Cavalier Corp sank back into the red after the overhaul of the wool carpet maker’s operations proved more expensive and more prolonged than expected, raising flags over the company’s ability to keep operating as a going concern.
The Auckland-based company posted a loss of $2.1 million, or 3.1 cents per share, in the 12 months ended June 30, turning around a profit of $3.1m, or 4.5 cents a year earlier. The bottom line was weighed down by a 40 per cent jump in restructuring costs to $6.3m as Cavalier shut down factories and laid off staff to consolidate its operations. That rationalisation limited Cavalier’s product range and meant it could meet customer demand, primarily in Australia.
“While the decision to consolidate was necess…
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