FY26 Half Year Results Announcement

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Bremworth Limited
Reporting Period Six months to 31 December 2025
Previous Reporting Period Six months to 31 December 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$44,709 6.1%
Total Revenue $44,709 6.1%
Net profit/(loss) from
continuing operations
$(6,403) 21.4%
Total net profit/(loss) $(6,403) 21.4%
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)
$0.825 $0.525
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to accompanying 1H26 half year report
Authority for this announcement
Name of person

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

25 February 2026

Unaudited financial statements accompany this announcement.

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HALF YEAR REPORT
31 DECEMBER 2025

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONTENTS
Half Year Review – Directors' Commentary1
Financial Summary4
Consolidated Interim Statement of Profit or Loss5
Consolidated Interim Statement of Comprehensive Income6
Consolidated Interim Statement of Changes in Equity7
Consolidated Interim Statement of Financial Position8
Consolidated Interim Statement of Cash Flows9
Notes to the Consolidated Interim Financial Statements11
Disclosure of Non-GAAP Financial Information25
Corporate Directory27
0

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
HALF YEAR REVIEW - DIRECTORS' COMMENTARY
Dear Shareholders
-
-
-
-
First half FY26 performance
On a more positive note, distribution and administration costs were down on the prior comparable period.
Closing cash was $34.3 million as at 31 December 2025, down from $42.2 million as at 30 June 2025. The decline in cash was primarily
due to cash outflows from operations ($1.9 million) and capital expenditure ($5.4 million).
These results are disappointing. The strategic investments we have made over the past year have not yet translated into the volume
growth needed. We remain committed to those initiatives, but the timeline to reach targeted benefits remains uncertain and there are
some risks to achieving these.
expansion of the New Zealand and Australian sales teams; and
ongoing focus on costs.
However, the targeted benefits from most of these investments are not yet reflected in our financial results, with the lead time to volume
growth and return to profitability taking longer than anticipated.
Revenue for the first half was $44.7 million, up 6% compared to the prior comparable period, with the increase attributable to a solid
performance by Elco Direct. While the volume of carpet sold was up on the prior comparable period, a bias in sales mix towards lower
margin products and clearances of excess inventory adversely impacted carpet revenue (slightly down) and gross profit (also lower).
Sales of premium wool and synthetic carpets fell short of our expectations. This was primarily because of the ongoing subdued demand
for consumer durables like carpet across both the New Zealand and Australian markets, and delays to the reinstatement of the Napier
plant and the reintroduction of synthetic carpets into our product mix.
Gross profit was $6.7 million (down 25% compared to the prior comparable period), representing a gross margin of 15%, compared to
21% in the prior comparable period. While part of this decline in gross margin can be attributed to the deterioration in sales mix, the
decline also reflects significant under-recovery of fixed manufacturing overheads due to lower sales volumes and delays in reinstatement
of the Napier plant.
This letter accompanies Bremworth's results for the first half of FY26. Trading conditions have remained challenging and the
improvement in sales performance the Board had anticipated has not come through, resulting in continued losses and cash outflows
during the half.
During the first half, Bremworth continued to make strategic investments in initiatives aimed at making a positive contribution to
Bremworth's performance over time, including the:
reinstatement of the Napier plant;
reintroduction of synthetic carpets;
1

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
HALF YEAR REVIEW - DIRECTORS' COMMENTARY (continued)
Strategic review
The current decision date indicated by the NZCC is 13 March. However, in accordance with its usual process, this date may be extended
if the NZCC advises that it needs to continue assessing the competitive effects of the proposed Scheme. If extended, Bremworth
expects the NZCC to issue a final decision in mid to late May.
At the time of signing of the SIA, Bremworth indicated that the likely range of the capital return to shareholders as part of the Scheme
was in the range of $0.30 to $0.40 per share. The capital return is in addition to the $0.75 per share consideration payable by Floorscape
under the Scheme.
Trading conditions since signing have been more difficult than anticipated, and this is reflected in the first half results. As previously
announced, Bremworth now expects the likely range of the capital return to be between $0.20 and $0.30 per share (in addition to the
$0.75 cents per share payable by Floorscape). Accordingly, the estimated total consideration for the Scheme has been reduced to a
range of $0.95 to $1.05 per share. Bremworth emphasises that this estimate is based on assumptions of market conditions, business
performance and the timing of implementation of the Scheme. It therefore remains subject to change.
Bremworth’s Board remains fully supportive of the Scheme and continues to be of the view that this is the best option for shareholders to
realise value from their investment in Bremworth. If the Scheme does not proceed it is likely that the deterioration in Bremworth's cash
position will continue.
As previously communicated to shareholders, the Company announced on 2 October 2025 that it had entered into a scheme
implementation agreement ("SIA") with Floorscape Limited ("Floorscape"), and Mohawk Industries, Inc. (as guarantor), under which
Floorscape agreed to acquire all of Bremworth's shares through a Scheme of Arrangement ("Scheme").
The SIA remains conditional upon the satisfaction of certain conditions, including shareholder approval, High Court approval, NZ
Commerce Commission (“NZCC”) clearance and an IRD ruling on the tax implications of the capital return.
The NZCC published a Statement of Issues on 23 December 2025 which outlines relevant issues the NZCC requires additional time to
consider. The publication by the NZCC of a Statement of Issues is a regular part of the merger clearance process – it is not a final
decision and does not mean that the NZCC intends to clear or decline a merger. Bremworth recently responded to the Statement of
Issues.
2

