New Zealand’s Cavalier to be Hit by $5.8M Writedow
Wellington, New Zealand, August 4--Carpet maker Cavalier Corporation said its full year earnings will meet forecasts, but warned of a major writedown of its Microbial Technologies business, according to ShareChat News.
Cavalier said its net profit for the year to June 30 will be in line with earlier estimates of around $19.5 million, but will be reduced by a $5.8 million writedown.
The firm's Microbial offshoot - which was working on a natural remedy for the prevention of flystrike and the control of lice and scab-mites in sheep - was not robust enough to ensure commercial success, and all development costs will be written off.
The business "holds promise" and Cavalier plans to continue with the development programme, but will write off the associated costs so far.
Cavalier is due to report its annual result on August 19. The company said today it was likely to pay a final dividend of 14.5 cents per share, taking the total for the year to 27cps.
