based on the geographical
location of customers and non-current assets are based on the geographical location of those assets.

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000
Revenue
Carpet sales and manufacturing segment
New Zealand
Carpet and rugs 16,890 17,490
Miscellaneous 281 720
Australia
Carpet and rugs 20,970 19,342
Installation services - 425
Miscellaneous 268 307
Rest of the world
Carpets and rugs 1,155 1,356
Carpet yarn - 349
Elco Direct wool acquisition segment
New Zealand 7,619 8,731

Total revenue $47,183 $48,720

Unaudited
As at
31 December
2022
Audited
As at
30 June 2022
$000 $000
Non-current assets
New Zealand 24,018 23,084
Australia 1,016 1,034

Total non-current assets $25,034 $24,118

Information about major customers

None of the Group’s customers are major customers as defined in NZ IFRS 8 Operating Segments. Major
customers are those external customers where revenues from transactions with the Group are equal to, or
exceed, 10% of the Group’s total revenues.

23


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

4. Revenue from contracts with customers

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000
Sales of goods
Carpet 38,462 37,765
Rugs 553 423
Carpet yarn - 349
Miscellaneous 549 1,027
Elco Direct wool 7,619 8,731
47,183 48,295
Provision of installation services - 425
Total revenue $47,183 $48,720

5. Other income and gains

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000
Rentals received 2 2
Dividends received 1 1
Government grants recognised 380 241
Net gain on sale of plant and equipment - 1
Total other income and gains $383 $245


6. Finance costs

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
$000 $000
Interest expense – loans and borrowings 112 18
Interest component of lease payments 450 501
Finance costs $562 $519

24


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

7. Share-based payment arrangements

The Company operates four share-based payment plans/schemes, with these plans/schemes designed
to incentivise selected employees by providing them with opportunities to be issued equity interests in the
Company – in the process aligning their interests with those of shareholders.

The Company has determined the performance rights, the shares and the options issued under these
plans/schemes to be equity-settled share-based payment arrangements pursuant to NZ IFRS 2 Share-
based Payment, with the participants not able to request payment in cash.

Bremworth 2020 Long-Term Incentive Scheme (2020 LTI Scheme)

The 2020 LTI Scheme provides for eligible employees to be issued performance rights which would
entitle them to be issued shares in the Company, subject to service and performance conditions being
met, at the end of the stipulated performance period.

No performance rights were issued under the 2020 LTI Scheme in the current period (2021: Nil).

The number of shares to be issued is dependent on the extent to which total shareholder return (TSR)
exceeds 14% per annum compounding over the performance period and the share price at condition
date, except that the number of shares issued to all participants will not, together with shares issued
under NZX Listing Rule 4.6.1 over the previous 12 months, exceed 3% of the total number of shares on
issue at condition date.

The maximum number of shares that could be issued in respect of all outstanding performance rights
under the 2020 LTI Scheme at condition date is 1,071,394 (or 1.53% of the total number of shares on
issue at balance date of 70,069,426).

Bremworth Equity Ownership Plan (Bremworth Equity Plan)

The Bremworth Equity Plan provides for eligible employees to be issued shares in the Company on terms
determined by the Board and as set out in the rules of the Bremworth Equity Plan and includes the
provision of a full recourse loan by the Company to those eligible employees to fund the amount payable
for the shares issued to them.

No shares were issued under the Bremworth Equity Plan in the current period (2021: 500,000).

The total number of shares issued under the Bremworth Equity Plan as at balance date was 500,000.

Bremworth Share Option Scheme (Bremworth Option Scheme)

The Bremworth Option Scheme provides for selected employees to be awarded options to acquire
ordinary shares at a fixed price, with the options becoming exercisable over time in accordance with a
vesting schedule or on certain liquidity events as defined in the rules of the Bremworth Option Scheme.

No options were issued under the Bremworth Option Scheme in the current period (2021: 480,000).

The total number of options issued under the Bremworth Option Scheme as at balance date was
1,000,000.

Bremworth 2022 Long-Term Incentive Scheme (2022 LTI Scheme)

The 2022 LTI Scheme was established by the Board in October 2022, with the Scheme providing for
selected employees to be awarded performance rights which would entitle them to be issued shares in
the Company, subject to service and performance conditions being met, at the end of the stipulated
performance period.

25


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

7. Share-based payment arrangements (continued)

Bremworth 2022 Long-Term Incentive Scheme (2022 LTI Scheme) (continued)

In accordance with the terms of the Scheme, 890,328 fully paid-up ordinary shares were issued by the
Company on 31 October 2022 to Bremworth Share Scheme Limited (Trustee), with these shares to be
held by the Trustee on behalf of the participating employees until the relevant vesting date.

