Tuesday 3rd July 2018
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Cavalier Corp says annual earnings more than tripled and were within last month's forecast as the carpetmaker reaped the benefits of restructuring and better wool prices, and helping it trim bank debt by a quarter.
Earnings before interest, tax, depreciation and amortisation were $9.6 million to $10 million in the 12 months ended June 30, up from $2.6 million a year earlier and meeting guidance provided on June 5, the Auckland-based company said in a statement. Profit before one-off costs was between $3.7 million and $4 million, turning around a loss of $1.8 million on the same basis.
The company strengthened its balance sheet in the year, cutting bank debt to $29.5 million as at June 30 from $40.2 million a year earlier, having repaid $7.4 million in the first half, and renegotiated its facility until Jan. 1, 2020.
“This is the first time in many years Cavalier’s debt has been under $30 million, it’s the result of a strong debt reduction programme and another step towards long-term profitability," chief executive Paul Alston said.
Cavalier has been turning around its unprofitable operations in recent years, selling uncompetitive assets like its carpet tile business in Australia, manufacturing its own synthetic range, and consolidated its woollen felting and yarn spinning operations.
The full results will be published in August when Cavalier is also expected to provide an update on its strategic review.
The shares last traded at 62 cents and have jumped 51 percent this year, outpacing a 4.8 percent increase on the S&P/NZX All Index over the same period.
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