Update on Cyclone Gabrielle Insurance Claims

Highlights:

• Progress Payment Secured: Bremworth Limited has received an additional NZ$16.5 million plus GST from insurers, bringing total progress payments to NZ$62 million plus GST.
• Restoration Efforts: Funds are being used to reinstate assets at the Napier spinning plant and rebuild the business to pre-cyclone capabilities while ensuring continued operations.
• Future Updates: Directors expect to provide another update on insurance claims with the FY24 full-year results in August 2024, while keeping shareholders informed of any significant developments in the meantime.

Progress Payment Secured

Bremworth Limited (NZX: BRW) has secured an additional progress payment of NZ$16.5 million plus GST from its insurers. This brings the total progress payments received to NZ$62 million plus GST. These funds are currently non-specific regarding material damage or business interruption.

Restoration Efforts

The progress payments have been and will continue to be utilized for the staged reinstatement of assets at Bremworth's Napier spinning plant, which was severely damaged by the floods following Cyclone Gabrielle. The funds are also aiding in the rebuilding of the business to its pre-cyclone capabilities while ensuring continued operations in the interim.

Complex Claims Process

The insurance claims related to both material damage and business interruption are intricate and will take time to fully resolve. Despite the complexity, Bremworth reports good progress in the claims process.

Future Updates

The Directors anticipate providing another update on these insurance claims when Bremworth releases its FY24 full-year results towards the end of August 2024. In the meantime, shareholders will be informed of any significant developments.

Impact of Cyclone Gabrielle

Cyclone Gabrielle, which caused widespread flooding and damage, significantly impacted Bremworth's operations. The reinstatement and rebuilding efforts are critical to restoring the company's operational capabilities and financial stability. The company is committed to restoring its Napier spinning plant and ensuring the business reaches pre-cyclone productivity levels.

Commitment to Stakeholders

Bremworth remains dedicated to keeping its stakeholders informed throughout the recovery process. The company’s proactive approach in securing substantial progress payments underscores its commitment to rebuilding and maintaining transparency with its shareholders.

In summary, Bremworth Limited continues to make strides in its recovery from Cyclone Gabrielle, with significant progress payments aiding the restoration of its operations. The company remains optimistic about resolving its complex insurance claims and restoring full operational capacity.

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