Feltex posts $11.2m profit

12.00pm

Recently re-listed carpet maker Feltex today posted an $11.2 million full year profit to June, up from $6.8 million last year and said it expects to more than double that in the present financial year.

Feltex said its profit was achieved on revenue of $328 million, up from $314 million last year. Earnings before interest tax depreciation and amortisation (ebitda) adjusted for one off items increased 48.1 per cent to $46.2 million, from $31.2 million last year.

The company will pay an unimputed final dividend of 6 cents per share on October 4 with a record date of October 1, it said in a statement to the NZX.

Feltex directors said the overall market was expected to be stable for the remainder of the current financial year with continued growth in the commercial market offsetting a slow down in the residential sector.

The company today forecast net profit after tax of $23.9 million for the current financial year and ebitda of $51.7 million as previously advised in the initial public offer for its listing in June. Feltex relisted after a sharemarket absence of nearly 20 years.

Today's net profit exceeded the IPO prospectus forecast by $1.1 million. Excluding one off items, the company's net profit after tax was $27.2 million.

The company said it had increased revenue on generally favourable trading conditions in Australia and New Zealand. Also contributing were the addition of more spinning capacity, continued good sales of higher value wool products, and sales of new products exceeding expectations.

Feltex shares were trading 4c lower back at their $1.70 issue price in the first half hour of trade after the company released its result this morning.

The company's listing was the biggest float in this country for five years since Contact Energy was listed.

- NZPA