A strong second half-year has enabled wool scourer and exporter New Zealand Wool Services International to report an after-tax operating profit of $2.2 million.
A second six-month profit of $2.9 million meant New Zealand Wool Services International (WSI) turned around an earlier deficit and recovered from a $4.4 million loss for the 2008-09 year.
Government tax changes on building depreciation meant a tax adjustment of $1 million, which gave a net profit of $1.1 million.
Operating revenue in the year to June 30 was up slightly at $151 million compared with $150 million for the previous period.
It contributed to an operating surplus before tax of $3.2 million compared with a $3.8 million loss for the previous period.
A fully imputed dividend of 1c a share will be paid.
Chairman Pat Morrison said the result was an excellent turnaround given difficult economic conditions, driven by improving demand for wool as users replenished depleted inventory.
He expected the improvement to continue and help lift prices.
The company was on track to record an improved result for the current financial year through better margins, improved stock turnover, greater scour productivity, improved cash flow and lower debt, he said.
