Changing of the Guard as WSI Reports Record Result

New Zealand Wool Services International Limited
MEDIA RELEASE

Changing of the Guard as WSI Reports Record Result

NZ Wool Services International (WSI) this week announced a record half year profit, the largest first half profit in the company’s history, and the appointment of WSI Director Derek Kirke as Chairman.

Retiring Chairman Pat Morrison indicated his intention to review his position at WSI’s December annual meeting, after 15 years as chair.

“I have enjoyed seeing the company established and become one of the leading companies in the wool industry, With WSI now in a substantially improved position, I believe it is an appropriate time for me to step down,” Mr Morrison said in his letter to the Board.

Paying tribute to Mr Morrison’s many years of leadership and service to WSI, Mr Kirke described him as a leader in the wool industry and noted his years as Chairman of the Wool Board as well as WSI.

“Pat did a very good job as Chairman through some challenging years and leaves the company in excellent shape,” Mr Kirke said.

WSI’s tax paid profit of $3.058 million for the first six months to 31 December 2010 was greater than the total profit for the previous full financial year and the company is expecting a strong second half. Shareholders will receive a special dividend of two cents per share.

Mr Kirke put the excellent results down to having the right business model for the industry, the huge effort WSI Managing Director Michael Dwyer and his team have put into building and maintaining relationships with international manufacturers, and industry-wide marketing initiatives such as the Prince Charles-led Campaign for Wool, to which WSI is a large contributor.

“The performance, management and quality control of both our wool scours is also excellent and both have been and continue operating at full capacity. The wool industry’s had a tough time of it, but this result proves that by putting in the hard yards during the tough times WSI can and will provide excellent returns for our shareholders and to wool growers.”

Mr Kirke said WSI’s vertically-integrated business model was ideally suited for the changing dynamics of the wool industry and that the outlook was very good for New Zealand’s largest wool exporter and for the industry as a whole.

“WSI has put significant resources into promoting New Zealand strong wool in overseas markets already, but we’re in a strong position now and intend to expand our efforts to restore the New Zealand wool industry to its former strength and significance,” Mr Kirke said.

NZ Wool Services has two very modern wool scouring plants, one in each island, and is NZ’s largest wool exporting company Annual turnover last year was $158 million and this year is expected to be substantially higher.

Derek Kirke has been a Director of WSI since 1993. He comes from a long background in wool, serving as a Director and then Chairman of Drysdale Wool Marketing Co-op during the 1970s and 1980s. He has served as Chairman of the MacKenzie Tourism and Development Board and of Christchurch, and Canterbury Marketing Limited, and was a member of the government’s Wool Taskforce. A Nuffield Farming Scholar and former Mackenzie Country farmer, he is currently Chairman of Animal Control Products and the Pukaki Airport Board.

ENDS

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