Hartley resigns from Dawson

Chief executive of Scottish cashmere group Dawson International, Mike Hartley, has resigned from his post. He named chief operating officer Andy Bartmess as his successor. Bartmess was previously head of the company’s US business. A Harvard Business School alumnus, he has also worked for Deloitte and IBM. “Now we have got a good stable future,” Hartley told The Scotsman. “So for the past 18 months we have been looking at developing a smooth transition going forward. When Andy Bartmess came in – that is the succession plan I have in mind.”  However, Hartley has no plans to retire. He said he was “still very busy”.
Having issued an operating profits warning this year – partly due to the high cost of raw materials and a drop in Scottish knitters – the group also announced the departure of deputy chairman Giovanni Ghione, effectively immediately. As a member of the International Fashion shareholder group which has a 12.6 percent stake in Dawson, he joined the board of the troubled company in 2002. “It is not considered good corporate governance to have major shareholders on the board,” said Hartley. “Ghione has been very supportive over a difficult period, but now is the appropriate time for him to leave.” Nevertheless, thumbing his nose at good corporate governance over another issue, Hartley will not split the roles of chief executive and chairman. Dawson posted profits of £2.9 million for 2005.

www.dawson-international.co.uk
30 June 2006

Dawson acquires John Laing cashmere

Dawson International has bought Scottish cashmere knitwear maker John Laing of Hawick after the latter went into receivership last month.

John Laing will continue to operate under Dawson's Barrie Knitwear division. The sale has cost the loss of another 30 jobs. Receiver KPMG Corporate Recovery ordered the termination of 52 employees in January.

Dawson anticipates a promising future for the Laing and Barrie brands, and has bought the company's stock, order book and label, reports just-style.

www.dawson-international.co.uk
15 February 2006

Dawson's losses deepen
DAWSON'S NICHE CASHMERE STRATEGY MAKES GOOD PROGRESS

Date: 6-3-2002
Dawson International's results were hurt by a weak market and costs related to its restructuring. In the year ended 29 December 2001, turnover declined by 17 per cent. Pre-tax loss deepened from GBP 3.5m in 2000 to GBP 4.2m over 2001.

STRATEGIC HIGHLIGHTS

· Investment in Ballantyne brand stepped up
· Cashmere fibres and yarns operations consolidate
· New cashmere dehairing factory operational in spring
· New specialist cashmere brand launches in Europe

FINANCIAL SUMMARY

· Trading result impacted by unprecedented decline in raw material prices
· Turnover £75.5 million (2000 - continuing operations: £90.7 million)
· Pre-exceptional operating loss £0.9 million (2000 - continuing operations: profit £8.2 million)
· Net cash position £9.4 million (2000: £0.3 million)
· Adjusted loss per share 0.8 pence (2000: earnings 5.9 pence)

Commenting on the preliminary financial results to 29 December 2001, chairman Ian Irvine said: "This has been a year of satisfactory progress in achieving strategic goals, set against a background of very challenging market conditions. In the first year since the completion of our strategy to reposition Dawson International as a niche cashmere business, we have been able to focus all of our energy on stepping up the pace of change required to achieve our vision to be the world's market leader in cashmere.

"The final stages of the consolidation of the fibres and yarn operations will come together during 2002. Spring will see the opening of the new cashmere fibre dehairing plant on the Kinross site, following its successful transfer from Bradford. Investment of around £1.2 million in information technology will deliver greatly improved operational flexibility when it comes on stream during the summer.

"Our strategic goals remain focused on regaining profitability, growing market share and improving shareholder value. Maximising the potential of the Ballantyne brand remains a central part of our strategy. The recently announced agreement with guest designer Matthew Williamson will be followed by a number of new initiatives to be announced during 2002. The European launch of Dawson Cashmere Company ("DCC"), our new sourced cashmere garment business, will lay the foundations to grow market share in this potentially lucrative market.

"Market conditions have remained challenging in the early part of 2002. The fourth quarter downturn in 2001 adversely affected the spring order book and consequently our expectations for the first half of the year. Market indications are that cashmere raw material prices have stabilised and we believe at these levels we can expect a more normal trading pattern in the second half of 2002. We will continue to focus on tight management of working capital and maintain our strong cash position throughout 2002. Investment in the global development of the Ballantyne brand will be accelerated further and our move to grow market share in Europe through the launch of DCC will gain momentum during 2002. Whilst this investment will impair short-term financial performance we are confident it will generate value in the medium to long-term."

For further information:
Website: www.dawson-international.co.uk

New "Matthew Williamson for Ballantyne" capsule collection

Dawson International PLC announced it has commissioned Matthew Williamson, a leading British fashion designer, to produce a signature collection for Ballantyne Cashmere autumn/winter 2002.

