AMENDED I Preliminary FY25 Results Announcement

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at March 2025

Announcement based on financial statements which are in the process of being
audited

Results for announcement to the market
Name of issuer Bremworth Limited
Reporting Period 12 months to 30 June 2025
Previous Reporting Period 12 months to 30 June 2024
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$88,891 10.7%
Total Revenue $88,891 10.7%
Net profit from continuing
operations
$18,247 293.0%
Total net profit $18,247 293.0%
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 (in
dollars and cents per
security)
$0.91 $0.64
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
Mark Devlin (Impact PR) or Rob Hewett (Bremworth Chair)
Contact phone number +64 21 509 060 or +64 21 341 744
Contact email address Mark@impactpr.co.nz or rob@hewettfarmlimited.co.nz
Date of release through MAP

29 August 2025

---

NZX Market Release 29 August 2025

Bremworth Limited (NZX: BRW) – Unaudited Full Year Results to 30 June 2025
Bremworth reports FY25 revenue of $88.9 million, NPAT of $18.2 million and normalised
EBITDA loss of $13.2 million
1

Premium carpet manufacturer Bremworth Limited today released its unaudited financial
results for the year ended 30 June 2025, reflecting difficult trading conditions across its core
markets and the flow-on effect of lower-than-budgeted volumes on recovery of production
overheads at its manufacturing plants, as well as challenges coming from its yarn hybrid
supply chain that was established following Cyclone Gabrielle.
The Company reported revenue of $88.9 million (FY24: $80.3 million) and a normalised
EBITDA loss of $13.2 million
1
(FY24: $4.7 million loss). After taking into account one-off items
including insurance claims, restructuring costs and provision for an onerous contract,
Bremworth recorded a net profit after tax of $18.2 million (FY24: $4.6 million).
Gross margin deteriorated to 13.4% (FY24: 24.3%), primarily driven by difficult market
conditions, selling price pressures and supply chain challenges. Cash and bank balances at
year's end were $42.2 million, reflecting insurance proceeds received in February 2025.
Chief Executive Craig Woolford said FY25 had been a tough year against the backdrop of a
challenging economic environment, with consumer demand remaining subdued across key
markets.


1
Normalised EBITDA is a non-GAAP measure, with more information included under Disclosure of
Non-GAAP Financial Information in the accompanying Preliminary Unaudited Financial Information
pack

“Our carpet business has continued to face headwinds, with weaker volumes and margin
pressures weighing on performance. However, we are taking clear steps to reset the business,
including a $6 million investment to expand production at our Napier plant. This project will
restore full domestic yarn capacity, significantly reduce lead times and create new jobs in
Hawke’s Bay while also reducing yarn input costs and improving quality.
“At the same time, we are strengthening our sales capability by adding more sales
representatives in both New Zealand and Australia and changing the way we engage with our
retail partners. Sales management are taking a more active role in understanding how we can
better service our retailers and to work collaboratively with them to make it much easier to do
business with Bremworth. In New Zealand, the increased sales representation will see an
increase in headcount from the current five to seven and in Australia from the current nine to
14 as part of our re-focus on sales.
“Encouragingly, earnings for our Elco Direct wool acquisition business were only slightly down
on FY24 despite lower volumes and ongoing uncertainties in global markets. Combined with
the Napier expansion, the previously announced re-introduction of synthetics, the reduction to
our cost base and strengthened sales capability, we believe Bremworth is laying the
foundations for a return to sustainable growth,” he says.
Woolford says Bremworth continues to manage cash burn, with operating outflows reducing
significantly in the second half of FY25 compared with the first half as the Company starts to
bring its inventory management back under control. Capital expenditure during the year
totalled $5.5 million, largely associated with reinstatement of the Napier facilities following
Cyclone Gabrielle.

While good progress is being made with the Board-led strategic review into the ownership
structure of the business, there is no certainty that the discussions with interested parties are
going to result in any transaction. The Board will continue to update the market as the review
progresses.
The Board remains focused on returning the business to sustainable profitability and will
provide an update on strategic priorities at the Company’s Annual Shareholders Meeting later
this year.

