Dyson shares suspended
SHARES in high-tech materials company Dyson Group have been suspended after the company failed to report its 2008 figures on time and crossed a banking covenant test threshold.
Dyson, which makes materials to increase the efficiency of vehicles’ catalytic converters, added it was saving cash by making a number of cost saving measures, understood to include cutting jobs and imposing short-time working.
The Sheffield-based company has been hit by falling volumes as a result of the car industry’s woes.
It has already warned of a loss this year, plus a raft of impairment charges which will drive down the value of its assets by at least £33m.
Dyson needs the support of its banks before its results for the year ending March 31 can be signed off.
The group failed to meet last week’s banking covenant test date, putting it in breach of its covenants.
Dyson said it was in “constructive dialogue” with its two banks, Lloyds TSB and Svenska Handelsbanken, with the “intention of determining the appropriate way forward”.
“In view of the group’s position with the banks, management has deemed it necessary to implement further cost saving and cash management initiatives,” Dyson said.
