Dyson confirms pre-tax loss but shares remain suspended

DYSON, the Sheffield-based high-tec materials firm, said today that it is still not in a position to publish its report and accounts but confirmed pre-tax losses.

Underlying losses before tax for the year ended March 31 were £2.2m compared to a £6.5m profit the year before. Revenue dropped from £63.9m to £53.5m.

The firm said that “dialogue” between its two banks – Lloyds and Svenska Handelsbanken – had not yet been finalised.

As a result the requested suspension of trading of its shares, which was granted earlier this month after it failed to report its figures and crossed a banking covenant test threshhold, remains in force.

Dyson has released highlights for its last financial year on an unaudited basis, but said it had identified a “material uncertainty” surrounding the ongoing support of the group’s two banks.

Net debt at the end of the period stood at £38.8m compared to £32.7m in 2008.

Basic loss in earnings per ordinary share of 63.84p (2008, 36.02p) and underlying loss per ordinary share of 6.14p (200,: earnings per ordinary share of 13.29p)

Adverse market conditions have resulted in a decline of £11.9m to the value of the property portfolio including £3.5m exceptional charges and the pension deficit has increased by £10.6m to £19.3m.

Adverse conditions in the automative markets in the second half knocked demand and there is a continued decline in the market for ceramic products.

Sales in Dyson’s performance materials business declined by 17% primarily due to reduced demand for its Ecoflex products.

Thermal Technologies revenues remained unchanged however, although margins were reduced as a result of adverse pricing and lower production levels.

Dyson said that there had been no major changes to the group’s trading performance and that sales revenues were running at around 65% of like-for-like levels.

However, Dyson said that “significant” restructuring of the group, which has seen its workforce reduced from 740 to 600 people, had been completed with further projects to streamline the production facilities currently underway.

Earlier this month, it confirmed that Edmund Watkinson, executive director for the group, had resigned with immediate effect to pursue other business opportunities.

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.