ENDS
For further information, please contact:
Mark Devlin
Impact PR (for Bremworth Ltd)
M: +64 21 509 060

Rob Hewett
Chair
Bremworth Ltd
M: +64 21 341 744

-ENDS-


Distributed on behalf of Bremworth by Impact PR. For further information or images, please contact
Mark Devlin mark@impactpr.co.nz (021509060)

---

The preliminary financial information is based on financial statements which are in the process of
being audited.
PRELIMINARY UNAUDITED FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025

PRELIMINARY UNAUDITED FINANCIAL INFORMATION
CONTENTS
Page
3Consolidated Statement of Profit or Loss
4Consolidated Statement of Comprehensive Income
5Consolidated Statement of Changes in Equity
6Consolidated Statement of Financial Position
7Consolidated Statement of Cash Flows
Notes to the Preliminary Financial Information
91. Company information
92. General information relating to preparation of Preliminary Financial Information
133. Impact of Cyclone Gabrielle
144. Impact of fire at the Whanganui yarn spinning plant
5. Financial performance
165a. Segment performance
185b. Earnings per share
185c. Restructuring costs
6. Others
196a. Provisions
206b. Net tangible assets per share
206c. Events after balance date
21Disclosure of Non-GAAP Financial Information
2

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2025
UnauditedAudited
2025 2024
Note$000 $000
Revenue from contracts with customers88,891 80,294
Cost of sales(77,009)(60,812)
Gross profit11,882 19,482
Other income and gains547 531
Distribution expenses(15,111)(14,552)
Administration expenses(12,822)(12,087)
Cyclone Gabrielle related insurance claim339,662 12,619
Whanganui fire related insurance claim4(1,272)-
Restructuring costs5c(2,725)(1,568)
Onerous contract6a(1,753)-
18,408 4,425
Finance costs(860)(825)
Finance income1,032 1,344
Profit before income tax18,580 4,944
Income tax expense(333)(301)
Profit after tax for the year$18,247 $4,643
Basic earnings per share (cents)5b25.82 6.63
Diluted earnings per share (cents)5b25.46 6.53
3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
UnauditedAudited
2025 2024
$000 $000
Profit after tax for the year18,247 4,643
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)(372)(1,167)
Net change in fair value of cash flow hedges transferred to profit or loss (net of income tax)343 607
Total other comprehensive (loss)/income(29)(560)
Total comprehensive income for the year$18,218 $4,083
4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
Share
Capital
Cash Flow
Hedging
Reserve
Foreign
Currency
Translation
Reserve
Share-
based
Payment
Reserve
Retained
Earnings
Total
Equity
$000 $000 $000 $000 $000 $000
Total equity at 1 July 202422,054 378 (1,420)732 32,679 54,423
Total comprehensive income for the year
Profit after tax- - - - 18,247 18,247
- (29)- - - (29)
Total comprehensive income for the year- (29)- - 18,247 18,218
Buyback and cancellation of shares(325)- - - - (325)
- - - 122 - 122
Total transaction with owners for the year(325)- - 122 - (203)
Total equity at 30 June 2025$21,729 $349 $(1,420)$854 $50,926 $72,438
Total equity at 1 July 202322,054 938 (1,420)615 28,036 50,223
Total comprehensive income for the year
Profit after tax- - - - 4,643 4,643
- (560)- - - (560)
Total comprehensive income for the year- (560)- - 4,643 4,083
- - - 117 - 117
Total transaction with owners for the year- - - 117 - 117
Total equity at 30 June 2024$22,054 $378 $(1,420)$732 $32,679 $54,423
Unaudited
Audited
Changes in fair value of cash flow hedges (net
of income tax)
Transaction with owners in their capacity as
owners
Share-based payments - value of employee
services
Other comprehensive income that may be reclassified
subsequently to profit or loss
Changes in fair value of cash flow hedges (net
of income tax)
Transaction with owners in their capacity as
owners
Share-based payments - value of employee
services
Other comprehensive income that may be reclassified
subsequently to profit or loss
5

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
UnauditedAudited
2025 2024
Note$000 $000
ASSETS
Property, plant and equipment - owned16,599 13,241
Property, plant and equipment - right-of-use7,915 8,804
Intangible assets36 61
Deferred tax asset488 402
Total non-current assets25,038 22,508
Cash and bank42,245 31,645
Trade receivables, other receivables and prepayments11,666 10,661
Inventories28,117 29,348
Advances to employees- 181
Derivative financial instruments516 508
Income tax receivable- 67
Total current assets82,544 72,410
Total assets$107,582 $94,918
EQUITY
Share capital21,729 22,054
Cash flow hedging reserve349 378
Foreign currency translation reserve(1,420)(1,420)
Share-based payment reserve854 732
Retained earnings50,926 32,679
Total equity72,438 54,423
LIABILITIES
Lease liabilities15,168 16,508
Employee benefits371 488
Provisions6a2,178 812
Total non-current liabilities17,717 17,808
Trade payables and accruals10,665 16,350
Customer deposits151 139
Employee benefits74 46
Employee entitlements3,387 3,726
Lease liabilities1,540 1,417
Provisions6a1,373 694
Derivative financial instruments54 17
Deferred income48 298
Income tax payable135 -
Total current liabilities17,427 22,687
Total liabilities35,144 40,495
Total equity and liabilities$107,582 $94,918
6

