Preliminary FY26 Unaudited Results Announcement

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




Results for announcement to the market
Name of issuer Bremworth Limited
Reporting Period 12 months to 30 June 2026
Previous Reporting Period 12 months to 30 June 2025
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$106,595 20.5%
Total Revenue $106,595 20.5%
Net profit/(loss) from
continuing operations
$(11,370) (159.5)%
Total net profit/(loss) $(11,370) (159.5)%
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)
$0.76 $0.92
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
Jackie Ellis (Ellis and Co.) or Craig Woolford (Bremworth CEO)
Contact phone number +64 27 246 2505 (Jackie Ellis)
Contact email address jackie@ellisandco.co.nz or cwoolford@bremworth.co.nz
Date of release through MAP

31 August 2026

Unaudited financial information accompanies this announcement.

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MARKET RELEASE
31 August 2026
BREMWORTH UNAUDITED FY26 RESULTS
Good progress on operational reset as focus turns to profitability and cash generation
 Revenue of $106.6m, with the 21% YoY increase primarily driven by Elco Direct
 Gross margin 13.7%, up 0.7 percentage point YoY
 Net loss after tax of $(11.4)m, including one-off items of negative $(1.9)m
 Normalised loss before interest and tax (Normalised EBIT)
1
improved from $(15.9)m to
$(9.4)m YoY
 Available cash at year-end of $22.0m
2
, with nil borrowings

Premium carpet manufacturer and wool sourcing business Bremworth Limited (NZX Code: BRW) has
today announced its preliminary unaudited financial results for the year ended 30 June 2026, with
meaningful progress made to strengthen the business while continuing to operate in difficult market
conditions.
Bremworth Chair, Rob Hewett, said: “FY26 has been an important year of change for Bremworth.
While the financial result remains below where the Board expects the business to perform over
time, we have made progress in addressing a number of the operational and commercial issues that
have constrained performance. Our focus is now firmly on converting those improvements into
better margins, stronger cash generation and a return to sustainable profitability."
Commercial progress
Over the past year, Bremworth has implemented a number of initiatives aimed at fundamentally
improving performance, with priorities being cost reset, revenue recovery and capital discipline.
Key initiatives include:
 Napier yarn plant now fully operaƟonal, with both spinning plants driving meaningful
reducƟon in product and supply chain costs and a material upliŌ in product quality.
 Significant cost out programme with savings reinvested into iniƟaƟves to drive revenue, liŌ
producƟvity and improve inventory composiƟon and quality.
 Re-established Bremworth’s premium syntheƟc carpet offering through the launch of a range
of high-quality soluƟon dyed nylon (SDN) carpets with growing sales expected from FY27.
 Expanded sales teams in Australia and New Zealand to strengthen relaƟonships with flooring
retailers, increase market coverage, and posiƟon the business to capture growth
opportuniƟes as demand recovers.
 Renewed focus on North America and China with early wins on the table as Bremworth looks
internaƟonally for further revenue growth.

1
Normalised EBIT is a non-GAAP measure and excludes negative $(1.9)m of one-off items relating to insurance claims,
restructuring costs and an onerous contract provision (FY25 positive $35.1m)
2
Excludes $4.9m in restricted cash and cash equivalents deposited with BNZ as security against bank guarantees and other
commitments

