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Date/Time	Headline	Source
1
21-09-09	Dawson International - Holding(s) in Company	RNS
RNS Number : 3769Z Dawson International PLC 21 September 2009 Dawson International PLC (the "Company") Notice of interest The Company announces that, on 18 September 2009, it received notification that, following the disposal of 1,150,000 ordinary shares of 1p each in the capital of the Company ("Ordinary Shares"), Guinness Peat Group plc and its subsidiary companies now have a direct interest in 33,043,668 Ordinary Shares, representing 14.68% of the total voting rights in the issued share capital of the Company. For further information, please contact: `Dawson International PLC Tel: 01577 867000` David Cooper, Group Finance Director `WH Ireland Limited Tel: 0161 832 2174` Robin Gwyn This information is provided by RNS The company news service from the London Stock Exchange END HOLUASKRKKRKURR More
02-09-09	Glance-PRESS DIGEST - British business - Sept 2	AFX UK Focus
The Times THE BRITISH MOTOR THAT WILL CLOCK UP 48 MILLION MILES QinetiQ has won a contract to build an engine for the European Space Agency's mission to the planet Mercury. The deal is expected to put UK engineering at the centre of the first European scientific mission to the inner solar system, driving the BepiColombo spacecraft tens of millions of miles through the solar system on a spiralling 50-year journey round the Sun. The team of British engineers working on the project is headed by Neil Wallace, who joined QinetiQ in 1986. FSA ISSUES WARNING The Financial Services Authority issued a warning on Tuesday over a possible crackdown on the practice known as "spoofing", which it said could be breaking market regulation. The City watchdog said it had been informed by the London Stock Exchange of traders placing orders to give a fake impression of an intention to buy or sell stock. BRITAIN LAGS BEHIND IN GLOBAL RACE TO RECOVERY British manufacturing surprisingly fell into contraction in August, damaging hopes that the sector was in recovery mode. The Chartered Institute of Purchasing and Supply/Markit index declined from 50.8 in July to 49.7 in August. The July numbers were also revised down to 50.2. Analyst Colin Ellis, of Daiwa Securities, said the figures showed "the economy is nowhere near out of the woods yet". The fall in the UK factory output, combined with gloomy lending data from the Bank of England, helped to the drag the FTSE 100 index down 89.20 points to 4,819.70. The Daily Telegraph SERCO SECURES NEW DEAL WORK Serco has announced the signing of new contracts with the government to deliver its Flexible New Deal. The five-year contracts, which could be worth up to 500 million pounds, involve the group training job seekers across Wales, the Midlands and Manchester, and helping them to find work. Chief executive Chris Hyman said the contracts represented "a significant new market for Serco". The payments are performance-based. 12 BOTTLES OF WINE, A TIPPLE TOO FAR FOR MAJESTIC CUSTOMERS Majestic Wine, Britain's biggest wine warehouse chain, saw its pre-tax profits fall by 56 percent from 16.7 million pounds to 7.4 million pounds in the year to March 30, after it wrote down the value of its French division by 5.3 million pounds. The company, which has 150 outlets in Britain and a handful in France, has halved the minimum number of bottles customers must buy to six, after a trial project received "very positive" feedback. The company's wine sales are understood to be increasing again, and its share price has jumped from a low of 109.5 pence at the beginning of the year to 218 pence a share last week. The Independent CREDIT CRUNCH LEAVES M&A ACTIVITY AT A 40-YEAR LOW New figures by the Office for National Statistics have revealed that merger and acquisition activity has dropped to a 40-year low, hit by the financial crisis and a lack of credit. The number of domestic deals -- 41 -- in the period from April to June represents the lowest total since the records began in 1969. Acquisitions of UK companies by foreign concerns collapsed almost entirely in the period, hit as well by the worldwide credit crunch. Expenditure on UK acquisitions by British companies dropped from 8.2 billion pounds in the first quarter of 2009 to 0.7 billion pounds in the second quarter, the lowest figure recorded since 1992. ROTHSCHILD TO ADVISE IRELAND ON "BAD BANK" Rothschild, the investment bank, has been hired by the Irish government to counsel on the country's banking industry and on dealings with the European Commission. Ireland is considering taking over risky property loans with a book value of up to 90 billion euros from a group of lenders, including Allied Irish Banks and Bank of Ireland, and placing them in a "bad bank" called National Management