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
UnauditedAudited
2025 2024
Note$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers86,737 80,797
Cash paid to suppliers and employees(108,635)(91,623)
(21,898)(10,826)
Government grants received176 326
Other receipts10 8
GST (paid)/refunded(2,097)822
Interest paid - loans and borrowings(35)(3)
Interest component of lease payments(825)(822)
Interest received1,113 1,264
Income tax paid(217)(69)
Cyclone Gabrielle related insurance income342,230 -
Cyclone Gabrielle related expenses(2,721)(17,985)
Net cash flow from operating activities15,736 (27,285)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of plant and equipment70 -
Acquisition of plant and equipment(5,541)(4,040)
Maturities of short term deposits5,000 19,500
Investments in short term deposits(27,000)(17,000)
Advances to employees pursuant to the Bremworth Equity Plan181 (11)
Cyclone Gabrielle related insurance income1,485 25,015
Whanganui fire related insurance income4d477 -
Net cash flow from investing activities(25,328)23,464
CASH FLOWS FROM FINANCING ACTIVITIES
Buyback and cancellation of shares(325)-
Principal component of lease payments(1,457)(1,358)
Net cash flow from financing activities(1,782)(1,358)
Net decrease in cash and cash equivalents(11,374)(5,179)
Cash and cash equivalents at beginning of the year26,645 31,819
Effect of exchange rate changes on cash(26)5
Cash and cash equivalents at end of the year$15,245 $26,645
7

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
UnauditedAudited
2025 2024
Note$000 $000
Profit after tax for the year18,247 4,643
Add/(Deduct) non-cash items:
Depreciation - owned assets1,166 858
Depreciation - right-of-use assets1,129 1,057
Amortisation - intangible assets25 25
Impairment of buildings and plant and equipment4, 3960 297
Reversal of impairment of fixed assets and inventory- (208)
Share-based payments - value of employee services122 117
Deferred tax(86)174
Net gain on sale of plant and equipment(13)-
Net loss/(gain) on foreign currency balance26 (5)
Deduct insurance related cash items:
Cyclone Gabrielle related insurance income3- (25,015)
Whanganui fire related insurance income4d(477)-
Changes in working capital items:
Trade receivables, other receivables and prepayments(2,490)(704)
Inventories1,231 (8,226)
Income tax receivable/payable202 58
Trade payables and accruals(5,685)1,402
Customer deposits12 (53)
Employee benefits and entitlements(428)(1,321)
Provisions2,045 (129)
Deferred income(250)(205)
Derivative financial instruments- (50)
Net cash flow from operating activities$15,736 $(27,285)
8

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025
1COMPANY INFORMATION
The principal activities of the Group comprise wool acquisition, and carpet and rug manufacturing and sales.
All Group subsidiaries are wholly-owned.
2GENERAL INFORMATION RELATING TO PREPARATION OF PRELIMINARY FINANCIAL INFORMATION
2a BASIS OF PREPARATION
Bremworth Limited ("Bremworth" or "the Company") is a limited liability company that is domiciled and incorporated in New Zealand.
The preliminary financial information presented is for Bremworth and its subsidiaries ("the Group”) as at, and for the year ended, 30
June 2025.
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 preliminary financial information has been prepared in
accordance with these Acts.
The preliminary financial information is 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.
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.
The preliminary financial information has been prepared on the historical cost basis, except for derivative financial instruments
which are measured at fair value.
9

