Preliminary FY23 Unaudited Results Announcement – AMENDED

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023


Results for announcement to the market
Name of issuer Bremworth Limited
Reporting Period 12 months to 30 June 2023
Previous Reporting Period 12 months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$89,689 (6%)
Total Revenue $89.689 (6%)
Net profit/(loss) from
continuing operations
$11,033 393%
Total net profit/(loss) $11,033 393%
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
$0.59 $0.40
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to accompanying Board-approved market release
Authority for this announcement
Name of person authorised
to make this announcement
Victor Tan
Contact person for this
announcement
Greg Smith or Mark Devlin
Contact phone number +64 21 711 622 or +64 21 509 060
Contact email address
gregsmith@bremworth.co.nz
Mark@impactpr.co.nz
Date of release through MAP 29 August 2023

Unaudited financial statements accompany this announcement.

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Market Release 29 August 2023



Cyclone Insurance Payouts Help Lift Bremworth’s FY23 Profit by 393%

Wool carpet and rug manufacturer Bremworth (NZX: BRW) has reported a 393% lift in
unaudited net profit after tax as insurance payouts following Cyclone Gabrielle help boost the
company’s full-year results.

Bremworth’s net profit after tax (NPAT) rose 393% from $2.2m to $11.0m in the year ending
30 June 2023 (FY23), while normalised NPAT was down from a profit of $1.7m in FY22 to a
loss of $2.4 million in FY23.

Against the backdrop of the disrupted supply chain following Cyclone Gabrielle, a constrained
construction sector and a retail and economic slowdown, the company’s annual revenue was
down 6% to $89.6m. Revenue from its wool buying division was down 5% and, carpet sales
fell 3% to $70.2m, however, revenue from their higher-margin direct-to-consumer rug business
was up 45% over FY22.

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.

“As anticipated, the impact of the cyclone has featured noticeably in this year’s results.

“While this has undoubtedly been the most challenging event in the company’s long history,
we will come through it a more resilient and adaptable organisation.

“If there is a silver lining in this, the cash reserves Bremworth is accumulating due to the
insurance payments provide us with considerable options for growth and further investments.
These options are currently being evaluated as part of an externally facilitated, strategic
review.

“The hybrid manufacturing model that is progressing in the wake of the cyclone will lower our
fixed cost base significantly and has meant we are well positioned to grow exports into offshore
markets that we previously didn’t have the capacity for.

“The alignment of this opportunity and requisite resources needed to expand our domestic
and global share can only be positive for New Zealand’s wool producers and Bremworth,” he
says.

Smith says a recent offer of voluntary redundancy employed at the Napier factory has been
taken up by most staff.

“While the future of our operations in Napier is undetermined, it was essential for us to provide
our Napier team with an opportunity to move forward in their careers and lives.

“Almost all staff have found new employment in the Hawke’s Bay region. We are also offering
to reinstate them if the decision is made to reopen our local operations,” he says.

Smith also announced that long serving executive, Victor Tan, has advised that he is retiring
from his role as CFO but will continue to serve as Company Secretary. “Victor has assured
Bremworth that he will be able to continue to serve as CFO until a replacement can be found.
Victor has been an incredible servant to Bremworth, and I look forward to his ongoing
contribution in his role as Company Secretary.“ he says.

-Ends-

Written on behalf of Bremworth by Impact PR. For more information or images, please contact Mark
Devlin mark@impactpr.co.nz (ph +6421509060).

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These financial statements are in the process of being audited
CONSOLIDATED FINANCIAL STATEMENTS - YEAR ENDED 30 JUNE 2023
CONTENTS
Consolidated Statement of Profit or Loss
2
Consolidated Statement of Comprehensive Income
3
Consolidated Statement of Changes in Equity
4
Consolidated Statement of Financial Position
5
Consolidated Statement of Cash Flows
6
Notes to the Consolidated Financial Statements
1. Company information
8
2. General information relating to preparation of consolidated financial statements
8
3. Cyclone Gabrielle
11
4. Financial performance
4a. Segment performance
15
4b. Earnings per share
18
4c. Revenue from contracts with customers
19
4d. Other income and gains
19
4e. Administration expenses
19
4f. Personnel expenses
20
4g. Government grants
20
4h. Finance costs
21
4i. Income tax
21
5. Capital and funding
5a. Capital management
23
5b. Share capital, dividends and reserves
24
5c. Banking facilities, and loans and borrowings
25
6. Assets employed
6a. Property, plant and equipment
26
6b. Capital commitments
28
7. Working capital
7a. Cash and bank
28
7b. Trade receivables, other receivables and prepayments
29
7c. Inventories
29
7d. Trade payables and accruals
30
7e. Employee entitlements
30
8. Risks and financial instruments
31
9. Others
9a. Leases
40
9b. Share-based payment
42
9c. Provisions
44
9d. Employee benefits
45
9e. Contingent liabilities
45
9f. Related parties
45
9g. Group entities
47
9h. Events after balance date
47
9i. Climate-related disclosures
48
9j. Standards, interpretations and amendments to standards
48
NON-GAAP FINANCIAL INFORMATION
Trend Statement
50
Disclosure of Non-GAAP Financial Information
53
Page 1 of 54

Bremworth Limited and subsidiary companies
Consolidated Statement of Profit or Loss
For the year ended 30 June 2023
Unaudited Audited
20232022
Note$000$000
4c 89,689 95,485
(64,481)
(65,785)
25,208
29,700
4d
540
688
(16,183)
(16,286)
4e
(11,118)
(10,627)
3a
35,500
-
3d
(14,464)
-
3d
(7,644)
-
11,839
3,475
4h
(1,045)
(1,029)
502
159
11,296
2,605
4i
(263)
(365)
$11,033
$2,240
4b
15.81
3.24
4b
15.46
3.17
This Consolidated Statement of Profit or Loss is to be read in conjunction with the notes on pages 8 to 48.
Basic earnings per share (cents)
Diluted earnings per share (cents)
Cyclone Gabrielle related asset write offs
Finance costs
Finance income
Profit before income tax
Income tax expense
Profit after tax for the year
Gross profit
Other income and gains
Distribution expenses
Administration expenses
Cyclone Gabrielle related insurance income
Cyclone Gabrielle related expenses
Revenue from contracts with customers
Cost of sales
Page 2 of 54

Bremworth Limited and subsidiary companies
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2023
Unaudited Audited
20232022
Note$000$000
11,033
2,240
1,088 (576)
426 (55)
1,514 (631)
$12,547
$1,609
This Consolidated Statement of Comprehensive Income is to be read in conjunction with the notes on pages 8 to 48.
Total other comprehensive income
Total comprehensive income for the year
Profit after tax for the year
Other comprehensive income that may be reclassified subsequently to profit or loss
Effective portion of changes in fair value of cash flow hedges (net of income tax)
Net change in fair value of cash flow hedges transferred to profit or loss (net of income tax)
Page 3 of 54

Bremworth Limited and subsidiary companies
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
Share Capital
Cash Flow
Hedging
Reserve
Foreign
Currency
Translation
Reserve
Share-
based
Payment
Reserve
Retained
Earnings
Total Equity
Note$000$000$000$000$000$000
22,054 (576) (1,420) 413 17,300 37,771
- - - - 11,033 11,033
- 1,514 - - - 1,514
- 1,514 - - 11,033 12,547
9b
- - - 202 - 202
5b, 9b
- - - - - -
- - - 202 - 202
$22,054 $938 ($1,420)$615 $28,333 $50,520
Share Capital
Cash Flow
Hedging
Reserve
Foreign
Currency
Translation
Reserve
Share-
based
Payment
Reserve
Retained
Earnings
Total Equity
Note$000$000$000$000$000$000
21,846 55 (1,420) 51 15,060 35,592
- - - - 2,240 2,240
- (631) - - - (631)
- (631) - - 2,240 1,609
9b - - - 362 - 362
5b, 9b 208 - - - - 208
208 - - 362 - 570
$22,054 ($576)($1,420)$413 $17,300 $37,771
This Consolidated Statement of Changes in Equity is to be read in conjunction with the notes on pages 8 to 48.
Total transaction with owners for the year
Total equity at 30 June 2022
Other comprehensive income that may be reclassified
subsequently to profit or loss
Changes in fair value of cash flow hedges (net of income tax)
Total comprehensive income for the year
Transaction with owners in their capacity as owners
Share-based payments - value of employee services
Issue of shares pursuant to the Bremworth Equity
Total transaction with owners for the year
Total equity at 30 June 2023
Audited
Total equity at 1 July 2021
Total comprehensive income for the year
Profit after tax
Other comprehensive income that may be reclassified
subsequently to profit or loss
Changes in fair value of cash flow hedges (net of income tax)
Total comprehensive income for the year
Transaction with owners in their capacity as owners
Share-based payments - value of employee services
Issue of shares pursuant to the Bremworth Equity
Unaudited
Total equity at 1 July 2022
Total comprehensive income for the year
Profit after tax
Page 4 of 54

Bremworth Limited and subsidiary companies
Consolidated Statement of Financial Position
As at 30 June 2023
UnauditedAudited
20232022
Note$000$000
6a 10,234 14,306
9a 8,616 9,280
4i 576 532
19,426 24,118
7a 39,319 14,874
7b 9,957 12,201
7c 21,419 27,263
9b 170 160
8 1,017 8
125 278
72,007 54,784
$91,433
$78,902
EQUITY
5b 22,054 22,054
5b 938 (576)
5b (1,420) (1,420)
5b, 9b 615 413
28,333 17,300
50,520 37,771
9a 16,742 17,820
9d 666 720
9c 819 711
18,227 19,251
7d 14,948 12,210
4c 192 203
9d 38 53
7e 4,877 5,376
9a 1,296 1,938
9c 816 988
8 16 694
4g 503 418
22,686 21,880
40,913 41,131
$91,433
$78,902
This Consolidated Statement of Financial Position is to be read in conjunction with the notes on pages 8 to 48.
Total equity and liabilities
Lease liabilities
Provisions
Derivative financial instruments
Deferred income
Total current liabilities
Total liabilities
Provisions
Total non-current liabilities
Trade payables and accruals
Customer deposits
Employee benefits
Employee entitlements
Share-based payment reserve
Retained earnings
Total equity
LIABILITIES
Lease liabilities
Employee benefits
Income tax receivable
Total current assets
Total assets
Share capital
Cash flow hedging reserve
Foreign currency translation reserve
Total non-current assets
Cash and bank
Trade receivables, other receivables and prepayments
Inventories
Advances to employees
Derivative financial instruments
ASSETS
Property, plant and equipment - owned
Property, plant and equipment - right-of-use
Deferred tax asset
Page 5 of 54

Bremworth Limited and subsidiary companies
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
Unaudited Audited
20232022
Note$000$000
91,200
96,808
(88,359)
(101,010)
2,842 (4,202)
582 640
4g - 1,776
5 5
1,191
107
(166)
(39)
9a
(879)
(990)
503
172
(154)
(386)
3e
(10,992)
-
(7,069)
(2,917)
44
105
6a
(1,956)
(2,898)
(3,500)
8,000
9b
(10)
(160)
3a
35,500
-
30,078
5,047
9b
0208
9a
(2,051)
(2,041)
(2,051)
(1,833)
20,959
297
10,874
10,508
(13)
69
$31,819
$10,874
This Consolidated Statement of Cash Flows is to be read in conjunction with the notes on pages 8 to 48.
Cyclone Gabrielle related expenses
Net cash flow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Effect of exchange rate changes on cash
Cash and cash equivalents at end of the year
Cyclone Gabrielle related insurance income
Net cash flow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of shares pursuant to the Bremworth Equity Plan
Principal component of lease payments
Net cash flow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of plant and equipment
Acquisition of plant and equipment
Short term deposits
Advances to employees pursuant to the Bremworth Equity Plan
Other receipts
GST refunded
Interest paid - loans and borrowings
Interest component of lease payments
Interest received
Income tax paid
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Cash paid to suppliers and employees
Government grants received
COVID-19-related subsidies received
Page 6 of 54

Bremworth Limited and subsidiary companies
Consolidated Statement of Cash Flows (continued)
For the year ended 30 June 2023
RECONCILIATION OF PROFIT WITH NET CASH FLOW FROM OPERATING ACTIVITIES
Unaudited Audited
20232022
Note
$000$000
11,033 2,240
6a
845 683
9a
994 954
3d
5,170 -
9b
202 362
(44) 200
(30) (102)
13 (69)
3a
(35,500) -
2,243 321
5,844 (7,228)
153 (221)
2,739 (856)
(11) 203
(568) 34
(63) 365
85 67
(173) 130
($7,069)
($2,917)
This Consolidated Statement of Cash Flows is to be read in conjunction with the notes on pages 8 to 48.
Employee benefits and entitlements
Provisions
Deferred income
Derivative financial instruments
Net cash flow from operating activities
Changes in working capital items:
Trade receivables, other receivables and prepayments
Inventories
Income tax receivable
Trade payables and accruals
Customer deposits
Deferred tax
Net gain on sale of plant and equipment
Net (gain)/loss on foreign currency balance
Add/(Deduct) Cyclone Gabrielle related cash items:
Cyclone Gabrielle related insurance income
Profit after tax for the year
Add/(Deduct) non-cash items:
Depreciation - owned assets
Depreciation - right-of-use assets
Impairment of buildings and plant and equipment
Share-based payments - value of employee services
Page 7 of 54