Agency to ease the flow of credit lines. CASHMERE FIRM SUFFERS FROM SOFT DEMAND Dawson International, the cashmere company, reported wider half-year operating losses of 2.8 million pounds, hit by a drop in demand and the seasonality of its U.S. knitwear arm, which generates 90 percent of its sales and all of its profits in the last six months of the year. The group, based in Kinross, Scotland, saw its sales fall to 24.1 million pounds compared to 28.2 million pounds the year before. It said its UK knitwear division was boosted from strong sales to high-value clients, which were partly based on orders placed before the impact of the economic downturn became apparent. The Guardian CITY BACKS CASH CALL TO SAVE LLOYDS FROM MORE STATE INTERVENTION Lloyds Banking Group, the part-nationalised bank, has secured support from its investors to raise 10 billion pounds in a bid to limit its dependence on the state. On Tuesday night, leading City shareholders said they were ready to back chief executive Eric Daniels if he opts for a partial withdrawal from the government's insurance scheme set up to protect banks from the worst losses on their bad debts. Lloyds' determination to reduce its exposure to the government could see it close 300 Halifax counters as it tries to save money and bolster its finances. NET MORTGAGE DEBT FALLS FOR FIRST TIME SINCE 1993 New figures by the Bank of England have cast doubts over the recovery of the housing market as they reveal that mortgage debt fell in August for the first time since 1993. Mortgage repayments exceeded new borrowing by 418 million pounds as people take advantage of the ultra-low interest rates to pay off the capital on their mortgages. The Bank said the wider measure of consumer credit also declined slightly for the first time since records began in 1993, suggesting that people are reacting to the financial crisis by consolidating their finances, discarding debt and shunning new credit. DEFENCE FIRMS CALL FOR MORE SPENDING The UK's leading defence companies warned on Tuesday that the country risks losing its influence in world affairs if it does not increase spending to support British troops fighting abroad. In a joint press conference in Westminster, the chief executives from BAE Systems, Rolls Royce, Thales , QinetiQ and Finmeccanica UK hit out against possible government budget cuts and called for more "honesty" from politicians over Britain's foreign policy. The industry chiefs are concerned that some of the most expensive and lucrative military programmes will be scrapped as the country's involvement in conflict like Afghanistan and Iraq continues to squeeze budgets. Prepared for Reuters by Durrants `Keywords: PRESS DIGEST British business Sept 2` COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More
01-09-09	Dawson International - Half Yearly Report	RNS
RNS Number : 2696Y Dawson International PLC 01 September 2009 DAWSON INTERNATIONAL PLC LOCHLEVEN MILLS KINROSS KY13 8GL Tuesday 1 September 2009 DAWSON INTERNATIONAL PLC HALF YEARLY REPORT FOR THE PERIOD ENDED 4 JULY 2009 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 Saleof 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 Groups longer-term strategic objectives` 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." For further information please contact: `Andy Bartmess, Chief Executive Officer 01577 867000` `Zoe Biddick, Biddicks Financial Public Relations 0207 448 1000` `Robin Gwyn, WH Ireland 0161 832 2174` CHAIRMAN'S STATEMENT* Introduction In my first address to you as Chairman of Dawson International PLC I think it is important to acknowledge the scale of strategic change the Group has undergone in the last 12 months. Following the sale of the Dorma brand to Dunelm Group in July last year and the recently completed sale of the Todd & Duncan business to Ningxia Zhongyin Cashmere Company, the Group is now composed of three operating divisions; UK Knitwear, US Knitwear and Home Furnishings, each primarily focussed on supplying high quality products to private label customers. 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. The results therefore, while disappointing, are not unexpected and the Board believes that the restructured Group is well placed to weather the current recession and benefit from an economic recovery. Operating and financial review `Operating` `Revenues profit (loss) before exceptional` `items` 2009 2008 2009 2008 `£m £m £m £m` `UK Knitwear 2.9 4.3 (0.1) 0.4` `US Knitwear 1.6 2.0 (1.2) (0.8)` `Home Furnishings - Private 13.0 11.3 0.2 1.7` Label `Central costs - - (0.8) (1.7)` `Continuing operations before 17.5 17.6 (1.9) (0.4)` Home Furnishings - Branded `Home Furnishings - Branded(i) 6.6 10.6 (0.9) (1.3)` `Continuing operations after 24.1 28.2 (2.8) (1.7)` Home Furnishings - Branded `Discontinued operations(ii) 12.4 15.8 (0.3) 0.7` `Eliminations (1.7) (2.3) - -` `Total Group 34.8 41.7 (3.1) (1.0)` `(i) The Home Furnishings - Branded division, while classified as a continuing operation under IFRS, is being wound down and so is shown separately.