The profit upgrade put out by Cavalier Corporation Ltd [CAV.NZ]today while great shouldn't be seen as de riguer for the beginning of the August - September reporting period but a highlight for investors in that company. The company is forecasting a 2010 full year profit of between $16.3 million and $16.7 million tax paid.It is surprise to me that a company like Cavalier would increase their profit, given the slowdown in the building sector, but perhaps refurbishments instead of new installations have been the reason for the increase.
The increase of 22% on 2009 must also be put into context of a $17.9 million net profit for 2008 and a low result of $13.7 million in 2009.
With the notable exception of a few one-offs like Cavalier don't expect much excitement for the 2010 full year season.
I am expecting more of the flat to slightly down results we have seen earlier this year and one year ago on cost cutting measures.
Look for good results from the likes of Sky City Entertainment Group Ltd [SKC.NZ] Hallenstein Glasson Holdings [HLG.NZ] and Restaurant Brands Ltd [RBD.NZ]with a big focus on where the Telecom New Zealand [TEL.NZ]result is heading to see whether investors have been right to mark the stock down to well below 2 bucks over the last few months.
Disc I own HLG and SKC shares from the Share Investor Portfolio
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