Bremworth Limited and subsidiary companies
Notes to the consolidated financial statements
For the year ended 30 June 2023
1.
2.
Note 4i – measurement and recoverability of tax losses
Note 6a – recoverability of property, plant and equipment
Note 7c – inventory provisioning
The Consolidated Statements of Profit or Loss, Comprehensive Income, Changes in Equity and Cash Flows are stated exclusive of GST. All items in
the Consolidated Statement of Financial Position are stated exclusive of GST, except for trade receivables and trade payables, which include GST
invoiced.
2c. Critical accounting estimates and judgements and significant accounting policies
The preparation of the consolidated financial statements in conformity with NZ IFRS requires the directors to make estimates, judgements and
assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Estimates and
judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
Information about estimates and judgements that have a significant effect on the amounts recognised in the consolidated financial statements are
disclosed in the following notes:
Note 3 – impact of Cyclone Gabrielle
2a. Statement of compliance
The consolidated financial statements comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), other applicable
New Zealand accounting standards and authoritative notices as appropriate for Tier 1 For-Profit entities. The consolidated financial statements also
comply with International Financial Reporting Standards (IFRS).
2b. Basis of preparation
The consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) as
appropriate for Tier 1 For-Profit entities.
They have been prepared on the historical cost basis, except for derivative financial instruments which are measured at fair value as disclosed at note
8 (Risks and financial instruments) to the consolidated financial statements.
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in
which the entity operates (‘the functional currency’). The consolidated financial statements are presented in New Zealand dollars, which is Bremworth
Limited's functional and presentation currency. Unless otherwise indicated, all financial information presented in New Zealand dollars has been
rounded to the nearest thousand.
Bremworth Limited ("Bremworth" or "the Company") is a limited liability company that is domiciled and incorporated in New Zealand.
The consolidated financial statements presented are for Bremworth and its subsidiaries ("the Group”) as at, and for the year ended, 30 June 2023.
The Company is registered under the Companies Act 1993 and is an FMC reporting entity for the purposes of the Financial Reporting Act 2013 and the
Financial Markets Conduct Act 2013. The consolidated financial statements have been prepared in accordance with these Acts.
The principal activities of the Group comprise wool acquisition, and carpet and rug manufacturing and sales.
All Group subsidiaries are wholly-owned.
GENERAL INFORMATION RELATING TO PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
COMPANY INFORMATION
Page 8 of 54

$000's
Additional costs10,000
Claims preparation costs500
$102,000
The insurers have acknowledged the cyclone event and confirmed that the Group’s material damage policy will respond in relation to damage to
buildings and plant and equipment as well as loss of inventory and the business interruption policy will respond in relation to the impact of reduction in
turnover and costs incurred as a result of consequent disruptions to the business.
Inventory stored elsewhere1,100
$169,300
Business interruptionGross profit (including payroll, fixed costs and increased cost of working to
avoid loss of turnover)
91,500
Material damageBuildings49,400
Plant and equipment116,100
Inventory stored at the Napier plant2,700
The Napier plant was inundated and sustained significant damage to buildings and plant and equipment as well as loss of inventory.
The Napier 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 plant has not operated since 14 February 2023. Although significant progress has been made at the plant - with clean-up virtually completed and
buildings and plant and equipment stabilised to prevent further deterioration - it is expected to be offline for a yet to be determined, but significant,
period of time pending a decision on appropriate next steps.
Insurances
The Group has comprehensive insurances, with the following table summarising the type and scope of cover relating to the damage and losses arising
from Cyclone Gabrielle:
Type of coverScope of coverSums insured
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements. Unrealised losses are also eliminated unless the underlying intra-group transaction provides evidence that the asset transferred is
impaired.
2e. Changes in accounting policies
There were no changes in accounting policies during the year ended 30 June 2023.
2f. Impact of Cyclone Gabrielle
Background
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 Hawke’s Bay where the Napier yarn
spinning plant is situated.
Note 9d – measurement of employee benefits
Significant accounting policies and critical estimates, judgements and assumptions are also disclosed in the relevant notes to the consolidated financial
statements and identified using the following coloured boxes:
Accounting policiesEstimates, judgements and assumptions
2d. Basis of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Group as at 30 June 2023 and the results of all
subsidiaries for the year then ended. Subsidiaries are all entities over which the Company has control. The Company controls an entity when the
Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
over the entity.
2c. Critical accounting estimates and judgements and significant accounting policies (continued)
Note 9a – determination of lease term
Note 9c – measurement of provisions
Page 9 of 54

A decision around the remediation works at the Napier plant is yet to be made, pending completion of the loss adjusters' review of remediation costs
and the outcome of a Board-led strategic review that the Directors have commenced.
This review, which involves external consultants, recognises that the receipt of insurance proceeds presents options for the Group, with the strategic
review designed to assist the Board in identifying the options around the application of those proceeds.
Following the reconfiguration of its plant and equipment, the Whanganui plant is now able to not only produce felted yarns but also woollen spun yarns
– putting the woollen carpet operation in a strong position to continue to supply key product ranges to its distribution partners.
Trials of New Zealand wool yarns, and dyed New Zealand wool fibre, from offshore have proved to be successful, with commercial-sized batches on
order and expected to be received for processing into carpet from September 2023 onwards.
This new hybrid supply chain model is complementary to the existing woollen carpet operation and will insulate the Group from future events that could
potentially disrupt operations while also strengthening the business.
Board-led strategic review
There is, to date, no agreement between the loss adjusters and the Group around the extent of damage to the Napier yarn spinning plant and the
nature and estimated cost of, as well as time required for, the remediation works. However, the loss adjusters have acknowledged that significant
damage has occurred to the Napier plant and that the claim would be significant.
Risk mitigation and business continuity plans
With the Napier yarn spinning plant offline and in order to secure the Group’s ongoing access to yarns and dyed fibre, management has activated risk
mitigation and business continuity plans which included alternative supply arrangements as follows:
- procuring woollen yarns from an independent New Zealand yarn spinner for some of its woollen carpet ranges;
- use of an independent third-party dyeing facility to supply the Whanganui yarn spinning plant with dyed fibre; and
- procuring New Zealand wool yarns, and dyed New Zealand wool fibre, from overseas suppliers.
2f. Impact of Cyclone Gabrielle (continued)
Insurances (continued)
The business interruption policy provides for an indemnity period of 18 months from the date of loss and will therefore extend over the period through to
13 August 2024. As a consequence, claims under the business interruption policy are expected to occur in FY24 and into FY25.
While the insurance claims process is progressing well, it is expected to take a number of months to complete. The Group has already received, prior
to balance date, $35.5 million of progress payments from its insurers. These payments were made on the condition that if the final adjusted loss (as
agreed between the parties or as determined by any applicable dispute resolution process) is less than the amount of the progress payments and all
other payments under the policies, then the overpaid amount will be promptly refunded.
The Group has engaged two independent consulting engineering firms to perform detailed assessments of damage to buildings and plant and
equipment, with these assessments placing the P50 estimated cost of remediation at $130.6 million (being the estimate of cost such that there is a 50%
probability of the remediation being completed within that cost estimate).
The estimated remediation range put forward by the Group's independent external experts of between $112.7 million (at P10) and $162.0 million (at
P90) is currently being reviewed by the loss adjusters and their experts. While the results are still some weeks away, the loss adjusters and their
experts have issued an interim report questioning whether alternative methods of remediation are possible or ought to be considered.
Page 10 of 54

$000's Notes
$35,500
3a
$0
3b
$0
3c
($5,170)
3d, 6a
($2,474)
3d, 7c
3.
Details of the estimates and judgements made are further discussed below where relevant.
Prior to 30 June 2023, the Group received two initial progress payments from the insurers – the first of $20.0 million in April 2023, followed by $15.5
million in June 2023 - with the insurers treating these as non-specific to either material damage or business interruption.
The initial progress payments were made on the condition that if the final adjusted loss (as agreed between the parties or as determined by any
applicable dispute resolution process) is less than the amount of the progress payments and all other payments under the policies, then the overpaid
amount will be promptly refunded.
Insurance recovery - progress payments
$35,500
$0
Cyclone Gabrielle related insurance income consists of:
Insurance recovery progress payments ($35.5 million)
The Group has concluded that there is virtual certainty as at balance date with respect to the progress payments of $35.5 million and has recognised
that as income in the Consolidated Statement of Profit or Loss.
- assessment of and disclosure of contingent assets (note 3c)
- assessment of impairment of inventory, buildings, land and plant and equipment (note 3d)
3a. Cyclone Gabrielle related insurance income
2023
2022
$000
$000
In the event that insurance proceeds cannot be recognised as income and as a receivable because receipt is not virtually certain and/or the amount
cannot be reliably estimated, they are disclosed as contingent assets.
Estimates, judgements and assumptions
As a result of the Cyclone Gabrielle flooding event, a number of significant estimates and judgements have been necessary to determine the
accounting treatment in these financial statements.
These estimates and judgements include the following:
- recognition of insurance income (note 3a)
- estimation of further insurance proceeds as income (note 3b)
Damaged or destroyed inventory has been written off to the extent appropriate
Cyclone Gabrielle related
asset write offs
The accounting for the impact of Cyclone Gabrielle is discussed in detail in note 3 (Cyclone Gabrielle) to the consolidated financial statements.
CYCLONE GABRIELLE
Accounting policies
Insurance proceeds are recognised as income and as a receivable when receipt is virtually certain and to the extent that the amount can be reliably
estimated.
Site clean-up and asset stabilisation costs incurred have been recognised as expenses
Cyclone Gabrielle related
expenses
($14,464)
3d
Ongoing costs (including payroll) as a result of the cyclone, increased costs of working and
other additional costs to avoid loss of revenue as well as professional fees (including
claims preparation costs) incurred have also been recognised as expenses
Damaged or destroyed buildings and plant and equipment have been derecognised to the
extent appropriate
Cyclone Gabrielle related
asset write offs
Insurance proceeds have been recognised as income
Cyclone Gabrielle related
insurance income
Further insurance proceeds are recognised as income and as a receivable where receipt is
virtually certain and amount is able to be reliably estimated
Not applicable
Insurance proceeds as contingent assetsNot applicable
2f. Impact of Cyclone Gabrielle (continued)
Dealing with impact of Cyclone Gabrielle in the financial statements
The following table summarises the impact of Cyclone Gabrielle on the Group and how these have been dealt with in the financial statements:
Impact of Cyclone Gabrielle
Financial statements line
item
Page 11 of 54

3c. Contingent assets
While the Group has a contingent asset at balance date - being the probable receipt of further insurance proceeds under the material damage policy as
identified in note 3b - the Group has not provided an estimate of the contingent asset because it has determined, based on the estimation uncertainties
discussed at note 3b, that it is not practicable to do so.
These estimates and judgements will continue to be reviewed as new information becomes available. Because the insurance claims process is
expected to take a number of months to complete and will involve a number of parties - including the loss adjusters and their experts as well as the
Group and its own experts - it is possible that the actual financial impacts will differ from those included in these financial statements and that these
differences may be material.
As claims under the business interruption policy are expected to be made in future, a contingent asset does not yet exist in relation to the business
interruption policy at balance date.
- the estimated remediation range put forward by the Group's independent external experts of between $112.7 million and $162.0 million and the
consequent wide range of possible outcomes;
- the relatively early stage of the insurance claims process, with the estimate currently being reviewed by the loss adjusters and their experts;
- the estimate being highly sensitive to the actual extent of damage to buildings and plant and equipment and whether key underlying assets can be
repaired or alternatively must be replaced;
- the damage assessment and estimated cost of, as well as time required for, remediation works being particularly sensitive to availability of machine
parts and specialist labour, with actual results potentially differing significantly from estimates.
There is also uncertainty around the quantum of the indemnity cash settlement the Group would be entitled to if chooses to not reinstate the Napier
plant.
As a consequence, further insurance proceeds have not been recognised as income and as a receivable in the financial statements.
3b. Estimation of further insurance proceeds as income
The Group’s expectation is that the ultimate amount received will be larger than the $35.5 million progress payments to date for the following reasons:
- the substantially greater estimated costs of remediation under the material damage policy as discussed in note 2f (Impact of Cyclone Gabrielle) to the
consolidated financial statements and note 3a above;
- the loss adjusters having acknowledged the cyclone as an insured event and the indemnity owed to the Group under the policies;
- the insignificant counterparty credit risks.
However, the amount cannot currently be estimated sufficiently reliably for the following reasons:
3a. Cyclone Gabrielle related insurance income (continued)
The Group expects that the initial progress payments of $35.5 million received will not be required to be refunded, based on the following:
- the substantially greater estimated costs of remediation as determined by the Group’s independent external experts as discussed at note 2f (Impact of
Cyclone Gabrielle) to the consolidated financial statements;
- the acknowledgement from the insurers’ loss adjusters that the Group has already incurred significant costs associated with the clean-up and
stabilisation of the Napier site, as well as the other costs that have been incurred (including employee costs) which are also covered by the Group's
insurance policies;
- recognition by the loss adjusters that significant damage has occurred to the Napier plant and that the claim is a significant claim.
Page 12 of 54

Note
6a
6a
7c
-
Of the total of $14.2 million, $5.4 million related to wages and salaries (largely of the Napier-based employees) and $1.2 million to ongoing fixed costs
at the Napier plant, as well as $6.4 million towards site clean-up and asset stabilisation and $1.2 million of miscellaneous spends (including
professional fees and claims preparation costs and the other costs associated with the activation of the risk mitigation and business continuity plans).
-
Based on the analysis and estimates prepared by management, the Group has determined that the carrying value of inventory at the Napier plant was
required to be written off – either because they have been damaged or destroyed as a consequence of having been immersed in, or exposed to,
contaminated flood water or otherwise contaminated by virtue of their proximity to flood water and could not therefore be used for further processing
into finished carpet.
Refer also to note 7c (Inventories) to the consolidated financial statements for further information.
Other recoverable costs ($14.2 million)
The Group has incurred costs relating to site clean-up and asset stabilisation, with $3.5 million accrued at balance date.
These costs are recoverable from the proceeds of insurance.
As a result, the carrying values of these assets have been written off to the Consolidated Statement of Profit or Loss.
The Group does not consider the carrying value of the Napier land of $811,000 to be impaired, with the carrying amount of that land supported by its
standalone fair value, after having regard to the land categorisation attributed to the land by the Hawke's Bay City Council following Cyclone Gabrielle
and the current market value of industrial land in Hawke's Bay after allowing for estimated building demolition costs.
Refer also to note 6a (Property, plant and equipment) to the consolidated financial statements for further information.
Write off of inventory ($2.5 million)
Accounting standards require inventory to be measured at the lower of cost and net realisable value.
Where the cost of inventory may not be recoverable because the inventory is damaged as a consequence of an event like Cyclone Gabrielle, the
Group is required to estimate its recoverable amount and recognise an impairment if this estimate is less than the carrying amount.
$22,108
$0
Cyclone Gabrielle related asset write offs and expenses consist of:
Write off of buildings ($3.6 million) and plant and equipment, other assets and assets under construction ($1.6 million)
Accounting standards treat the physical damage of an asset to be an indicator of impairment. Therefore, if there has been physical damage to an asset
as a result of a natural disaster, like Cyclone Gabrielle, an impairment test is required with careful consideration given to assessing the asset’s
recoverable amount.
Following impairment assessment of damaged buildings and plant and equipment, the Group has determined that the carrying values of buildings and
plant and equipment at the Napier plant are required to be derecognised on the basis that there are no longer any future economic benefits that could
be derived from their use in their current state or from their disposal.
Write off of inventory 2,474 -
Other recoverable expenses
14,204
Non-recoverable expenses 260 -
$000
$000
Write off of buildings
3,608
-
Write off of plant and equipment, other assets and assets under
construction
1,562
3d. Cyclone Gabrielle related asset write offs and expenses
2023
2022
Page 13 of 54