CEO Craig Woolford commented: “With the Napier yarn plant now back up and running, this year
has been about getting the fundamentals of our business right with an increased focus on our
customers, inventory, and operational and commercial excellence. The results of our efforts can be
seen in increased customer uptake, a lower cost base, a significantly improved inventory profile and
reduced complexity within the business.
“We believe the foundations of the company are now considerably stronger than they have been for
some time. An improvement in market conditions will allow us to unlock the full value of the work
that has been undertaken and return the business to sustainable growth and profitability.”
FY26 snapshot
Overall flooring demand remained subdued during the year, reflecting continued weakness in
residential construction and renovation activity and pressure on discretionary consumer spending. In
addition, some customers paused buying while the proposed scheme of arrangement with
Floorscape Limited (“Scheme”) was underway. With more certainty going forward, increased
customer support is expected in FY27.
Revenue was $106.6m for FY26 with the 21% year on year (YoY) improvement mainly driven by Elco
Direct, Bremworth’s wool sourcing business. Elco Direct had a strong year with a seismic shift in
demand for wool in 2H26 (particularly from exporters) driving up volume and wool price. Wool
carpet continued to dominate flooring sales (95% of carpet sales volumes) with growing
contributions from SDN carpets expected in FY27.
Inventory quality has been a major focus, with sub-standard yarn and carpet successfully sold down,
resulting in a healthier inventory profile that better supports customer requirements. The supply
chain has been shortened and slower-moving lines rationalised, with a greater focus on the
availability of key SKUs and samples, ensuring customers can access the products they want, when
they need them. Year-end inventory was $29.1m compared to $28.0m in the prior year.
Management is maintaining tight control over operating costs, inventory, working capital and capital
expenditure.
A comprehensive cost review was undertaken, with focus on creating a cost base appropriate for
current market conditions while retaining the capabilities required to support future growth. This
resulted in a clear and simplified path forward for both the business and the way it operates. These
initiatives are expected to deliver benefit in FY27 onwards.
Normalised loss before interest and tax (EBIT) improved from $(15.9)m to $(9.4)m . After taking into
account one-off items including insurance claims, restructuring and Scheme costs, and a final
adjustment to provision for an onerous contract, Bremworth recorded a net loss after tax of
$(11.4)m.
Cash and liquidity remain a key focus, with available cash at year-end of $22.0m. Operating cash
outflow (excluding insurance-related cash items) was $(9.3)m, a $14.5m improvement on the
equivalent of $(23.8)m in the prior year.
Chair Rob Hewett said: "The Board is acutely aware of the importance of preserving Bremworth's
financial position while market demand and earnings recover. Investment decisions are being
assessed against clear return criteria, and improving cash generation is a central measure of
management performance."

Outlook
Craig Woolford said: “Our focus has now shifted from rebuilding to growth. While current market
conditions are challenging, we believe Bremworth is strategically and operationally aligned to
capitalise on an eventual recovery in residential construction and renovation activity. We have a
strong brand, a differentiated product offering and a loyal customer base. The foundations have
been laid, and we are well positioned to convert the significant work undertaken into improved
earnings as market demand recovers. In addition to growth in Australia and New Zealand, market
opportunities in North America and China are poised to deliver meaningful benefit to the company
in the medium-term."
While the timing and pace of a broader market recovery remain uncertain, the Board expects
Bremworth's financial performance to improve in FY27 as the benefits from revenue initiatives, cost
reductions and manufacturing improvements progressively flow through.
The immediate objective remains to return Bremworth to profitability and positive operating cash
flow, whilst maintaining disciplined management of the company's cash resources.
Mangawhai Collective partial offer
On 14 August 2026, Bremworth received notice from Mangawhai Collective Limited (“MCL”) of the
intention to make a partial takeover offer for 44% of the ordinary shares in Bremworth that it does
not already own at an offer price of 90c per share. To date, the Board has not received a formal offer
from MCL. The Board notes that, given the offer is only for 44% of the shares in Bremworth not
already owned, there is no guarantee that shareholders selling into the offer will be able to realise
the offer price for all of their shares as excess acceptances would be scaled back.
The Board has appointed an independent adviser to prepare the Independent Adviser’s Report.
Shareholders are advised to take no action in relation to the proposed offer until they receive
further guidance from the company.

ENDS

For further information please contact:

Craig Woolford
Chief Executive
E: cwoolford@bremworth.co.nz
Jackie Ellis
Media and Investor Relations
E: Jackie@ellisandco.co.nz
M: +64 27 246 2505

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PRELIMINARY UNAUDITED FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026
The preliminary financial information is based on financial statements which are in the process of being
audited.

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
113. Impact of Cyclone Gabrielle
124. Impact of fire at the Whanganui yarn spinning plant
5. Financial performance
135a. Segment performance
155b. Revenue from contracts with customers
155c. Earnings per share
165d. Restructuring costs
6. Cash
166a. Cash and bank
166b. Restricted cash and cash equivalents
177. Inventories
188. Asset held for sale
9. Others
189a. Provisions
199b. Net tangible assets per share
199c. Events after the reporting period
20Disclosure of Non-GAAP Financial Information
2