` (ii) Discontinued operations traded for the full six month period. Continuing operations Turnover from continuing operations for the six months ended 4 July 2009 was £24.1 million (2008: £28.2 million) while the pre-exceptional operating loss was £2.8 million (2008: £1.7 million). It is important to note that the 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. UK Knitwear The UK Knitwear division had an exceptional full year in 2008 benefiting, in particular, from strong sales to high value couture customers which were partly based on orders placed before the extent of the recession became clear in the second half of last year. It seemed inevitable that volumes would drop this year following lower than expected sell through by retail customers and this has proved to be the case. The business is normally seasonally weighted to the second half of the year and this trend is likely to be more pronounced in the current year as customers have reacted to the economic uncertainty by delaying order placement. Management have responded to this challenge by maintaining tight control of costs and working capital. Exceptional costs of £125,000 were incurred in respect of a redundancy programme announced in May comprising 19 job losses required to bring production into line with demand. US Knitwear Turnover for the first half of the year in US dollars was $2.5 million (2008: $4.0 million) and the operating loss $1.8 million (2008: $1.7 million) with the reduction in margin from lower sales almost entirely offset by operating expense savings. As noted above, this division generates over 90 per cent. of its sales and all of its profits in the second half of the year. The key measure for this business at the half year is the open order position which was $30.2 million compared with $45.6 million in the prior year, a reduction of 34 per cent. This is a reflection of both the current economic environment in the United States and the excellent performance by the business in 2008 when it returned record levels of both turnover and profit. While results are anticipated to be well below last year's record level the business is expected to deliver another satisfactory full year profit and return on capital employed. Home Furnishings - Private Label The success of this business is built on establishing long-term relationships as a trusted supplier to major private label customers. Key deliverables are innovative design capability, value for money, quality control and on-time delivery. The relationship with one such customer, Dunelm Group, is underpinned with a four year supply agreement following the sale of the Dorma brand to it in July 2008. Turnover increased to £13.0 million from £11.3 million (15 per cent.) compared with last year however operating profit slipped to £0.2 million from £1.7 million with margins impacted by the strength of the US dollar. A significant proportion of product is purchased in US dollars and the increased Sterling cost has had to be absorbed by the business in the current economic environment. The average rate for the first half of 2009 was $1.50 compared with $1.97 in 2008. The US dollar has weakened since the period end, which is expected to benefit second half results. Central costs Net central costs have reduced to £0.8 million from £1.7 million, an improvement of £0.9 million. There are three main components of this improvement: in April 2009 the Company received a payment of US$500,000 (£348,000) from King Deer Cashmere Company Limited which had previously been fully provided against, professional fees were £324,000 lower and foreign currency losses reduced by £186,000. Management continues to actively look at cost initiatives to mitigate revenue shortfall. Home Furnishings - Branded This business is being wound down following the sale of the Dorma brand to Dunelm Group in July 2008. The process, which involves exiting from retail operations and liquidating working capital, is expected to complete on time by January 2011. Turnover consequently fell to £6.6 million from £10.6 million last year, while the operating loss was reduced to £0.9 million from £1.3 million. The business is not regarded as a discontinued operation under International Financial Reporting Standards and so is reported separately as a part of continuing operations. Discontinued operations Turnover from the discontinued Todd & Duncan division has fallen to £12.4 million from £15.8 million while a first half operating loss of £0.3 million compares with a profit of £0.7 million last year. The sale of the