Cavalier better than forecast

Press, 19 May 1984, Page 21

Cavalier better than forecast

PA Wellington Cavalier Corporation, Ltd, the Auckland carpet manufacturer,increased its audited profit to 51,446.943 for the six months to March 31, 19.1 per cent over that projected when the company was launched on the stock exchange eight months ago. At that time the company was predicting a profit of $1,215,000. The chairman, Mr Tony Timpson, said that although the company’s financial year ended at March 31, the results are for the last six months because the new company only came into existence in October 1983. He noted that the im-

provement was the result of increased efficiency in all sectors. Profits were actually constrained by lack of yarn. Cavalier is expected to improve the situation early next month when the extensions to its Wanganui carding and spinning plant will be fully commissioned. In the light of current trading conditions. the directors are confident of maintaining the improved profit result in the 1984-85 year. A final tax-free dividend of 8 per cent (4c a share) is recommended, and a further tax-free dividend of 4 per cent (2c a share) is being proposed for the June quarter subject to the already

announced plans to merge with E. Lichtenstein and Company, Ltd. Profit before tax was $2,385,203, taxation $862,753, and extraordinary items of $75,507. Although previous figures are not strictly comparable as the group has been reconstructed the company has provided a comparable balance sheet of the 12 months trading to 1984 (March) with 12 months of 1983. Profit before tax for that period was $4,235,083 ($2,162,374). After taxation of $1,585,434 ($556,455) and deduction of extraordinaries of $75,507 ($245,822) group net profit was $2,574,142 ($1,360,097).