Commenting on the interim results, Chairman David Bolton said: "As anticipated in our Annual Report for 2008 the Group has experienced a lower level of demand overall for its products in the first six months of 2009, trading through the worst economic conditions experienced for a very long time. It is important to note that performance in the first half of the year reflects the seasonality of the US Knitwear division, which generates over 90 per cent of its sales and all of its profits in the second half of the year.
"The outlook for the full year remains very challenging. Every effort is being made to remain close to customers to find ways to adapt product and price point and respond to changing market demands dictated by the global recession, whilst maintaining a rigorous focus on cost containment and reduction. Another key objective for the Board will be to reduce the Group's exposure from its final salary pension schemes which are both costly and highly volatile and as such represent a barrier to potential new investment. I am confident that we as a Board and our management teams are taking the necessary steps to ensure that Dawson comes through these turbulent economic conditions well positioned to take advantage of market opportunities when the economy begins to show signs of improvement."
KEY POINTS
Continuing operations
- Turnover £24.1 million (2008: £28.2 million)
-Operating loss before exceptional items £2.8 million (2008: £1.7 million)
- Net central costs £0.8 million (2008: £1.7 million)
- Knitwear businesses seasonally biased to second half
- Strong US dollar impacted margins in the Home Furnishings business
- Net debt £4.0 million (2008: £9.7 million)
Discontinued operations
- Sale of Todd & Duncan yarn spinning division completed 28 August 2009
- Turnover £12.4 million (2008: £15.8 million)
- Operating loss before exceptional items £0.3 million (2008: £0.7 million profit)
- Loss on disposal of business £5.0 million (inclusive of costs) reflects business' current poor profitability and strategic challenges
- Initial consideration £6.1 million
- Additional funds of c.£4 million to be generated by liquidation of retained working capital will support Group's longer-term strategic objectives
Dawson International Trading Limited
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