Todd & Duncan business to Ningxia Zhongyin Cashmere Company Limited was completed on 28 August 2009. The subjects of the sale were the business operations, fixed assets and stocks. The Company has retained the debtors and creditors, which will mostly be realised in the second half of the year. The consideration for the sale is the agreed value of fixed assets and stocks at completion less a discount of £4.2 million. An initial consideration of £6.1 million was paid on completion based on forecast values of fixed assets and stocks and this will be adjusted following agreement of completion accounts. This discount reflects the current poor profitability of the business which lost £0.3 million before financing costs in the normally profitable first half of the year and is expected to incur further losses in the seasonally weaker second half. It also reflects the strategic challenges faced by the business, not least the need to relocate and re-equip within a relatively short time period. The sale proceeds of £6.1 million will initially be used to settle any trading balance due to Zhongyin and reduce Group borrowings. As the retained working capital of approximately £4 million is liquidated, the additional funds generated will be applied towards achieving the longer-term strategic objectives of the Group. Further details are given in note 4 to the accounts. Cash flow and funding Historically, the Group absorbs funds from operations in the first half of the year and generates funds from operations in the second half reflecting the seasonality of the businesses, particularly the US Knitwear division. The net funds outflow in the first half of the year was £9.7 million compared with £4.0 million in the same period last year, a deterioration of £5.7 million. £4.6 million of this resulted from the discontinued Todd & Duncan division which will partly be recovered by the sale of that business. Net debt at the end of the period was £4.0 million compared with £9.7 million net debt at 28 June 2008. Retirement benefit obligations The Company has two defined benefit pension schemes in the UK, which are closed to new members, and one defined benefit pension scheme in the US, which is closed to all members. Following the sale of the Todd & Duncan business the Company will consider closing the UK schemes to existing members for future accrual as these schemes will have fewer than 70 remaining active members. The triennial valuations of the two UK schemes are due in 2009 and these are currently being prepared by the schemes' actuary. It is likely that these will show a significant deterioration due to a change in mortality assumptions and the present economic conditions which affects current asset values and projected future returns. The Company will work with the Trustee to reduce these liabilities where possible, recognising that this issue has a significant influence on shareholder value. Whilst recovery plans were agreed with the Trustees of the UK schemes in 2008 and payments have been made to the schemes during the period in accordance with these plans, it should be recognised that on completion of the 2009 valuations, a revised recovery plan will have to be agreed between the Company and the Trustee and approved by the Pensions Regulator. Strategy and outlook In its revised structure, the Group moves forward as a core of three divisions, which are largely private label businesses that retain some branded elements. Their strengths lie in design, product innovation and supply chain management. It is those strengths we will continue to build on as we weather the storms of 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. This will form the basis of our future strategy as we target opportunities to grow existing businesses and consider potential strategic acquisitions, which would enhance the Group's core capabilities. The outlook for the full year remains very challenging and as predicted in our 2008 Annual Report all of our businesses have seen a drop in demand that will adversely affect our financial performance for 2009. Every effort is being made to remain close to customers in these challenging times to find ways to adapt product and price point and respond to changing market demands dictated by the global recession. At the same time we remain alert to new business opportunities as markets shift. I am, therefore, confident that we as a Board, together with our management teams, are taking the necessary steps to ensure that the Group comes through these turbulent economic conditions well positioned to take advantage of market opportunities when the economy begins to shows signs of improvement. David Bolton Interim Chairman CONSOLIDATED INCOME STATEMENT For the period ended 4 July 2009 `6 months to 6 months to Year to` `4 July 28 June 3 January` 