The Director's of Cavalier Corporation have reported an unaudited profit after tax of $1.4 million for the period – a decrease of 59% on the $3.5 million reported in 2011.
The result includes, net of tax, $149,000 of redundancy costs and a $576,000 write back of over accrued restructuring costs from the 2012 financial year.
The first six months of 2012/13 was challenging, with the run out of high-cost stocks due to unusually high wool prices from the preceding year and soft trading conditions in both New Zealand and Australia.
Group revenue for the six months was $101 million, a decrease of 6% on the $108 million in the previous year, with sluggish New Zealand and Australian based revenue.
Return on average shareholders' equity for the six months was 2.2% and earnings per share was 3.0 cents (both normalised and annualised) - compared with 8.8% and 12.5 cents respectively the previous year. It was a disappointing but not unexpected trading result for the first half of the year.
The directors expect an improvement in the next six months and the latest normalised after tax earnings outlook remains in the $6 to $10 million range as indicated at the Annual Meeting of shareholders in November.