Carpet maker Cavalier has increased its full year profits, but expects the effects of the global financial crisis to linger.
The company made $16.6 million in the year to the end of June, up 22% on the previous year. Revenue fell 11% to 220 million.
Cavalier says the Australian market, which accounts for 54% of its revenue, is improving, with increased activity in commercial carpets and the residential carpet remaining robust.
But it says the New Zealand market remains its biggest challenge, and it expects conditions to remain soft this year.
However there has been a noticeable increase in refurbishment by the hospitality sector ahead of the Rugby World Cup.
The company says it is too early to provide earnings guidance, but it is budgeting for a 5% pickup in earnings.