2009 2008 2009 `re-presented re-presented` `Note £000 £000 £000` Continuing operations `Revenue 2 24,091 28,164 87,358` `Cost of sales (19,222) (19,589) (65,266)` `Gross profit 4,869 8,575 22,092` `Other income 343 - -` `Selling and distribution costs (4,162) (6,032) (12,484)` `Administrative expenses (3,796) (4,293) (9,091)` `Operating (loss) profit before exceptional items 2 (2,746) (1,750) 517` `Exceptional items 3 (125) - 1,342` `Operating (loss) profit (2,871) (1,750) 1,859` `Finance income 5 6 22 65` `Finance costs 5 (262) (573) (930)` `Net finance income on pension assets/liabilities - - 126` `(Loss) profit before taxation 2 (3,127) (2,301) 1,120` `Taxation 7 (595) - (146)` `(Loss) profit for the period from continuing operations (3,722) (2,301) 974` Discontinued operations `(Loss) profit for the period from discontinued 4 (5,282) 662 (498)` operations `(Loss) profit for the period (9,004) (1,639) 476` (Loss) earnings per share From continuing and discontinued operations `Basic 6 (4.0) p (0.7) p 0.2 p` `Diluted 6 (4.0) p (0.7) p 0.2 P` From continuing operations `Basic 6 (1.7) p (1.0) p 0.4 p` `Diluted 6 (1.7) p (1.0) p 0.4 p` CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the period ended 4 July 2009 `6 months to 6 months to Year to` `4 July 28 June 3 January` 2009 2008 2009 `£000 £000 £000` `(Loss) profit for the period (9,004) (1,639) 476` Other comprehensive income: `Exchange differences on translation of foreign (248) (4) 1,689` operations `Actuarial loss on defined benefit pension - - (2,533)` obligations `Other comprehensive income for the period (248) (4) (844)` `Total comprehensive income for the period (9,252) (1,643) (368)` Total comprehensive income is all attributable to equity holders of the parent. CONSOLIDATED BALANCE SHEET As at 4 July 2009 `4 July 28 June 3 January` 2009 2008 2009 `Note £000 £000 £000` Non-current assets `Intangible assets 121 426 131` `Property, plant and equipment 962 3,990 2,285` `Deferred tax asset 1,500 1,500 1,500` `Total non-current assets 2,583 5,916 3,916` Current assets `Inventories 12,566 23,856 24,090` `Trade and other receivables 15,634 17,252 14,973` `Cash and cash equivalents 3,249 1,801 9,900` `Disposal Group held for sale 4 10,716 - -` `Total current assets 42,165 42,909 48,963` `Total assets 44,748 48,825 52,879` Current liabilities `Trade and other payables 12,315 12,112 15,576` `Income tax payable 126 96 142` `Borrowings 7,212 11,479 4,212` `Other financial liabilities 462 - 2,028` `Liabilities directly associated with disposal Group held for sale 4 4,842 - -` `Total current liabilities 24,957 23,687 21,958` Non-current liabilities `Provisions 2,460 1,515 3,951` `Retirement benefit obligations 6,306 4,701 6,730` `Total non-current liabilities 8,766 6,216 10,681` `Total liabilities 33,723 29,903 32,639` `Net assets 11,025 18,922 20,240` Equity `Share capital 51,989 51,989 51,989` `Share premium account 5,489 5,489 5,489` `Translation reserve 570 (875) 818` `Retained earnings (47,023) (37,681) (38,056)` `Total equity 11,025 18,922 20,240` CONSOLIDATED CASH FLOW STATEMENT `For the period ended 4 July 6 months to 6 months to Year to` `2009 4 July 28 June 3 January` 2009 2008 2009 `re-presented re-presented` `£000 £000` `£000` Continuing operations Cash flows from operating activities `(Loss) profit before tax (3,127) (2,301) 1,120` `Depreciation 85 257 809` `Gain on disposal of Dorma - - (1,517)` brand `Net finance expense 256 551 739` `Share based payment expense 37 42 85` `(2,749) (1,451) 1,236` `(Increase) decrease in (2,440) (4,150) 2,222` inventories `Decrease (increase) in debtors 3,717 1,296 (148)` `(Decrease) increase in (2,169) (122) 1,842` creditors `Decrease in provisions (1,455) (98) (21)` `Cash (used) generated by (5,096) (4,525) 5,131` operations `Additional contributions to (175) - (887)` pension schemes `Taxes paid (565) (21) (231)` `Net cash (used) generated by (5,836) (4,546) 4,013` operating activities 6 20 63 Cash flows from investing activities Interest received `Proceeds from disposal of - 19 -` property, plant and equipment `Proceeds from disposal of - - 4,523` Dorma brand `Purchase of property, plant (35) (401) (546)` and equipment `Purchase of intangible assets (12) - (2)` `Net cash (used) generated by (41) (362) 4,038` investing activities Cash flows from financing activities `Interest paid (262) (628) (985)` `Increase (decrease) in asset 3,000 (328) (7,602)` backed finance `Net cash generated (used) by 2,738 (956) (8,587)` financing activities `Net cash used by continuing (3,139) (5,864) (536)` operations Discontinued operations `Net cash (used) generated by (2,591) 1,540 2,250` operating activities `Net cash used by investing (446) (9) (18)` activities `Net cash (used) generated by (3,037) 1,531 2,232` discontinued operations `(6,176) (4,333) 