Cavalier carpets on target for forecast

Carpet-maker Cavalier says full-year earnings will meet forecasts but warns of a major writedown of its Microbial Technologies business.

It said yesterday that net profit for the year to June 30 would be in line with earlier estimates of about $19.5 million, but would 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 would be written off.

Cavalier said it was likely to pay a final dividend of 14.5c, taking the total for the year to 27c.