CAV - Cavalier Corp (Carpets)

[bull....]

while it is always sad to see people lose there jobs this is highly bullish news for the company going forward.

savings from employee costs, lease savings from buildings and equipment, margin improvement in products etc etc highly bullish

2017 - 18 will be big year

[winner69]

Would have thought that getting rid of 65 people would have put a rocket under the share price.

On thing CAV financials will be hard to follow over the next few years - real profits, normalised profits, ebitda before non-recurring expenses and all that bull****. Even more complicated than in the past - Roger might have trouble working out whats going on.

Whatever the headline profit that will be reported will be brilliant = share price > $1

[golden city]

Short term pain. Long term gain looking good

[sb9]

Short term pain. Long term gain looking good

Dipped in my toes today, by next reporting time I bet sp will be closer to that $1 mark....if continue to keep the good work and market conditions remain reasonably favourable. Have faith in their management team especially the new chair Ms Haydon.

[macduffy]

I'm told that the current craze for Fitbits and the obsessive need to achieve 10,000 steps per day is resulting in hordes of office workers filling every spare moment walking round and round their offices.

Just a matter of time before all those carpets wear out and have to be replaced!

[sb9]

Lower debt, consolidation of operations, improving cash flow are all recipe for future success.

[eew59]

Lower debt, consolidation of operations, improving cash flow are all recipe for future success.

As well as lower AUD/NZD exchange rate will assist Aussie sales margins.

[Jinx]

Is there any concern that the 4 - 4.5 million cost of this consolidation will impact hard on the profit for 15/16? Or has it been calculated in to the 15/16 profit margin?

[sb9]

Is there any concern that the 4 - 4.5 million cost of this consolidation will impact hard on the profit for 15/16? Or has it been calculated in to the 15/16 profit margin?

I'm sure they've provisions/plans in place for this, as this would've been one of their important agenda points to turnaround the fortunes of company with new CEO and Chair in place.

[Beagle]

Is there any concern that the 4 - 4.5 million cost of this consolidation will impact hard on the profit for 15/16? Or has it been calculated in to the 15/16 profit margin?

Lets be clear, it will wipe out the profit this year almost entirely but will probably be treated as an extraordinary item below the profit line so won't impact normalised profit, (a term I personally despise) but the new guard are dispensing with manufacturing facilities that are obviously well past best practice and right sizing production capability for the future in the most efficient way and the payback period of just over 1 year is there for all too see.

Who wouldn't take a $4.5m one-off hit to generate ongoing annual efficiencies that look something like $3.5 - $4.0m. This is what real progress looks like when the new broom cleans out lots of old dead wood...(disposal of dead wood and eradication of dead wood practices and manufacturing methodologies is never free).