Wellington, New Zealand, August 24--Feltex Carpets Ltd. posted an annual net profit of NZ$11.2 million, up from NZ$6.8 million the previous year, and NZ$1.1 million above its prospectus forecast.
The company said that its 12-months to June 30 earnings were driven by the introduction of additional capacity to service the mid range wool carpet market, sales of higher value products and new products introduced to the market place.
The company also said it expects to meet its annual net profit forecast of NZ$23.9 million for the current fiscal year that ends June 30, 2005.
Feltex said that generally favorable market conditions in Australia and New Zealand also underpinned the latest result.
Full year earnings before interest, tax, depreciation and amortization jumped 48% to NZ$46.2 million from NZ$31.2 million the previous year, reflecting improved margins and cost savings associated with increased yarn production in Australia and New Zealand.
"The overall market is expected to be stable with continued growth in the commercial market offsetting a slow down in the residential market in the new housing and apartments segments," the company said.
The company said it expects to meet the prospectus forecast for EBITDA of NZ$51.7 million in the current fiscal year.
Feltex listed in the stock market in June this year after a NZ$254 million initial public offering, the largest in New Zealand for five years.
A final dividend of 6 cents-a-share was declared, which was in line with its prospectus forecast.