The Board is committed to the future of the existing woollen carpet business, with the new hybrid supply chain model post Cyclone Gabrielle going to
be not only complementary to the existing operation but also insulate the Group from future events that could potentially disrupt operations.
— the costs associated with voluntary redundancies for Napier-based employees, and holiday pay paid out, subsequent to balance date as further
discussed at note 9h (Events after balance date) to the consolidated financial statements;
— 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;
— 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 further insurance recoveries that are expected to insulate the Group from the impact of Cyclone Gabrielle.
The Board expects that existing cash and bank of $39.3 million is easily sufficient to enable the Group's continued operation.
Despite the disruptions from Cyclone Gabrielle, the Group continues to trade and to actively engage with its distribution partners - with the focus on
ensuring we can continue to supply key product ranges and to support them.
3f. 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.
Cash and bank at balance date of $39.3 million (2022: $14.9 million) is at a level significantly higher than forecasted as a result of insurance progress
payments received.
Net working capital (being current assets (excluding cash and bank) less current liabilities) employed by the Group as at balance date of $10.0 million
(2022: $18.0 million) is well down on the previous year, with the Group continuing to focus on working capital utilisation and efficiency.
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 Cyclone Gabrielle, management has prepared forecasts of the Group’s financial performance, while also assessing cash flows and
financial position, as part of its management and monitoring of the Group’s operations through to 30 June 2025.
In preparing these forecasts, management considered and, where required made assumptions, in relation to:
3d. Cyclone Gabrielle related asset write offs and expenses (continued)
Non-recoverable costs ($0.3 million)
These are expenses incurred by the Group in relation to the cyclone where there will be no recovery from the insurers and include the $250,000
deductible under the material damage policy as well as other expenses that are above the sub-limits provided for in the policy (for example, employees'
personal effects).
3e. Progress payments received and cash paid
Prior to 30 June 2023, the Group received two initial progress payments from the insurers – the first of $20.0 million in April 2023, followed by $15.5
million in June 2023 - with the insurers treating these as non-specific to either material damage or business interruption. As a consequence, the Group
has treated the $35.5 million as cash inflow relating to investing activities.
At balance date, $11.0 million has been spent, with $5.4 million relating to wages and salaries (largely of the Napier-based employees) and $1.2 million
relating to ongoing fixed costs at the Napier plant, as well as $3.1 million towards site clean-up and asset stabilisation and $1.3 million of miscellaneous
spends (including professional fees and claims preparation costs and the other costs associated with the activation of the risk mitigation and business
continuity plans).
Page 14 of 54

4.
· that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components;
· whose operating results are regularly reviewed by the Group’s chief operating decision maker - in this case, the Chief Executive Officer - to make
decisions about the resources to be allocated to the segment and to assess its performance; and
· for which discrete financial information is available.
The Chief Executive Officer uses total revenue, segment result before depreciation, restructuring and impairment and segment result after depreciation
but before restructuring and impairment to assess the performance of the operating segments. Total assets and total liabilities are also reviewed for the
operating segments.
4a. Segment performance
Reportable segments
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 the world; and
· Wool, with this segment involved in the acquisition of wool for the carpet segment and for sales to external customers in New Zealand.
An operating segment is a component of the Group:
3f. Going concern (continued)
That commitment to the future of the business is further demonstrated by its decision to undertake a Board-led strategic review.
This review, which involves external consultants, recognises that the receipt of insurance proceeds presents options for the
Group, with the strategic review designed to assist the Board in identifying the options around the application of those proceeds while also
looking to address the Group’s current supply chain and manufacturing cost base.
FINANCIAL PERFORMANCE
This section deals with the financial performance of the Group and addresses, among other things, the financial performance of the Group’s reportable
segments and the key areas that impact on the Group’s profitability, including operating revenue, other income, gains/losses on sale of property, plant
and equipment, expenses and taxation.
Page 15 of 54

Revenue
Canada
USA
Major customers
Australia
1,097
1,078
$19,426
$24,118
None of the Group’s external customers contributed revenues in excess of 10% of the Group’s total revenues.
Non-current assets$000
$000
New Zealand
18,329
23,040
$89,689
$95,485
As at
As at
30 Jun 2023
30 Jun 2022
1,231
1,460
761
1,331
Rest of the world
33
302
New Zealand 50,637 54,595
Australia 37,027 37,797
Inter-segmental sales during the year and intercompany profits on stocks at balance date are eliminated on consolidation.
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.
2023
2022
$000
$000
4a. Segment performance (continued)
Inter-segment transactions
Page 16 of 54

202320222023202220232022
$000$000$000$000$000$000
71,502 76,307 18,187 19,178 89,689 95,485
- - 1,634 2,401 1,634 2,401
71,502 76,307 19,821 21,579 91,323 97,886
(1,634) (2,401)
$89,689
$95,485
434 4,880 766 949 1,200 5,829
(674) (515) (171) (168)
(845) (683)
(862) (822) (132) (132) (994) (954)
- 194 - - - 194
(1,102) 3,737 463 649 (639) 4,386
35,500 - - - 35,500 -
(14,464)
-
-
-
(14,464)
-
(7,644)
-
-
-
(7,644)
-
12,290 3,737 463 649 12,753 4,386
14 52
(928) (963)
11,839 3,475
(1,045) (1,029)
502 159
11,296 2,605
(263) (365)
$11,033
$2,240
202320222023202220232022
$000$000$000$000$000$000
47,143 59,122 4,971 4,906 52,114 64,028
39,319 14,874
$91,433 $78,902
1,956 2,621 - 277 $1,956 $2,898
21,290 20,229 1,585 1,144 22,875 21,373
18,038 19,758
$40,913 $41,131
Unallocated liabilities - Lease liabilities
Total liabilities
Reportable segment assets
Unallocated assets - Cash and bank
Total assets
Capital expenditure
Reportable segment liabilities
Profit before income tax
Income tax expense
Profit after tax for the year
Carpet and rugs sales and
manufacturing
Wool acquisitionTotal
Segment result after insurances
Elimination of inter-segment profits
Unallocated corporate costs
Results from operating activities
Finance costs
Finance income
Depreciation - right-of-use assets
Depreciation - recycled through inventory
Segment result before insurances
Cyclone Gabrielle related insurance income
Cyclone Gabrielle related expenses
Cyclone Gabrielle related asset write offs
Inter-segment revenue
Total revenue
Elimination of inter-segment revenue
Consolidated revenue
Segment result before depreciation and insurances
Depreciation - owned assets
4a. Segment performance (continued)
Carpet and rugs sales and
manufacturing
Wool acquisitionTotal
External revenue
Page 17 of 54

Diluted EPS (cents) 15.46
3.17
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 LTI Schemes and the Bremworth Option Scheme as further discussed at note 9b (Share-based payment) to the consolidated financial
statements.
Profit after tax attributable to shareholders of the Company ($000)
11,033
2,240
Weighted average number of ordinary shares outstanding and potential ordinary shares
71,364,576
70,659,533
Basic EPS (cents) 15.81
3.24
Diluted earnings per share (Diluted EPS)
2023
2022
Profit after tax attributable to shareholders of the Company ($000)
11,033
2,240
Weighted average number of ordinary shares outstanding
69,771,837
69,081,838
4b. Earnings per share
Basic earnings per share (Basic EPS)
2023
2022
Page 18 of 54

Note
4g
Total fees paid and payable$579
$515
Strategic options analysis relates to a report detailing those options that may be available to the Group and the Board in relation to Cyclone Gabrielle
insurance recoveries. This report did not contain any recommendations or decisions, and the services were cleared by the Chair of the Audit
Committee as having no impact on auditor independence.
Audit fees and expenses paid and payable for audit of consolidated financial statements
564
515
Non-audit fees paid and payable for strategic options analysis 15 -
$000
$000
Donations$1
$2
Total fees paid and payable to auditors
Total other income and gains$540
$688
4e. Administration expenses
The following items of expenditure are included in administration expenses:
2023
2022
Government grants recognised 505 581
Net gain on sale of plant and equipment
30
102
Rentals received 4 4
Dividends received
1
1
Provision of installation services
Revenue from installation services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting
date as the customer receives and uses the benefit simultaneous to installation. The stage of completion of installation services rendered is determined
by having regard to the quantity in lineal metres of carpet installed at balance date relative to the total quantity in lineal metres of carpet required for
each contract.
4d. Other income and gains
2023
2022
$000
$000
Credit terms for carpet and rug sales within New Zealand and Australia are generally no later than 30 days after the month in which invoices are raised
and, in the case of wool sold in New Zealand, within 14 days of invoice date or on despatch whichever is the earlier. Credit terms for sales of carpet
overseas are generally 60 to 90 days from date of invoice and for sales of carpet yarn overseas 120 days from date of invoice.
Rugs sold direct are for cash, with payment at the time orders are placed. All amounts received are accounted for as customer deposits in the first
instance, with $192,000 of customers deposits booked as at balance date (2022: $203,000).
Accounting policies
Sale of goods
Revenue is recognised when or as performance obligations are satisfied by transferring control of the products sold to the customer at the transaction
price specified in the contract. Control transfers to the customers for carpet, rug and carpet yarn sales on delivery of the goods to the customer. For
wool sales, control passes on payment, prior to delivery. The transaction price includes all amounts which the Group expects to be entitled to, net of
goods and services tax and other indirect taxes, expected rebates and discounts.
Apart from warranties, there are no contractual rights of return and there are therefore no provisions for returns. In specific circumstances, the Group
may choose to accept returns, in which case the returns are recognised at that time.
89,689
94,975
Provision of installation services
-
510
Total revenue$89,689
$95,485
Carpet yarn
-
598
Others
146
2,130
Rugs
1,122
773
Wool
18,187
19,178
$000
$000
Sales of goods
Carpet 70,234 72,296
4c. Revenue from contracts with customers
2023
2022
Page 19 of 54

Note
8g
Accounting policies
Grants from the government are recognised at their fair value where there is a reasonable assurance that the Group will comply with all attached
conditions and the grants will be received.
Government grants relating to costs that have been incurred are credited to profit or loss while grants relating to future costs are included in current
liabilities as deferred income and recognised in profit or loss over the period necessary to match them with the costs that they are intended to
compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and they are
credited to profit or loss on a straight-line basis over the expected lives of the related assets.
Grants totalling $121,000 (2022: $242,000) from the Government’s International Growth Fund (IG Fund) and $384,000 (2022: $339,000) from the
Sustainable Food and Fibre Futures Fund (SFFF Fund) are included in other income in the Consolidated Statement of Profit or Loss, with the IG Fund
covering pre-approved activities over the period from May 2019 to January 2023 and the SFFF Fund over the period from December 2020 through to
June 2024.
There are no unfulfilled conditions or other contingencies attaching to the grants recognised in other income during the year.
Government grants that have been deferred, either because they relate to future costs to be incurred or assets, totalled $503,000 at balance date
(2022: $418,000).
Others
The Group did not benefit directly from any other forms of government assistance.
Notes 4d (Other income and gains) and 4g (Government grants) to the consolidated financial statements provide further information on how the Group
accounts for government grants.
Balance at 30 June carried forward in inventory
$0
$109
The Group applied for and received $89,000 pursuant to residual COVID-19 subsidy schemes from the New Zealand Government (2022: Applied for
and received $1,676,000 pursuant to various COVID-19 subsidy schemes from the New Zealand Government and $100,000 from the New South
Wales Government).
$198,000 of these subsidies were recognised in cost of sales in the Consolidated Statement of Profit or Loss during the financial year (2022:
$1,308,000, $257,000 and $102,000 recognised in cost of sales, distribution expenses and administration expenses respectively).
International Growth Fund and Sustainable Food and Fibre Futures Fund
Subsidies received during the year
89
1,776
Amount recognised in the Consolidated Statement of Profit or Loss
(198)
(1,667)
COVID-19 subsidies
2023
2022
$000
$000
Balance at 1 July brought forward in inventory
109
-
Total personnel expenses$34,440
$36,727
Personnel costs are included in cost of sales, distribution expenses and administration expenses in the Consolidated Statement of Profit or Loss
(except where these costs relate to the restructuring of the Group’s operations in which case they are classified as restructuring costs).
Employee benefits include those benefits provided to employees as part of their employee arrangements with the Group and cover the provision of
motor vehicles, income protection insurances, life insurances and medical insurances and associated fringe benefits taxes. Employee benefits also
include the costs of providing on-site staff amenities.
4g. Government grants
Employee benefits
1,033
1,130
Increase/(Decrease) in liability for retiring allowances and long service leave (15) 392
Other employee related costs
1,372
1,494
Restructuring costs
-
121
$000
$000
Directors’ fees
387
372
Wages, salaries, bonuses and holiday pay
31,663
33,218
4f. Personnel expenses
2023
2022
Page 20 of 54

