Update on COVID-19 and trading
MARKET RELEASE
21 April 2020
Update on COVID-19 and trading - April 2020
Cavalier Corporation Limited (NZX: CAV) advises that it will be progressively opening its
manufacturing operations in Auckland, Napier and Wanganui following the lifting of the Level 4
restrictions on 27 April.
March and April trading has been impacted as expected, particularly in New Zealand, by the COVID-
19 regime and cost control measures and other actions have been taken to preserve the business
during this time.
Since the Government mandated lockdown in New Zealand on 26 March, retail sales in New Zealand
have ceased. Website orders are still able to be taken with deliveries to restart once the lockdown
lifts.
Trading activity has continued in Australia and sales volumes for the first three months of the year
were above the prior year, though these have declined in April with the fall off in consumer demand.
The company has applied for $2.8 million of the Government wage subsidy in New Zealand.
Government support is also being considered in Australia. The Board has also agreed to take 20% of
their directors’ fees in shares in the company to assist with cash flows and to better align their
interests with those of shareholders.
Cavalier has been engaged in constructive discussions with its banking partner and has received
indicative support to increase its current bank facilities.
The company is investigating a range of opportunities to realise additional funds to support the
business in light of the impact of COVID-19 as well as facilitate the transformation strategy as
outlined at the November Shareholders Meeting.
Cavalier remains committed to the rollout of its natural fibre strategy, leveraging the growing
demand for greener, healthier, natural and more sustainable products. Cavalier believes this
strategy will not only benefit the company, but will help New Zealand’s wool growers, and the
broader New Zealand primary sector.
ENDS
For further information please contact:
Paul Alston
Chief Executive Officer
palston@cavbrem.co.nz
+64 21 918 033
+64 9 277 1135
Jackie Ellis
Media and Investor Relations
Jackie@ellisandco.co.nz
+64 27 246 2505
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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