Half Year Result to 31 Dec 2011

Cavalier Corporation declared an unaudited tax-paid profit for the six months ended 31 December 2011 of $3.5 million or 58% down on the previous year's equivalent of $8.5 million tax-paid.

As a result of this disappointing result and a very slow start to the second half, the $8.5 million to $10.5 million tax-paid earnings guidance range for the full year that was provided to shareholders at the Annual Meeting last November is now no longer attainable. Given these difficult and unpredictable trading conditions, it is also not possible to provide shareholders with a full year earnings guidance update at this stage, but the directors will inform shareholders should conditions change.

Given the disappointing results for the first half and the short term earnings outlook, the Directors have decided not to pay any interim dividend for the current 2011/12 financial year, but will review the dividend position again at the end of the year.

Looking ahead to the following 2012/13 year, there is cause for some optimism, with lower Australian mortgage interest rates, the re-build of Christchurch and some relief from lower wool prices.