202320222023202220232022
$000$000$000$000$000$000
240 302 - - 240 302
105 101 - - 105 101
1 21 - - 1 21
230 108 - - 230 108
$576 $532 $0 $0 $576 $532
Employee benefits
Lease liabilities
Provisions
Net tax assets/(liabilities)
Deferred tax assets at balance date relate to the Group's Australian carpet sales operations where it is expected that there will be taxable profits in
future periods to allow for the utilisation of the deferred tax assets.
Deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
AssetsLiabilitiesNet
Property, plant and equipment
$000
$000
Imputation credits
Imputation credits available to shareholders of the Company$9,223
$9,223
Income tax expense$263
$365
2023
2022
Unrecognised deferred tax liabilities
723
(505)
Tax loss re-recognised (3,752) -
Effect of tax rate difference in foreign jurisdiction
10
17
Adjustment for prior years 132 109
Income tax using the Company’s domestic tax rate of 28% (2022: 28%)
3,163
729
Non-deductible expenses
(13)
15
Income tax expense
263
365
Profit excluding income tax$11,296
$2,605
2023
2022
$000
$000
Reconciliation of effective tax rate
Profit after tax for the year
11,033
2,240
(44)
200
Income tax expense$263
$365
Adjustment for prior years
-
10
Unrecognised deferred tax liabilities
-
(505)
307
165
Deferred tax expense/(benefit)
Origination and reversal of temporary differences
(44)
695
Current year
175
66
Adjustment for prior years
132
99
2023
2022
$000
$000
Income tax expense in the Consolidated Statement of Profit or Loss
Current tax expense
Finance costs($1,045)
($1,029)
Accounting policies
Finance costs include interest expense on loans and borrowings, interest component of lease payments and facility fees for the Bank's guarantee of
the Group's commitments. All interest expense are recognised in the Consolidated Statement of Profit or Loss using the effective interest method.
4i. Income tax
$000
$000
Interest component of lease payments
(879)
(990)
Facility fees - Bank guarantees (166) (39)
4h. Finance costs
2023
2022
Page 21 of 54

Movement in temporary differences during the year:
Recognised in
Consolidated
Statement of
Profit or Loss
Balance
30 June 2023
$000$000
(62) 240
4 105
(20) 1
122 230
$44 $576
Recognised in
Consolidated
Statement of
Profit or Loss
Balance
30 June 2022
$000$000
(76) 302
(55) 101
Lease liabilities (59) 21
(10) 108
($200)$532
Estimates, judgements and assumptions
Accounting policies
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates to items
recognised directly in other comprehensive income, in which case it is recognised in other comprehensive income.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes and is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets are recognised for unused tax losses and deductible temporary differences to the extent that it is probable that future taxable
profits will be available against which they can be used. Future taxable profits are determined based on business plans for individual subsidiaries in the
Group. Deferred tax assets are reviewed at each balance date and adjusted to the extent that it is no longer probable that sufficient taxable profits will
be available in the future to utilise the deferred tax asset.
Employee benefits 156
80
Provisions 118
Total
$732
Balance
30 June 2021
$000
Property, plant and equipment 378
Lease liabilities 21
Provisions
108
Total$532
30 June 2022
$000
Property, plant and equipment
302
Employee benefits
101
Deferred tax assets and liabilities (continued)
Deferred tax assets relating to the Group's New Zealand operations were written off in FY20. Deferred tax assets not recognised in respect of
temporary differences and tax loss carry-forwards totalled $13,607,000 at balance date (2022: $16,601,000), with the change relating to the re-
recognition of unrecognised tax loss.
While the Board has confidence in the prospects of the business as discussed at note 3f (Going concern) to the consolidated financial statements, it
has taken the same approach with respect to the recognition of deferred tax assets as it has with the reversal of the FY20 impairment of assets as
discussed at note 6a (Property, plant and equipment) to the consolidated financial statements and has concluded that the execution of the Group’s
strategy to focus on wool carpets, while progressing to plan, is still in its early stages and therefore does not warrant the re-recognition of deferred tax
assets.
Deferred tax assets have also not been recognised in respect of temporary differences and tax loss carry-forwards totalling $24,150,000 (2022:
$24,150,000) relating to an Australian subsidiary that currently does not have trading activity on the basis that it is also not probable that future taxable
profit will be available against which the Group can use the benefits therefrom, taking the total deferred tax assets unrecognised to $37,757,000 (2022:
$40,751,000).
Notwithstanding the derecognition of deferred tax assets for accounting purposes, these deferred tax assets remain available to the Group for income
tax purposes.
Balance
4i. Income tax (continued)
Page 22 of 54

5.
The allocation of capital between the Group’s specific business segment operations and activities is, to a large extent, driven by the opportunities that
exist within each of these segments and the optimisation of the return achieved on the capital allocated. The process of allocating capital to specific
business segment operations and activities is determined by the Chief Executive Officer in consultation with the Board and is therefore undertaken
independently of those responsible for the operation.
The Group’s policies in respect of capital management and allocation are reviewed regularly by the Board.
There have been no material changes in the Group’s management of capital during the year.
Consistent with best practice, the Group monitors capital on the basis of the leverage ratio. Leverage ratio is calculated as net debt divided by total
capital employed. Net debt is determined as total loans and borrowings (including both non-current and current as shown in the Consolidated
Statement of Financial Position) plus bank overdraft less cash and bank. Total capital employed is calculated as equity as shown in the Consolidated
Statement of Financial Position plus net debt financing assets in operation.
This section looks at the Group’s two key sources of funding, how it manages its funding and other related matters.
5a. Capital management
The Group’s capital includes share capital, reserves and retained earnings.
The Group’s capital management policy is aimed at maintaining a strong capital base so as to maintain investor, creditor and market confidence in the
Group and to enable it to continue to fund the ongoing needs of the business and to sustain its future development.
The impact of the level of capital on shareholders’ return is also recognised, as is the return to shareholders in the form of dividends paid and growth in
share price, and the Group works to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and
security afforded by a sound capital base.
The Group is not subject to any externally imposed capital requirements.
CAPITAL AND FUNDING
Page 23 of 54

The cash flow hedging reserve represents the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related
to hedged transactions that have not yet occurred.
Foreign currency translation reserve
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to New Zealand
dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to New Zealand dollars at exchange
rates at the dates of the transactions.
The foreign currency translation reserve comprises all exchange rate differences arising from the translation of the financial statements of foreign
operations and the translation of liabilities designated as hedges against the Company’s net investment in a foreign operation.
There is no movement in the foreign currency translation reserve balance for the year ended 30 June 2023 (2022: Nil) as the reserve relates to
dormant foreign entities of the Group.
The Board has not declared a final dividend in respect of the current year ended 30 June 2023 (2022: Nil).
Cash flow hedging reserve
The Group uses derivative financial instruments to hedge its exposure to foreign exchange and interest rate risks arising from operational, financing
and investing activities. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes.
However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments.
Derivative financial instruments are recognised initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition,
derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognised immediately in profit or loss.
Where derivatives qualify for hedge accounting, changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are
recognised in other comprehensive income to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are
recognised in profit or loss.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is
discontinued prospectively. The cumulative gain or loss previously recognised in other comprehensive income remains there until the forecast
transaction occurs at which time the gain or loss is transferred to profit or loss. When the hedge item is a non-financial asset, the amount recognised in
the cash flow hedging reserve is transferred to the carrying amount of the asset when it is recognised. In other cases, the amount recognised in the
cash flow hedging reserve is transferred to profit or loss in the same year that the hedged item affects profit or loss.
The Company does not have a limited amount of authorised capital.
The Company issued, in accordance with the terms of the Bremworth 2022 Long-Term Incentive Scheme, 890,328 fully paid-up ordinary shares 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 (2022: 500,000 fully paid up ordinary shares on 10 September 2021 to the Chief Executive Officer pursuant to the Bremworth
Equity Plan), with more information to be found in note 9b (Share-based payment) to the consolidated financial statements.
All issued shares are fully paid up and have no par value.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and one vote per share at meetings of the Company. All
shares rank equally with regard to the Company’s residual assets.
Dividends
No dividends were paid during the year (2022: Nil).
Issued during the year 890,328 500,000
balance as at 30 June
70,069,426 69,179,098
2023
2022
$000
$000
Shares on issue
Balance at 1 July 69,179,098 68,679,098
5b. Share capital, dividends and reserves
Share capital
Page 24 of 54

The Group has no funding facilities at balance date (2022: Nil).
The Group fully repaid its Bank loans and borrowings, while also putting itself in a surplus cash position, during FY21 with the cash coming from the
Group's sell-down of non-wool inventory as it exited the non-wool carpet market and from the sale and leaseback of the Auckland property.
Following the full repayment of the Group's Bank loans and borrowings in December 2020, the Bank and the Company agreed to the withdrawal of all
committed credit lines while continuing to retain transactional banking facilities, foreign exchange transaction facilities and a guarantee facility.
The Group continues to maintain ongoing relationships with the Bank, with the view that committed credit lines could be reinstated in the future to fund
working capital requirements as the Group progresses through its transformation journey. As a consequence, the Group has retained the security
arrangements that were previously put in place to secure obligations for the payment and repayment of moneys due, owing or payable by the Group to
the Bank.
These security arrangements include the granting in favour of Bank of New Zealand, as security agent for the Bank, a first-ranking composite general
security deed and cross guarantee securing all obligations of the Group to the Bank by certain companies in the Group. The property-owning
companies in the Group have also continued to grant in favour of Bank of New Zealand first-ranking mortgages in respect of land and buildings as
security for all obligations of the Group to the Bank, including obligations for the payment and repayment of moneys due, owing or payable by the
Group to the Bank (see note 6a (Property, plant and equipment) to the consolidated financial statements).
The Group had no other borrowings at balance date (2022: Nil).
Share-based payment reserve
The share-based payment reserve is used to recognise the grant date assessed fair value of the performance rights issued to executive employees
under the Company's long-term incentive scheme as further discussed at note 9b (Share-based payment) to the consolidated financial statements.
The assessed fair value of the performance rights at grant date are recognised as an expense in profit or loss over the period from grant date to
condition date, adjusted to reflect only those rights where the service condition will be met, with corresponding entries to the share-based payment
reserve.
5c. Banking facilities and loans and borrowings
This note provides information about the contractual terms of the Group’s banking facilities. For more information about the Group’s exposure to
interest rate risks, see note 8 (Risks and financial instruments) to the consolidated financial statements.
The Group’s banking facilities (including Bank guarantees to third parties relating to lease and other commitments of the Group) are provided by Bank
of New Zealand and National Australia Bank Limited (together, “the Bank”).
5b. Share capital, dividends and reserves (continued)
Page 25 of 54

6.
Land and
buildings
Plant and
equipment
Other assetsTotal
$000$000$000$000
10,970 65,663 12,784 90,086
8 41 84 1,956
(9) (3,992) (598) (4,599)
- 697 298 -
Cyclone Gabrielle related derecognition
(4,409) (27,067) (337) (32,466)
$6,560 $35,342 $12,231 $54,977
10,427 64,793 11,448 87,990
543 83 379 2,898
- (528) (274) (802)
- 1,315 1,231 -
$10,970 $65,663 $12,784 $90,086
1,672 63,518 10,545 75,780
129 279 437 845
- (3,948) (638) (4,586)
Transfers - 45 - -
Cyclone Gabrielle related derecognition
(801) (26,210) (285) (27,296)
$1,000 $33,684 $10,059 $44,743
1,544 63,848 10,459 75,896
128 232 323 683
- (562) (237) (799)
$1,672 $63,518 $10,545 $75,780
$5,560 $1,658 $2,172 $10,234
$9,298 $2,145 $2,239 $14,306
$8,883 $945 $989 $12,094
Other assets
The Group has also concluded that no reversal of the previous impairment of assets should be made following an assessment that the execution of the
Group’s strategy to focus on wool carpets which, while progressing to plan, is in its early stages.
At 1 July 2021
$1,277
Other assets comprise fixtures and fittings (including leasehold improvements and display stands), computer equipment, motor vehicles and office
equipment.
Impairment
The Group’s market capitalisation at balance date was below the carrying value of net assets. Even though market capitalisation excludes any control
premium and may not reflect the value of 100% of the Group’s net assets, it is still considered to be an indicator of impairment. As a consequence, the
Group conducted a review of all of its assets, including fixed assets and right-of-use assets, to assess whether there was any impairment at balance
date.
Apart from Cyclone Gabrielle related impairments (refer to note 3 (Cyclone Gabrielle) to the consolidated financial statements), the Group has
concluded that no other impairment of assets was required at balance date (2022: Nil).
Balance at 30 June 2022
45
Carrying amounts
At 30 June 2023 844
At 30 June 2022
$624
Balance at 1 July 2021 45
Depreciation for the year -
Disposals -
Disposals
-
(45)
-
Balance at 30 June 2023$0
Balance at 30 June 2022
$669
Depreciation and impairment losses
Balance at 1 July 2022
45
Depreciation for the year
-
Additions 1,893
Disposals -
Transfers (2,546)
Transfers
(995)
(653)
Balance at 30 June 2023$844
Balance at 1 July 2021 1,322
Balance at 1 July 2022
669
Additions
1,823
Disposals
-
ASSETS EMPLOYED
This section covers non-current assets, being property, plant and equipment and other assets that the Group employs in the production and sale of
carpet and rugs, and the acquisition and sale of wool fibre, to generate revenues and profits.
6a. Property, plant and equipment
Under construction
$000
Cost
Page 26 of 54

