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Woolmark needs help, says Flugge
26 Aug 2004
Woolmark Company's aim of being a self-funding promotion company has been dashed: chairman Trevor Flugge says it needs help to survive. Mr Flugge made it clear that royalties and licensing revenue are no longer sufficient.
Woolmark and its parent Australian Wool Services parted from the Australian Wool Research and Promotion Organisation in 2001. They began with net assets of $60.8 million and property rights to 20 major wool technologies and innovations. But they have failed to turn a profit, despite Woolmark licensing revenue of more than $20 million last year. Asset values have declined to about $40 million and a loss is expected for 2003-2004.
Woolmark is now in the process of re-assessing strategic direction, assets and activities. Details of Woolmark's strategic direction will be released before the AGM in October.
Mr Flugge was highly critical of the wool industry's sponsorship of the Olympic Games uniform, covering the Sydney and Athens games plus the winter Olympics. It's believed the deal cost $12 million, although details have never been released. But Mr Flugge said "we got nothing out of it", yet handed over millions of dollars.
Weekly Times, 25/8/04, page 9.
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