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
HALF YEAR REVIEW - DIRECTORS' COMMENTARY (continued)
Outlook and guidance
For and on behalf of the Board of Directors
Rob Hewett
Board Chair
25 February 2026
While the results for the first half of FY26 are below expectations and the near term outlook is uncertain, Bremworth’s Directors and
management team remain committed to delivering shareholder value. We thank you for your continued support.
Over the past year, Bremworth has made a number of strategic investments and changes to strategy. These actions were taken to drive
higher volumes of carpet sold to our retail customers, with the aim of achieving profitable growth and positive cash flows.
Unfortunately, based on the results for the first half of FY26 and expected trading performance, Bremworth is not expected to be cash
flow positive and profitable in the second half of FY26. The Board acknowledges that this represents a change to previous guidance,
which had assumed a faster turnaround in sales compared to current expectations.
3

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
FINANCIAL SUMMARY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Revenue$44,709 $42,129
EBITDA (normalised)
1
(3,251)(4,355)
Depreciation – owned assets(712)(583)
Depreciation – right-of-use assets(586)(559)
Amortisation - intangible assets(13)(13)
EBIT (normalised)
1
(4,562)(5,510)
Finance costs(407)(447)
Finance income595 444
Loss before income tax (normalised)
1
(4,374)(5,513)
Income tax expense(90)(66)
Loss after income tax (normalised)
1
(4,464)(5,579)
Abnormal loss after tax
1
(1,939)(2,568)
Loss after tax (GAAP)$(6,403)$(8,147)
Net cash flow from operating activities$(1,898)$(21,760)
Basic earnings per share (cents)
Normalised
1
(6.36)(7.93)
GAAP(9.12)(11.58)
Diluted earnings per share (cents)
Normalised
1
(6.27)(7.82)
GAAP(8.99)(11.42)
Return on average shareholders’ equity (%)
Normalised
1
(6.4)%(11.1)%
GAAP(9.2)%(16.2)%
Unaudited
31 December
2025
Unaudited
31 December
2024
Net tangible asset backing per share ($)$0.83 $0.52
Equity to total assets (%)64.7%57.8%
1
Normalised is a non-GAAP (Generally Accepted Accounting Practice) measure that provides what the Directors believe to be a
more meaningful view of the underlying financial performance of the Group. A reconciliation between GAAP and normalised
earnings together with further commentary on the disclosure of non-GAAP financial information are set out at pages 25 and 26 of
the half year report.
4

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
Note$000 $000
Revenue from contracts with customers1044,709 42,129
Cost of sales(38,026)(33,161)
Gross profit6,683 8,968
Other income and gains1130 116
Distribution expenses(6,815)(8,506)
Administration expenses(4,460)(6,088)
Cyclone Gabrielle related expenses- (2,568)
Restructuring and scheme related costs4(1,625)-
Fire related insurance claim5471 -
Onerous contract6(785)-
(6,501)(8,078)
Finance costs12(407)(447)
Finance income595 444
Loss before income tax(6,313)(8,081)
Income tax expense(90)(66)
Loss after tax for the period$(6,403)$(8,147)
Basic earnings per share (cents)8(9.12)(11.58)
Diluted earnings per share (cents)8(8.99)(11.42)
This Consolidated Interim Statement of Profit or Loss is to be read in conjunction with the notes on pages 11 to 24 and the previous
year's annual financial statements.
5

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Loss after tax for the period(6,403)(8,147)
Other comprehensive income that may be reclassified subsequently to profit or loss
Effective portion of changes in fair value of cash flow hedges (net of income tax)(1,714)(456)
Net change in fair value of cash flow hedges transferred to profit or loss (net of income tax)206 375
Total other comprehensive loss(1,508)(81)
Total comprehensive loss for the period$(7,911)$(8,228)
This Consolidated Interim Statement of Comprehensive Income is to be read in conjunction with the notes on pages 11 to 24 and the
previous year's annual financial statements.
6

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
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
Total equity at 1 July 202521,729 349 (1,420)854 51,782 73,294
Total comprehensive income for the period
Loss after tax- - - - (6,403)(6,403)
- (1,508)- - - (1,508)
Total comprehensive loss for the period- (1,508)- - (6,403)(7,911)
Transactions with owners for the period- - - - - -
Total equity at 31 December 2025$21,729 $(1,159) $(1,420)$854 $45,379 $65,383
Total equity at 1 July 202422,054 378 (1,420)732 32,679 54,423
Total comprehensive income for the period
Loss after tax- - - - (8,147)(8,147)
- (81)- - - (81)
Total comprehensive loss for the period- (81)- - (8,147)(8,228)
13- - - 62 - 62
Total transaction with owners for the period- - - 62 - 62
Total equity at 31 December 2024$22,054 $297 $(1,420)$794 $24,532 $46,257
Changes in fair value of cash
flow hedges (net of income 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)
Transaction with owners in their
capacity as owners
Share-based payments - value
of employee services
This Consolidated Interim Statement of Changes in Equity is to be read in conjunction with the notes on pages 11 to 24 and the previous
year's annual financial statements.
Other comprehensive income that may be
reclassified subsequently to profit or loss
7