Depreciation methods, useful lives and residual values are reassessed at each reporting date.
Impairment
The carrying amount of property, plant and equipment and other assets is tested for impairment whenever there are indicators of impairment.
An impairment loss is recognised if the carrying amount of the cash-generating unit (being the smallest identifiable asset group that generates cash
flows that are largely independent from other assets and groups) to which the property, plant and equipment and other assets is allocated exceeds its
recoverable amount.
The recoverable amount of a cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the
estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the cash-generating unit.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units
and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
o office equipment10.0 – 20.0% straight line
o cars
20.0% diminishing value
o trucks and utilities
10.0% straight line
· plant and equipment
6.7 – 20.0% straight line
· other assets
o display stands10.0% straight line
o computer equipment20.0 – 25.0% straight line
Depreciation is recognised in the Consolidated Statement of Profit or Loss over the estimated useful lives of each part of an item of property, plant and
equipment. Land is not depreciated.
The principal rates used for the current and comparative periods are as follows:
· buildings
1.0 - 2.5% straight line
· building fitouts
5.0 - 20.0% straight line
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials
and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the cost of dismantling and
removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is
capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of
property, plant and equipment.
Under construction
Items being constructed for future use are held as part of property, plant and equipment under construction. The carrying amounts of these represent
the costs incurred at balance date and will be transferred to the appropriate classification of property, plant and equipment on completion. Initial cost
includes the purchase consideration and those costs directly attributable in bringing the asset to the location and condition necessary for its intended
use. These costs include site preparation costs, installation costs, borrowing costs, unrecovered operating costs incurred during planned
commissioning and the costs of obtaining consents.
Costs cease to be capitalised when all the activities necessary to bring the asset to its location and condition for its intended use are complete.
Depreciation
6a. Property, plant and equipment (continued)
Security
At balance date, the Group’s property, plant and equipment were subject to various registered charges in favour of the Group’s bankers as security for
the Group’s banking facilities and arrangements (see note 5c (Banking facilities and loans and borrowings) to the consolidated financial statements).
Accounting policies
Recognition and measurement
Page 27 of 54

7.
$39,319
$14,874
Accounting policy
Cash is cash on hand and demand deposits and includes bank overdrafts used for cash management purposes where formal arrangements for set off
has been agreed with the Bank. Under these set off arrangements, the Group is able to set off overdrawn balances up to a maximum of $1,000,000
against credit balances in selected accounts as long as the net balance of all these accounts (including overdrawn accounts) as a whole remain in
credit. At balance date, there were no overdrawn amounts subject to set off (2022: $130,000). Cash equivalents are highly liquid investments that are
readily convertible to known amounts of cash (that is, there is insignificant risk of changes in value) with maturity no more than three months from
balance date.
$000
$000
Cash and cash equivalents 31,819 10,874
Short term deposits
7,500
4,000
The remediation works that may be required at the Napier yarn spinning plant are yet to be decided and no capital commitments relating to remediation
have therefore been entered into at balance date.
WORKING CAPITAL
This section reviews the level of working capital the Group generates and utilises in its normal day-to-day operating activities. The Group’s working
capital includes current assets (cash and bank, trade receivables, other receivables and prepayments and inventories) and current liabilities (trade
payables and accruals and employee entitlements).
7a. Cash and bank
Cash and bank at balance date comprise the following:
20232022
2023
2022
$000
$000
Property, plant and equipment
$72
$208
6a. Property, plant and equipment (continued)
Estimates, judgements and assumptions
NZ IAS 36 Impairment of Assets requires the Group to assess, at the end of each reporting period, whether there is any indication that an asset may be
impaired. If any such indication exists, the Group shall estimate the recoverable amount of the asset. The recoverable amount of an asset is the higher
of its fair value less costs of disposal and its value in use. The Group is required to recognise an impairment loss to the extent to which the carrying
amount of an asset exceeds its recoverable amount.
For the purpose of assessing impairment, assets are grouped in the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of assets (cash generating unit or CGU), which as at 30 June 2023 were identified as
being the Carpets and Wool Acquisition CGUs.
6b. Capital commitments
Capital expenditure contracted for, but not recognised as liabilities, at balance date is set out below.
Page 28 of 54

Accounting policy
Inventories, net of provision, are summarised in the table below:
Inventory provision at 30 June
$1,408
$1,353
The approach to inventory provisioning in 2023 is substantially consistent with 2022.
Write downs or write offs of inventory during the year totalled $3,775,000 (2022: $935,000). The 2023 write offs include $2,474,000 of inventory that
was written off because of damage as a consequence of Cyclone Gabrielle, with the Group determining that the inventory had been damaged or
destroyed as a consequence of having been immersed in, or exposed to, contaminated flood water or otherwise contaminated by virtue of their
proximity to flood water and could not therefore be used for further processing into finished carpet. Refer to note 3 (Cyclone Gabrielle) to the
consolidated financial statements) for further information.
Inventory provision at 1 July
1,353
1,976
Change in provision during the year
55
(623)
Finished goods
15,568
19,255
$21,419
$27,263
Carrying amount of inventories subject to retention of title clauses
$760
$3,378
Raw materials and consumables
4,801
6,984
Work in progress 1,050 1,024
Impairment losses on trade receivables and other receivables are assessed collectively and on a portfolio basis based on the number of days overdue
using the expected loss model, taking into account the historical loss experienced in portfolios with a similar number of days overdue as well as current
conditions and forecast of future economic conditions.
Trade receivables and other receivables are recognised initially at transaction price and subsequently at amortised cost less impairment losses.
7c. Inventories
2023
2022
$000
$000
Prepayments
643
1,017
$9,957
$12,201
The Group's approach and policy with respect to, and quantitative disclosure of, credit risk are discussed at note 8 (Risks and financial instruments) to
the consolidated financial statements.
$000
$000
Trade receivables due from external customers
9,306
11,145
Other receivables
8
39
7b. Trade receivables, other receivables and prepayments
2023
2022
Page 29 of 54

Accounting policy
Accounting policy
Employee entitlements relating to wages and salaries as well as annual leave and other employment-related payments that are expected to be settled
wholly within 12 months after the end of the annual reporting period in which the employees render the related service are recognised in respect of
employees’ services up to the end of the reporting period as liabilities and are measured at the amounts expected to be paid when the liabilities are
settled.
The entire amount of employee entitlements is presented as current as the Group does not have an unconditional right to defer settlement for any of
these obligations.
Wages accruals
315
293
$4,877
$5,376
Leave obligations cover the Group's liabilities in relation to employees' accrued and entitled annual leave as well as their unconditional entitlement to
long service leave where they have completed the required period of service.
Leave obligations 4,562 4,351
Bonus entitlement
-
732
The carrying amounts of trade payables are considered to be the same as their fair values, due to their short-term nature.
7e. Employee entitlements
2023
2022
$000
$000
Accruals
4,837
1,444
$14,948
$12,210
Trade payables are unsecured - except to the extent to which they have retention of titles clauses within their supply arrangements with the Group -
and are usually paid within the agreed payment terms.
2023
2022
$000
$000
Trade payables
10,111
10,766
Accounting policies
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes
expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. In the case of manufactured inventories and
work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Estimates, judgements and assumptions
Inventory provisions are recognised for oddments and obsolete, aged and discontinued inventories to arrive at their likely net realisable value.
Estimates and judgement are applied in identifying and categorising - to the extent applicable - obsolete, aged and discontinued inventory and
determining the level of provisioning that is required – with a range of factors including inventory rationalisation plans, consumer demand and trends,
available distribution channels and historical sales and margin data considered.
7d. Trade payables and accruals
7c. Inventories (continued)
Page 30 of 54

8.
The amount and timing of collection of trade receivables and estimate of expected credit losses under NZ IFRS 9 Financial Instruments have been
considered and included in the consolidated financial statements.
The Group does not invest in securities, but accepts that surplus cash and cash equivalents may arise from time to time during the course of its
management of cash. In these instances, it requires these surplus cash and cash equivalents to be deposited on call and only with counterparties
approved by the Board as having the required credit ratings.
Foreign currency forward exchange contracts and interest rate swaps have been entered into with counterparties approved by the Board as having the
required credit ratings. The Group's exposure to credit risk from these financial instruments is limited because it does not expect the non-performances
of the obligations contained therein due to the high credit ratings of the financial institutions concerned. The Group does not require any collateral or
security to support these financial instruments.
The Group enters into derivative financial instruments in the ordinary course of business to manage foreign currency and interest rate risks in
accordance with the treasury policy approved by the Board. A financial risk management committee, composed of senior management and operating
under the Board-approved treasury policy, ensures that procedures for derivative instrument utilisation, control and valuation, risk analysis,
counterparty credit approval, and ongoing monitoring and reporting are adhered to.
The Group manages commodity price risks through negotiated supply contracts and forward physical contracts. However, because these contracts
are, generally, in respect of raw material and utility purchases for own use, they are not accounted for as financial instruments.
Credit risk
Management has a credit policy in place under which each new customer is individually analysed for credit worthiness and assigned a purchase limit
before the standard payment and delivery terms and conditions are offered. Because of the Group’s customer base, there is no need for the Group to
rely on external ratings. In most cases, bankers’ references, trade credit insurance approvals and/or credit references from other suppliers are
considered adequate. Purchase limits are reviewed on a regular basis.
In order to determine which customers are classified as having payment difficulties, the Group applies a mix of duration and frequency of default. The
Group does not generally require collateral in respect of trade and other receivables.
The Group’s exposure to credit risk is mainly influenced by its customer base. As such, it is concentrated to the default risk of its industry. However,
geographically, there is no credit risk concentration, with the Group’s customers spread throughout New Zealand, Australia and other overseas
markets. Credit risk exposure with respect to trade receivables is limited by stringent credit controls, by the utilisation of irrevocable letters of credit and
trade credit insurances wherever required, and by the large number of customers within the Group's customer base.
RISKS AND FINANCIAL INSTRUMENTS
This section identifies the risks faced by the Group, explains the impact of these risks on its financial position, performance and cash flows, outlines the
Group’s approach to financial risk management and highlights the financial instruments used to manage risks.
Management commentary
Exposure to credit, liquidity, foreign currency and interest rate risks arises in the normal course of the Group’s businesses.
Page 31 of 54

8.
Interest rate risks are continually monitored having regard to the circumstances at any given time.
The Group’s policy allows management to hedge up to between 25% and 75% of the Group’s core loans and borrowings without the prior approval of
the Board having first been obtained.
The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the reference interest
rates, tenors, repricing dates and maturities and the notional or par amounts. The Group assesses whether the derivative designated in each hedging
relationship is expected to be effective in offsetting changes in cash flows of the hedged item using the critical matched terms method.
The Group enters into foreign currency contracts within policy parameters to manage the risk associated with forecast sales and purchases. The
Group’s policy allows management to hedge up to 12 months forecast sales and purchases without prior approval of the Board having first been
obtained.
The Group does not engage in speculative transactions or hold derivative financial instruments for trading purposes and requires that exposures to
foreign currency risks, and details of all outstanding derivative instruments, are reported to and reviewed by the Board on a monthly basis.
The Group applies a hedge ratio of 1:1. The method used to assess hedge effectiveness is Critical Match Terms whereby the hedging instrument and
the hedged item are matched to the key terms. In the hedge relationship, the main cause of ineffectiveness includes a change in the critical terms, for
example, the timing of the transaction.
The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and
timing of the respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected to be, and has
been, effective in offsetting changes in cash flows of the hedged item using the critical matched terms method.
Interest rate risk
Prior to the repayment of bank debt in December 2020, interest rate swaps were entered into to hedge a proportion of the Group’s exposure to interest
rate fluctuations by ensuring that there was an appropriate mix, after having regard to the circumstances prevailing at the time, of fixed and floating rate
exposure within the Group’s total loans and borrowings.
Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an ongoing basis. In
general, the Group generates sufficient cash flows from its operating activities to meet its obligations arising from its financial liabilities and has credit
lines in place to cover potential shortfalls.
The funds generated enabled the Group to not only repay all of the Group's bank debt outstanding as at that date but also put it into a significant cash
surplus position at balance date to enable it to fund its transformation and provide it with sufficient liquidity to settle its ongoing financial obligations for
at least 12 months after the date of issuing these consolidated financial statements.
As discussed at note 5c (Banking facilities and loans and borrowings) to the consolidated financial statements, the Group continues to maintain, among
other things, transactional banking facilities with its Bank and will look to raise for discussions with the Bank the reinstatement of committed credit lines
to cover working capital requirements as the Group progresses through its transformation journey.
The Group’s contractual cash flows and liquidity risk profile are set out in detail on page 35.
Foreign currency risk
The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases,
receivables and payables are denominated. All entities in the Group have New Zealand dollars ($) as their functional currency.
RISKS AND FINANCIAL INSTRUMENTS (continued)
Management commentary (continued)
Liquidity risk
Page 32 of 54

8.
Current
0 – 30 days
past due
31 – 120 days
past due
Total
0%0%0%
7,260 1,480 368 9,333
- - - (19)
0%0%0%
9,885 930 291 11,190
- - - (6)
Balance at 30 June($19)
($6)
Changes in the impairment provision are included in distribution expenses in the Consolidated Statement of Profit or Loss.
Impaired trade receivables written off
6
7
Changes in impairment provision
(19)
-
2023
2022
$000
$000
Balance at 1 July
(6)
(13)
Trade and other receivables - net$9,314
$11,184
Individually impaired trade receivables relate to a small number of customers where the amounts involved are immaterial. In the case of insolvency, the
Group generally writes off the receivable in full unless there is clear evidence that a receipt, whether directly or by way of a claim under the Group’s
trade credit insurance policy, is highly probable.
The Group adopts the expected loss model in assessing its trade and other receivables for impairment. In doing so, it determines impairment on a
forward-looking basis, taking into account not only past events and current conditions, but also forecast of future economic conditions. Bad debts are
written off when they are considered to have become uncollectable.
The details of movements in the impairment provision are as follows:
$000
$000
Trade and other receivables - gross
9,333
11,190
Individual impairment provisions
(19)
(6)
Gross carrying amount – trade and other receivables 84
Loss allowance (6)
In summary, trade and other receivables are determined to be impaired as follows:
2023
2022
Gross carrying amount – trade and other receivables
225
Loss allowance
(19)
2022
Expected loss rate7%
The status of trade and other receivables at the reporting date is as follows:
More than 120 days past
due
2023
Expected loss rate
8%
Other regions
585
710
Trade and other receivables$9,314
$11,184
New Zealand
5,556
5,797
Australia
3,173
4,677
The carrying amount of financial assets represents the Group’s maximum credit exposure.
The Group has not renegotiated the terms of any financial assets which would result in the carrying amount no longer being past due or avoid a
possible past due status.
The Group’s maximum exposure to credit risk for trade and other receivables by geographic regions is as follows:
2023
2022
$000
$000
RISKS AND FINANCIAL INSTRUMENTS (continued)
Quantitative disclosures
Credit risk
Page 33 of 54