A flavour of what to expect from the new "Matthew Williamson for Ballantyne" collection has featured as part of the Ballantyne Cashmere presentation at London Fashion Week. A 15 piece capsule collection is being produced for autumn/winter 2002, which will centre on Ballantyne's world renowned skill in hand intarsia knitting.

The move comes on the back of the highly successful launch of Matthew Williamson's own collection last week at New York Fashion Week. His celebrity client list includes Madonna, Nicole Kidman, Julia Roberts, Goldie Hawn and Kate Hudson.

The linking of the leading luxury cashmere brand with cutting edge catwalk fashion is a further dynamic step for Ballantyne in its successful high profile development globally.

Commenting on the move, Paul Munn, Chief Executive of Dawson International PLC, said: "Matthew Williamson is a highly respected name in contemporary design. His appointment to work as guest designer combines high fashion edge with the heritage and supreme luxury of Ballantyne Cashmere. It is a partnership that makes a very positive endorsement of both brands and a move that will heighten the brand profile among more fashion conscious consumers."

Matthew Williamson added: "For me, this is a great opportunity to work with a master in cashmere. The quality, skill and incredible colour palette offered by Ballantyne allows me the creative freedom to push the boundaries in cashmere and inject fashion and glamour into a classic."

The association will evolve for spring/summer 2003 when Matthew Williamson will consult on the Ballantyne mainline collection as well as developing the "Matthew Williamson for Ballantyne" collection.

3-3-2002
Website: www.dawson-international.co.uk

REVIEW OF OPERATIONS

PERFORMANCE REVIEW

· Investment in Ballantyne brand stepped up
· Cashmere fibres and yarns operations consolidate
· New specialist cashmere brand launches in Europe
· Pre-exceptional operating loss of £0.9 million
· Net cash position £9.4 million

DAWSON OVERVIEW

This has been a year of satisfactory progress in achieving strategic goals. In the first year since the completion of our strategy to reposition Dawson International as a niche cashmere business, we have been able to focus all of our energy on stepping up the pace of change required to achieve our vision to be the world's market leader in cashmere. This has resulted in the consolidation of our fibres and yarns business, further development of our Ballantyne brand and the creation of a new cashmere garment sourcing business which will be launched throughout Europe in 2002.

These achievements have been made despite very challenging market conditions. The rapid decline in cashmere raw material prices throughout the year was more severe than anticipated, which impacted both volumes and margins as customers deferred purchases. This was compounded by the events of September 11th and the effect on the luxury goods market globally, resulting in a pre-exceptional operating loss for the year of £0.9 million.

The focus on tight management of working capital to reflect the fall in cashmere raw material prices has resulted in an operating cash inflow of £10.2 million from continuing operations during the year. This focus will remain key as we manage the challenges of raw material prices throughout 2002.

The Board has reviewed the nature of our Chinese joint venture. It has concluded that Dawson no longer exercises the degree of control necessary to treat the joint venture as an associate entity of the Group, therefore it has been reclassified as a fixed asset investment from the start of this financial period.

BALLANTYNE BRAND DEVELOPMENT

Progress has been made in developing the Ballantyne brand during the year. A new store opened in Chicago during the early part of the year. This was followed by the refurbishment of the London Bond Street store in September, which unveiled the new Ballantyne image. The re-opening was supported by a new advertising campaign featuring international supermodel Karen Elson.

The very positive reaction to these initiatives was impaired by the sudden decline in air travel and tourism resulting from the effects of September 11th and the negative impact on consumer spending in the luxury goods market that followed. Despite this, sales of Ballantyne marginally improved year on year. Investment in the brand will continue throughout 2002 through a number of new initiatives. Our recently announced association with the knitwear designer Matthew Williamson, is a further step in Ballantyne's global development. His appointment as a guest designer on Ballantyne combines modern contemporary design with the heritage and innate luxury of Ballantyne Cashmere.

This move is consistent with our strategy to appeal to a more fashion conscious consumer and is the first of a number of initiatives to be unveiled during 2002. A signature collection for autumn/winter 2002, "Matthew Williamson for Ballantyne" was showcased in February during New York Fashion Week as part of the launch of his own collection and expansion into the global fashion arena. The brand association is a very positive endorsement of both labels.

CASHMERE YARN DEVELOPMENT

The rapid decline in cashmere raw material prices continued throughout the year resulting in the erosion of both volumes and margins in the cashmere fibres and yarn business. Towards the end of 2001 there were some early indicators of price stability emerging.

