Bremworth posts FY25 profit, explores takeover amid strategic reset

Bremworth Ltd reported a GAAP profit after tax of NZD$19.1 million for FY25, a 311% increase, primarily due to NZD$104 million in Cyclone Gabrielle insurance receipts. Normalised loss after tax, however, widened to NZD$(16.0) million, up 150%, reflecting disruptions and challenging market conditions. Revenues increased by 5% for carpets and 25% for wool, reaching NZD$88.424 million. The company significantly reduced its cost base across all business functions and improved operating cash outflows in the second half of FY25.

The company is undergoing a strategic reset, including the reinstatement of its Napier yarn plant, reintroduction of synthetic carpets, and an expanded sales focus in New Zealand and Australia. Post-balance date, Bremworth entered a Scheme Implementation Agreement (SIA) with Floorscape Limited, which proposes to acquire 100% of Bremworth's shares for an estimated NZD$1.05 to NZD$1.15 per share, including a NZD$0.75 cash payment and a capital distribution of NZD$0.30 to NZD$0.40. This represents a substantial premium over recent share prices.