By ELLEN READ
"I declare the motion carried. You'll find me in Acapulco," were Tony Timpson's parting words to shareholders at yesterday's Cavalier Corporation annual meeting.
The chairman, who stands down in April, was thanking those gathered for approving a rise in the total directors' fee package for the company, which
plans to increase the size of its board.
Timpson, who will remain on the board, received a standing ovation from the meeting and warm tributes from colleagues as he presided for the last time over a gathering of the company he founded in 1972.
Managing director Alan James, who will take over as chairman, said Timpson had captured meetings with his irreverent style, razor-sharp wit and immaculate sense of timing.
"Behind Tony's congenial exterior lies an intellect of great breadth and a brilliant business mind."
A $10,000 investment in the Cavalier float 20 years ago would be worth $132,000 today and would have returned almost $50,000 in dividends, James said.
Farewells aside, the company announced its first interim dividend for this financial year of 4.5c a share, to be paid on December 5.
James told shareholders that the company's Wanganui yarn plant would be extended to provide up to 25 per cent more capacity. Work should start in the second half of next year.
Cavalier would also spend about $1 million modernising its Ontera Modular Carpets business in Sydney, he said.
A pre-tax profit of $33.4 million is forecast for this financial year, 10 per cent better than last year.
"I am pleased to say that for the first four months of the year, it seems we are going to be right on budget, " James said.
A weaker New Zealand dollar against its Australian counterpart and the fact that both currencies were stronger against the United States dollar than budgeted for would help the bottom line.