8.
Statement of
Consolidated
Financial
Position
Total contractual
cash flows
6 months or less6-12 months1-2 years2-5 years
Greater than 5
years
$000$000$000$000$000$000$000
10,111 10,111 10,111 - - - -
Lease liabilities 18,038 23,181 1,074 1,017 1,964 5,763 13,363
$28,149 $33,292 $11,185 $1,017 $1,964 $5,763 13,363
(45,575) (18,425) (15,219) (11,931) - -
44,285 18,049 14,805 11,430 - -
(1,001) (1,290) (376) (414) (500) - -
($1,001)
(1,017)
16
($1,001)
10,766 10,766 10,766 - - - -
Lease liabilities 19,758 26,537 1,427 1,408 2,735 5,726 15,241
$30,524 $37,303 $12,193 $1,408 $2,735 $5,726 $15,241
(41,693) (13,534) (12,147) (16,012) - -
42,240 13,914 12,251 16,075 - -
686 547 380 104 63 - -
$686
(8)
694
$686
Net derivative (assets)/liabilities
Inflow
Outflow
Net derivative (assets)/liabilities
Disclosed in Consolidated Statement of
Financial Position
Current assets
Current liabilities
Current liabilities
Net derivative liabilities/(assets)
2022
Trade payables
Total non-derivative liabilities
Forward exchange contracts
Forward exchange contracts
Inflow
Outflow
Net derivative liabilities/(assets)
Disclosed in Consolidated Statement of
Financial Position
Current assets
Liquidity risk
The following table sets out the contractual undiscounted cash flows for all material financial liabilities (including projected interest costs).
Timing of contractual cash flows
2023
Trade payables
Total non-derivative liabilities
RISKS AND FINANCIAL INSTRUMENTS (continued)
Quantitative disclosures (continued)
Page 34 of 54

8.
AUDUSDEUROthers
$000$000$000$000
3,173 76 - -
(314) (123) (19) (32)
2,859 (47) (19) (32)
42,716 - - -
45,575 (47) (19) (32)
(45,575) - - -
($0)($47)($19)($32)
4,715 300 - -
(1,596) (1,001) (94) (13)
3,119 (701) (94) (13)
38,574 - - -
41,693 (701) (94) (13)
(41,693) - - -
$0 ($701)($94)($13)
Total
6 months or
less
6-12 months 1-2 years 2-5 years
Greater than
5 years
$000$000$000$000$000$000
39,319 39,319 - - - -
14,874 14,874 - - - -
Financial assets and liabilities
Cash and bank
Interest rate risk – re-pricing analysis
At balance date, the interest rate profile of the Group’s interest-bearing financial instruments was as follows:
2023
Financial assets and liabilities
Cash and bank
2022
Net Consolidated Statement of Financial Position exposure before hedging activity
Estimated forecast sales for which hedging is in place
Net cash flow exposure before hedging activity
Forward exchange contracts
Notional amounts
Net unhedged exposure
Forward exchange contracts
Notional amounts
Net unhedged exposure
2022
Trade receivables
Trade payables
2023
Trade receivables
Trade payables
Net Consolidated Statement of Financial Position exposure before hedging activity
Estimated forecast sales for which hedging is in place
Net cash flow exposure before hedging activity
RISKS AND FINANCIAL INSTRUMENTS (continued)
Quantitative disclosures (continued)
Foreign currency risk
The Group’s exposure to foreign currency risk can be summarised as follows:
NZD equivalent of these foreign currencies:
Page 35 of 54

8.
StrengthenWeakenStrengthenWeaken
$000$000$000$000
30 June 2023
NZD/AUD (+/- 5%)
- - 1,437 (1,588)
30 June 2022
NZD/AUD (+/- 5%)
- - 1,318 (1,457)
IncreaseDecreaseIncreaseDecrease
1% point(1% point)1% point(1% point)
$000$000$000$000
$382 ($382) - -
$142 ($142) - -
Interest rate impact - Net FY23
Interest rate impact - Net FY22
Hedging
Forecast transactions
The Group classifies the forward exchange contracts taken out to hedge forecast transactions as cash flow hedges.
P&LEquity, net of tax
There were no foreign exchange contracts that do not meet the hedge accounting criteria at the balance sheet date.
The impact of a change in interest rates by one percentage point on the Group’s profit or loss and OCI is set out as follows:
P&LEquity, net of tax
RISKS AND FINANCIAL INSTRUMENTS (continued)
Sensitivity analysis
In managing interest rate and currency risks, the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings. Over the longer-
term, however, changes in foreign exchange and interest rates will have an impact on profit.
For foreign exchange contracts that continue to meet the hedge accounting criteria at the balance sheet date to hedge foreign exchange exposures, it
is estimated that a general change in the value of the New Zealand dollar against other foreign currencies as set out below would have no impact on
the Group’s profit or loss before income tax for the years ended 30 June 2023 and 2022. The impact on equity, net of tax, for these foreign exchange
contracts, is disclosed in the table below:
Page 36 of 54

8.
The following relates to items designated as hedging instruments:
Notional
amount
Assets Liabilities
Line item in
Consolidated
Statement of
Financial
Position
Changes in
the value of
the hedging
instrument
recognised in
OCI during
the year
Hedge
ineffectivenes
s recognised
in profit or
loss
Balance in
CFHR
Average
rate of
hedging
$000$000$000$000$000$000
AUD40,680 1,017 (16)
Derivative
financial
instruments -
assets and
liabilities
(426) - 938 0.8926
Notional
amount
Assets Liabilities
Line item in
Consolidated
Statement of
Financial
Position
Changes in
the value of
the hedging
instrument
recognised in
OCI during
the year
Hedge
ineffectivenes
s recognised
in profit or
loss
Balance in
CFHR
Average
rate of
hedging
$000$000$000$000$000$000
AUD38,100 8 (694)
Derivative
financial
instruments -
assets and
liabilities
52 - (576)0.9138
1
100% of notional amount expiring within 12 months of balance date
2
Hedge ratio 1:1
Carrying amount
2022
Foreign currency risk
Forward exchange contracts
– sales and receivables
1, 2
2
Hedge ratio 1:1
Hedging (continued)
Carrying amount
2023
Foreign currency risk
Forward exchange contracts
– sales and receivables
1, 2
1
62% of notional amount expiring within 12 months of balance date and 38% expiring between 12 and 24 months of balance date
RISKS AND FINANCIAL INSTRUMENTS (continued)
Page 37 of 54

8.
Fair value
hierarchy
Level 2
$000$000$000$000
1,017 - 1,017 1,017
- 39,319 39,319
- 9,314 9,314
- 170 170
$1,017 $48,803 $49,820
- 16,742 16,742
- 666 666
- 17,408 17,408
16 - 16 16
- 14,948 14,948
- 192 192
- 4,915 4,915
- 1,296 1,296
16 21,351 21,367
$16 $38,759 $38,775
Fair value
hierarchy
Level 2
$000$000$000$000
8 - 8 8
- 14,874 14,874
- 11,184 11,184
- 160 160
$8 $26,218 $26,226
- 17,820 17,820
- 720 720
- 18,540 18,540
694 - 694 694
- 12,210 12,210
- 203 203
- 5,429 5,429
- 1,938 1,938
694 19,780 20,474
$694 $38,320 $39,014
Customer deposits
Employee benefits and entitlements
Lease liabilities
Total current liabilities
Total liabilities
There were no financial assets or liabilities with fair values classified as Level 1 or Level 3 in the fair value hierarchy.
Liabilities
Lease liabilities
Employee benefits
Total non-current liabilities
Derivative financial instruments
Trade payables and accruals
Assets
Derivative financial instruments
Cash and bank
Trade and other receivables
Advances to employees
Total assets
Hedging
instruments
Amortised
cost
Total
carrying
amount
2022
Trade payables and accruals
Customer deposits
Employee benefits and entitlements
Lease liabilities
Total current liabilities
Total liabilities
Total assets
Liabilities
Lease liabilities
Employee benefits
Total non-current liabilities
Derivative financial instruments
2023
Assets
Derivative financial instruments
Cash and bank
Trade and other receivables
Advances to employees
RISKS AND FINANCIAL INSTRUMENTS (continued)
Classification and fair values
The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy.
Hedging
instruments
Amortised
cost
Total
carrying
amount
Page 38 of 54

8.
Derivative
assets
Derivative
liabilities
Derivative
assets
Derivative
liabilities
$000$000$000$000
1,017 (16) 8 (694)
- - - -
1,017 (16) 8 (694)
(16) 16 (8) 8
$1,001 $0 $0 ($686)
Gross amounts in the Consolidated Statement of Financial Position
Amounts offset
Net amounts in the Consolidated Statement of Financial Position
Related amounts that are not offset based on ISDA
Net amounts
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change occurred.
Master netting or similar agreements
The Group enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master netting agreements. In general,
under such agreements the amounts owed by each counterparty on a single day in respect of all transactions outstanding are aggregated into a single
net amount that is payable by one party to the other. In certain circumstances – for example, when a credit event such as a default occurs, all
outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement
of all transactions.
The ISDA agreements do not meet the criteria for offsetting in the Consolidated Statement of Financial Position. This is because the Group does not
have any currently legally enforceable right to offset recognised amounts, because the right to offset is enforceable only on the occurrences of future
events such as a default on the bank loans or other credit events.
The following table sets out the carrying amounts of recognised derivatives that are subject to master netting agreements:
2023
2022
Determination of fair values
The fair value of an asset or a liability is measured on a recurring basis. When measuring the fair value of an asset or a liability, the Group uses market
observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly
(that is, derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
If the inputs used to measure the fair value of an asset or liability might be categorised in different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
RISKS AND FINANCIAL INSTRUMENTS (continued)
Classification and fair values (continued)
A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if
the Group’s contractual rights to the cash flows from the financial assets expire or if the Group transfers the rights to receive the contractual cash flows
in a transaction in which substantially all the risks and rewards of ownership of the financial assets are transferred. Financial liabilities are
derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled.
Derivatives, being forward exchange contracts, have been measured at fair value using relevant valuation techniques which include net present value
and discounted cash flow models and comparison with similar instruments for which observable market prices exist. Assumptions and inputs used in
valuation techniques include risk-free and benchmark interest rates, credit spreads and other information used in estimating discount rates and foreign
currency exchange rates.
Classification and fair values (continued)
Non-derivative financial instruments comprise trade and other receivables, cash and bank and trade and other payables. Non-derivative financial
instruments are recognised initially at fair value, inclusive of transaction costs, and are subsequently measured at amortised cost using the effective
interest rate method less any impairment losses.
Page 39 of 54

9.
Right-of-use assets
Motor vehicles
Lease liabilities
Depreciation charge in respect of right-of-use assets
Motor vehicles
Interest expense (included in finance costs)
Contracts may contain both lease and non-lease components. The Group has elected, for leases of motor vehicles, to not separate lease and non-
lease components and instead account for these as a single lease component.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose
any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for
borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following
- fixed payments; and
- variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date.
Amounts recognised in the Consolidated Statement of Cash Flows
Total cash outflow for leases
$2,930$3,031
Accounting policy
The Group leases buildings, forklifts and motor vehicles, with contracts typically entered into for fixed periods ranging from between three to four years
for motor vehicles, five to six years for fork hoists and up to sixteen years for buildings, but may have extension options as further discussed below.
$879
$990
Expense relating to short-term leases (included in cost of goods sold and
administration expenses
$311
$594
Expense relating to leases of low-value assets that are not disclosed above as short-
term leases (included in administrative expenses)
$39
$71
Plant and equipment
134
110
39
21
$994
$954
Amounts recognised in the Consolidated Statement of Profit or Loss
2023
2022
$000
$000
Buildings
821
823
$18,038
$19,758
Additions to right-of-use assets during the year were $331,000 (2022: $266,000).
There was no impairment of right-of-use assets during the year (2022: Nil).
There was also no reversal of prior year impairment of right-of-use assets during the year (2022: Nil).
$000
$000
Non-current
16,742
17,820
Current
1,296
1,938
241
80
$8,616
$9,280
2023
2022
$000
$000
Buildings
8,017
8,839
Plant and equipment
358
361
OTHERS
This section includes the remaining information relating to the consolidated financial statements which is required to be disclosed to comply with
financial reporting standards.
9a. Leases
This note provides information for leases where the Group is a lessee.
Amounts recognised in the Consolidated Statement of Financial Position
2023
2022
Page 40 of 54

- if there are significant costs to not extend; and
- if leasehold improvements are expected to have a significant remaining value.
Otherwise, the Group considers other factors including the lease durations already provided for in the contract, the Group's future strategic or business
direction and the costs and disruptions to the business as a consequence of any decision to not exercise an extension option.
As at balance date, potential future cash outflows of $19,803,000 (undiscounted) in respect of leases of buildings have not been included in the
determination of lease liability because it is not reasonably certain that these leases will be extended (2022: $19,803,000).
The lease term is reassessed if an extension option is actually exercised. The assessment of reasonable certainty is only revised if a significant event
or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. The Group did not revise its
assessment of reasonable certainty with respect to extension options during the year (2022: Nil).
Right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
Payments associated with short-term leases of plant and equipment and motor vehicles and all leases of low-value assets are recognised on a straight-
line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a purchase option. Low-value
assets comprise IT equipment and small items of office furniture.
Extension options
Extension options are generally incorporated into contracts for leases of buildings, with these options used to maximise operational flexibility with
respect to the management of the buildings used in the Group’s operations. Where extension options are held, they are exercisable only by the Group
and not by the respective lessor. Extension options are generally not included in contracts for leases of plant and equipment and motor vehicles
because of the Group's ability to replace these assets without significant cost, delay or disruption to the business.
Estimates, judgements and assumptions
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option.
Extension options are only included in the lease term if the lease is reasonably certain to be extended, with the Group reasonably certain to extend:
- makes adjustments, where necessary, specific to the lease taking into account country, currency and security.
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment
profile to the lease, then the group entities use that rate as a starting point to determine the incremental borrowing rate.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability; and
- make good costs.
Accounting policy (continued)
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for
leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
- where possible, uses recent third-party financing secured by the individual lessee as a starting point, adjusted to reflect changes in financing
conditions since third party financing was secured;
- uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by lessees within the Group which does not
have recent third-party financing; and
9a. Leases (continued)
Page 41 of 54