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025 (UNAUDITED)
Unaudited
31 December
2025
Audited
30 June
2025
Note$000 $000
ASSETS
Property, plant and equipment - owned721,406 16,959
Property, plant and equipment - right-of-use77,608 7,915
Intangible assets198 36
Deferred tax asset544 488
Total non-current assets29,756 25,398
Cash and cash equivalents17,839 15,245
Short term deposits16,500 27,000
Trade receivables, other receivables and prepayments11,048 11,050
Inventories1525,808 27,954
Derivative financial instruments120 516
Total current assets71,315 81,765
Total assets$101,071 $107,163
EQUITY
Share capital21,729 21,729
Cash flow hedging reserve(1,159)349
Foreign currency translation reserve(1,420)(1,420)
Share-based payment reserve13854 854
Retained earnings45,379 51,782
Total equity65,383 73,294
LIABILITIES
Lease liabilities14,666 15,168
Employee benefits314 371
Provisions1,885 1,769
Total non-current liabilities16,865 17,308
Trade payables and accruals10,394 10,049
Customer deposits139 151
Employee benefits74 74
Employee entitlements3,744 3,387
Lease liabilities1,546 1,540
Provisions1,454 1,122
Derivative financial instruments1,187 54
Deferred income84 48
Income tax payable201 136
Total current liabilities18,823 16,561
Total liabilities35,688 33,869
Total equity and liabilities$101,071 $107,163
This Consolidated Interim Statement of Financial Position is to be read in conjunction with the notes on pages 11 to 24 and the previous
year's annual financial statements.
8

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers45,954 41,965
Cash paid to suppliers and employees(48,053)(58,507)
(2,099)(16,542)
Deferred income received40 176
Other receipts5 5
GST refunded/(paid)56 (2,653)
Facility fees - Bank guarantees(15)(27)
Interest component of lease payments(392)(420)
Interest received588 525
Income tax paid(81)(103)
Cyclone Gabrielle related expenses- (2,721)
Net cash flow from operating activities(1,898)(21,760)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of plant and equipment61 37
Acquisition of plant and equipment(736)(1,040)
Reinstatement of Napier plant(4,239)(2,202)
Reinstatement of Whanganui buildings and plant(399)-
Maturities of short term deposits27,000 5,000
Investments in short term deposits(16,500)-
Cyclone Gabrielle related insurance income50 1,485
Net cash flow from investing activities5,237 3,280
CASH FLOWS FROM FINANCING ACTIVITIES
Principal component of lease payments(775)(707)
Net cash flow from financing activities(775)(707)
Net increase/(decrease) in cash and cash equivalents2,564 (19,187)
Cash and cash equivalents at beginning of the period15,245 26,645
Effect of exchange rate changes on cash30 18
Cash and cash equivalents at end of the period$17,839 $7,476
This Consolidated Interim Statement of Cash Flows is to be read in conjunction with the notes on pages 11 to 24 and the previous year's
annual financial statements.
9

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
RECONCILIATION OF LOSS AFTER TAX WITH NET CASH FLOW FROM OPERATING ACTIVITIES
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Loss after tax for the period(6,403)(8,147)
Add/(Deduct) non-cash items:
Depreciation - owned assets712 583
Depreciation - right-of-use assets586 559
Amortisation - intangible assets13 13
Share-based payments - value of employee services- 62
Deferred tax(56)(34)
Net gain on sale of plant and equipment(21)(6)
Net gain on foreign currency balance(30)(18)
Changes in working capital items:
Trade receivables, other receivables and prepayments(48)(2,337)
Inventories2,146 (6,301)
Income tax payable/(receivable)65 (3)
Trade payables and accruals345 (6,449)
Customer deposits(12)196
Employee benefits and entitlements300 66
Provisions448 (128)
Deferred income36 71
Derivative financial instruments21 113
Net cash flow from operating activities$(1,898)$(21,760)
This Consolidated Interim Statement of Cash Flows is to be read in conjunction with the notes on pages 11 to 24 and the previous year's
annual financial statements.
10

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
1 GENERAL INFORMATION
Reporting entity
The principal activities of the Group comprise wool acquisition and carpet and rug manufacturing and sales.
All Group subsidiaries are wholly-owned.
Basis of preparation
The Company is listed on the NZX and is required to comply with the provisions of the NZX Listing Rules which require it to present
the consolidated interim financial statements covering the Group.
The consolidated interim financial statements are condensed financial statements that have been prepared in accordance with NZ
IAS 34 Interim Financial Reporting. The disclosures normally required by other standards within New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS) to be included in a complete set of annual financial statements are not
required to be incorporated into a condensed set of interim financial statements prepared under NZ IAS 34. As a consequence, the
consolidated interim financial statements do not comply with NZ IFRS.
These consolidated interim financial statements are presented in New Zealand dollars ($) which is the Company's functional
currency. Unless otherwise indicated, all financial information presented in New Zealand dollars has been rounded to the nearest
thousand.
The consolidated interim financial statements, and the comparative information for the six months ended 31 December 2024, are
unaudited. The comparative information as at 30 June 2025 is audited.
The consolidated interim financial statements were approved for issue by the Board of Directors ("the Board") of the Company on
25 February 2026.
Bremworth Limited ("Bremworth" or "the Company") is a limited liability company that is domiciled and incorporated in New
Zealand.
The consolidated interim financial statements contained in this half year report are for Bremworth and its subsidiaries ("the Group”)
as at, and for the six months ended, 31 December 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 consolidated interim financial statements have been
prepared in accordance with these Acts.
11

