Wool service international reports lower profit

Wool Services International reported a $1.036 million profit in the six months to December 31, down from $1.11m in the same period last year.

The company which exports 40 per cent of New Zealand's strong wool clip argued a profit was a good effort in a tumultuous environment.

"While the profit is down on last year, in the circumstances we are pleased with the achievement, and believe there is cause for cautious optimism in the second half of the year," managing director Michael Dwyer said.

The company has suffered contractual problems associated with movements in the currency, wool prices and international demand for wool.

More than ever the industry needed to pull together, Mr Dwyer said.

The company's second half is traditionally stronger than the first.

If a restructuring of wool scourers being considered by the Commerce Commission goes ahead the company will do more scouring for third parties.

The company's total operating revenue was down 11.5 per cent at $79.9m. The company did not declare a dividend.

- NZPA