Carpet maker rides 4-year high

Carpet manufacturer Cavalier Corporation has posted an $18.3 million profit after tax for the June year, 39 per cent up on last year's result.

The profit came from total operating revenue of $193.2 million ($164.8 million last year) and total assets of $115.51 million.

Total operating revenue and total assets increased as a result of Cavalier's purchase in July last year of Australian carpet tile operation Ontera Modular Carpets.

Sydney-based Ontera contributed $28.3 million to the total operating revenue in the 2002-03 financial year.

Cavalier's directors have approved a final fully imputed dividend of 13c a share, bringing the total fully imputed dividend to 25c a share.

Cavalier said in a statement to the stock exchange yesterday that its balance sheet had been further strengthened during the year.

Earnings per share of 29c were the highest in four years, the company said.

Factors behind what it called a "quantum leap" in performance for the year were the restructuring of the company's wool interests and the continuing strong growth in profitability in carpet operations, it said.

Cavalier's carpet flagship operation, Cavalier Bremworth, had a "very strong year, a result of ongoing market share gains in buoyant market conditions on both sides of the Tasman".

Bremworth recorded sales revenue of $120.5 million ($108.5 million last year), but turnover was constrained by capacity more than sales demand.

Ontera, of which Cavalier owns 89.5 per cent, performed satisfactorily, turning in a positive performance compared with last year, when it suffered a loss.

Cavalier's Hawkes Bay wool operation, Napier-based Woolscourers, of which it owned 76 per cent during the year, contributed $3.8 million before corporate costs, interest and tax.

Cavalier now owns 92.5 per cent of Woolscourers.

The company said it had been a difficult year for wool-trading and exporting industries because of the strong performance of the New Zealand dollar.

"It is too early for us to make any quantitative comment on the outlook for the current year, but we will keep shareholders informed as any pattern for the year begins to emerge," Cavalier said.

- NZPA