Dawson’s performance ahead of expectations

DAWSON International, the AIM-listed weaver, today said that its performance will be ahead of market expectations although it remains cautious in its outlook for 2009.

The Scottish firm, in which Yorkshire textile company Leeds Group has a 28.8% stake, said that financial results for the 53 weeks ending January 3 exceeded projections.

Dawson has been slowly improving its financial position since announcing an operating loss of £3.8m for the six months ended June 30 in 2007. It reduced its losses to £1.1m for the same period in 2008.

However, it said that it still remained cautious in its outlook given the worldwide recession and its impact on consumer spending and continued weakness of sterling.

Dawson also confirmed that it is continuing discussions with Nibgxia Cashmere Company, which may or may not lead to an offer for the yarn spinning division of the group.

It said an announcement would be made “when appropriate”.