Carpet maker Cavalier has increased its profit by 14% to $17. 9 million for the year to June, due in part to the contribution from its recent purchase of Norman Ellison Carpets.
Cavalier says it's performed well, boosted by strong demand for carpet tiles for commercial flooring and top-end wool carpets in Australia, plus the inclusion of a South Island wool scouring business for the first time.
Looking ahead, it's picking a modest increase in earnings with to a full year's contribution from Norman Ellison and its carpet tile operation, plus falls in the New Zealand dollar against its Australian counterpart.
But the declining economy on both sides of the Tasman is expected to further affect sales of residential carpet.