21 Feb 2011

Australian carpet sales boost Cavalier profit

1:30 pm on 21 February 2011

The carpet maker Cavalier has lifted its half-year profit, as strong carpet sales in Australia offset declines in New Zealand.

The company's profit rose 22% to $8.5 million in the six months to the end of December, compared with the same period the year before.

Revenue rose 3% to $117 million.

Managing director Wayne Chung says Australia now accounts for 60% of the group's total revenue, so, looking ahead, he expects strong sales there to continue to offset slow sales in New Zealand.

Cavalier expects its full-year profit to be between $15.8 million and $17.5 million, in line with the previous year's earnings.

Last week the company announced it has a conditional agreement to buy a 75% interest in Radford Yarn.