WSI Achieves Record Result

WSI Achieves Record Result

New Zealand Wool Services International (WSI) chairman Derek Kirke today said the Company’s latest financial result was the best ever for the Company. He was particularly pleased the Canterbury-based company performed so well under adverse operating conditions presented by the earthquakes and other significant challenges. Managing Director Michael Dwyer said all three key divisions Kaputone Wool Scour, Whakatu Wool Scour, and the Wool Export operation contributed to the excellent result. WSI recorded an after tax profit up 479 percent, from $1.147 million the previous year to $6.636 million for the year to 30 June 2011.

Mr Dwyer said that it was worth noting that over the same approximate period the coarse wool indicator moved from $3.37 per kilo to $6.48 per kilo which is an increase of 92 percent.

“We’re very pleased, because this has been a major, and much-needed, boost for wool growers and it has restored confidence in the production of wool.” Operating revenue for the year was up 33 percent from $151.034 million to $200.113 million. Operating surplus before taxation was up from $3.240 million in 2010 to $9.112 million while operating surplus after tax was up from $2.229 million to $6.636 million.

Mr Dwyer pointed out that the Company’s performance has meant earnings of 9.6 cents per share and a final dividend of 3 cents on top of the 2 cents special dividend already paid, returning an annual fully imputed total of 5 cents per share to WSI shareholders. Mr Kirke said it was an exceptional result achieved under challenging circumstances including operating with a rising New Zealand dollar which is generally unfavourable for exporters.

“WSI has had arguably its toughest year ever, having to deal with major disruption caused by the tragic earthquakes, as well as Cavalier’s attempts to create a wool scouring monopoly, and the ensuing Commerce Commission hearings – and yet this is the best result we have ever recorded.

“I’m extremely pleased and on behalf of the Board would like to thank all our loyal suppliers and customers, and particularly our staff who have done an outstanding job during very trying times,” Mr Kirke concluded.

Looking forward Mr Dwyer said that the current year had encountered a slow start with the main concern being the current state of the world economies particularly Europe and the USA. This would make it difficult to replicate last years’ result.

ENDS

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