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
1 GENERAL INFORMATION (continued)
Accounting policies and critical accounting estimates and judgements
2 SCHEME OF ARRANGEMENT
Agreement to enter into Scheme of Arrangement ("Scheme")
-
-
-
-
-
-
-
-
-
-
High Court approval.
The proposed Scheme is conditional on several matters, including:
Australian Competition and Consumer Commission approval;
New Zealand Commerce Commission clearance;
IRD ruling on the tax implications of the proposed capital distribution;
Bremworth’s independent advisor concluding that the Scheme consideration is within or above its valuation range;
Bremworth shareholder approval; and
The proposed Scheme is expected to deliver shareholders an estimated total consideration in the range of $0.95 to $1.05 per share,
subject to market conditions, business performance and the timing of the implementation, with the total consideration representing
premium of up to:
114% to Bremworth’s share price prior to commencement of the strategic review; and
69% to its most recent closing price prior to the announcement of the Scheme proposal.
The total consideration comprises two components:
Scheme consideration from Floorscape, being cash payment of $0.75 per share; and
capital distribution of excess cash, coming in the form of a share buyback and fully imputed dividend, estimated in the range
of $0.20 to $0.30 per share.
All accounting policies adopted in the preparation of the consolidated interim financial statements are consistent with those
adopted in the preparation of the annual financial statements.
In preparing the consolidated interim financial statements, the Group has consistently applied the judgements, estimates and
assumptions adopted in the preparation of the annual financial statements for the year ended 30 June 2025.
On 2 October 2025, the Company announced that it had entered into a Scheme Implementation Agreement (“SIA”) with Floorscape
Limited (“Floorscape"), a wholly owned subsidiary of flooring company Mohawk Industries, Inc. (“Mohawk”). Mohawk operates the
Floorscape premium hard flooring business and owns carpet manufacturer Godfrey Hirst New Zealand Limited.
The entry into the SIA is the culmination of the Board-led strategic review into the Company’s ownership structure that was
announced by the Company in February 2025 following unsolicited approaches from parties expressing an interest in Bremworth
and the finalisation of Cyclone Gabrielle insurance settlement.
As part of this review, the Board engaged extensively with a number of potential parties in New Zealand and overseas before
reaching agreement with Floorscape.
Under the SIA, Floorscape has agreed to acquire 100% of the shares in Bremworth, conditional on the approvals further discussed
below.
The consolidated interim financial statements should be read in conjunction with the annual financial statements for the year
ended 30 June 2025 and the accounting policies set out therein.
12

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
2 SCHEME OF ARRANGEMENT (continued)
Agreement to enter into Scheme of Arrangement ("Scheme") (continued)
3 GOING CONCERN
-
-
-
-
$5.4 million cash out flows for property, plant and equipment, including $4.2 million towards the staged reinstatement of the
Napier spinning plant assets that were damaged during Cyclone Gabrielle; and
$0.8 million cash out flows towards lease obligations.
The Company notes that there are references in the SIA to the scoping of potential remediation issues relating to asbestos at one of
the Company’s leased premises, with these scoping works currently being undertaken. The Board and management are able to
confirm, to the best of their knowledge, that there was no obligation at balance date to remediate asbestos issues at any properties
owned or occupied by the Group.
Grant Biel, co-founder of the Bremworth carpet business and a long-serving Director, was appointed Director Emeritus on his
retirement as a Director on 25 November 2021. Grant is also a substantial product holder in the Company by virtue of his interests in
Rural Aviation (1963) Limited, Bremworth's single largest shareholder. In his role as Director Emeritus, Grant has been entitled to
attend Board meetings and to receive Board papers, but has agreed with the Board to relinquish all such rights while the proposed
Scheme is being worked through.
The Group prepares its consolidated interim 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 $34.3 million is down $7.9 million on the $42.2 million as at
30 June 2025. This reflects largely the following:
$0.8 million cash out flows from trading and operations, reflecting the ongoing difficult trading conditions offset by reduction
in inventory as the business continues to focus on working capital employed;
$1.1 million cash out flows relating to costs associated with the proposed Scheme with Floorscape;
The Company has had approval from the Australian Competition and Consumer Commission while the New Zealand Commerce
Commission is scheduled to report back again on 13 March 2026, having released a statement of issues on 23 December 2025.
Work on the IRD ruling on the tax implications of the proposed capital distribution and by the independent advisor on the Scheme
consideration are also well advanced.
Under the SIA, Bremworth has the ability to distribute any excess cash above an agreed minimum level of $1.6 million to
shareholders immediately prior to the implementation of the proposed Scheme.
Based on Bremworth’s latest estimated cash flows between the date of the signing of the consolidated interim financial statements
and the expected implementation of the proposed Scheme in the second half of the 2026 financial year, Bremworth expects to
distribute between $14.0 million and $21.0 million via the capital distribution. This would represent a payment to shareholders of
between $0.20 and $0.30 per share.
The Company has emphasised that this estimate is based on assumptions of market conditions, business performance and the
timing of the implementation of the proposed Scheme and that the estimate is therefore subject to change. Bremworth will
continue to provide updated estimates to shareholders, based on its trading performance prior to the special shareholders meeting
to be held to allow shareholders to vote on the proposed Scheme.
13