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2026
UnauditedAudited
2026 2025
Note$000 $000
Revenue from contracts with customers5b106,595 88,424
Cost of sales(92,034)(76,903)
Gross profit14,561 11,521
Other income and gains135 547
Distribution expenses(14,986)(15,111)
Administration expenses(9,105)(12,822)
Cyclone Gabrielle related insurance claim3- 39,662
Whanganui fire related insurance claim4966 (912)
Restructuring costs5d(2,784)(2,725)
Onerous contract9a(57)(896)
(11,270)19,264
Finance costs(818)(860)
Finance income900 1,032
(Loss)/Profit before income tax(11,188)19,436
Income tax expense(182)(333)
(Loss)/Profit after tax for the year$(11,370)$19,103
Basic earnings per share (cents)5c(16.32)27.04
Diluted earnings per share (cents)5c(16.32)26.66
3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2026
UnauditedAudited
2026 2025
$000 $000
(Loss)/Profit after tax for the year(11,370)19,103
Other comprehensive income that may be reclassified subsequently to profit or loss
Effective portion of changes in fair value of cash flow hedges (net of income tax)(568)(372)
Net change in fair value of cash flow hedges transferred to profit or loss (net of income tax)(585)343
Total other comprehensive loss(1,153)(29)
Total comprehensive (loss)/income for the year$(12,523)$19,074
4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2026
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 202521,729 349 (1,420)854 51,782 73,294
Total comprehensive income for the year
Loss after tax- - - - (11,370)(11,370)
- (1,153)- - - (1,153)
Total comprehensive loss for the year- (1,153)- - (11,370)(12,523)
- - - (2)- (2)
Total transaction with owners for the year- - - (2)- (2)
Total equity at 30 June 2026$21,729 $(804)$(1,420)$852 $40,412 $60,769
Total equity at 1 July 202422,054 378 (1,420)732 32,679 54,423
Total comprehensive income for the year
Profit after tax- - - - 19,103 19,103
- (29)- - - (29)
Total comprehensive income for the year- (29)- - 19,103 19,074
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 $51,782 $73,294
Unaudited
Other comprehensive income that may be reclassified
subsequently to profit or loss
Changes in fair value of cash flow hedges (net
of income tax)
Share-based payments - value of employee
services
Transaction with owners in their capacity as
owners
Share-based payments - value of employee
services
Audited
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
5

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2026
UnauditedAudited
2026 2025
Note$000 $000
ASSETS
Property, plant and equipment - owned20,354 16,959
Property, plant and equipment - right-of-use7,439 7,915
Intangible assets385 36
Restricted cash and cash equivalents6b2,200 -
Deferred tax asset571 488
Total non-current assets30,949 25,398
Cash and bank6a22,033 42,245
Restricted cash and cash equivalents6b2,676 -
Trade receivables, other receivables and prepayments14,134 11,050
Inventories729,066 27,954
Asset held for sale8240 -
Derivative financial instruments- 516
Total current assets68,149 81,765
Total assets99,098 $107,163
EQUITY
Share capital21,729 21,729
Cash flow hedging reserve(804)349
Foreign currency translation reserve(1,420)(1,420)
Share-based payment reserve852 854
Retained earnings40,412 51,782
Total equity60,769 73,294
LIABILITIES
Lease liabilities14,155 15,168
Employee benefits341 371
Provisions9a1,312 1,769
Total non-current liabilities15,808 17,308
Trade payables and accruals14,822 10,049
Customer deposits77 151
Employee benefits61 74
Employee entitlements3,677 3,387
Lease liabilities1,660 1,540
Provisions9a835 1,122
Derivative financial instruments1,018 54
Deferred income99 48
Income tax payable272 136
Total current liabilities22,521 16,561
Total liabilities38,329 33,869
Total equity and liabilities99,098 $107,163
6

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2026
UnauditedAudited
2026 2025
Note$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers103,968 86,886
Cash paid to suppliers and employees(113,280)(108,784)
(9,312)(21,898)
Government grants received- 176
Other receipts158 10
GST paid(118)(2,097)
Interest paid - loans and borrowings(32)(35)
Interest component of lease payments(786)(825)
Interest received900 1,113
Income tax paid(129)(217)
Whanganui fire related insurance income41,067 -
Cyclone Gabrielle related insurance income- 42,230
Cyclone Gabrielle related expenses- (2,721)
Net cash flow from operating activities(8,252)15,736
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of plant and equipment61 70
Acquisition of plant and equipment(5,702)(5,541)
Maturities of short term deposits27,000 5,000
Whanganui fire related insurance income4123 477
Investments in short term deposits- (27,000)
Advances to employees pursuant to the Bremworth Equity Plan- 181
Cyclone Gabrielle related insurance income- 1,485
Net cash flow from investing activities21,482 (25,328)
CASH FLOWS FROM FINANCING ACTIVITIES
Buyback and cancellation of shares- (325)
Principal component of lease payments(1,659)(1,457)
Transfer to restricted cash and cash equivalents - non-current6b(2,200)-
Transfer to restricted cash and cash equivalents - current6b(2,676)-
Net cash flow from financing activities(6,535)(1,782)
Net increase/(decrease) in cash and cash equivalents6,695 (11,374)
Cash and cash equivalents at beginning of the year15,245 26,645
Effect of exchange rate changes on cash93 (26)
Cash and cash equivalents at end of the year$22,033 $15,245
7

CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
FOR THE YEAR ENDED 30 JUNE 2026
UnauditedAudited
2026 2025
Note$000 $000
(Loss)/Profit after tax for the year(11,370)19,103
Add/(Deduct) non-cash items:
Depreciation - owned assets1,660 1,166
Depreciation - right-of-use assets1,242 1,129
Amortisation - intangible assets25 25
Impairment of buildings- 600
Share-based payments - value of employee services(2)122
Deferred tax(83)(86)
Net gain on sale of plant and equipment(28)(13)
Net (gain)/loss on foreign currency balance(93)26
Deduct insurance related cash items:
Whanganui fire related insurance income4(123)(477)
Changes in working capital items:
Trade receivables, other receivables and prepayments(3,084)(1,874)
Inventories(1,112)1,394
Trade payables and accruals4,773 (6,301)
Customer deposits(74)12
Employee benefits and entitlements247 (428)
Provisions(745)1,385
Derivative financial instruments328 -
Deferred income51 (250)
Income tax payable136 203
Net cash flow from operating activities$(8,252)$15,736
8

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026
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
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.
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
2026.
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 has been prepared on the historical cost basis, except for derivative financial instruments which are
measured at fair value.
The preliminary financial information is presented in New Zealand dollars, which is Bremworth's functional and presentation currency.
Unless otherwise indicated, all financial information presented in New Zealand dollars has been rounded to the nearest thousand.
9

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
2
2b GOING CONCERN
-
-
-
-
-
-
-
-
-
In preparing these forecasts, management considered and, where required, made assumptions in relation to:
-
-
-
-
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.
The Board expects that sufficient funds are available to fund the Group’s operations while also providing the Board with optionality to
continue to look at opportunities to return the business to profitability.
GENERAL INFORMATION RELATING TO PREPARATION OF PRELIMINARY FINANCIAL INFORMATION (continued)
The Group prepares its consolidated financial statements on a going concern basis and expects to be able to realise its assets and meet
its financial obligations in the normal course of business.
Cash and bank (excluding restricted cash and cash equivalents) at balance date of $22.0 million is down $20.2 million on the $42.2 million
equivalent as at 30 June 2025. This reduction reflects largely the following:
$4.9 million that was transferred to restricted cash and cash equivalents during the year as explained in detail in note 6b;
$5.8 million cash out flows from trading activities, reflecting the ongoing difficult trading conditions;
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 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 also prepared forecasts of its financial performance, while also assessing cash flows and financial position as part of the
Board's ongoing review of the business.
the additional costs, and time it would take, to re-introduce synthetic carpet into its pre-existing woollen carpet offerings with earlier
product launch plans taking longer than anticipated to execute;
$2.5 million cash out flows relating to costs associated with the proposed scheme of arrangement;
$5.5 million cash out flows for property, plant and equipment, including $4.4 million towards the staged reinstatement of the Napier
spinning plant assets that were damaged during Cyclone Gabrielle; and
$1.7 million cash out flows towards lease obligations.
Notwithstanding the reduction in cash and bank during the period, the Group's financial position remains strong, with equity to total assets
of 61.3% (compared with 68.4% as at 30 June 2025) and current ratio (measured by dividing its current assets by its current liabilities) of
3.03 (compared with 4.94 as at 30 June 2025).
The net working capital (being current assets (excluding cash and bank and restricted cash and cash equivalents) less current liabilities)
employed by the Group as at balance date of $20.9 million compares with $23.0 million as at 30 June 2025 - reflecting the ongoing focus
on working capital employed by the business.
The Board remains committed to the future of the existing carpet business, with a number of decisions taken to strengthen the Company's
financial performance, position and cash flows. These decisions included the following:
10

