Dawson spins out positive results
DAWSON International, the AIM-listed weaver, is showing signs of recovery after reporting an increase in revenue and a fall in operating losses today.
The Scottish firm, of which Yorkshire textile company Leeds Group has a 28.8% stake, said that turnover had risen from £40.1m to £41.7m for the six months ended June 28.
Operating losses before non-recurring items had fallen from £3.8m for the first half 2007 to £1.1m. Sales have also improved across all of its remaining divisions.
Mike Hartley, Dawson’s chairman, said that he was encouraged by the performance but that the company remained cautious because of the economic climate.
“We will continue to focus on improving profitability and implement changes where necessary to deliver acceptable returns on assets employed across all of our businesses,” he added.
In July the company announced the sale of its Dorma trademark and associated rights to furnishings group Dunelm.
Dawson originally bought Dorma three years ago in a £9.5m deal but it suffered from declines in the mail order and independent retailing sectors.
Dawson has been granted a licence to use the Dorma brand until January 2011 and will be able to sell Dorma branded bed linen for four years.
Leeds Group’s main investor is Swedish corporate investor Peter Gyllenhammar.
