Home / Knowledge / News / Textiles / Results from Cavalier wool operations substantially down
Results from Cavalier wool operations substantially down
22
Feb '11
The Directors of Cavalier Corporation are pleased to report an unaudited profit after tax for the six months to 31 December 2010 of $8.5 million, an increase of 22% on the $7.0 million the previous year.

This result is a particularly pleasing one especially given the lingering effects of the global financial crisis, particularly in New Zealand where activity levels remained subdued and were lower than those experienced in the previous financial year. On the other hand, trading conditions in Australia continued to improve.

Group revenue for the six months was $117 million, an increase of 3% on the $113 million the previous year, with increased Australian-based revenue more than offsetting the reduced revenue in New Zealand. As a result, revenue in Australia now accounts for 60% of the total revenue of the Group, compared with 52% in the previous comparable period.

Return on average shareholders' equity for the six months was 18.5% and earnings per share was 25.1 cents (both annualised) - compared with 15.9% and 20.8 cents respectively the previous year - on the back of the improved financial performance.

Financial Position
Shareholders' equity at 31 December 2010 stood at $92.9 million, which is an improvement of $3.7 million on the $89.2 million a year ago and $1.4 million on the $91.5 million at 30 June 2010.

At the same time, total assets employed at 31 December 2010 were $198 million, compared with $188 million a year ago and $191 million at 30 June 2010 - mainly because of the additional inventories required to support the Group's current levels of activity.

Shareholders' equity accounted for 47% of total assets employed at balance date, compared with 48% a year ago and at 30 June 2010.

Net interest-bearing debt at balance date stood at $59.5 million and net interest-bearing debt to equity ratio was 39:61. These can be compared with $57.3 million and 39:61 respectively the previous year and $49.8 million and 35:65 respectively six months ago.

The Group's financial position remains strong, and it continues to be well-positioned to withstand the difficult operating environment in New Zealand and to grow shareholder value.

Segment Reviews

Carpet Business
Our carpet business comprises broadloom carpets and carpet tiles, and whilst some of its products can be found elsewhere in the world, New Zealand and Australia continue to remain the main markets by far.

In the six month period to 31 December 2010, our carpet business produced earnings before interest and tax (EBIT) of $13.4 million on revenue of $108.3 million, compared with EBIT of $10.1 million on revenue of $103.6 million the previous year, an increase of 33% and 5% respectively on the previous comparable period.

As a result, EBIT as a percentage of revenue improved to 12.4% in this latest six month period, compared with 9.7% in the previous comparable period. This improvement can be attributed to a 33% increase in carpet tile production and sales in Australia and the favourable NZD:AUD exchange rate on our Australian dollar receivables.


Must ReadView All

Sri Lanka to set up 150 mini apparel units

Apparel/Garments | On 23rd Nov 2017

Sri Lanka to set up 150 mini apparel units

A mini apparel factory was opened recently at Sri Lanka’s Menik Farm...

Egypt keen to boost ties with India in MSMEs, textiles

Textiles | On 23rd Nov 2017

Egypt keen to boost ties with India in MSMEs, textiles

Egypt is eager to boost cooperation with India, particularly in the...

India begins review of anti-dumping duty on caustic soda

Textiles | On 23rd Nov 2017

India begins review of anti-dumping duty on caustic soda

The Directorate General of Anti-Dumping & Allied Duties (DGAD), under ...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Top executives
Textile industry

The foremost issue is bridging the skill gap

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search