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
2
2c BASIS OF CONSOLIDATION
2d CHANGES IN ACCOUNTING POLICIES
There were no changes in accounting policies during the year ended 30 June 2026.
3IMPACT OF CYCLONE GABRIELLE
Dealing with impact of Cyclone Gabrielle in February 2023
The following table summarises the impact of Cyclone Gabrielle on the Consolidated Statement of Profit or Loss:
UnauditedAudited
2026 2025
Impact of Cyclone Gabrielle$000 $000
- 42,230
- (240)
- (151)
- (2,177)
- $39,662
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 Cyclone Gabrielle insurance claims, 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.
The consolidated financial information incorporate the assets and liabilities of all subsidiaries of the Group as at 30 June 2026 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 information. Unrealised losses are also eliminated unless the underlying intra-group transaction provides evidence
that the asset transferred is impaired.
Insurance proceeds secured and recognised as income
Ongoing payroll costs recognised as expenses
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
GENERAL INFORMATION RELATING TO PREPARATION OF PRELIMINARY FINANCIAL INFORMATION (continued)
11

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
4IMPACT OF FIRE AT THE WHANGANUI YARN SPINNING PLANT
UnauditedAudited
2026 2025
Impact of fire$000 $000
1,140 527
187 -
(361)-
- (600)
- (839)
$966 $(912)
Accounting policies
Progress payments received
UnauditedAudited
2026 2025
$000 $000
Whanganui fire related insurance income recognised1,140 527
Add payments relating to income recognised in the previous year50 -
Less payments received in the following year- (50)
Insurance recovery progress payments received$1,190 $477
Operating activities1,067 -
Investing activities123 477
Insurance recovery progress payments received$1,190 $477
The $1,140,000 of Whanganui fire related insurance income recognised during the year ended 30 June 2026 represents the final payment
that was agreed with the insurers as settlement of the Group's insurance claim (2025: progress payment of $750,000 less deductible of
$223,000).
Insurance recovery progress payments received have been recognised in
the Consolidated Statement of Cash Flows as follows:
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.
Dealing with impact of the fire at the Whanganui yarn spinning plant in May 2025
On 4 May 2025, a fire broke out at the Whanganui yarn spinning plant.
The losses were substantially covered by insurance, and the Group settled its insurance claim on 26 February 2026.
The following table summarises the impact of the fire at the Whanganui yarn spinning plant on the Consolidated Statement of Profit or
Loss:
Ongoing costs as a result of the fire as well as professional fees (including claims preparation
costs) incurred that have been recognised as expenses
Damaged buildings derecognised to the extent appropriate
Damaged or destroyed inventory written off to the extent appropriate
Proceeds from salvage of damaged inventory
Insurance proceeds secured and recognised as income
12

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (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
2026 2025
$000 $000
Revenue
New Zealand77,154 57,298
Australia27,934 29,443
Canada1,222 903
USA200 661
Rest of the world85 119
$106,595 $88,424
UnauditedAudited
As at As at
30 June 202630 June 2025
$000 $000
Non-current assets
New Zealand29,738 24,437
Australia1,211 961
$30,949 $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.
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.
Carpet, with this segment involved in the manufacturing and sales of carpet and rugs in New Zealand, Australia and rest of the
world; and
13

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (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
2026 2025 2026 2025 2026 2025
$000 $000 $000 $000 $000 $000
External revenue61,805 59,504 44,790 28,920 106,595 88,424
Inter-segment revenue- - 4,617 2,441 4,617 2,441
Total revenue61,805 59,504 49,407 31,361 111,212 90,865
Elimination of inter-segment revenue(4,617)(2,441)
Consolidated revenue$106,595 $88,424
Depreciation - owned assets(1,446)(1,000)(214)(166)(1,660)(1,166)
Depreciation - right-of-use assets(1,069)(956)(173)(173)(1,242)(1,129)
Amortisation - intangible assets(25)(25)- - (25)(25)
(10,779)(15,805)2,173 962 (8,606)(14,843)
Cyclone Gabrielle related insurance claim- 39,662 - - - 39,662
Whanganui fire related insurance claim966 (912)- - 966 (912)
Restructuring costs(2,784)(2,725)- - (2,784)(2,725)
Onerous contract(57)(896)- - (57)(896)
Segment result(12,654)19,324 2,173 962 (10,481)20,286
Elimination of inter-segment profits7 20
Unallocated corporate costs(796)(1,042)
Results from operating activities(11,270)19,264
Finance costs(818)(860)
Finance income900 1,032
(Loss)/Profit before income tax(11,188)19,436
Income tax expense(182)(333)
(Loss)/Profit after tax for the year$(11,370)$19,103
(12,523)
Segment result before insurances,
restructuring and onerous contract
Segment result before depreciation,
insurances, restructuring and onerous contract
(8,239)(13,824)2,560 1,301 (5,679)
Carpet and rugs sales and
manufacturing Wool acquisition Total
14