1,696` Net (decrease) increase in cash and cash equivalents `Cash and cash equivalents at 9,900 6,093 6,093` the beginning of the period `Exchange rate effects (475) 41 2,111` `Cash and cash equivalents at 3,249 1,801 9,900` the end of the period RECONCILIATION OF MOVEMENT IN NET DEBT `For the period ended 4 July 6 months to 6 months to Year to` `2009 4 July 28 June 3 January` 2009 2008 2009 `£000 £000 £000` `(Decrease) increase in cash (6,176) (4,333) 1,696` and cash equivalents `(Increase) decrease in asset (3,000) 328 7,602` backed finance `Exchange rate effects (475) 48 2,111` `Increase in net debt (9,651) (3,957) 11,409` `Opening net funds (debt) 5,688 (5,721) (5,721)` `Closing net (debt) funds (3,963) (9,678) 5,688` CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the period ended 4 July 2009 `Share Share Translation Profit and Total` `Capital Premium Reserve Loss account` `£000 £000 £000 £000 £000` `At 29 December 2007 51,989 5,489 (871) (36,084) 20,523` `Total comprehensive income for - - (4) (1,639) (1,643)` the period `Share-based payments charge - - - 42 42` `At 28 June 2008 51,989 5,489 (875) (37,681) 18,922` `At 3 January 2009 51,989 5,489 818 (38,056) 20,240` `Total comprehensive income for - - (248) (9,004) (9,252)` the period `Share-based payments charge - - - 37 37` `At 4 July 2009 51,989 5,489 570 (47,023) 11,025` NOTES TO THE HALF YEAR REPORT `1. Basis of preparation and significant accounting policies` Basis of preparation This half year report contains the condensed consolidated financial information of the Company and its subsidiaries ("the Group") for the six month period ended 4 July 2009 prepared in accordance with the AIM rules. It is unaudited and has not been reviewed by the auditors. The report does not contain all of the information and disclosures required in the annual financial statements and does not therefore constitute statutory accounts as defined in section 435 of the Companies Act 2006. It should be read in conjunction with the 2008 Annual Report. Comparative information for the twelve month period to 3 January 2009 is based on the statutory accounts for that period which were prepared under International Financial Reporting Standards as adopted by the EU and have been delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. On 28 August 2009 the Company completed the sale of the Todd & Duncan Yarn Spinning division. The results of this division have therefore been reported as a discontinued operation and comparative figures restated accordingly. The financial information is prepared on the historic cost basis with the exception of assets and liabilities which are classified as held for sale and is presented in Sterling, rounded to the nearest thousand. The condensed financial statements have been prepared on the going concern basis which the Directors consider to be appropriate based on a review of projected cashflows which take into account (i) the general economic environment, which continues to be challenging (ii) the business specific risks and uncertainties which are discussed on pages 14 and 15 of the 2008 Annual Report and are not considered to have changed and (iii) the net impact of the Todd & Duncan disposal, which will generate cash but reduce borrowing capacity. This half year report contains certain forward looking statements which are subject to various risks and uncertainties and should therefore be treated with an appropriate level of caution and not regarded as a forecast of future results. Significant accounting policies The interim condensed consolidated financial statements have been prepared applying the same accounting policies that were applied in the preparation of the Company's published consolidated financial statements for the year ended 3 January 2009 except for the adoption of the following new and amended reporting standards, which are effective for periods commencing on or after 1 January 2009: IAS1 (REVISED) - 'PRESENTATION OF FINANCIAL STATEMENTS' A new primary statement, 'Consolidated Statement of Changes in Equity' is required containing information previously disclosed in the notes to the accounts. In addition, the Consolidated Statement of Recognised Income and Expense is replaced with the Consolidated Statement of Comprehensive Income which may be shown separately or combined with the Income Statement. IFRS8 - 'OPERATING SEGMENTS' This standard replaces IAS14 - 'Segment Reporting' which required operating segments to be analysed into Primary (business) and Secondary (geographical) segments. IFRS8 requires that operating segments should be aligned with those reviewed by the 'Chief Operating Decision Maker' which is considered to be the Board of Directors. As a result, the Knitwear segment has been divided into UK and US Knitwear segments and the Home Furnishings