KEY POINTS:
Profit and revenue are up at Cavalier with increased volume sales in Australia and the listed carpet maker confident of full-year growth.
Net profit for the six months ending December 31 was $7.1 million, up from $6.7 million the previous year, while revenue was up from $96.3 million at $102.3 million.
Managing director Wayne Chung said competition remained strong on both sides of the Tasman.
"In light of all the negatives that we're hearing, particularly in the housing area, I thought the result was very credible," he said. "We probably find the competition just a wee bit more of late because there is capacity in the industry with the Feltex issue."
Competition from synthetic importers in Australia had been quite intense, he said. After a difficult trading period the previous year, carpet sales had grown.
"The outlook we see is quite positive for us in Australia, particularly in the better end of the retail, we see contract business to be positive for us in Australia through our carpet tile operation," Chung said.
"In New Zealand we see things as perhaps more steady."
Revenue from wool operations was up 5.1 per cent at $19.3 million, with an operating result before interest and tax of $200,000 compared with a loss of $300,000 the previous year. Shares closed up 7c yesterday at $3.50.