Vesting of these shares is dependent on TSR performance over the three-year period from 1 July 2022 to
30 June 2025 exceeding the 14% per annum compounding threshold set by the Board, with TSR
calculated by reference to the volume weighted average share price on the NZX for the last 20 trading
days prior to 30 June 2025 as compared to the volume weighted average share price on the NZX for the
last 20 trading days prior to 1 July 2022 of $0.4787.

Measurement of fair value of performance rights and options granted under share-based payment
arrangements

The fair value of performance rights and options granted under the various schemes have been
determined using a Monte Carlo simulation, with a detailed description of how the model is used, and the
key inputs, set out in Note 8b of the annual financial statements for the year ended 30 June 2022.

Maximum number of shares that could be issued under current share-based payment
arrangements

Unaudited
Six months
ended
31 December
2022
Unaudited
Six months
ended
31 December
2021
Balance at start of period 2,071,394 1,071,394
Issued during the period 890,328 480,000
Balance at end of period 2,961,722 1,551,394

Impact of share-based payment arrangements on the financial statements

The assessed fair value of the performance rights and options at grant date are recognised as an
expense in profit or loss over the period from date on which the participant started rendering service or
the grant date (whichever is the earlier), adjusted to reflect only those rights and options where the
service condition will be met, with corresponding entries to the share-based payment reserve within
equity.

The following were recognised in administration expenses in the statement of profit or loss for the period:

— $48,500, being the proportion of fair value of the performance rights under the 2020 LTI Scheme
relating to the period ended 31 December 2022 (2021: $48,500);
— $39,000, being the proportion of fair value of the options under the Bremworth Option Scheme
relating to the period ended 31 December 2022 (2021: $13,100, which included $5,800 being the
estimated fair value of options to be granted pursuant to the terms of an employment agreement);
— $16,500, being the proportion of the fair value of the performance rights under the 2022 LTI Scheme
relating to the period from grant date through to balance date (2021: Nil)

with a corresponding credit totalling $104,000 to the share-based payment reserve within equity (2021:
$253,600, which included $192,000 relating to the issue of shares under the Bremworth Equity Plan).

26


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

7. Share-based payment arrangements (continued)

Interest-free, full recourse, loans

The Company did not provide any interest-free, full-recourse, loans under the Bremworth Equity Plan
during the period (2021: $208,050).

The accounting for interest-free, full-recourse, loans under the Bremworth Equity Plan is disclosed in
Note 8b of the annual financial statements for the year ended 30 June 2022.

8. Capital commitments

The Group had outstanding commitments for the purchase of plant and equipment of $67,000 (30 June
2022 $208,000) at balance date.

In addition, the Group committed to two decarbonisation projects during the year ended 30 June 2022.

The first initiative is a $2,500,000 project at the Group’s Napier carpet yarn spinning plant to reduce its
reliance on natural gas process heat through process heat optimisation and transitioning to electric heat
pump technology. This project is being 38% co-funded ($958,000) under various funding programmes,
including the GIDI (Government Investment in Decarbonising Industry) Fund administered by the Energy
Efficiency and Conservation Authority (EECA). This initiative is expected to continue into FY23 and FY24,
with amount incurred as at balance date totalling $441,000.

The second decarbonisation initiative at the Group’s Whanganui carpet yarn spinning plant, which is also
being co-funded by EECA, will see a gas-fired dryer replaced with an alternative radio frequency dryer for
use in felted yarn production. This project is expected to cost $440,000, with EECA co-funding agreed at
40% ($176,000). It will run over FY23 and FY24, with amount incurred as at balance date totalling
$399,000.

9. Inventories

Unaudited
As at
31 December
2022
Audited
As at
30 June 2022
$000 $000
Raw materials and consumables 6,909 6,984
Work in progress 502 1,024
Finished goods 21,622 19,255
$29,033 $27,263

Inventory provisioning $1,187 $1,353

During the six months ended 31 December 2022, provision in respect of inventories decreased by
$166,000 (six months ended 31 December 2021: $400,000), with the amount released to the statement of
profit or loss.

27


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

10. Contingencies

Unaudited
As at
31 December
2022
Audited
As at
30 June 2022
$000 $000
Indemnities in favour of Bank of New Zealand and National
Australia Bank (together, “the Bank”) in respect of Bank
guarantees relating to lease and other commitments


$2,068


$2,248

11. Related parties

Apart from directors’ fees, key management personnel remuneration (including bonuses) and the issue of
shares pursuant to the Bremworth 2022 Long-Term Incentive Scheme referred to in Note 7 (Share-based
payment arrangements), there have been no other material transactions with the directors, key
management personnel and their related parties or with any other related parties during the period.