The final stages of the consolidation of the fibres and yarn operations will come together during 2002. Spring will see the opening of the new cashmere fibre dehairing plant on the Kinross site, following its successful transfer from Bradford. Investment of around £1.2 million in information technology will deliver greatly improved operational flexibility when it comes on stream during the summer.

Focus on product quality and innovation remains fundamental to the success of this business. A new range of cashmere colours and qualities for spring/summer 2003 was presented in January 2002 to a very positive reaction from customers visiting the international yarn show Pitti Filati in Florence.

The central theme of the new collection, which skillfully blends cashmere with a variety of luxury summer fibres using cotton silk and linen, is impulse and expertise. Impulse, based on a splash of 15 new luminous cashmere colours. Expertise, through the technical skill behind the development of ever lighter and finer qualities of cashmere yarn.

SOURCED CASHMERE

Dawson Forté, our cashmere distribution operation in the US, performed well against a background of weak demand in the US retail market. Although sales volume was affected by price resistance during the year, profits held up and the outlook is positive for 2002.

Plans to mirror the success of Dawson Forté, to create a business model for the European market, made solid progress during 2001. A new specialist cashmere designer label, "DCC" (Dawson Cashmere Company), will launch at retail for autumn/winter 2002. DCC is a new fashion-led collection showcasing the best of new emerging European knitwear design talent. It will be sold through high fashion outlets in the UK, Germany, Switzerland, Italy and the Benelux via a network of European distributors. The creation of DCC seeks to reinvent the pioneering spirit of Joseph Dawson and build on Dawson International's 150-year heritage in the cashmere industry.

Through Dawson International's links with fashion colleges and established fashion designers keen to break new ground in cashmere, DCC discovered a hotbed of new knitwear designer talent. It saw the opportunity to create fresh, innovative collections that could reinvent the company's pioneering spirit in cashmere using different designers each year. Its aim is to be different, stylish and fun - at a very affordable price point.

STRATEGIC GOALS

Our strategic goals remain focused on regaining profitability, growing market share and improving shareholder value. Maximising the potential of the Ballantyne brand remains a central part of our strategy and a number of new initiatives will be announced during 2002. Moving into Europe with a new range of cashmere and cashmere related products this year through DCC will lay the foundations to grow market share in this lucrative market.

RISKS/CHALLENGES

Anticipating price movement and managing the supply and demand of cashmere raw material is the constant challenge facing the business. Essentially buying raw material at the right time at the right price. The vertical integration and global spread of the business with its superior market intelligence provides a competitive advantage to manage the associated risks.

MANAGEMENT

The management structure of the Group has been streamlined under the direct control of the Chief Executive. This is consistent with our 'one company' principle and will ensure more cohesive and efficient decision making across our range of cashmere operations.

David Cooper was promoted to Finance Director with effect from 1 January 2002. David has been with the company for 15 years. He was formerly Group Financial Controller and Company Secretary.

OUTLOOK

Market conditions have remained challenging in the early part of 2002. The fourth quarter downturn in 2001 adversely affected the spring order book and consequently our expectations for the first half of the year. Market indications are that cashmere raw material prices have stabilised and we believe at these levels we can expect a more normal trading pattern in the second half of 2002. We will continue to focus on tight management of working capital and maintain our strong cash position throughout 2002. Investment in the global development of the Ballantyne brand will be accelerated further and our move to grow market share in Europe through the launch of DCC will gain momentum during 2002. Whilst this investment will impair short-term financial performance we are confident it will generate value in the medium to long-term.

Dawson starts new cashmere brand

Dawson International plc, the Scottish cashmere specialist, is set to launch a new cashmere designer brand by the name of DCC, standing for Dawson Cashmere Company. Jana Schoellner will be the resident designer, while for autumn 02 and spring 03 the contributing designers will be Alex Gore Browne and Isobel Mowat.

The aim of the collection, which will be produced for delivery at the end of June or start of July, is to offer a contemporary twist on classic knitwear and to give design talents such as Mowat and Gore Browne the opportunity to work with a vertical manufacturers like Dawson International. The label will be targeted at the European market's high end department stores and independents. The 65-piece womenswear collection will retail at between £70 and £150.

It will include pure cashmere and cashmere-mix product. Rolf Kohn, business development manager, at Dawson International, said he would be looking for about 30 stockists in the UK and 300 across Europe and that a menswear collection was likely for 2003.

DCC will be produced in China. In this way, the company could guarantee low prices despite the sophisticated handicrafts required, Dawson said. The merchandise will be imported and distributed by regional distributors.

http://www.dawson-international.co.uk
jan 9 2002