The Board of Directors of Cavalier Corporation advises that normalised
earnings after tax for the 16/17 year is now forecast to be a loss of around
$2 million, compared with the breakeven normalised profit after tax announced
in February.
The reduction in forecast reflects ongoing difficult trading conditions in
Australia that the Directors foreshadowed in February and, more recently,
weaker demand in the New Zealand retail sector and exceptional competitor
activity on both sides of the Tasman.
Cavalier has responded and will continue to respond as necessary to defend
share in these markets.
The depressed wool market that the Directors discussed in February has
continued, adversely impacting the performance of our wool acquisition
business and earnings from our 27.5% interest in Cavalier Wool Holdings.
While the 16/17 forecast is down, the Directors are still expecting improved
performance in 17/18 when the benefit of significantly reduced wool price and
other cost out measures come through.
Paul Alston
Chief Executive Officer
For and on behalf of the Board of Directors
1 June 2017
For more information regarding this announcement, please contact Paul Alston
on 021 918 033 or 09 277 1135.
End CA:00302019 For:CAV Type:MKTUPDTE Time:2017-06-01 09:07:33