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
2
2b GOING CONCERN
-
-
-the review of its cost base, with the assistance of external consultants and industry experts; and
-
In preparing these forecasts, management considered and, where required made assumptions, in relation to:
-
-
-
-
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 cash equivalents and short term deposits at balance date of $42.2 million (2024: $31.6 million) is at a level significantly
higher than forecasted as a result of final settlement of Cyclone Gabrille insurance claims and receipt of final payments.
Net working capital (being current assets (excluding cash and bank) less current liabilities) employed by the Group as at balance
date of $24.1 million (2024: $18.1 million) is well up on the previous year, with the Group continuing to focus on working capital
utilisation and efficiency.
The Board is committed to the future of the existing carpet business, with a number of decisions taken in the latter part of the
financial year to strengthen the Company's financial performance, position and cash flows. These decisions include the following:
the re-entry into the synthetic carpet markets in New Zealand and Australia to provide the carpet business with additional
volume while also meeting ongoing requests for synthetic carpet from its channel partners;
the reinstatement of key items of plant and equipment at the Napier yarn plant, with further discussions in Note 2h (Cyclone
Gabrielle) to the consolidated financial statements;
The Board's decision to undertake the strategic review into the Company's ownership structure in February 2025 followed the
finalisation of Cyclone Gabrielle insurance settlement and approaches from parties expressing an interest in Bremworth.
The Board is continuing to engage with interested parties but there have been no developments which affect the going concern
assumption, nor have any decisions been made which affect the assumption around going concern.
While good progress is being made with the strategic review, there is no certainty that the discussions with interested parties are
going to result in any transaction.
GENERAL INFORMATION RELATING TO PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)
The Board considers that although there are uncertainties relating to these forecasts, these uncertainties are not significant
enough to lead to a material uncertainty relating to going concern.
The Board expects that sufficient funds are available to fund the Group’s operations while also providing the Board with optionality
around the potential return of any surplus to shareholders.
the simplification of the business structure and the way of doing business going forward.
The Group has prepared forecasts of its financial performance, while also assessing cash flows and financial position as part of the
Board-led strategic review of its ownership structure that the Board commenced in February 2025, with these forecasts extending
through to 30 June 2030 and encapsulating the decisions that have been taken by the Board.
the additional costs, and time it could take, to re-introduce synthetic carpet into its pre-existing woollen carpet offerings;
the capital expenditure that will be required to continue to reinstate key yarn spinning equipment in the Napier plant;
the cost savings that have been achieved from the review of its cost base and the simplification of its business structure; and
the further cost savings and reduction in working capital requirements that have been identified.
10

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
2
2c BASIS OF CONSOLIDATION
2d CHANGES IN ACCOUNTING POLICIES
There were no changes in accounting policies during the year ended 30 June 2025.
2e RECLASSIFICATION OF PRIOR YEAR BALANCES
2fCYCLONE GABRIELLE
Progress since the issue of the consolidated financial statements for the year ended 30 June 2024
Settlement of insurance claims
Reinstatement of property, plant and equipment
-
-reduce yarn input costs;
-address yarn quality issues associated with externally sourced yarns;
-reduce the quantities of yarn inventory that are required to be held to support the business; and
-focus on meeting its exacting quality standards from yarns through to finished carpet.
The decision was taken during the year to invest a further $6.0 million towards the staged reinstatement of the Napier plant, with
the focus this time on key yarn making equipment across the entire yarn manufacturing process from carding through to spinning
and twisting to leverage the investments that have already been made in yarn twisting and finishing.
This latest move will boost yarn making capacity within the carpet business and allow the Group to produce most, if not all, of its
yarn requirements at its Napier and Whanganui yarn spinning plants again - allowing, in the process, the business to:
reduce the current long yarn supply lead times associated with the hybrid yarn supply system that was put in place following
Cyclone Gabrielle;
The ability to bring back key items of plant and equipment progressively will provide the business with significant optionality to scale
up capacity as demand for carpet grows - allowing the Company to commit to capital expenditure only as and when required.
The Consolidated Statement of Profit or Loss for the year ended 30 June 2024 included $439,000 and $1,129,000 in distribution and
in administration expenses respectively that have been reclassified to restructuring costs to align with the current year
presentation.
GENERAL INFORMATION RELATING TO PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Group as at 30 June 2025 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.
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.
The Group settled its Cyclone Gabrielle insurance claims on 4 February 2025, with the total amount agreed at $104.2 million.
After recognising progress payments received from the insurers prior to that date of $62.0 million, the Group received a final
payment totalling $42.2 million on or about 12 February 2025, with this $42.2 million recognised as income in the Consolidated
Statement of Profit or Loss for the year ended 30 June 2025.
The Group has continued to reinstate key items of plant and equipment at the Napier plant following the damage caused by
Cyclone Gabrielle, with the completion of selected yarn twisting and finishing equipment during the year.
11

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
2
2g FIRE AT THE WHANGANUI YARN SPINNING PLANT
Fire at Whanganui yarn spinning plant
-
-heat and smoke damage to the roof cladding and metal purling in the adjoining building;
-
-damage to, and loss of, inventory in various stages of production.
minor damage to mechanical and electrical services (including electrical control rooms and switchboards) in the section of the
building directly affected;
There was also loss of approximately two weeks of production while clean up and assessment of damage to buildings and plant
and equipment were undertaken. This did not result in loss of sales and/or carpet production – with the volume of both carpet and
yarn inventories held within the business.
The losses are substantially covered by insurance and have been accounted for as set out in note 4 (Impact of fire at the
Whanganui yarn spinning plant) to the consolidated financial statements.
GENERAL INFORMATION RELATING TO PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (continued)
On 4 May 2025, a fire broke out at the Whanganui yarn spinning plant.
Following a comprehensive review, the Group identified the following (from a material damage perspective):
significant damage to the timber structure of the roof void of approximately 30 square metres within the building where the
fire started and areas in proximity to that;
12