segment has been divided into Private Label and Branded Home Furnishings segments. Various other amendments to standards and interpretations of standards are effective for periods commencing on or after 1 January 2009 as detailed on page 29 of the 2008 Annual Report, none of which have any impact on reported results. This half year report was approved by the Board of Directors on 31 August 2009. Copies of this report and the 2008 Annual Report are available on the Company's website at www.dawson-international.co.uk. 2. Segmental analysis As described in note 1 - basis of preparation, the segmental analysis has been prepared in accordance with IFRS8 - 'Operating Segments' which has replaced the previous reporting standard IAS14 - 'Segment Reporting'. The new standard requires that the segmental analysis should be aligned with internal reporting to the 'Chief Operating Decision Maker' which is considered to be the Board of Directors. The operating segments have been identified as the following: UK Knitwear This segment comprises the Barrie business which manufactures cashmere and woollen garments which are sold mainly in the European market. It sells both to private label customers and under its own labels which include Barrie, John Laing and Glenmac. US Knitwear This segment comprises the Forte business which sources cashmere garments from China which are sold in the American market, primarily to large private label customers. It also sells to smaller boutique customers under its own 'Kinross' label. This business is highly seasonal, making over 90 per cent of its sales and all of its profit in the second half of the year. Home Furnishings - Private Label This segment designs and sources bed linen, primarily from Asia, which is sold to a small number of Private Label customers. Home Furnishings - Branded This segment designed and sourced 'Dorma' branded bed linen which it retailed through a number of channels. Following the sale of the 'Dorma' brand to Dunelm Group in July 2008 a phased exit from this business is being conducted which will complete by January 2011. Certain establishment costs, currently charged to the Branded segment will then transfer to the Private Label segment. `Revenue Profit (loss)` 2009 2008 2008 2009 2008 2008 `Interim Interim Full Year Interim Interim Full Year` `£000 £000 £000 £000 £000 £000` `UK Knitwear 2,859 4,254 10,032 (124) 443 1,507` `US Knitwear 1,652 2,048 34,023 (1,171) (843) 3,588` `Home Furnishings - Private 12,998 11,287 23,143 244 1,665 2,862` Label `Home Furnishings - Branded 6,582 10,575 20,160 (867) (1,348) (2,422)` `Segmental revenues/results 24,091 28,164 87,358 (1,918) (83) 5,535` before exceptional items Unallocated central costs foreign exchange gain (loss) 26 (160) (1,460) other (854) (1,507) (3,558) `Operating (loss) profit before (2,746) (1,750) 517` exceptional items `Exceptional items (125) - 1,342` `Net finance charges (256) (551) (739)` `Continuing operations 24,091 28,164 87,358 (3,127) (2,301) 1,120` Net finance charges are not allocated across segments as borrowing requirements are managed on a Group wide basis. The results of discontinued operations are disclosed in note 4. `Assets` 2009 2008 2008 `Interim Interim Full Year` `£000 £000 £000` `UK Knitwear 2,549 4,068 1,698` `US Knitwear 2,692 5,957 2,526` `Home Furnishings - Private Label 8,918 7,383 7,450` `Home Furnishings - Branded 5,284 9,673 7,120` `Segmental assets 19,443 27,081 18,794` `Unallocated central assets 1,110 382 3,295` `Deferred tax 1,500 1,500 1,500` `Cash and deposits 3,249 1,801 9,900` `Total assets, continuing operations 25,302 30,764 33,489` `Total assets, discontinued operations 19,446 18,061 19,390` `Total assets 44,748 48,825 52,879` 2009 2008 2008 `Interim Interim Full Year` `3. Exceptional items - continuing operations £000 £000 £000` Reorganisation costs `UK Knitwear (125) - -` `Home Furnishings - Branded - - (175)` `Gain on sale of Dorma brand - - 1,517` `(125) - 1,342` `4. Discontinued operations` `On 28 August 2009 the Company completed the sale of the business, fixed assets and stocks of the Todd & Duncan Yarn Spinning division to` `Ningxia Zhongyin Cashmere Company Limited. The consideration will be based on the value of fixed assets and stocks at completion less a discount` `of £4.2 million. In addition, the Company will incur costs estimated at £818,000. The results of discontinued operations are as follows:` 2009 2008 2008 `Interim Interim Full Year` `£000 £000 £000` `Revenue 12,399 15,757 21,514` `Cost of sales (10,934) (13,269) (18,052)` `Gross margin 1,465 2,488 3,462` `Operating expenses (1,729) (1,826) (2,960)` `(Loss) profit before exceptional items (264) 662 502` `Fixed asset impairment - - (1,000)` `Loss on disposal of business (5,018) - -` `(Loss) profit for the period from discontinued (5,282) 662 (498)` operations Disposal Group assets and liabilities comprise: `Fixed assets 1,353` `Stocks 9,363` `Total assets held for sale 10,716` `Provision for loss on sale 4,842` As part of the sale two supply agreements have been entered into. Barrie, which currently sources most of its cashmere yarn from Todd & Duncan, has signed a four year supply agreement to source yarn from Todd & Duncan Limited at similar levels. Dawson Forte, which sources some its cashmere garments from Zhongyin, has signed a four year supply agreement to offer a minimum level of garment orders to Zhongyin. 