They are certainly taking advantage of the huge opportunities in the rug market.
As you rightly point out excellent margins too.
Printable View
Many months and countless hours will be spent to and fro between assessors, underwriters, consultants and Bremworth trying to agree how much of the insured value will actually be paid out on the basis of like-for-like replacement/rebuild versus the real cost of what makes commercial sense if the plant is to be rebuilt.
For example the cost of replacing an old poorly insulated hot water tank with a single level instrument with a new tank of the same volume but properly insulated and with multiple level instruments allowing better energy efficiency, greater reliability and better process safety. The difference in cost will be considered as value added or improvement and won't be paid out. The only time that won't play out is when compliance costs have increased such as changes in seismic design requirements means the tank needs more anchor bolts for instance.
A long and frustrating road lies ahead...
BRW always said they expected insurance payouts to be completed by FY24 OR FY25.
This suited me as it gives a low risk ride to see how the new wool only business develops here and over the ditch. I am already in the green by 26% and feel my money is protected by the fact that there is possibly another $100m in payouts to hit. Remembering this has a market cap of $40m currently.
Very low downside but decent upside.
Bit like my recent TWR investment. But BRW could double. TWR not so much
Someone wanted some shares in a hurry
Another good day..
Hope Tower doesn’t insure these guys since own a few TWR shares lol
NBR recognises Bremworth in it’s annual gongs -
This one is part good, part bad, but the Serendipitous Clusterf*** award goes to Bremworth, which had to find an alternate dyed fibre and yarn supply after its Napier plant was wrecked as a result of Cyclone Gabrielle and its insurance resolution dragged out, ending up with a cheaper and more plentiful supply of yarn from offshore with which to help power the company’s now expanded ambitions. Not that anyone wants to see people lose their jobs, of course.
https://www.nbr.co.nz/shoeshine/2023...+Newsletter%3A