DAWSON INTERNATIONAL SUSTAINS SECOND YEAR OF PROFIT

KEY POINTS

- Operating profit of £2.0 million from continuing operations
- Excellent performance by Knitwear divisions
- Home Furnishings Private Label division impacted by Sterling weakness
- Strategically important disposal of Todd & Duncan achieved in difficult economic climate
- Recovery of £1.0 million debt due from previous joint venture partner
- Generated cash of £6.7 million including £5.4 million from the disposal of Todd & Duncan
- Ended the year with £12.3 million funds and no debt
- Increase in pension liabilities represents a challenge for the Company


Commenting on the preliminary results for the year ended 2 January 2010, chairman, David Bolton, said: “In a year of global economic recession and an uncertain outlook in all of our markets, Dawson International delivered a satisfactory trading performance from continuing operations reporting an operating profit of £2.0 million (2008: £1.9 million) and generating funds of £6.7 million (2008: £11.4 million).

“Through the planned exit from loss making divisions in 2009, the current year presents an opportunity to build on solid foundations and focus entirely on our profitable core businesses.   A key priority during the year will be to seek ways in which to reduce the pension deficit and associated costs by working with the Pension Trustees to reduce liabilities and increase returns on assets.  This is likely to restrict any development of the Group through potential acquisitions until substantial progress is made in this area.

“Although there are some signs of markets stabilising, we expect trading to continue to be tough throughout 2010.  Our approach to 2009 has demonstrated that we are able to take the necessary steps to weather these difficult trading conditions constructively and take advantage of opportunities as they present themselves.   With strong, focused management teams in all of our businesses the Board is confident we can maintain and develop our businesses during the course of 2010.”

The Annual Report and Accounts for the year ended 2 January 2010 will be despatched to shareholders on 9 April 2010 and will also be available on the Company’s website: (www.dawson-international.co.uk).

The Annual General Meeting of the Company will be held at Lochleven Mills, Kinross, KY13 8GL on Wednesday 5 May 2010 at 12 noon.

For further information please contact:

Andy Bartmess, Chief Executive, Dawson International PLC: 0207 448 1000
Zoe Biddick, Biddicks Financial Public Relations: 0207 448 1000
Robin Gwyn, W H Ireland: 0161 832 2174

Download the Preliminary Results PDF