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CAVALIER CORPORATION MARKET RELEASE 25 February 2021 Cavalier Reports Increased Profit for First Half FY21 Cavalier Corporation Limited ( NZX : CAV ) has reported a strong year on year uplift in profitability as it benefits from higher woollen carpet sales , the sell down of its synthetic carpet stock as it exits the non - wool sector and the gain from the Auckland property sale and leaseback . Profit after tax increased strongly to $ 4.3m , up $ 5.5m on the prior year , with a $ 3.0m improvement in underlying business performance and a $ 2.5m net gain on the sale and leaseback of the Auckland property . Results were at the upper end of the guidance range provided in December 2020 with normalised EBITDA up 61 % on the previous comparable period to $ 4.8m¹ ( guidance of $ 4.0m to $ 5.0m ) . Revenue was down slightly ( 6 % ) year on year to $ 60.3m . Australian carpet sales volumes were impacted by supply chain disruption and COVID lockdowns , however , are expected to improve as supply chain disruptions and pandemic effects reduce . Elco Direct , Cavalier's wool buying business , was also impacted by subdued offshore demand for New Zealand wool and while volumes were up 12 % , the average selling price was well down . Following the Auckland property sale and with the bulk of synthetic carpet stock sold , all borrowings were repaid , with the Company holding a significant cash surplus of $ 26.3m as at 31 December 2020. Prudent capital management remains a priority as the Company invests into resetting the business , commencing the new strategy and navigating the economic recovery post - COVID . No interim dividend has been declared . Cavalier has commenced its transformation strategy to become a global leader in designing and creating desirable , safe , sustainable and high performing natural interior solutions . In line with this , the Company is exiting the non - wool sector and has right sized the organisational structure to meet future manufacturing needs . Shareholder approval on the sale and leaseback of the Auckland property in December 2020 has provided the financial resources to continue executing transformation plans , with other capital raising options to be considered , if required . Key initiatives in 1H21 included the launch of the new Bremworth brand for Cavalier's carpet business ; the rollout of the Lifestyle ( affordable wool ) collection ranges and other uniquely designed products , providing greater choice for consumers ; and an expansion of the retailer distribution networks in both New Zealand and Australia . 1 Normalised EBITDA excludes non - trading adjustments of $ 1.4m , comprising net gain on sale and leaseback of property of $ 2.5m and restructuring costs of $ ( 1.1 ) m , with a reconciliation of normalised to GAAP results set out on page 24 of the accompanying 1H21 report . Bremworth