Wool Equities makes loss

17:00, Sep 12 2012

Wool Equities has reported a net $1.7 million loss for the year to the end of June, nearly double its previous year's loss, largely due to the costs of a failed attempt to bid for a controlling stake in Wool Services International. For the previous year, the net loss was $889,000.

The company's costs increased significantly due to its attempts to raise enough cash from the 9500 wool growers it represents to bid for the controlling stake in the wool processor and exporter. Two companies currently in receivership hold the controlling stake.

Wool Equities had also joined Godfrey Hirst in opposing carpetmaker Cavalier Wool Holdings' bid for Wool Services, which, if it were successful, would give Cavalier a monopoly over the scouring industry in New Zealand. Fairfax NZ

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