The total number of shares issued under the Bremworth Equity Plan as at balance date was 500,000 (2002: 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 (2022: 1,000,000).
The total number of options issued under the Bremworth Option Scheme at balance date was 1,000,000 (2002: 1,000,000).
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 have been issued in respect of all outstanding performance rights under the 2020 LTI Scheme at condition
date (being 1 May 2023) was 1,071,394 (or 1.53% of the total number of shares on issue at balance date of 70,069,426).
All performance rights issued in 2020 under the 2020 LTI Scheme lapsed during the year (2022: Nil).
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 year (2022: 500,000).
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 year (2022: Nil).
9b. Share-based payment
Page 42 of 54

% of total number of shares on issue
There were no issue of shares under the Bremworth Equity Plan during the year (2022: The Company issued 500,000 fully paid up ordinary shares in
September 2021, with the difference between the $0.4161 issue price per share and the $0.8000 market price per share at issue date of $192,000
recognised in administration expenses in the Consolidated Statement of Profit or Loss with a corresponding credit to the share-based payment reserve
within equity).
Interest-free full-recourse loan
The Company did not provide any interest-free, full-recourse, loans under the Bremworth Equity Plan during the period (2022: $208,050).
The accounting for interest-free, full-recourse, loans under the Bremworth Equity Plan is disclosed in Note 8b (Share-based payment) of the annual
financial statements for the year ended 30 June 2022.
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 Consolidated Statement of Profit or Loss for the year ended 30 June 2023:
· $80,800, being the proportion of the fair value of the performance rights issued under the 2020 LTI Scheme relating to the year ended 30 June
2023 (2022 $97,000);
· $78,300, being the proportion of the fair value of the options granted under the Bremworth Option Scheme relating to the year ended 30 June
2023 (2022: $73,300 being the proportion of the fair value of the options granted for the period from commencement of employment through to balance
date);
· $43,100, being the proportion of the fair value of the options granted under the 2022 LTI Scheme for the period from grant date through to
balance date (2022: Nil);
with a corresponding credit totalling $202,000 to the share-based payment reserve within equity (2022: $170,300).
Balance as at 30 June
1,890,328 2,071,394
2.70 2.99
Impact of share-based payment arrangements on the financial statements
Issued during the year 890,328 1,000,000
Lapsed during the year (1,071,394) -
Maximum number of shares that could be issued under current share-based payment arrangements
The following table summarises the maximum number of shares that could be issued under the Bremworth Option Scheme and the LTI Scheme as at
balance date:
2023
2022
Balance at 1 July 2,071,394 1,071,394
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.
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 (Share-based payment) of the annual financial statements for the
year ended 30 June 2022.
9b. Share-based payment (continued)
Page 43 of 54

WarrantiesClaimsTotal
$000$000$000
1,110 350 1,699
1,145 15 1,160
(949) (175) (1,124)
- - (100)
$1,306 $190 $1,635
729 - 819
577 190 816
$1,306 $190 $1,635
1,095 - 1,334
699 350 1,049
(684) - (684)
- - -
$1,110 $350 $1,699
622 - 711
488 350 988
$1,110 $350 $1,699
Accounting policies
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
Estimates, judgements and assumptions
Provision for warranties requires judgement to be applied by considering a range of factors including the nature and extent of historical claims data
associated with similar products sold by the Group, the terms of the warranties built into supply contracts, consumer protection laws in key markets and
the corrective actions being taken to address quality issues at production.
The provision for warranties relates mainly to carpet sold during the years ended 30 June 2023 and 2022. The provision is based on estimates made
from historical warranty data associated with similar products sold by the Group.
The Group has no history of material warranty claims in respect of non-carpet products sold. As a consequence, no provision for warranties is required
in respect of these other products.
The amount of warranty costs recognised as an expense directly to the Consolidated Statement of Profit or Loss during the year totalled $1,208,000
(2022: $1,024,000).
Warranties relating to the sale of carpet are standard warranties. The Group does not offer extended warranties that would be subject to a separate
performance obligation.
Claims
The provision for claims relates to the estimated cost to settle claims received during the year ended 30 June 2023 for products supplied by a
previously-owned business unit, with these claims yet to be resolved at balance date (2022: Nil).
Workplace accidents
Certain companies within the Group are parties to the ACC Partnership Programme during the year. Under this programme, these companies assume
the costs normally assumed by ACC (Accident Compensation Corporation of New Zealand) for accidents in the workplace, with the provision for claims
incurred but yet to be settled. It is expected that the outflow of economic benefit will occur within 12 months of balance date.
Make good
Provision for make good relates to the costs expected to be incurred in relation to make good obligations under leases entered into, with the provision
utilised as the costs relating thereto are incurred or adjusted to reflect current estimates of costs to be incurred. The amount utilised during the year
relates to the amount paid.
Warranties
Current 150 -
Balance at 30 June 2022
$150 $89
Balance at 30 June 2022
$150 $89
Non-current - 89
Utilised during the year - -
Released to profit or loss
during the year
- -
Balance at 1 July 2021 150 89
Provided during the year - -
Current
50 -
Balance at 30 June 2023$50 $89
Balance at 30 June 2023$50 $89
Non-current
- 89
Utilised during the year
- -
Released to profit or loss
during the year
(100) -
$000$000
Balance at 1 July 2022
150 89
Provided during the year
- -
9c. Provisions
Workplace accidentsMake good
Page 44 of 54

One of the Directors is a shareholder in the Company. The Chief Executive Officer is also a shareholder in the Company by virtue of the fully paid up
ordinary shares issued to and held by him pursuant to the Bremworth Equity Plan with more information found in note 9b (Share-based payment) to the
consolidated financial statements.
The Group’s indebtedness under the cross guarantee at balance date amounted to nil (2022: Nil).
The Group received claims during the year ended 30 June 2022 for products supplied by a previously-owned business unit, with the estimated cost to
settle these claims provided for at balance date. It is not possible to estimate the financial impact of any further claims given there is insufficient history
to inform the extent or the timing of any future claims.
9f. Related parties
Transactions with directors and key management personnel
For the purposes of this note, key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
As shareholders
Estimates, judgements and assumptions
The Group appointed Deloitte to assist with the Group's assessment of its liability for long service leave as at 30 June 2023, with Deloitte using a
Projected Unit Credit (PUC) method to value employees' entitlements to long service leave.
This method involves a monthly projection of the long service leave entitlement for each employee to retirement age. The expected entitlement
payment at each point over the projection period is calculated using assumptions about likely resignation, retirement, mortality and disability for each
employee. Using employee data provided by the Company, Deloitte were able to estimate the value of the long service leave liability as at balance
date.
9e. Contingent liabilities
The Group has granted indemnities in favour of Bank of New Zealand and National Australia Bank Limited (together, “the Bank”) at balance date in
respect of Bank guarantees relating to leases and other commitments totalling $2,068,000 (2022: $2,248,000).
Some subsidiaries in the Group are parties to a cross guarantee in favour of the Bank securing each other’s obligations, with the property-owning
companies in the Group also granting in favour of the Bank first-ranking mortgages in respect of land and buildings as security for all obligations if the
Group to the Bank.
Balance at 30 June$704
$773
Accounting policies
Short-term employee benefits are expensed as the related services are provided.
Long-term employee benefits relate to long service leave that is not expected to be settled within 12 months after the end of the annual reporting period
in which the employees render the service that gives rise to the benefit. The Group's net obligation is the amount of future benefit employees have
earned in return for their service in the current and prior years. The complexity and length of the long service leave arrangement requires the use of
actuarial assumptions, such as salary increases and inflation, in order to calculate the present value of the obligation. The Group’s net obligation in
respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior
periods adjusted for the probability of the benefits vesting and discounted at the appropriate rate to determine its present value.
Non-current
666
720
Current
38
53
$000
$000
Liability for long service
704
773
Total employee benefits$704
$773
9d. Employee benefits
2023
2022
Page 45 of 54

20232022
$000$000
2,878 3,582
202 362
287 254
- 10
$3,367 $4,208
Salaries, bonuses and leave entitlements
Share-based payments
Employee benefits
Termination payments
The Group has not provided the Chief Executive Officer and key management personnel with any post-employment benefits.
Pursuant to the terms of employment of the Chief Executive Officer, the Company agreed to issue the Chief Executive Officer with 500,000 ordinary
shares under the terms of the Bremworth Equity Plan (as discussed in detail at note 9b (Share-based payment) to the consolidated financial
statements), with the issue of these shares to take place at the time of the appointment of the Chief Executive Officer.
G C W Biel, a long-serving Director, was paid a lump sum retiring allowance pursuant to an arrangement that was contained in the Company’s
constitution on his retirement from the Board on 25 November 2021. The amount of this retiring allowance, which was set in November 2007, is
$96,000. The Company decided at that time that retiring allowances would no longer be offered in respect of new Directors appointed to the Board.
The Group notes that the Directors are precluded by the NZX Listing Rules from voting at general meetings of shareholders on certain matters
prescribed by the New Zealand Exchange. These matters include, in the case of the Directors who are also shareholders, shareholders’ approval of
directors’ fees.
Key management personnel’s (including the Chief Executive Officer’s) remuneration and benefits
In addition to salaries and performance-based payments, the Group also provides non-cash benefits to the Chief Executive Officer of the Company and
key management personnel of the Group.
These non-cash benefits may include the provision of motor vehicles, income protection insurances, life insurances and medical insurances. In
assessing the value of the non-cash benefit provided to the Chief Executive Officer and key management personnel, the Group has used the value of
the benefit that is used for calculating fringe benefit tax plus the fringe benefit tax that is paid or payable.
The remuneration paid and payable, and the benefits provided, to the Chief Executive Officer and key management personnel (but excluding the
Directors’ remuneration and benefits) comprised:
Chairman of the Audit Committee$10,000
In recognition of additional time and responsibilities as Chairman of Audit
Committee
Chairman of the Remuneration Committee$5,000
In recognition of additional time and responsibilities as Chairman of
Remuneration Committee
Non-executive Chairman of the Board$128,100
Inclusive of time spent on Board committees and as Chairman of Nomination
Committee
Non-executive directors (including Deputy
Chairman of the Board)
$61,000 Inclusive of time spent on Board committees
There were no loans to, or from, the Directors and key management personnel during the year ended 30 June 2023. An interest-free, full-recourse,
loan of $208,050 was provided to the Chief Executive Officer during the 2022 financial year pursuant to the terms of the Bremworth Equity Plan, with
the proceeds of that loan applied towards the amount payable for the 500,000 fully paid up ordinary shares issued to the Chief Executive Officer under
the Bremworth Equity Plan. More information can be found in note 9b (Share-based payment) to the consolidated financial statements.
Directors’ remuneration and benefits
The fees paid to the Directors for services in their capacity as directors totalled $387,000 during the year ended 30 June 2023 (2022: $372,000).
No other services were provided by the Directors during the year (2022: Nil).
The scale of fees payable to the Directors was last reviewed and approved by the Board in January 2019, with the current scale of fees applying with
effect from 1 January 2019 set out below:
Directors’ feesPer annumExplanatory notes
9f. Related parties (continued)
Transactions with directors and key management personnel (continued)
As shareholders (continued)
Their shares rank pair passu with all the other ordinary shares in the capital of the Company and do not therefore confer additional rights to dividends
paid or to attend or vote at any meetings of the shareholders of the Company.
As lenders or borrowers
Page 46 of 54

Other transactions
20232022
100
100
100
100
100100
100100
100100
Voluntary redundancies for Napier-based employees
Future insurances
110 waged and eight salaried employees opted for voluntary redundancy. While some employees did consider redeployment to the Whanganui plant,
these did not work out for personal reasons.
The cost of voluntary redundancy is $1.4 million.
18 waged and seven salaried employees either did not take up the offer, or were not eligible, for voluntary redundancy and will continue to be
employed by the Group.
The Group is in the process of renewing its insurances for 2023/24, with its insurance brokers:
- working with the panel of insurers on the scope of cover that would be available to the Group from any future flooding events (with latest advice
indicating a limit of $20.0 million cover for material damage and business interruption combined) and a deductible of $1.0 million); and
- investigating excess layer coverage for floods to the extent required.
Elco Direct LimitedWool acquisitionNew Zealand
9h. Events after balance date
Subsequent to balance date – and after having confirmed that the Napier yarn spinning plant would be offline for a considerable, but yet to be
determined, period of time and having established that staff at the Napier plant were looking for more certainty around their future – the Group
presented several options to employees, while also putting in place various programmes aimed at providing career and financial advice, as well as
emotional support, for all affected staff.
These options included voluntary redundancy or expressions of interest for redeployment to the Whanganui plant.
Cavalier Bremworth (Australia) Limited Carpet distributionNew Zealand
Bremworth Spinners Limited (previously
Cavalier Spinners Limited)
Carpet yarn salesNew Zealand
Bremworth Carpets and Rugs Limited
(previously Bremworth Limited)
Carpet sales and manufacturingNew Zealand
Bremworth Pty Limited (previously Cavalier
Bremworth Pty Limited)
Carpet salesAustralia
The Group deals with many entities and organisations in the normal course of business. The Group is not aware of any of the Directors, the Chief
Executive Officer or key management personnel, or their related parties, holding positions in any of these entities or organisations that result in them
having control or significant influence over the financial or operating policies of these entities or organisations.
The Group does not transact with the Directors, the Chief Executive Officer or key management personnel, and their related parties, other than in their
capacity as directors and employees, except that they may purchase carpets and rugs from the Group for their own domestic use. These purchases
are on the same terms and conditions as those applying to all employees of the Group and are immaterial and personal in nature.
9g. Group entities
Operating subsidiaries of the Group
Principal activity
Country of
Interest (%)
incorporation
9f. Related parties (continued)
Transactions with directors and key management personnel (continued)
Key management personnel’s (including the Chief Executive Officer’s) remuneration and benefits (continued)
However, because of a delay in the issue of those shares to the Chief Executive Officer and the increase in the Bremworth share price between the
time of his appointment on 23 June 2021 and the time the shares were issued to him on 10 September 2021, the Chief Executive Officer was liable for
the tax on the difference between the market price of Bremworth shares on issue date and the price those shares were issued to him at.
In keeping with the agreement that was reached with the Chief Executive Officer, the Board approved a one-off payment to the Chief Executive Officer
in September 2021 of $127,317 to keep the Chief Executive Officer neutral in respect of the tax that he had to pay as a consequence of the delay.
That amount of $127,317 is recognised in administration expenses in the Consolidated Statement of Profit or Loss.
Page 47 of 54

