Sharechat Logo

Cavalier raises 2016 earnings guidance on better performance from broadloom carpets

Friday 24th June 2016

Text too small?

Cavalier Corp shares jumped to a 19-month high after the carpet maker raised 2016 earnings guidance as its broadloom carpets unit outperformed expectations and it sold an unprofitable carpet tile operation. 

Post-tax normalised earnings are expected to be $6 million in the 12 months ending June 30, up from $1 million a year earlier, and ahead of the $3 million-to-$5 million range forecast at the November annual meeting. Net profit will be about $2.4 million, including restructuring costs associated with shuttering operations and laying off staff, and the gain on a property sale. 

The shares jumped 9.2 percent to 73 cents, the highest level since November 2014, and had gained 6.7 percent so far this year. That's in a market weighed down by growing fears among investors that the UK will vote to leave the European Union, with the S&P/NZX All Index down 1 percent to 1279.34. 

Cavalier recorded its worst-ever annual loss last year of $25.7 million in 2015 as it wrote down assets and restructured its business to boost future earnings. The company has changed its chief executive and chairman, sold assets, cut jobs, outsourced some operations, reduced debt and is foregoing dividend payments as part of its efforts to improve performance.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports