I haven't been on the register that long, but from my impression what has changed is what they make, how they make it, and how they sell it. Anything important in there?
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Haewai …..got to say that a chunk of recent share loss is from their strategic decision not to ‘chase’ big commercial contracts
Focus on consumers and residential ….hmmm
I'm not inclined to criticise another person's decisions unless I know the all the facts and reasons. Maybe once production really gets going again, they will be able to offer more volume to the commercial sector. Until then, if the firm can only supply a limited amount, why not focus on the presumably higher margin market?
Up inútil 2011 I admired Cavalier ……they were consistently making high returns on capital employed …way above their cost of capital and as such were creating a lot of economic value added.
It all turned to custard in F12 when they were confronted by a flood of synthetic carpet imports borne on the tide of the weak US dollar at the time. Its been a struggle since
Some years they made what seemed to be a reasonable profit but then profit after tax was less than 3% of sales. Profit margins since 2017 have been non-existent …even on a normalised basis.
Again looking forward has anything changed to reverse this entrenched trend.
Maybe they can convince consumers that synthetic carpets are really really bad for the environment and that the new carpet should be from the Most Trusted Carpet people. You never know by 2030 this might be case
In the meantime they can play around with the insurance money ….hope it doesn’t get squandered.
Might update a business paper I did on Cavalier ……could be a good case study
Agreed .. since then the resident squatters around the Boardroom table may have become more entrenched.
My thoughts as well - this outfit were fast to hock off the estate around the Auckland factory etc to pull themselves
out of a ditch that they had been digging for years. Throw them a large pile of pingers like they never seen
before and will it be gurgling sounds .. more of the 'wheels getting warming up' to try a further series of repeats
to see if the consistency of the hole is the same as last time ? ;)
I mean ******** - all we seen so far is the glossed up "We found a market gap for hocking off Custom pieces
in our very own Factory Shops - not exactly the sort of brain science sort of thing to make this outfit fly
around the ceiling or get many over excited for the Long wait and possibly digging further ditches, if it
all turns to custard in volatile times - just dig into the large pile in the larder - ignore the poor suckers
who bought their holdings & feed them doom & gloom stories for as long as the trail along the garden
path as is convenient ;)
Might be quite a few chapters of pulling the wool still to come, if they think they are likely to make any
sort of impression on the competition in current times or in distant future.. or am I wrong ? :)
If Mr Godfrey is doing so well - then what is it that this outfit haven't quite woken up to to get their own nuts & bolts up to speed on while Mr Godfrey gets to come in and eat their lunch for them while they weren't looking ? :)
Flagship Bremworth Experience store eh ….concepts Dave from Comvita rave about
Getting closer to the consumer good strategy …maybe they could use the insurance money to set up / acquire a chain of retail outlets?
Cripes - Vertical expansion when the mainstream Manufacturing Op still looks like a continuing disaster
with lots of feel good and plenty of larger circling piranhas circling in the same pool ? ;)
Will Retail fare any better or both under the same Structure amount to 1, 1/2, 2 or 4 disasters if something
stalls anywhere within ? ;)
Have they seconded in any Retail bones who know what they are doing yet or is that still a trial mode
with repurposed bods experimenting on custom chopped woolly stuff when an eager punter just happens to fly in the door wondering what the h4ll has just landed & is going on. in the midst of a process of iron out
any knots & creases as they go ? ;)
Perhaps buying out an existing Retail job might have been easier, but that might p!ss off some of the remaining Wholesale custies trying to make a buck in the same centres :)
Nztx, Bremworth do have a Director Emeritus though ..not many of those eh
Suppose the recent offer I made to help them out with a bit of strategic thinking will be rejected (kindly I hope)
When Metro Glass weren’t doing too badly shortly after IPO I offered to help them out as well ….rejected the offer …..and look where they are now
Come to think of it lot if similarities between Metro Glass and Bremworth