The matter of future insurances against flooding is discused at note 9h (Events after balance date) to the consolidated financial statements.
Based on the Group's assessment, there is nothing to indicate that climate-related risks have had any impact on the carrying value of its non-financial
assets as at 30 June 2023 other than those already recognised following Cyclone Gabrielle as discussed at note 3 (Cyclone Gabrielle) to the
consolidated financial statements, with the Board closely monitoring developments in this area.
9j. Standards, interpretations and amendments to standards
There are no new, or pending, standards or amendments to existing standards which have, or are expected to have, a material impact on the Group.
In relation to the exposure to carbon pricing, the Group has in place two decarbonisation projects that are aimed at directly reducing our reliance on
natural gas in our manufacturing processes while also ensuring that its electricity provider is, by design, a fully renewable generator of electricity.
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 has been put on hold as a consequence of the disruption to the Napier carpet yarn spinning plant following Cyclone
Gabrielle. The initial stages of this project, including the detailed feasibility study and monitoring and targeting programme were completed prior to the
plant going offline. The project will be reassessed once the site damage assessment is able to be completed and a decision around the future of the
plant able to be made.
The second decarbonisation initiative at the Group’s Whanganui carpet yarn spinning plant, which is also being co-funded by EECA, involves the
replacement of the gas-fired dryer used in felted yarn production with an alternative radio frequency (RF) dryer. This project had an expected cost of
$440,000, with the EECA co-funding agreed at 40% ($176,000). This project was successfully delivered in FY23, with the new RF dryer currently in use
on the felting line. The project is now in the final measuring and monitoring stage before being closed off with EECA.
The organisation has a thorough understanding of scope 1 and 2 emissions for the business as well as material scope 3 emissions. It has undertaken
third party verification of its carbon inventory including a 2018 baseline and the financial years ended June 2022 and 2023. This is a significant step
towards setting science based targets for organisational emission reduction.
In relation to the exposure to adverse climatic conditions, the Group has in place insurances to protect it against losses arising from such events while
also having established natural hazards exposure levels for the Napier site. See also note 2f (Impact of Cyclone Gabrielle) to the consolidated financial
statements for further discussions relating to the risk mitigation and business continuity plans following Cyclone Gabrielle and the resilience of the new
hybrid supply chain model.
Work is also underway to understand natural hazards at the other manufacturing sites as well as available mitigation strategies.
9i. 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.
These risks are broadly as follows:
- the exposure to carbon pricing and its impact on the cost of natural gas, with the Group's reliance on natural gas at its carpet manufacturing plant in
Auckland and its carpet yarn spinning plants in Napier (while noting that a decision regarding its future is yet to be made following the impact of
Cyclone Gabrielle as discussed in more detail in note 2f (Impact of Cyclone Gabrielle) to the consolidated financial statements) and Whanganui;
- the exposure to the effects of climate change through adverse climatic conditions (for example, flooding) and, in time, rising sea levels, with both the
Napier and Whanganui sites within close proximity of the coast and significant rivers;
- climate change adaptation and managed retreat legislation on the longer-term regulatory framework.
Page 48 of 54

NON-GAAP FINANCIAL INFORMATION
CONTENTS
Trend Statement
50
Disclosure of Non-GAAP Financial Information
53
Page 49 of 54

2023202220212020201920182017
$000$000$000$000$000$000$000
$89,689 $95,485 $111,577 $117,981 $135,234 $148,120 $156,120
286 4,918 3,385 2,300 7,076 9,998 2,572
(845) (683) (379) (2,418) (3,479) (3,561) (3,251)
(994) (954) (534) (1,779) - - -
- 194 (764) (265) - - -
(1,553) 3,475 1,708 (2,162) 3,597 6,437 (679)
(1,045) (1,029) (1,124) (2,535) (1,790) (2,798) (2,936)
502 159 68 - - - -
-
- - - 644 1,419 797
(2,096) 2,605 652 (4,697) 2,451 5,058 (2,818)
(263) (870) (276) 1,240 (572) (1,084) 962
(2,359)
1,735 376 (3,457) 1,879 3,974 (1,856)
13,392 505 1,353 (17,994) (18,659) 107 (268)
11,033 2,240 1,729 (21,451) (16,780) 4,081 (2,124)
- - - - - - -
$11,033 $2,240 $1,729 ($21,451) ($16,780)$4,081 ($2,124)
50,520 37,771 35,592 33,637 54,989 72,222 67,890
- - - - 20,500 27,500 35,000
18,227 19,251 20,978 3,511 1,618 2,029 3,728
- - - 15,800 - 4,000 6,500
22,686 21,880 21,453 17,033 22,227 27,253 25,739
$91,433 $78,902 $78,023 $69,981 $99,334 $133,004 $138,857
10,234 14,306 12,094 22,725 30,164 35,142 37,123
8,616 9,280 9,968 430 - - -
- - - - - 24,544 23,490
- - - - - 2,362 2,362
576 532 732 600 5,456 4,971 5,532
19,426 24,118 22,794 23,755 35,620 67,019 68,507
39,319 14,874 22,508 1,276 2,724 2,111 1,255
32,688 39,910 32,721 44,950 60,990 63,874 69,095
$91,433 $78,902 $78,023 $69,981 $99,334 $133,004 $138,857
2023202220212020201920182017
$000$000$000$000$000$000$000
35,500
- - - - - -
(14,464) - - - - - -
(7,644) - - (5,095) (4,413) - -
- - - (2,094) - - -
- - - - (2,362) - -
-
- - 2,940 - - -
- - - (12,891) - - -
-
- (1,271) (854) - 136 (4,542)
- - - - - 99 1,083
- - 2,624 - - - -
- - - - - (128) (738)
-
- - - - - 3,929
- - - - (11,884) - -
- 505 - - - - -
Total$13,392 $505 $1,353 ($17,994) ($18,659)$107 ($268)
Reversal of impairment of fixed assets
Gain on sale of property
Scour merger costs
Gain on merger and dilution of equity-
accounted investee
Loss on sale of interest in, and property
held by, equity-accounted investees
Reversal of normalised tax expense
Impairment of right-of-use assets
Impairment of intangible assets
Impending change in legislation relating to
tax depreciation on buildings
Derecognition of deferred tax assets
Restructuring costs
Current assets
Total assets
Abnormal items (after tax)
Cyclone Gabrielle related income
Cyclone Gabrielle related expenses
Impairment of assets
Right-of-use assets
Investment in equity-accounted investees
Goodwill and other intangibles
Deferred tax asset
Non-current assets
Cash and bank
Loans and borrowings - term portion
Term liabilities
Loans and borrowings – current portion
Current liabilities
Shareholders’ equity and total liabilities
Property, plant and equipment
Abnormal gains/(losses) (after tax)
Profit/(Loss) after tax attributable to
shareholders of the Company (GAAP)
Ordinary dividends paid
Profit/(Loss) after dividends
Financial Position
Shareholders’ equity
Finance costs
Finance income
Share of profit after tax of equity-accounted
investees (normalised)
Profit/(Loss) before income tax
Income tax (expense)/benefit
Profit/(Loss) after tax (normalised)
Operating revenue
EBITDA (normalised)
Depreciation - owned assets
Depreciation - right-of-use assets
Depreciation - recycled through inventory
EBIT (normalised)
Bremworth Limited and subsidiary companies
Trend Statement
Financial Performance
Page 50 of 54

2023202220212020201920182017
(5.3%)
4.7% 1.1% (7.8%)3.0% 5.7% (2.7%)
(3.38) 2.51 0.55 (5.03) 2.74 5.79 (2.70)
(3.31) 2.46 0.54 (5.03) 2.74 5.79 (2.70)
$0.59
$0.40 $0.36 $0.47 $0.72 $0.94 $0.87
55.3%
47.9%45.6%48.1%55.4%54.3%48.9%
- - - - - - -
$0.400 $0.465 $0.490 $0.220 $0.320 $0.620 $0.350
$0.640 $0.850 $0.490 $0.380 $0.680 $0.630 $0.950
$0.295 $0.445 $0.205 $0.160 $0.310 $0.270 $0.330
$28,028 $32,168 $33,653 $15,109 $21,977 $42,581 $24,038
$1,956 $2,898 $2,481 $2,119 $4,705 $1,622 $2,123
$845 $683 $379 $2,418 $3,479 $3,561 $3,251
$994 $954 $534 $1,779 $0 $0 $0
Capital Expenditure and Depreciation
($000)
Capital expenditure
Depreciation - owned assets
Depreciation - right-of-use assets
Share Price
30 June
52 week high
52 week low
Market Capitalisation ($000)
30 June
Diluted earnings per ordinary share
(normalised) - cents
Financial Structure
Net tangible asset backing per ordinary
share - $
Equity ratio - %
Return to Shareholders
Dividends paid per ordinary share
Bremworth Limited and subsidiary companies
Trend Statement (continued)
Financial Ratios and Summary
Use of Funds and Return on Investment
Return on average shareholders’ equity
(normalised) - %
Basic earnings per ordinary share
(normalised) - cents
Page 51 of 54

Trend Statement (continued)
Glossary of financial terms
EBITDA
EBIT
EBITDA (normalised)
EBIT (normalised)
Net assets
Use of funds and Return on investment
Financial structure
Number of ordinary shares on issue at balance date
Equity ratioShareholders’ equity
Shareholders’ equity and total liabilities
Diluted earnings per ordinary shareProfit/(Loss) after tax (normalised)
(normalised)
Weighted average number of ordinary shares on issue during the year (including the maximum number of
shares that could be issued under the Company's LTI Scheme and the Bremworth Option Scheme)
Net tangible asset backing per ordinary Net assets less goodwill and intangible assets
equity (normalised)Average shareholders’ equity
Basic earnings per ordinary shareProfit/(Loss) after tax (normalised)
(normalised)Weighted average number of ordinary shares on issue during the year
Earnings before interest and tax
Earnings before abnormal costs, interest, tax, depreciation and amortisation
Earnings before abnormal costs, interest and tax
Total assets less total liabilities
Return on average shareholders’Profit/(Loss) after tax (normalised)
Bremworth Limited and subsidiary companies
Earnings before interest, tax, depreciation and amortisation
Page 52 of 54

- 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 below);
- 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’.
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 collating the Trend Statement, the Directors have taken into account all of 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;
Disclosure of Non-GAAP Financial Information
The Directors acknowledge that the Annual Report, including the Trend Statement from pages 50 to 52, 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.
The Trend Statement has been prepared using the unaudited GAAP-compliant financial statements of the Group.
The Directors believe that the non-GAAP financial information contained within the Trend Statement (more particularly, the non-GAAP measures of
financial performance such as “EBITDA (normalised)”, “EBIT (normalised)”, “Profit before income tax (normalised)” and “Profit after tax (normalised)”
as well as the various other financial ratios that are based on normalised results – for example, earnings per share) provide useful information to
investors regarding the performance of the Group because the calculations exclude restructuring 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 consolidated financial statements, including
analysts and shareholders, regarding the nature and quantum of abnormal 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 Chief Executive Officer 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 items of an abnormal nature, including items that are unlikely to recur or otherwise unusual in nature.
Bremworth Limited and subsidiary companies
Page 53 of 54

Adjustments NormalisedAdjustments Normalised
$000$000$000$000
- $89,689 - $95,485
(13,392) 286 - 4,918
- (845) - (683)
- (994) - (954)
- -
- 194
(13,392) (1,553) - 3,475
- (1,045) - (1,029)
Finance income - 502 - 159
(13,392) (2,096) - 2,605
- (263) (505) (870)
(13,392) (2,359)
(505) 1,735
13,392 13,392 505 505
$0 $11,033$0 $2,240
Tax effect Profit after taxTax effect
Profit after
tax
$000$000$000$000
- 35,500 - -
- (22,108)
- -
- -
505 505
$0 $13,392 $505 $505
Earnings per share (diluted) (cents) 3.17 2.46
Earnings per share (basic) (cents) 3.24 2.51
Weighted average number of ordinary shares (diluted) 70,659,533 70,659,533
Year ended 30 June 2022
Profit attributable to shareholders ($000)$2,240 ($505)$1,735
Weighted average number of ordinary shares (basic) 69,081,838 69,081,838
Weighted average number of ordinary shares (diluted)
71,364,576 71,364,576
Earnings per share (diluted) (cents)
15.46 (3.31)
Weighted average number of ordinary shares (basic)
69,771,837 69,771,837
Earnings per share (basic) (cents)
15.81 (3.38)
Non-GAAP-compliant
normalised profit after tax
Year ended 30 June 2023
Profit attributable to shareholders ($000)
$11,033 ($13,392)($2,359)
Reversal of normalised tax
expense
-
-
$13,392
$0
Calculation of basic and diluted earnings per share
under GAAP and non-GAAP measures of profit after
tax
GAAP-compliant reported
profit after tax
Reverse abnormal items
(net of tax) where
applicable
Cyclone Gabrielle related
income
35,500 -
Cyclone Gabrielle related
asset write offs and expenses
(22,108)
-
Abnormal gains after tax
Profit after tax (GAAP)
Analysis of abnormal
items
Profit before taxProfit before tax
$000$000
Tax expense
(263)
(365)
Profit after tax$11,033
$2,240
Finance costs
(1,045)
(1,029)
502 159
Profit before tax
11,296
2,605
Depreciation - recycled
through inventory
-
194
EBIT
11,839
3,475
Depreciation - owned assets
(845)
(683)
Depreciation - right-of-use
assets
(994) (954)
$000$000
Revenue$89,689
$95,485
EBITDA
13,678
4,918
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
Year ended 30 June 2023Year ended 30 June 2022
GAAPGAAP
Page 54 of 54