Dawson reveals reduction losses

Dawson International, the Scottish textiles group, revealed this week that it has reduced its pre-tax losses by GBP17.1 million. The company also said that its core Barrie and Todd & Duncan divisions had made a profit. The company reduced its losses for the year ended 1 January 2005 to GBP 2 million from GBP 19.1 million the year before. Dawson's turnover climbed from GBP 68.3 million last year toGBP 70.2 million.

The Barrie cashmere knitwear business, based at Hatwick in Scotland, increased its turnover, as did the Todd & Duncan cashmere yarn business, based in Kinross in Scotland. Customer service improved "as a result of better production planning". The US-based Dawon Forte cashmere knitwear business more than doubled its profits in 2004.

"Substantial progress has been made during 2004 to stabilise the financial position of the group and restore all remaining businesses to profit," chairman Mike Hartley said in a statement. "The strategic review is now complete and we have embarked upon a new growth phase of the planned turnaround of the group. This is evidenced by the acquisition of Dorma earlier this year, which almost doubles the size of the group. We expect that our newly developed strategic position coupled with a strong operational results focus will deliver further improvements in profit and cash generation from the enlarged group."

Dawson International is one of the world's leading cashmere companies. Since its acquisition of Dorma in February 2005, it is now also one of the leading manufacturer of fine bedlinens.