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
3 GOING CONCERN (continued)
-
-
-
-
-
-
-
-
the capital expenditure that will be required to support the business going into the future;
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.
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 for the foreseeable future given the cash position from our
insurance settlement.
The Board expects that sufficient funds are available to fund the Group’s operations if the proposed Scheme does not proceed to
implementation.
The Board believes, to the best of its knowledge, that the counterparty to the SIA has every intention to continue to operate the
Bremworth business as a going concern should the proposed Scheme proceed such that the counterparty becomes the owner of
the business.
the reinstatement of key items of plant and equipment at the Napier yarn plant following Cyclone Gabrielle;
the review of its cost base, with the assistance of external consultants and industry experts; and
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's ongoing review of its entry into the SIA with Floorscape in October 2025 and its ongoing obligations under the SIA.
In preparing these forecasts, management considered and, where required made assumptions, in relation to:
the additional costs, and time it is taking, to re-introduce synthetic carpet into its pre-existing woollen carpet offerings with
earlier product launch plans taking longer than anticipated to execute;
Notwithstanding the reduction in cash and bank during the period, the Group's financial position as a result of Cyclone Gabrielle
insurance settlement remains solid, with equity to total assets of 64.7% (compared with 68.4% as at 30 June 2025) and current ratio
(measured by dividing its current assets by its current liabilities) of 3.79 (compared with 4.94 as at 30 June 2025).
The net working capital (being current assets (excluding cash and bank) less current liabilities) employed by the Group as at
balance date of $18.2 million compares with $23.0 million as at 30 June 2025 - reflecting the ongoing focus on working capital
employed by the business.
The Board is fully committed to the scheme of arrangement process, while also maintaining its commitment to the future of the
existing carpet business, with a number of decisions taken in the latter part of the last financial year to better position the
Company's market position and prospects. These decisions included 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;
14

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
4 RESTRUCTURING AND SCHEME RELATED COSTS
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Restructuring costs153 -
Scheme related costs1,472 -
$1,625 -
5 FIRE RELATED INSURANCE CLAIM
-
- 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.
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
610 -
(309)-
(18)-
188 -
$471 -
Contingent asset
Insurance proceeds secured and recognised as income on the basis that there was
virtual certainty as to receipt at balance date
Ongoing costs incurred in reinstatement of buildings and plant and equipment
Other fire related costs incurred
Proceeds of sale of damaged inventory
The Group has assessed that it has a contingent asset in relation to its Whanganui yarn spinning plant fire insurance claim of
$467,000, with this being the further amount that it is expecting to receive under its insurance claim. This amount is disclosed as a
contingent asset as it was able to be reliably estimated based on discussions with, and the advices received from, the insurer’s loss
adjusters to date.
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;
minor damage to mechanical and electrical services (including electrical control rooms and switchboards) in the section of
the building directly affected; and
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 at the time.
The losses are substantially covered by insurance, with the impact of the Whanganui fire on the Group and how these have been
presented in the consolidated interim financial statements covered in the following table:
15

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
6 ONEROUS CONTRACT
7 PROPERTY, PLANT AND EQUIPMENT - OWNED AND RIGHT OF USE
Impairment
-
-
-
Right of use assets – Auckland
As a consequence, the Group conducted a review of non-current non-financial assets, including fixed assets and right-of-use
assets, to assess whether there was any impairment at balance date. The recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs.
There are two cash-generating units which relate to reporting segments in these consolidated financial statements, Carpet and
Wool.
The operating profit before depreciation of the Wool acquisition CGU during the period was $359,000 which was in line with budget
and prior year. Management determined that there were no impairment indicators for the Wool acquisition CGU and therefore no
impairment assessment is required.
The Carpet CGU had an operating loss before depreciation for the period of $3,275,000 and an impairment assessment was
therefore performed. Management identified the following as separately identifiable assets for the purposes of measuring
recoverable amounts:
Napier land and buildings
Whanganui land and buildings
Management 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, management assessed the shortfall between the contracted price and the cost of internal
manufacturing and/or external sourcing, 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 that is
expected to be supplied over the remainder of the three year term of the contract, with this estimated volume based on latest
available information and may therefore change.
Management also considered the estimated costs to exit the contract relative to the costs to fulfil it in assessing the provision and
determined that the costs to exit it would outweigh the costs to fulfil it.
The provision is recognised at the present value of the future net cash outflows relating to the fulfilment of the contract, with a
corresponding expense to the Consolidated Interim Statement of Profit or Loss.
$337,000 of the provision relating to product supplied was released to cost of sales during the period (six months ended 31
December 2024: Nil) and $785,000 of additional provisioning was recognised at balance date to reflect, among other things,
changes to the estimated volume to be supplied under the contract.
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.
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.
16

