Carpet is king at Cavalier

By Phil Boeyen, ShareChat Business News Editor

Saturday 26th August 2000

Cavalier has reported a best-ever profit result and is spotlighting its carpet division as the star performer.

For the year to the end of June the company posted an after-tax profit of $13.1 million, up 23.6% on last year's $10.6 million.

The company says most of the growth in group operating revenue, which was $218.4 million, came from the carpet side of the business whereas wool revenue was essentially unchanged on last year.

In terms of earnings per share, which rose to 36.4 cents, the company says the contribution from the carpet division rose 39%, whilst that of the wool division was down 60%. Cavalier reiterated its plans to get out of the wool trading business because of the lack of returns.

The company says the group's financial position was materially strengthened over the year, with total assets employed reduced by $22 million to $126.9 million. It says the reduction in assets employed happened despite the strong growth in the carpet business, and came from a reduction in the wool trading inventory.

Interest expenses were also down, dropping 22% to $2.4 million.

A final dividend of 14 cents has been declared bringing the year's total to 30 cents.

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