Wool exporter announces profit

Wool exporter announces profit

New Zealand largest exporter of coarse crossbred wool has announced its
profit.

For the purposes of comparison, the company has restated the opening
balance sheet on 1 July 2006 and each subsequent reporting period as if NZ
IFRS had always been the standards the company has reported under.

New Zealand Wool Services achieved a net tax paid profit of $2.39 million for the year to 30 June 2008, compared to $2,868 million for the previous year.

Managing director Michael Dwyer said while the company¹s result is satisfactory, it could have been better.

³A number of factors worked against us achieving a better result. These include delayed uptake on contracts to European clients and elsewhere due to the international downturn; delayed payments by clients resulting in higher interest costs; high New Zealand interest rates; slower than predicted decline in the value of the New Zealand dollar due to Reserve Bank policies; and greater than anticipated downturn in international economies,² he said.

According to Michael Dwyer, New Zealand Wool Services International encountered a tough trading environment, thought this improved in the latter part of the year.

³There are many changes being mooted in the wool Industry. Wool Services International remains confident of the future and is well positioned to meet those challenges.

³With the recent fall in both interest rates, which have come very late, and the fall in the New Zealand dollar, we anticipate an improved performance in the current year, but this needs to be tempered by the international environment,² he said.

Report to NZ stock exchange:

Name of Listed Issuer: New Zealand Wool Services International Limited (WSI)

Basis of Report: Unaudited Accounts. Audit report not yet received.

Reporting Period ­ 12 months to 30 June 2008

Previous Reporting Period ­ 12 months to 30 June 2007

Amount NZ$000 Percentage Change

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

Total operating revenue: 179,707 (144,715) +24.2%

OPERATING SURPLUS BEFORE TAXATION: 3,580 (1,948) +83.7%

Plus/(Less) taxation on operating surplus: (1,190) 920

OPERATING SURPLUS AFTER TAX: 2,390 (2,868) ­16.6%

Earnings per share: 3.4cps

Final Dividend: 1.0cps

Record Date: 31 October 2008

Payment Date: 13 November 2008

Imputation tax credit on final dividend: Fully Imputed

ENDS

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