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Wool Stocktake : AWI Annual Report 2008-09
Financial summary Revenue for 2008/09 Total revenue for 2008/09 was $61,716,000, a 32 per cent decrease over total revenue in 2007/08 of $90,812,000, due primarily to lower wool sales and prices over the 2008/09 season. Sources of revenue are shown in the table below. 2007/08 $ 000 Wool levy 45,110 Government contributions 12,312 Licence fees 7,547 Interest 4,978 Sales of goods and services 4,198 Royalties 1,642 Other 25 Government grant 15,000 Total revenue 90,812 Expenditure for 2008/09 Total expenditure in 2008/09 was $78,577,000, an 8 per cent decrease over total expenditure in 2007/08 of $85,354,000, Expenditure is shown in the table below. More detailed information can be found in the Financial Report beginning on page 35. 2007/08 $ 000 International network 20,719 Knowledge, Innovation, Marketing 18,636 Wool production 15,473 Sheep technologies 6,438 Corporate communications 5,028 Corporate services 19,060 Total expenditure 85,354 Financial history and forecasts AWI s expenditure has been more than its revenue in four out of the past five years. Consequently, AWI reserves have fallen significantly. By running a leaner, commercially oriented company in the future, AWI plans to maintain its current reserves. 2004/05 $ 000 2005/06 $ 000 2006/07 $ 000 2007/08 $ 000 Forecast 2009/10 $ 000 Forecast 2010/11 $ 000 Revenue 64,999 57,035 63,964 90,812* 51,399 51,399 Expenditure 78,497 82,678 75,453 85,354 51,399 51,399 Balance (13,498) (25,643) (11,489) 5,458 0 0 AWI reserves 102,992 77,349 65,860 71,318 54,457 54,457 * This includes a one-off $15 million grant from the Australian Government to purchase The Woolmark Company Pty Ltd. Australian wool production history and forecasts AWI s revenue is largely dependent on wool levy income. Falling wool production and low prices have created a reduced wool levy income for AWI. Wool production and prices are used to calculate wool levy income using the following formula: Eastern Market Indicator (EMI) price in cents per kg clean multiplied by shorn wool production adjusted to kilogram clean multiplied by the levy percentage (two per cent). 2006/07 2007/08 Forecast 2009/10 Forecast 2010/11 Market price EMI* (cents per kg clean) 729 861 775 785 Flock size** (opening sheep numbers, in millions) 91.0 85.7 (e) 77.1 74.0 Wool production** (shorn greasy wool*** in millions of kg) 456.3 424.5 (e) 339.7 309.7 * Actual figures from AWEX ** Actual figures from the AWPFC; forecast figures calculated by AWI *** Clean wool under this model is assumed to represent approximately 65% of the weight of greasy wool (e) Estimate UP FRONT
AWI Annual Report 2007-08
AWI Annual Report 2009-10