Wool Services International has reported a loss for the first half of its financial year, but is optimistic that this will turn around in the second half.
For the six months to December 2009, the country's biggest wool exporter lost almost $700,000, compared with a profit of just over $1 million for the same time the previous year.
Managing director Michael Dwyer says the residual effects of the global economic downturn are to blame for the poor interim result.
He says it's not as bad as what the company was anticipating at the annual general meeting in December, and the company was back in the blackby the end of January due to an increase in trading and scouring activity.
Prices for coarse crossbred wool have also lifted significantly and, assuming the current high level of activity continues, Mr Dwyer says the company expects to report a profit by the end of March.