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
3IMPACT OF CYCLONE GABRIELLE
Dealing with impact of Cyclone Gabrielle in the consolidated financial statements
UnauditedAudited
2025 2024
Impact of Cyclone Gabrielle$000 $000
42,230 26,500
- (1,002)
(240)(4,410)
(151)(4,372)
(2,177)(3,457)
Cost of voluntary redundancies incurred- (1,425)
- (297)
- 208
- 874
$39,662 $12,619
Accounting policies
All progress payments received in previous years were stated as non-specific and there was confidence that substantially all costs
related to the reinstatement of property, plant and equipment will be covered. Therefore, they were treated as cash from investing
activities in the Statement of Cash Flows. With the settlement amount having now been clearly assigned between loss and/or
damage of property, plant and equipment, loss of inventory and business interruption, it is evident that the $42.2 million final
settlement amount is attributable to business interruption costs that are operating, and this is treated as cash from operating
activities in the Statement of Cash Flows.
Ongoing costs as a result of the cyclone as well
as professional fees (including claims
preparation costs) incurred that have been
recognised as expenses
Other additional costs incurred to avoid loss of
revenue that have also been recognised as
expenses
The $42.2 million of Cyclone Gabrielle related insurance income recognised during the year ended 30 June 2025 represents the
final amount that was received following the settlement of the Company's insurance claims during the year, with that amount
representing the $104.2 million full and final settlement that was agreed with the insurers less progress payments received to that
date of $62.0 million (2024: two progress payments totalling $26.5 million).
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.
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.
Damaged or destroyed buildings and plant and
equipment derecognised to the extent
appropriate
Plant and equipment previously derecognised
and subsequently reinstated
Inventory previously written off and
subsequently reinstated
Ongoing payroll costs recognised as expenses
The following table summarises the impact of Cyclone Gabrielle on the Consolidated Statement of Profit or Loss:
Insurance proceeds secured and recognised as
income
Site clean-up, asset stabilisation and waste
disposal costs incurred recognised as expenses
13

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
4IMPACT OF FIRE AT THE WHANGANUI YARN SPINNING PLANT
UnauditedAudited
2025 2024
Impact of fireNote$000 $000
4a527 -
4b- -
4c(960)-
4c(839)-
$(1,272)-
Estimates, judgements and assumptions
These estimates and judgements include the following:
-estimation of further insurance proceeds as income and contingent assets (note 4b)
-assessment of impairment of buildings, plant and equipment and inventory (note 4c)
Details of the estimates and judgements made are further discussed below where relevant.
4a WHANGANUI YARN SPINNING PLANT FIRE RELATED INSURANCE INCOME
UnauditedAudited
2025 2024
$000 $000
Insurance recovery - Whanganui fire$527 -
The $527,000 of Whanganui fire related insurance income recognised during the year ended 30 June 2025 represents the first
progress payment that was approved by the insurers prior to balance date.
Damaged or destroyed inventory written off to
the extent appropriate
As a result of the Whanganui fire event, a number of material estimates and judgements have been necessary to determine the
accounting treatment in these consolidated financial statements.
Insurance proceeds secured and recognised as
income
Further insurance proceeds recognised as
income and as a receivable where receipts is
virtually certain and amount is able to be
reliably estimated
Damaged buildings and plant and equipment
derecognised to the extent appropriate
Dealing with impact of the fire at the Whanganui yarn spinning plant in the consolidated financial statements
The following table summarises the impact of the fire at the Whanganui yarn spinning plant on the Consolidated Statement of Profit
or Loss:
14