12. Climate-related disclosures

The Group has considered the impact of climate-related risks on the business and on its future financial
performance, financial position and cash flows as part of the sustainability framework that has been
adopted under the Group’s transformation strategy to becoming an all-wool and natural materials
organisation.

One of these key risks is the exposure to the effects of climate change through adverse climatic
conditions (for example, flooding) and, in time, rising seas levels, with both the Napier and Whanganui
sites within close proximity of the coast.

In relation to this risk, the Group has in place comprehensive insurances to protect the Group against
losses from such events while also having established appropriate stormwater infrastructure and
processes to mitigate the current levels of risk posed by these events.

In light of the impact of the recent adverse weather event emanating from Cyclone Gabrielle referred to in
Note 1 (Going concern) and Note 13 (Subsequent events), we are moving towards having a deeper
understanding of the potential impact of these weather events including their frequency and severity as
well as the resilience of the wider flood-protection infrastructures and systems that we rely on as part of
our climate change adaptation.

28


Bremworth Limited and subsidiary companies

Notes to the Financial Statements (continued)

13. Subsequent events

Cyclone Gabrielle which struck New Zealand from 13 to 15 February 2023 brought severe winds and rain
and extensive flooding to parts of the North Island – including Hawke’s Bay where the Napier yarn
spinning plant is situated.

A full discussion of the impact of Cyclone Gabrielle on the woollen carpet business can be found in Note
1 (Going concern), while the risks posed by these weather events are considered in Note 12 (Climate-
related disclosures).

As a consequence of Cyclone Gabrielle, the Board is reassessing whether original expectations around
realising the full benefits of the transformation from FY25 onwards is still possible and will provide an
update to shareholders once it is able to complete a detailed assessment.

29


Bremworth Limited and subsidiary companies

Disclosure of Non-GAAP Financial Information
For the six months ended 31 December 2022

The half year report for the six months ended 31 December 2022 contains financial information that is non-GAAP
(Generally Accepted Accounting Practice) and therefore falls within the Financial Markets Authority’s guidance note
on “Disclosing non-GAAP financial information” issued in July 2017.

Non-GAAP financial information has been prepared using the unaudited GAAP-compliant half year and audited
GAAP-compliant full year financial statements of the Group and has not been independently reviewed.

Non-GAAP financial information contained within the half year report (more particularly, the non-GAAP measures
of financial performance such as “EBITDA (normalised)”, “EBIT (normalised)”, “Profit before tax (normalised)” and
“Profit after tax (normalised)” provide useful information to investors regarding the performance of the Group
because the calculations exclude restructuring and transformation costs and other gains/losses (for example,
gain/loss on sale of property and investments) that are not expected to occur on a regular basis either by virtue of
quantum or nature.

In arriving at this view, the Directors have also taken cognisance of the regular requests by users of the Group
financial statements, including analysts and shareholders, regarding the nature and quantum of significant items
within the GAAP-compliant results and the way analysts distinguish between GAAP and non-GAAP measures of
profit.

The disclosure of the non-GAAP financial information is also consistent with how the financial information for the
Group is reported internally, and reviewed by the CEO as its chief operating decision maker, and provides what the
Directors and management believe gives a more meaningful insight into the underlying financial performance of the
Group and a better understanding of how the Group is tracking after taking into account these significant items.

Non-GAAP financial information does not have standardised meaning prescribed by GAAP and therefore may not
be comparable to similar financial information prescribed by other entities.

In putting together the half year report, the Directors have considered all the requirements within the guidance note.
More specifically, these include:

• outlining why non-GAAP financial information is useful to investors and how it is used internally by
management;
• identifying the source of non-GAAP financial information;
• ensuring that:
- non-GAAP financial information is not presented with undue and greater prominence, emphasis or
authority than the most directly comparable GAAP financial information;
- presentation of non-GAAP financial information does not in any way confuse or obscure presentation
of GAAP financial information;
- a reconciliation from the non-GAAP financial information to the most directly comparable GAAP
financial information, including that for the previous period, can be easily accessed (see pages 30 and
31);
- a consistent approach is adopted from period to period with respect to the presentation of non-GAAP
financial information, including that for comparative periods;
- where there is any change in approach from the previous period, the nature of the change is explained
and the reasons and financial impact provided;
- non-GAAP financial information is unbiased; and
• taking care when describing, or referring to, items as ‘one-off’ or ‘non-recurring’.