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
7 PROPERTY, PLANT AND EQUIPMENT - OWNED AND RIGHT OF USE (continued)
Impairment (continued)
-
-
8 EARNINGS PER SHARE
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
Basic earnings per share (Basic EPS)
Loss after tax attributable to shareholders of the Company ($000)(6,403)(8,147)
Weighted average number of ordinary shares outstanding70,241,486 70,365,976
Basic EPS (cents)(9.12)(11.58)
Diluted earnings per share (Diluted EPS)
Loss after tax attributable to shareholders of the Company ($000)(6,403)(8,147)
Weighted average number of ordinary shares outstanding and potential ordinary shares71,241,486 71,365,976
Diluted EPS (cents)(8.99)(11.42)
capital distribution of excess cash, coming in the form of a share buyback and fully imputed dividend, estimated in the range
of $0.20 to $0.30 per share;
with the total of $0.95 to $1.05 per share coming in in line with the carrying value of net assets (including cash and bank) per share
of $0.95.
The Group has therefore concluded that no further impairment of assets was required at balance date (2024: Nil).
The Group has also concluded that no reversal of the previous impairment of assets should be made at the present time (2024: Nil),
with the total Scheme consideration of $0.95 to $1.05 per share in line with the carrying value of net assets (including cash and
bank) per share of $0.95. At the same time, the Group's actual and forecast financial performance does not also justify a reversal.
In calculating the diluted earnings per share, the Company has taken into account the maximum number of shares that the holder
could be issued with under the Bremworth Share Option Scheme as further disclosed at note 13 (Share-based payment) to the
consolidated interim financial statements, with the options issued considered to be dilutive instruments.
Indicative market values were obtained for the Napier land and buildings, the Whanganui land and buildings and the Auckland
lease, with these market value assessments coming in above the net book value of these assets. As a consequence, no impairment
was required.
Indicative market values were also determined for general items of plant and equipment where a ready market existed for these
assets.
In relation to certain specialised plant and equipment where there was not a ready market for these assets, management utilised
the Scheme consideration as further discussed in note 2 (Scheme of arrangement) to the consolidated interim financial statements
as evidence to support the carrying value of these specialised items of plant and equipment.
In particular, management noted that the total consideration under the proposed Scheme comprises two components:
Scheme consideration from Floorscape, being cash payment of $0.75 per share; and
17

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
9 SEGMENT PERFORMANCE
Reportable segments
The Group’s reportable and operating segments are:
-
-
Inter-segment transactions
Inter-segmental sales during the period and inter-segmental profits on stocks at balance date are eliminated on consolidation.
Geographical areas
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Revenue
New Zealand29,900 25,929
Australia14,285 15,296
Rest of the world524 904
$44,709 $42,129
Unaudited
31 December
2025
Audited
30 June
2025
$000 $000
Non-current assets
New Zealand28,582 24,390
Australia1,174 1,008
$29,756 $25,398
Wool, with this segment involved in the acquisition of wool for the carpet segment and for sales to external customers in New
Zealand.
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.
Carpet, with this segment involved in the manufacturing and sales of woollen carpet and rugs in New Zealand, Australia and
rest of the world; and
18

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
9 SEGMENT PERFORMANCE (continued)
Major customers
None of the Group’s external customers contributed revenues in excess of 10% of the Group’s total revenues.
Segment performance
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000 $000 $000 $000 $000
External revenue30,803 31,312 13,906 10,817 44,709 42,129
Inter-segment revenue- - 1,063 1,960 1,063 1,960
Total revenue30,803 31,312 14,969 12,777 45,772 44,089
Elimination of inter-segment revenue(1,063)(1,960)
Consolidated revenue$44,709 $42,129
(3,275)(4,334)359 431 (2,916)(3,903)
Depreciation - owned assets(609)(478)(103)(105)(712)(583)
Depreciation - right-of-use assets(499)(472)(87)(87)(586)(559)
Amortisation - intangible assets(13)(13)- - (13)(13)
(4,396)(5,297)169 239 (4,227)(5,058)
Cyclone Gabrielle related expenses- (2,568)- - - (2,568)
Fire related insurance claim471 - - - 471 -
Restructuring costs(1,625)- - - (1,625)-
Onerous contract(785)- - - (785)-
Segment result(6,335)(7,865)169 239 (6,166)(7,626)
Elimination of inter-segment profits14 14
Unallocated corporate costs(349)(466)
Result from operating activities(6,501)(8,078)
Finance costs(407)(447)
Finance income595 444
Loss before income tax(6,313)(8,081)
Income tax expense(90)(66)
Loss after tax for the period$(6,403)$(8,147)
Segment result before abnormal items
Carpet and rugs sales and
manufacturing Wool acquisition Total
Segment result before depreciation,
amortisation and abnormal items
19

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
9 SEGMENT PERFORMANCE (continued)
Unaudited
31 December
2025
Audited
30 June
2025
Unaudited
31 December
2025
Audited
30 June
2025
Unaudited
31 December
2025
Audited
30 June
2025
$000 $000 $000 $000 $000 $000
Reportable segment assets59,131 56,591 7,601 8,327 66,732 64,918
Unallocated assets - Cash and bank34,339 42,245
Total assets$101,071 $107,163
Reportable segment liabilities17,185 15,141 2,291 2,020 19,476 17,161
Unallocated liabilities - Lease liabilities16,212 16,708
Total liabilities$35,688 $33,869
10 REVENUE FROM CONTRACTS WITH CUSTOMERS
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Sales of goods
Carpet29,790 30,220
Rugs486 649
Wool13,906 10,817
Other527 443
Total revenue$44,709 $42,129
11 OTHER INCOME AND GAINS
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Government grants recognised4 105
Net gain on sale of plant and equipment21 6
Other5 5
Total other income and gains$30 $116
Carpet and rugs sales and
manufacturing Wool acquisition Total
20

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
12 FINANCE COSTS
Unaudited
Six months
ended
31 December
2025
Unaudited
Six months
ended
31 December
2024
$000 $000
Interest component of lease payments392 420
Facility fees - Bank guarantees15 27
Total finance costs$407 $447
13 SHARE-BASED PAYMENT
Issue of shares under the terms of the 2022 LTI Scheme
Buyback and cancellation of shares under the terms of the 2022 LTI Scheme
The Company did not issue any performance rights, shares or options under these plans/schemes during the period (six months
ended 31 December 2024: issued 1,176,989 FY25-27 performance rights under the Bremworth 2022 Long-Term Incentive Scheme
(2022 LTI Scheme)).
The Company also did not issue any shares under the 2022 LTI Scheme (six months ended 31 December 2024: issued 992,093 fully
paid-up ordinary shares (Scheme Shares) 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 pursuant to the terms of the FY25-27 performance
rights.
The Company bought back 1,472,154 Scheme Shares from the Trustee during the period (six months ended 31 December 2024: Nil)
for no consideration, with these Scheme Shares relating to the performance rights previously issued under the 2022 LTI Scheme
that have since lapsed and are therefore no longer required. The 1,472,154 Scheme Shares were cancelled on completion of the
buyback.
The Company has 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.
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.
21

