Wool Equities has doubled its deficit on the back of a failed bid to buy Wool Services International.
The farmer-owned investment company has posted a loss of nearly $1.7 million in the year to June, compared with a loss of $889,000 the previous year.
Wool Equities revenue went from $50,000 to $326,000, but sales costs rose to $341,000.
Chairman Cliff Heath said the board's failure to win over shareholders to buy the wool scourer New Zealand Wool Services International, was a major blow.
The deal would have blocked a rival bid from Cavalier Wool Holdings, which has received Commerce Commission approval to buy Wool Services assets and create a monopoly.
However, Mr Heath said the company's future is brighter as its investment in the manufacturing company Bruce Woollen Mill Limited, along with property investments, begin to show good returns.
He said further textiles related businesses may be purchased.
The company, which invests money on behalf of farmers in projects that boost wool returns, has cash of $1.4 million to fund future business investments and overheads.