Disposal (7808G)
18 Mai 2011 - 8:00AM
UK Regulatory
TIDMDWSN
RNS Number : 7808G
Dawson International PLC
18 May 2011
DWSN
Dawson International PLC
Disposal of Dawson Home Group Limited
Dawson International plc ("the Group") today announces the sale
of Dawson Home Group Limited ("DHG") to Brookmann Home Limited
("Brookmann"). As part of the sale agreement, Brookmann has
undertaken to purchase certain inventories related to the DHG
business which are currently held by another Group company (the
"Retained Inventory") over a period of six months from
completion.
DHG designs and sources private label bed-linen from around the
world for a number of well known retailers in the UK. In addition
it sells its own product under the Vantona brand to wholesale
customers. The business employs 53 staff and will continue to
operate from its base in Ardwick, Manchester.
The initial consideration is based on the estimated net assets
of DHG at completion of GBP6.0 million, less a discount of GBP2.0
million. The net consideration of GBP4.0 million has been received
in cash. The Retained Inventory of approximately GBP2.5 million
will be supplied to DHG on a consignment basis at cost, being paid
for monthly as used, with any balance being settled after six
months. As a consequence of the disposal, the Group will therefore
liquidate approximately GBP8.5m of net assets, receiving an
estimated total gross consideration of GBP6.5m, less estimated
costs of GBP0.5 million. The results of the Group for the 15 months
to 31 March 2011 are now expected to be lower than previously
anticipated by GBP2.5m, being the impairment charge in respect of
the sale of DHG inclusive of disposal costs.
In the 12 months to 1 January 2011, the unaudited results for
DHG showed an operating loss of GBP1.5 million after exceptional
charges on turnover of GBP30.3 million.
The proceeds of the sale will be applied towards achieving the
longer term strategic objectives of the Group, including a possible
resolution of the pension funding issues.
David Bolton, Chairman, commented:
"This transaction is a positive result for all parties. DHG has
experienced challenging trading conditions in recent years and,
more recently, has suffered from increasing cotton raw material
costs. Brookmann has strategic alliances with many key
manufacturers around the world who will help to mitigate these cost
pressures, whilst DHG offers Brookmann a well-known and respected
UK outlet for its overseas manufacturing capabilities. The
combination with Brookmann is expected to strengthen DHG's
competitive position.
The conclusion of the sale allows the Group to focus on its core
cashmere activities. We have already taken initiatives to bring our
remaining businesses, Barrie and Dawson Forte, together under one
management team as Dawson Cashmere and we will continue to pursue
our strategy which will support the recovery and growth of these
businesses."
For further information please contact:
David Bolton, Chairman: 07710 497166
David Cooper, Group Finance 07836 299548
Director: 020 3178 6378
Zoe Biddick, Biddicks Financial 0161 832 2174
Public Relations:
Robin Gwyn, WH Ireland:
This information is provided by RNS
The company news service from the London Stock Exchange
END
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