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
4
4b WHANGANUI YARN SPINNING PLANT FIRE RELATED CONTINGENT ASSET
UnauditedAudited
2025 2024
$000 $000
Insurance contingent asset disclosure - Whanganui fire$849 -
-
-
4c WHANGANUI YARN SPINNING PLANT FIRE RELATED WRITE OFFS AND EXPENSES
UnauditedAudited
2025 2024
$000 $000
Impairment of buildings(960)-
Write off of inventory(839)-
$(1,799)-
Whanganui fire related asset write offs and expenses consist of:
Impairment of buildings and plant and equipment
Write off of inventory
Accounting standards require inventory to be measured at the lower of cost and net realisable value.
4d PROGRESS PAYMENTS RECEIVED
UnauditedAudited
2025 2024
$000 $000
Whanganui fire related insurance income recognised527 -
Less payments received prior to balance date(477)-
Insurance recovery progress payments expected after balance date$50 -
The Group expects that it will ultimately receive the full amount of the loss or damage caused by the fire at the Whanganui yarn
spinning plant - except for the $223,000 deductible and amounts that may fall outside the scope of its material damage insurance
policy.
The insurance claim was not sufficiently advanced at balance date to conclude that there was virtual certainty that would allow the
Group to recognise as insurance income any amount in excess of the $527,000 that has already been approved by the insurer at
balance date, with a number of issues yet to be worked through.
IMPACT OF FIRE AT THE WHANGANUI YARN SPINNING PLANT (continued)
Following detailed assessment of damage to buildings after the fire (with plant and equipment not affected), the Group determined
that an impairment loss of $960,000 - being the cost required for site clean up and to reinstate these assets to pre-fire condition -
was required. This assessment involved suitably qualified contractors, with the loss adjusters also present on-site.
However, the Group has disclosed a contingent asset - being the further amounts that it is expecting to receive under its insurance
claims for damage and/or loss arising from the fire at the Whanganui yarn spinning plant - for the following reasons:
the progress it has made towards the resolution of its insurance claims, with the amount disclosed as a contingent asset able
to be reliably estimated based on discussions with, and the advices received from, the insurer's loss adjusters to date;
the amount disclosed as a contingent asset is well within the sum insured under the Group's material damage insurance
policy.
Where the cost of inventory may not be recoverable because the inventory is damaged as a consequence of the fire, the Group is
required to estimate its recoverable amount and recognise an impairment if this estimate is less than the carrying amount.
Based on the analysis and estimates prepared by management, the Group has determined that the carrying value of affected
inventory at the Whanganui plant at the time of the fire of $839,000 was required to be written off because they have been
damaged or destroyed as a consequence of having been exposed to smoke and could not therefore be used for further processing
into finished carpet.
15

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
5FINANCIAL PERFORMANCE
5a SEGMENT PERFORMANCE
Reportable segments
The Group’s reportable and operating segments are:
-
-
An operating segment is a component of the Group:
-
-
-for which discrete financial information is available.
Inter-segment transactions
Inter-segmental sales during the year and intercompany profits on stocks at balance date are eliminated on consolidation.
Geographical areas
UnauditedAudited
2025 2024
$000 $000
Revenue
New Zealand57,298 51,274
Australia29,910 27,314
Canada903 883
USA661 753
Rest of the world119 70
$88,891 $80,294
UnauditedAudited
As at As at
30 June 202530 June 2024
$000 $000
Non-current assets
New Zealand24,077 21,547
Australia961 961
$25,038 $22,508
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.
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
The Chief Executive Officer uses total revenue, segment result before depreciation, insurances, restructuring and onerous contract
and segment result after depreciation but before insurances, restructuring and onerous contract to assess the performance of the
operating segments. Total assets and total liabilities are also reviewed for the operating segments.
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.
16

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
5FINANCIAL PERFORMANCE (continued)
5a SEGMENT PERFORMANCE (continued)
Major customers
None of the Group’s external customers contributed revenues in excess of 10% of the Group’s total revenues.
UnauditedAuditedUnauditedAuditedUnauditedAudited
2025 2024 2025 2024 2025 2024
$000 $000 $000 $000 $000 $000
External revenue59,971 57,081 28,920 23,213 88,891 80,294
Inter-segment revenue- - 2,441 2,336 2,441 2,336
Total revenue59,971 57,081 31,361 25,549 91,332 82,630
Elimination of inter-segment revenue(2,441)(2,336)
Consolidated revenue$88,891 $80,294
Depreciation - owned assets(1,000)(698)(166)(160)(1,166)(858)
Depreciation - right-of-use assets(956)(911)(173)(146)(1,129)(1,057)
Amortisation - intangibles(25)(25)- - (25)(25)
(15,444)(6,158)962 1,080 (14,482)(5,078)
Cyclone Gabrielle related insurance claim39,662 12,619 - - 39,662 12,619
Whanganui fire related insurance claim(1,272)- - - (1,272)-
Restructuring costs(2,725)(1,568)- - (2,725)(1,568)
Onerous contract(1,753)- - - (1,753)-
Segment result18,468 4,893 962 1,080 19,430 5,973
Elimination of inter-segment profits20 (21)
Unallocated corporate costs(1,042)(1,527)
Results from operating activities18,408 4,425
Finance costs(860)(825)
Finance income1,032 1,344
Profit before income tax18,580 4,944
Income tax expense(333)(301)
Profit after tax for the year$18,247 $4,643
(13,463)(4,524)1,301 1,386 (12,162)(3,138)
Carpet and rugs sales
and manufacturing Wool acquisition Total
Segment result before depreciation,
insurances, restructuring and onerous
contract
Segment result before insurances,
restructuring and onerous contract
17