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
5FINANCIAL PERFORMANCE (continued)
5a SEGMENT PERFORMANCE (continued)
UnauditedAuditedUnauditedAuditedUnauditedAudited
2026 2025 2026 2025 2026 2025
$000 $000 $000 $000 $000 $000
Reportable segment assets61,111 56,591 11,078 8,327 72,189 64,918
Unallocated assets - Cash and bank22,033 42,245
Unallocated assets - Restricted cash4,876 -
Total assets$99,098 $107,163
Capital expenditure5,395 5,114 307 428 $5,702 $5,542
Reportable segment liabilities17,535 15,141 4,979 2,020 22,514 17,161
Unallocated liabilities - Lease liabilities15,815 16,708
Total liabilities$38,329 $33,869
5b REVENUE FROM CONTRACTS WITH CUSTOMERS
UnauditedAudited
2026 2025
$000 $000
Sales of goods
Carpet60,374 58,160
Rugs970 1,164
Wool44,790 28,920
Other461 180
Total revenue$106,595 $88,424
5c EARNINGS PER SHARE
Basic earnings per share (Basic EPS)
UnauditedAudited
2026 2025
(Loss)/Profit after tax attributable to shareholders of the Company ($000)(11,370)19,103
Weighted average number of ordinary shares outstanding
69,666,127 70,657,464
Basic (loss)/earnings per share (cents)(16.32)27.04
Diluted earnings per share (Diluted EPS)
UnauditedAudited
2026 2025
(Loss)/Profit after tax attributable to shareholders of the Company ($000)(11,370)19,103
Weighted average number of ordinary shares outstanding and potential ordinary shares
69,666,127 71,657,464
Diluted (loss)/earnings per share (cents)(16.32)26.66
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.
15

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
5FINANCIAL PERFORMANCE (continued)
5d RESTRUCTURING COSTS
UnauditedAudited
2026 2025
$000 $000
Termination payments276 1,986
Board-led strategic review2,508 444
Costs associated with review of cost base- 295
Total restructuring costs$2,784 $2,725
6CASH
6a CASH AND BANK
Cash and bank at balance date comprise the following:
UnauditedAudited
2026 2025
$000 $000
Cash and cash equivalents22,033 15,245
Short term deposits- 27,000
$22,033 $42,245
Accounting policies
6b RESTRICTED CASH AND CASH EQUIVALENTS
UnauditedAudited
2026 2025
$000 $000
Total$4,876 -
Non-current2,200 -
Current2,676 -
Total$4,876 -
Board-led strategic review costs include the costs incurred on the proposed scheme of arrangement with Floorscape Limited pursuant to
the scheme implementation agreement entered into in October 2025.
Cash is cash on hand and demand deposits and is net of bank overdrafts used for cash management purposes where formal
arrangements for set off has been agreed with the Bank of New Zealand ("the Bank"). Under these set off arrangements, the Group is
able to set off overdrawn balances up to a maximum of $1,000,000 against credit balances in selected accounts as long as the net
balance of all these accounts (including overdrawn accounts) as a whole remains in credit. At balance date, there were no overdrawn
amounts subject to set off (2025: Nil). Cash equivalents are highly liquid investments that are readily convertible to known amounts of
cash (that is, there is insignificant risk of changes in value) with maturity no more than three months from balance date. Short term
deposits are investments with maturities greater than three months but no more than twelve months from balance date.
The Group's banking facilities include guarantees by the Bank to third parties relating to the Group's lease and other operating
commitments.
At reporting date, the Group held restricted cash and cash equivalents of $4,876,000 (2025: Nil), with this balance relating to cash and
cash equivalents deposited with the Bank as security against the guarantees provided by the Bank. These cash and cash equivalents are
subject to security restrictions and are not available for general operating purposes by the Group.
Restricted cash and cash equivalents are classified as current or non-current based on the expected timing of release of the security
restrictions. Amounts restricted for less than 12 months after balance date are classified as current assets, while amounts restricted for
more than 12 months after balance date are classified as non-current assets.
16