30


Bremworth Limited and subsidiary companies

Disclosure of Non-GAAP Financial Information (continued)


Reconciliation of GAAP-compliant to non-GAAP-compliant measures of loss after tax

Six months ended 31 December 2022

GAAP Adjustments Normalised
$000 $000 $000

Revenue $47,183 - $47,183

EBITDA 692 - 692

Depreciation - owned assets (309) - (309)
Depreciation – right-of-use assets (491) - (491)
Depreciation – recycled through inventory (38) - (38)

EBIT

(146) - (146)

Finance costs (562) - (562)
Finance income 66 - 66

Loss before income tax (642) - (642)

Income tax expense (136) 289 153

Loss after tax $(778) 289 (489)

Abnormal net loss after tax (289) (289)

Loss after tax (GAAP) - $(778)

Analysis of abnormal items

Before tax Tax effect After tax
$000 $000 $000
Normalisation of income tax expense - $(289) $(289)

Calculation of basic and diluted earnings per share under GAAP and non-GAAP measures of loss after tax

Six months ended 31 December 2022 GAAP-
compliant
reported loss
after tax
Reverse
abnormal
items (net of
tax) where
applicable
Non-GAAP-
compliant
normalised
loss after tax

Loss after tax ($000) $(778) 289 $(489)

Weighted average number of ordinary shares (basic) 69,479,099 69,479,099
Basic earnings per ordinary share (cents) (1.12) (0.70)

Weighted average number of ordinary shares (diluted) 71,550,493 71,550,493
Diluted earnings per ordinary share (cents) (1.09) (0.68)

31


Bremworth Limited and subsidiary companies

Disclosure of Non-GAAP Financial Information (continued)


Reconciliation of GAAP-compliant to non-GAAP-compliant measures of profit after tax (continued)


Six months ended 31 December 2021

GAAP Adjustments Normalised
$000 $000 $000

Revenue $48,720 - $48,720

EBITDA 2,468 - 2,468

Depreciation - owned assets (355) - (355)
Depreciation – right-of-use assets (441) - (441)
Depreciation – recycled through inventory 65 - 65

EBIT

1,737 - 1,737

Finance costs (519) - (591)
Finance income 73 - 73

Profit before income tax 1,291 - 1,291

Income tax expense (290) (98) (388)

Profit after tax $1,001 (98) 903

Abnormal net gain after tax 98 98

Profit after tax (GAAP) - $1,001

Analysis of abnormal items

Before tax Tax effect After tax
$000 $000 $000
Normalisation of income tax expense - $98 $98

Calculation of basic and diluted earnings per share under GAAP and non-GAAP measures of profit after
tax

Six months ended 31 December 2021 GAAP-
compliant
reported
profit after
tax
Reverse
abnormal
items (net of
tax) where
applicable
Non-GAAP-
compliant
normalised
profit after
tax

Profit after tax ($000) $1,001 (98) $903

Weighted average number of ordinary shares (basic) 68,986,163 68,986,163
Basic earnings per ordinary share (cents) 1.45 1.31

Weighted average number of ordinary shares (diluted) 70,352,339 70,352,339
Diluted earnings per ordinary share (cents) 1.42 1.28

32


Bremworth Limited

Corporate Directory


Board of Directors:
George Adams DipFSA(Hons), FCA, CFInstD Chairman of the Board of Directors
Independent Chairman of Nomination Committee
Member of Audit and Remuneration Committees

Paul Izzard BA (Hons) Interior Design Member of Audit and Remuneration Committees
Independent

John Rae B.Com., LLB, CMInstD Member of Audit, Remuneration and Nomination
Independent Committees

Katherine Turner B.Com., CA, CMInstD Chairman of Audit Committee
Independent Member of Remuneration Committee

Dianne Williams B.Com., MBA, CMInstD Chairman of Remuneration Committee
Independent Member of Audit and Nomination Committees

Director Emeritus:
Grant Biel B.E. (Mech.)

Chief Executive Officer:
Greg Smith

Chief Financial Officer and Company Secretary:
Victor Tan CA, FCIS

Founding Shareholder:
The late Anthony Charles Timpson ONZM

Registered Office:
7 Grayson Avenue, Auckland 2014, P O Box 97-040, Auckland 2241.
Telephone: 64-9-277 6000, Facsimile: 64-9-279 4756

Share Registrar:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Auckland 0622, Private Bag 92-119, Auckland 1142.
Telephone: 64-9-488 8700, Facsimile: 64-9-488 8787, Investor Enquiries: 64-9-488 8777

Auditors:
PwC

Legal Advisors:
Russell McVeagh

Bankers:
Bank of New Zealand National Australia Bank Limited

Websites:
Corporate www.bremworth.co.nz/investor-centre

Carpet Operation www.bremworth.co.nz, www.bremworth.com.au

Wool Operation www.elcodirect.co.nz

Share Registrar www.computershare.co.nz/investorcentre