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
5FINANCIAL PERFORMANCE (continued)
5a SEGMENT PERFORMANCE (continued)
UnauditedAuditedUnauditedAuditedUnauditedAudited
2025 2024 2025 2024 2025 2024
$000 $000 $000 $000 $000 $000
Reportable segment assets57,010 57,590 8,327 5,683 65,337 63,273
Unallocated assets - Cash and bank42,245 31,645
Total assets$107,582 $94,918
Capital expenditure5,119 3,969 428 178 $5,547 $4,147
Reportable segment liabilities16,266 20,607 2,170 1,963 18,436 22,570
Unallocated liabilities - Lease liabilities16,708 17,925
Total liabilities$35,144 $40,495
5b EARNINGS PER SHARE
Basic earnings per share (Basic EPS)
UnauditedAudited
2025 2024
Profit after tax attributable to shareholders of the Company ($000)18,247 4,643
Weighted average number of ordinary shares outstanding
70,657,464 70,069,426
Basic EPS (cents)25.82 6.63
Diluted earnings per share (Diluted EPS)
UnauditedAudited
2025 2024
Profit after tax attributable to shareholders of the Company ($000)18,247 4,643
Weighted average number of ordinary shares outstanding and potential ordinary shares
71,657,464 71,069,426
Diluted EPS (cents)25.46 6.53
5c RESTRUCTURING COSTS
UnauditedAudited
2025 2024
$000 $000
Termination payments1,986 1,073
Board-led strategic review444 495
Costs associated with review of cost base295 -
Total restructuring costs$2,725 $1,568
Carpet and rugs sales
and manufacturing Wool acquisition Total
In calculating the diluted earnings per share, the Company has taken into account the maximum number of shares that the holders
could be issued with under the Bremworth Share Option Scheme.
18

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
6OTHERS
6a PROVISIONS
Onerous contracts
Other
Total
$000 $000 $000
Unaudited
Balance at 1 July 2024- 1,506 1,506
Provided during the year1,753 1,123 2,876
Utilised during the year- (831)(831)
Released to profit or loss during the year- - -
Balance at 30 June 2025$1,753 $1,798 $3,551
Non-current1,159 1,019 2,178
Current594 779 1,373
Balance at 30 June 2025$1,753 $1,798 $3,551
Audited
Balance at 1 July 2023- 1,635 1,635
Provided during the year- 598 598
Utilised during the year- (658)(658)
Released to profit or loss during the year- (69)(69)
Balance at 30 June 2024- $1,506 $1,506
Non-current- 812 812
Current- 694 694
Balance at 30 June 2024- $1,506 $1,506
Onerous contract
The provision for onerous contract relates to a contract for the supply of product that was entered into during the year ended 30
June 2025.
Management has concluded, following an in-depth review of the pricing structure and the other terms of the contract, that the
contract is onerous, as the unavoidable costs to fulfil it are greater than the expected economic benefits to be received.
In arriving at the provision, the Group assessed the shortfall between the contracted price and the cost of manufacturing and
supplying these products (that is, inclusive of the other costs necessarily incurred as part of the Company's obligations under the
contract, including distribution). This is then applied to the estimated volume (which may change) that is expected to be supplied
over the three year term of the contract.
19

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
6
6a
Accounting policies
Estimates, judgements and assumptions
6b NET TANGIBLE ASSETS PER SHARE
UnauditedUnaudited
2025 2024
Net tangible assets of the Group ($000)63,999 45,156
Number of ordinary shares outstanding
70,561,519 70,069,426
Net tangible assets per share ($)0.91 0.64
6c EVENTS AFTER BALANCE DATE
The Group has continued to progress discussions with its insurers in relation to its claims for damage and/or loss as a consequence
of the fire at its Whanganui yarn spinning plant. More information is disclosed at note 4 (Impact of fire at the Whanganui yarn
OTHERS (continued)
PROVISIONS (Continued)
The provision has been recognised at the present value of the future net cash outflows relating to the contract, with a
corresponding expense to the Consolidated Statement of Profit or Loss.
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.
Provision for onerous contract requires judgement to be applied by considering a range of factors including the quantity of
product that is expected to be supplied over the duration of the contract and the cost of manufacturing and supplying these
products.
20