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
7INVENTORIES
Inventories, net of provision, are summarised in the table below:
UnauditedAudited
2026 2025
$000 $000
Raw materials and consumables9,349 10,708
Raw materials in transit488 111
Work in progress1,363 1,501
Finished goods17,866 15,634
$29,066 $27,954
Inventory provision at 1 July5,238 2,614
Change in provision during the year(2,089)2,624
Inventory provision at 30 June$3,149 $5,238
Accounting policies
Estimates, judgements and assumptions
Inventory provisions are recognised for oddments and obsolete, aged and discontinued , as well as defective, inventories to arrive at
their likely net realisable value.
Estimates and judgement are applied in identifying and categorising - to the extent applicable - obsolete, aged, discontinued and
defective inventories and determining the level of provisioning that is required – with a range of factors including inventory
rationalisation plans, consumer demand and trends, available distribution channels and historical sales and margin data considered.
The approach to inventory provisioning in 2026 is substantially consistent with 2025, with the decrease in provision attributable to the
significant improvement in the Group's inventory profile as a result of the focus that was given during the year to address quality issues
and to dispose off obsolete, aged and discontinued, as well as defective, inventories.
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle,
and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. In the case of
manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating
capacity. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and
selling expenses.
17

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
8ASSET HELD FOR SALE
UnauditedAudited
2026 2025
$000 $000
Land situated at Napier$240 -
9OTHERS
9a PROVISIONS
Onerous contract Warranties
Others
Total
$000 $000 $000 $000
Unaudited
Balance at 1 July 2025896 1,955 40 2,891
Provided during the year57 910 - 967
Utilised during the year(912)(799)- (1,711)
Balance at 30 June 2026$41 $2,066 $40 $2,147
Non-current- 1,272 40 1,312
Current41 794 - 835
Balance at 30 June 2026$41 $2,066 $40 $2,147
Audited
Balance at 1 July 2024- 1,315 191 1,506
Provided during the year896 1,512 - 2,408
Utilised during the year- (872)(151)(1,023)
Balance at 30 June 2025$896 $1,955 $40 $2,891
Non-current486 1,243 40 1,769
Current410 712 - 1,122
Balance at 30 June 2025$896 $1,955 $40 $2,891
Onerous contract
Accounting policies
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.
The Group entered into an agreement for the sale of surplus land at its Napier yarn spinning plant in November 2025, with settlement 10
workings days after the Group notifies the purchaser in writing that Land Information New Zealand has issued new title for the land subject
to the sale.
New title for the land subject to the sale is expected to be issued in December 2026.
The Group has classified this asset as an asset held for sale under NZ IFRS 5 (Non-current Assets Held for Sale and Discontinued
Operations) because its value will be recovered through a sale rather than through continued use at balance date - with the asset
available for immediate sale in its present condition and the sale being highly probable.
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. This contract will terminate on the delivery of the balance of product required to be supplied under the contract or 31 December
2026 whichever is the earlier.
18

NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2026 (continued)
9
9b NET TANGIBLE ASSETS PER SHARE
UnauditedUnaudited
2026 2025
Net tangible assets of the Group ($000)52,374 64,855
Number of ordinary shares outstanding
69,089,365 70,561,519
Net tangible assets per share ($)0.76 0.92
9c EVENTS AFTER THE REPORTING PERIOD
OTHERS (continued)
On 14 August 2026, Mangawhai Collective Limited ("MCL") which has legal and beneficial ownership of 13,444,899 ordinary shares in the
Company while also controlling the exercise of voting rights of a further 188,943 ordinary shares (with the total number of shares of
13,633,842 representing 19.734% of the 69,089,365 ordinary shares on issue) filed a notice of intention to make a partial takeover offer
under the Takeovers Code for ordinary shares in the Company that it does not already own or control.
As announced to the market on 10 August 2026, MCL has entered into lock-up deeds with shareholders representing 32.241% of the
ordinary shares in the Company, obliging those shareholders to accept (or procure the acceptance of) the partial takeover offer, if made,
for all of the shares in Bremworth that they or their relevant related trusts or entities own or control. Copies of the lock-up deeds are
attached to MCL's substantial product holder notice lodged with NZX on 10 August 2026.
The Board has formed a Board sub-committee to oversee Bremworth's response, with the sub-committee comprising Trevor Burt, Julie
Bohnnen and Murray Dyer. The Bremworth Board considers it too early to comment on the merits of the draft offer at this time.
The notice of intention is not a formal offer. Rather, it entitles (but does not oblige) MCL to make a partial takeover offer for 43.937% of the
ordinary shares in the Company that it does not already own or control at a price of $0.90 per ordinary share. If an offer is made and is
successful, this would result in MCL owning or controlling up to 55.0% (and no less than 50.001%) of the voting rights in the Company.
19