2009 2008 2008 `Interim Interim Full Year` `5. Finance income (costs) £000 £000 £000` `Interest receivable on short-term deposits 6 22 65` `Finance income 6 22 65` `Interest payable on asset backed finance (262) (573) (930)` `Finance costs (262) (573) (930)` `6. (Loss) earnings per share 2009 2008 2008` `Interim Interim Full Year` `Basic and diluted (loss) earnings per £000 £000 £000` share (Loss) profit for the period attributable to equity holders of the parent: `Continuing operations (3,722) (2,301) 974` `Discontinued operations (5,282) 662 (498)` `(9,004) (1,639) 476` `Weighted average number of shares 000's 000's 000's` `In issue during the period 225,158 225,158 225,158` `Dilutive potential ordinary shares - - -` `225,158 225,158 225,158` `Basic and diluted (loss) earnings per Pence Pence Pence` share `Continuing operations (1.7) (1.0) 0.4` `Discontinued operations (2.3) 0.3 (0.2)` `(4.0) (0.7) 0.2` `Adjusted loss per share £000 £000 £000` (Loss) profit for the period from continuing operations `attributable to equity holders of the (3,722) (2,301) 974` parent `Add back exceptional items 125 - (1,342)` `(3,597) (2,301) (368)` `000's 000's 000's` `Weighted average number of shares in issue 225,158 225,158 225,158` `Pence Pence Pence` `Adjusted loss per share (1.6) (1.0) (0.2)` `Adjusted loss per share is calculated on the profit or loss for the period from continuing operations before exceptional items.` 2009 2008 2008 `Interim Interim Full Year` `7. Income tax expense £000 £000 £000` Current tax expense: UK continuing operations - - - discontinued operations - - - Overseas current year (95) - (146) adjustment in respect of previous year (500) - - (595) - (146) Deferred tax: `Origination and reversal of timing - - -` differences - - - `Total income tax expense (595) - (146)` The Group has significant tax losses available in the UK and federal tax losses available in the USA subject to any restrictions which may apply as a result of s.382 of the US tax code (change of ultimate ownership rules). The adjustment to overseas tax for the previous year results from the application of the change of ownership rules. `8. Retirement benefit obligations` `The Group operates two defined benefit pension schemes in the UK which are closed to new members and a defined benefit pension scheme in` `the USA which is closed to all members. Following the sale of the Todd & Duncan business the UK schemes have less than 70 active members and the` `Company intends to consider closing the schemes to future accrual for existing members.` `Full actuarial valuations of the UK schemes are made triennially by an independent, professionally qualified actuary and these fall due for renewal in` `2009. The actuary updates these valuations on an annual basis for reporting and funding purposes. No update is performed for interim reporting` `purposes and so the movement on the schemes at the half year represents additional funding made to the schemes in the period and any exchange` `movement on the US discontinued scheme.` This information is provided by RNS The company news service from the London Stock Exchange END IR WUUBARUPBGRG More
01-09-09	Dawson International - Disposal	RNS
RNS Number : 2688Y Dawson International PLC 01 September 2009 Tuesday 1 September 2009 Dawson International PLC (the "Company") Disposal of Todd & Duncan On 17 June 2009 the Company announced that it had signed an agreement with Ningxia Zhongyin Cashmere Company Limited ("Zhongyin") for the conditional sale to Zhongyin of the business and certain of the assets of the Todd & Duncan division of Dawson International Trading Limited. Further to the announcement made on 17 June, the Company is pleased to announce that all outstanding conditions relating to the sale have now been satisfied and completion has taken place. For further information please contact: Andy Bartmess, Chief Executive, Dawson International PLC: 01577 867000 `Robin Gwyn, W H Ireland Limited: 0161 832 2174` `Zoe Biddick, Biddicks Financial Public Relations: 0207 448 1000` This information is provided by RNS The company news service from the London Stock Exchange END DISWUUAGRUPBGMG More

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