Scourer riding high on surge in profits

By PHILIPPA STEVENSON

Christchurch-based wool scourer and exporter Wool Services International is optimistic in the wake of an improved financial performance and sector rationalisation.

The company reported an audited tax-paid profit of $1,679,000 for the year to June 30, a 389 per cent increase over the $431,000 result for the preceding year.

Chairman Pat Morrison said the result was excellent.

Continuing rationalisation in wool buying, scouring and trading has left Wool Services as the largest New Zealand-owned scouring and exporting company.

In the most recent move, Cavalier Carpets said last month that it would wind down subsidiary scourer E. Lichtenstein and sell its procurement arm, Elco Direct.

Mr Morrison said the benefits predicted when Wool Services established a scouring partnership with Dalewool Holdings were now evident in enhanced processing results.

Other factors causing optimism included an improving rural financial environment and the recently forged relationship between Wool Services and Romney New Zealand.

"These are all good reasons to suggest that the improved performance in the year to June will be built upon," said Mr Morrison.

Wool Services shareholders will receive an imputed dividend of 2c a share in November.