- 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’.
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;
In arriving at this view, the Directors have also taken cognisance of the regular requests by users of the Group's financial information, 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;
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)", “(Loss)/Profit before tax (normalised)" and “(Loss)/Profit after
tax (normalised)" as well as the various other financial ratios that are based on normalised results – for example, earnings per share) provide useful
information to investors regarding the performance of the Group because the calculations exclude 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).
20

GAAP Adjustments Normalised GAAP Adjustments Normalised
$000 $000 $000 $000 $000 $000
Revenue106,595 - 106,595 88,424 - 88,424
EBITDA(8,343)1,875 (6,468)21,584 (35,129)(13,545)
Depreciation - owned assets(1,660)- (1,660)(1,166)- (1,166)
Depreciation - right-of-use assets(1,242)- (1,242)(1,129)- (1,129)
Amortisation - intangible assets(25)- (25)(25)- (25)
EBIT(11,270)1,875 (9,395)19,264 (35,129)(15,865)
Finance costs(818)- (818)(860)- (860)
Finance income900 - 900 1,032 - 1,032
(Loss)/Profit before tax(11,188)1,875 (9,313)19,436 (35,129)(15,693)
Tax expense(182)- (182)(333)- (333)
(Loss)/Profit after tax(11,370)1,875 (9,495)19,103 (35,129)(16,026)
Abnormal items(1,875)(1,875)35,129 35,129
(Loss)/Profit after tax (GAAP)- $(11,370)- $19,103
Before taxTax effect
1
After taxBefore taxTax effect
1
After tax
$000 $000 $000 $000 $000 $000
Cyclone Gabrielle related income- - - 42,230 - 42,230
- - - (2,568)- (2,568)
Whanganui spinning plant fire related income1,140 - 1,140 527 - 527
(174)- (174)(1,439)- (1,439)
Restructuring costs(2,784)- (2,784)(2,725)- (2,725)
Onerous contract(57)- (57)(896)- (896)
Total$(1,875)- $(1,875)$35,129 - $35,129
Year ended 30 June 2026
GAAP-
compliant
reported
(loss)/profit after
tax
Reverse
abnormal items
(net of tax)
where
applicable
Non-GAAP-
compliant
normalised
(loss)/profit after
tax
Loss attributable to shareholders ($000)$(11,370)$1,875 $(9,495)
Weighted average number of ordinary shares (basic)
69,666,127 69,666,127
Loss per share (basic) (cents)(16.32)(13.63)
Weighted average number of ordinary shares (diluted)
69,666,127 69,666,127
Loss per share (diluted) (cents)(16.32)(13.63)
Year ended 30 June 2025
Profit/(Loss) attributable to shareholders ($000)$19,103 $(35,129) $(16,026)
Weighted average number of ordinary shares (basic)
70,657,464 70,657,464
Earnings/(Loss) per share (basic) (cents)27.04 (22.68)
Weighted average number of ordinary shares (diluted)
71,657,464 71,657,464
Earnings/(Loss) per share (diluted) (cents)26.66 (22.36)
1
Tax effect nil because of unrecognised tax losses
Whanganui spinning plant fire related asset
write offs, salvage and expenses
Calculation of basic and diluted earnings/(loss) per share under GAAP and non-GAAP measures of profit after tax
Year ended 30 June 2026Year ended 30 June 2025
Analysis of abnormal items
Year ended 30 June 2026Year ended 30 June 2025
Cyclone Gabrielle related asset write offs,
expenses and asset impairment reversed
DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION (continued)
RECONCILIATION OF GAAP-COMPLIANT TO NON-GAAP-COMPLIANT MEASURES OF PERFORMANCE
21