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
13 SHARE-BASED PAYMENT (continued)
Summary of outstanding performance rights or options under the various plans/schemes as at balance date
Unaudited
31 December
2025
Audited
30 June
2025
Outstanding options under the Bremworth Share Option Scheme
1,000,000 1,000,000
Outstanding performance rights under the 2022 LTI Scheme
410,267 410,267
Maximum number of shares that could be issued under current share-based payment arrangements
(excluding those already issued under the 2022 LTI Scheme)
Unaudited
31 December
2025
Audited
30 June
2025
Outstanding options under the Bremworth Share Option Scheme
1,000,000 1,000,000
Impact of share-based payment arrangements on the consolidated interim financial statements
14 CAPITAL COMMITMENTS
Pursuant to the terms of the SIA, an agreed number of shares will be issued in relation to the outstanding options should the
proposed Scheme proceed to implementation, while the 410,267 shares relating to the outstanding performance rights which are
continuing to be held on trust by the Trustee in accordance with the terms of the 2022 LTI Scheme will vest and be entitled to
participate in the proposed Scheme.
There were no charges to the Consolidated Interim Statement of Profit or Loss in relation to share-based payment arrangements
during the period (six months ended 31 December 2024: $62,000 relating to the Bremworth Share Option Scheme and the fair value
of the performance rights under the 2022 LTI Scheme, which were recognised in administration expenses in the Consolidated
Interim Statement of Profit or Loss for the period, with a corresponding credit totalling $62,000 to the share-based payment reserve
within equity).
The Group had outstanding commitments for the purchase of plant and equipment of $41,000 at balance date (30 June 2025:
$860,000).
22

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
15 INVENTORIES
Unaudited
31 December
2025
Audited
30 June
2025
$000 $000
Raw materials and consumables10,834 10,708
Raw materials stock in transit382 111
Work in progress268 1,501
Finished goods14,324 15,634
Total Inventories$25,808 $27,954
Inventory provision$2,664 $5,238
16 CONTINGENT LIABILITIES
17 RELATED PARTIES
During the six months ended 31 December 2025, provisions in respect of inventories decreased by $2,574,000 (six months ended 31
December 2024: increased by $1,463,000), with the corresponding amounts credited/charged to the Consolidated Interim
Statement of Profit or Loss.
The Group has granted indemnities in favour of Bank of New Zealand and National Australia Bank Limited (together, “the Bank”) in
respect of Bank guarantees relating to leases and other commitments and an import letter of credit totalling $3,443,000 at balance
date (30 June 2025: $2,193,000).
Apart from directors' fees and key management personnel remuneration, there have been no other transactions with the directors
and key management personnel, their related parties or with any other related parties during the six months ended 31 December
2025, other than 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.
23

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
18 RISK MANAGEMENT
19 SECURITY ARRANGEMENTS WITH BANK
19 EVENTS AFTER BALANCE DATE
Fire related insurance claim
In the meantime, Bremworth is closely following work being done by local and regional bodies to develop a flood mitigation solution
that includes the Awatoto industrial basin where the Napier yarn spinning plant is located.
The security arrangements granted in favour of the Bank includes a first-ranking composite general security deed, a cross
guarantee and first-ranking mortgages in respect of land and buildings securing all obligations of the Group to the Bank. These
security arrangements were extended during the period to include a set-off and security interest in $1,250,000 of the Group's cash
and cash at bank at balance date as security for an import letter of credit issued by the Bank in favour of suppliers of raw materials.
The Group has continued to progress its claim for damage and/or loss as a consequence of the fire at its Whanganui yarn spinning
plant, with the additional amount expected to be received disclosed in note 5 (Fire related insurance claim) to the consolidated
interim financial statements.
Bremworth is committed to the effective management of risk, which is fundamental to the Company's growth and profitability
targets and outcomes.
Key risks include financial risks, health and safety risks, climate-related risks, cyber risks and business and other operational risks.
Refer to the Annual Report for the year ended 30 June 2025 for discussion of the Company's risk management framework.
In relation to insurance against climate-related risks, the cover for assets (including the reinstated assets at the Napier yarn
spinning plant) against loss or damage and for business interruption as a consequence of floods is limited to $50.0 million following
the devastating impact of Cyclone Gabrielle. The Group will continue to work with its insurance brokers to better understand what
would be required for its insurers to reinstate full cover against floods for the Group over time while continuing to build resilience into
its Napier plant reinstatement programme to minimise the potential impact of another similar event.
24

