Primary Wool Co-operative Limited Declares Dividend

Media Release
6 March 2012

Primary Wool Co-operative Limited Declares Dividend for “A Great Year”
20% Return on Investment, Says Chairman

Primary Wool Co-operative Limited has had a second highly successful financial year in 2011.

As a result, the Co-operative has declared a dividend of 5%. as part of a dividend paid to shareholders of Elders Primary Wool Limited which is 50% owned by the Cooperative. This pay out is in addition to the rebate shareholders receive per kilogram of wool sold through auction by Elders Primary Wool Limited.

“The dividend is 5% on the value of all ordinary and rebate shares held, and the rebate equates to a 15% return on a shareholder’s investment in rebate shares (providing shareholders own the optimum number of shares for the wool they are trading through Elders Primary Wool Limited’s auction system). That’s a 20% return on investment this year. What listed shares or bank would give you that sort of return?” says Chairman of Primary Wool Co-operative Limited Bay de Lautour.

Primary Wool Co-operative Limited has around 1000 member shareholders. The total pay out (dividend and rebate) distributed this year is nearly $330,000, on an audited after tax profit of $954,620. Of the pay out, $220,000 was the rebate.

“Most original Co-op members have received back in dividend and rebates more than they invested,” says Mr de Lautour .

Elders Primary Wool Limited owns the unique brand Just Shorn™ under which carpet is sold through high end carpet retailer International Design Guild in the USA.

“We began investment in this brand in 2009. The recession has meant a slower uptake than expected,” says Mr de Lautour. “Nonetheless, our Just Shorn carpet is being sold to customers in the USA. The USA is slowly moving out of recession. The retailers from International Design Guild, which is owned by CCA Global Partners Inc. one of the largest private companies in the USA (controlling 20% of the US flooring market), are optimistic that spending on carpet and flooring will go up in 2012.”

“The co CEO of CCA Global Rick Bennet visited New Zealand last year. He said at the time he believed the Just Shorn brand would be a ‘game changer’ for CCA Global Partners Inc.”

Primary Wool Co-operative Limited successfully promoted wool as Premier Sponsor at the 2011 National Fieldays and continues to support the Prince of Wales "Campaign for Wool”.

Primary Wool Co-operative Limited will hold its Annual General Meeting on 30 March 2012.

About:
Primary Wool Co-operative Limited www.primarywool.co.nz was formed in 1974 by farmers in Hawkes Bay who aimed to increase returns to wool growers and to underwrite 33% of New Zealand Woolspinners (Dannevirke). The company has a 50% shareholding in Elders Primary Wool Limited and two Primary Wool Co-operative Limited directors sit on the Elders Primary Wool Limited board. Elders Primary Wool Limited is also the sole shareholder of Wool Marketing Enterprises Limited, through which Just Shorn is marketed.

Note: A registered prospectus for Primary Wool Co-operative is available on www.primarywool.co.nz. All details regarding the company are in the prospectus.

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