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
-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 unbiased; and
-taking care when describing, or referring to, items as ‘one-off’ or ‘non-recurring’.
DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION
The Directors believe that the non-GAAP financial information contained within the financial information pack (more particularly, the non-GAAP
measures of financial performance such as “EBITDA (normalised)", “EBIT (normalised)", “Profit/(Loss) before tax (normalised)" and “Profit/(Loss)
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 items that are not expected
to occur on a regular basis either by virtue of quantum or nature (including insurance claims, restructuring costs and onerous contract).
In arriving at this view, the Directors have also taken cognisance of the regular requests by users of the consolidated financial statements,
including shareholders, regarding the nature and quantum of abnormal items within the GAAP-compliant results and the way shareholders
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.
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 presenting non-GAAP financial information, the Directors have taken into account all of the requirements within the FMA
guidance note. More specifically, these include:
non-GAAP financial information is not presented with undue and greater prominence, emphasis or authority than
the most directly comparable GAAP financial information;
presentation of non-GAAP financial information does not in any way confuse or obscure presentation of GAAP
financial information;
a reconciliation from the non-GAAP financial information to the most directly comparable GAAP financial
information, including that for the previous period, can be easily accessed (see 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;
21

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2025 (continued)
GAAP Adjustments Normalised GAAP Adjustments Normalised
$000 $000 $000 $000 $000 $000
Revenue88,891 - 88,891 80,294 - 80,294
EBITDA20,728 (33,912) (13,184)6,365 (11,051)(4,686)
Depreciation - owned assets(1,166)- (1,166)(858)- (858)
Depreciation - right-of-use assets(1,129)- (1,129)(1,057)- (1,057)
Amortisation - intangible assets(25)- (25)(25)- (25)
EBIT18,408 (33,912) (15,504)4,425 (11,051)(6,626)
Finance costs(860)- (860)(825)- (825)
Finance income1,032 - 1,032 1,344 - 1,344
Profit/(Loss) before tax18,580 (33,912) (15,332)4,944 (11,051)(6,107)
Tax expense(333)- (333)(301)- (301)
Profit/(Loss) after tax18,247 (33,912) (15,665)4,643 (11,051)(6,408)
Abnormal items33,912 33,912 11,051 11,051
Profit after tax (GAAP)- 18,247 - 4,643
Profit before
taxTax effect
Profit after
taxProfit before taxTax effectProfit after tax
$000 $000 $000 $000 $000 $000
Cyclone Gabrielle related income42,230 - 42,230 26,500 - 26,500
(2,568)- (2,568)(13,881)- (13,881)
Whanganui spinning plant fire related income527 - 527 - - -
(1,799)- (1,799)- - -
Restructuring costs
1
(2,725)- (2,725)(1,568)- (1,568)
Onerous contract(1,753)- (1,753)- - -
Total33,912 - 33,912 11,051 - 11,051
Year ended 30 June 2025
GAAP-
compliant
reported profit
after tax
Reverse
abnormal
items (net of
tax) where
applicable
Non-GAAP-
compliant
normalised
profit after tax
Profit attributable to shareholders ($000)18,247 (33,912) (15,665)
Weighted average number of ordinary shares (basic)
70,657,464 70,657,464
Earnings per share (basic) (cents)25.82 (22.17)
Weighted average number of ordinary shares (diluted)
71,657,464 71,657,464
Earnings per share (diluted) (cents)25.46 (21.86)
Year ended 30 June 2024
Profit attributable to shareholders ($000)4,643 (11,051)(6,408)
Weighted average number of ordinary shares (basic)
70,069,426 70,069,426
Earnings per share (basic) (cents)6.63 (9.15)
Weighted average number of ordinary shares (diluted)
71,069,426 71,069,426
Earnings per share (diluted) (cents)6.53 (9.02)
1
$495,000 of costs for year ended 30 June 2024 reclassified as restructuring costs to align with current year presentation
Calculation of basic and diluted earnings/(loss) per share under GAAP and non-GAAP measures of profit after tax
DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION (continued)
Analysis of abnormal items
Year ended 30 June 2025Year ended 30 June 2024
Cyclone Gabrielle related asset write offs and
expenses and asset impairment reversed
Whanganui spinning plant fire related asset
write offs and expenses
Year ended 30 June 2025Year ended 30 June 2024
RECONCILIATION OF GAAP-COMPLIANT TO NON-GAAP-COMPLIANT MEASURES OF PERFORMANCE
22