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED)
• 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’.
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 page 26);
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;
In arriving at this view, the Directors have also taken cognisance of the requests by users of the consolidated financial statements
regarding the nature and quantum of abnormal items within the GAAP-compliant results and the way users 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 putting together the half year report, the Directors have taken into account all of the requirements within the 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;
The half year report for the six months ended 31 December 2025 contains financial information that is non-GAAP (Generally Accepted
Accounting Practice) and therefore falls within the Financial Markets Authority’s guidance note on “Disclosing non-GAAP financial
information” issued in July 2017.
Non-GAAP financial information has been prepared using the unaudited GAAP-compliant half year and audited GAAP-compliant full
year financial statements of the Group and has not been independently reviewed.
Non-GAAP financial information contained within the half year report (more particularly, the non-GAAP measures of financial
performance such as “EBITDA (normalised)”, “EBIT (normalised)”, “Loss before tax (normalised)” and “Loss after tax (normalised)” provide
useful information to investors regarding the performance of the Group because the calculations exclude insurance claims, restructuring
costs, provision for onerous contracts and other gains/losses that are not expected to occur on a regular basis either by virtue of
quantum or nature.
25

BREMWORTH LIMITED AND SUBSIDIARY COMPANIES
DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 (UNAUDITED) (continued)
RECONCILIATION OF GAAP-COMPLIANT TO NON-GAAP-COMPLIANT MEASURES OF LOSS AFTER TAX
GAAP Adjustments Normalised GAAP Adjustments Normalised
$000 $000 $000 $000 $000 $000
Revenue
$44,709 - $44,709 $42,129 - $42,129
EBITDA
(5,190)1,939 (3,251)(6,923)2,568 (4,355)
Depreciation - owned assets
(712)- (712)(583)- (583)
Depreciation - right-of-use assets
(586)- (586)(559)- (559)
Amortisation - intangible assets
(13)- (13)(13)- (13)
EBIT
(6,501)1,939 (4,562)(8,078)2,568 (5,510)
Finance costs
(407)- (407)(447)- (447)
Finance income
595 - 595 444 - 444
Loss before tax
(6,313)1,939 (4,374)(8,081)2,568 (5,513)
Tax expense
(90)- (90)(66)- (66)
Loss after tax
(6,403)1,939 (4,464)(8,147)2,568 (5,579)
Abnormal losses after tax
(1,939)(1,939)(2,568)(2,568)
Loss after tax (GAAP)
- $(6,403)- $(8,147)
Analysis of abnormal items
Profit/(Loss)
before tax
Tax
effect
Profit/(Loss)
after tax
Profit/(Loss)
before tax
Tax
effect
Profit/(Loss)
after tax
$000 $000 $000 $000 $000 $000
Cyclone Gabrielle related expenses
- - - (2,568)- (2,568)
Whanganui fire insurance claim
471 - 471 - - -
Restructuring costs
(153)- (153)- - -
Scheme related costs
(1,472)- (1,472)
Onerous contract
(785)- (785)- - -
Total
$(1,939)- $(1,939)$(2,568)- $(2,568)
Calculation of basic and diluted earnings per share under GAAP and non-GAAP measures of loss after tax
Six months ended 31 December 2025
GAAP-
compliant
reported
profit/(loss)
after tax
Reverse
abnormal items
(net of tax) where
applicable
Non-GAAP-
compliant
normalised
profit/(loss)
after tax
Loss attributable to shareholders ($000)
$(6,403)$1,939 $(4,464)
Weighted average number of ordinary shares (basic)
70,241,486 70,241,486
Earnings per share (basic) (cents)
(9.12)(6.36)
Weighted average number of ordinary shares (diluted)
71,241,486 71,241,486
Earnings per share (diluted) (cents)
(8.99)(6.27)
Six months ended 31 December 2024
Loss attributable to shareholders ($000)
$(8,147)$2,568 $(5,579)
Weighted average number of ordinary shares (basic)
70,365,976 70,365,976
Earnings per share (basic) (cents)
(11.58)(7.93)
Weighted average number of ordinary shares (diluted)
71,365,976 71,365,976
Earnings per share (diluted) (cents)
(11.42)(7.82)
UnauditedUnaudited
Six months ended 31 December 2025Six months ended 31 December 2024
UnauditedUnaudited
Six months ended 31 December 2025Six months ended 31 December 2024
26

BREMWORTH LIMITED
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Rob HewettChair of the Board of Directors
IndependentMember of Audit and People & Performance Committees
Julie BohnennChair of Audit Committee
IndependentMember of People & Performance Committee
Trevor BurtChair of People & Performance Committee
IndependentMember of Audit Committee
Murray DyerMember of Audit and People & Performance Committees
Independent
DIRECTOR EMERITUSGrant Biel B.E. (Mech.)
CHIEF EXECUTIVE OFFICERCraig Woolford
Victor Tan
FOUNDING SHAREHOLDERThe late Anthony Charles Timpson ONZM
REGISTERED OFFICE7 Grayson Avenue, Auckland 2104
P O Box 97040, Auckland 2241
Telephone: 0800 808 303, +64-9-277 6000
Website: bremworth.co.nz
SHARE REGISTRARComputershare Investor Services Limited
Level 2, 159 Hurstmere Road, Auckland 0622
Private Bag 92119, Auckland 1142
Telephone: +64-9-488 8700
Investor Enquiries: +64-9-488 8777
AUDITORPricewaterhouseCoopers
LEGAL ADVISORSRussell McVeagh
BANKERSBank of New Zealand
National Australia Bank Limited
WEBSITES
Corporatebremworth.co.nz/investor-centre
Carpet Operationbremworth.co.nz
bremworth.com.au
Wool Operationelcodirect.co.nz
Share Registrarcomputershare.com/nz
CHIEF FINANCIAL OFFICER & COMPANY
SECRETARY
27