DWSN Dawson Intl.

TIDMDWSN

RNS Number : 8470Z

Dawson International PLC

21 January 2011

DWSN

DAWSON INTERNATIONAL PLC

("the Company")

Trading Update

Dawson International plc, the international cashmere and home furnishings group, is providing this trading update in advance of the publication of its second interim results for the six month period ended 1 January 2011 which it expects to announce on 1 March 2011. As previously announced, the Company has changed its accounting reference date from 31 December to 31 March to align financial reporting with the seasonality of the business.

Trading

While losses in the Home Furnishings division widened due to the significant increase in cotton prices, the performances of both the UK and US Knitwear divisions were ahead of expectations. As a result, overall trading performance for the twelve months to 1 January 2011 is in line with the Board's expectations.

A further payment of $1.5 million was received from Inner Mongolia King Deer Limited on 5 January 2011 which will bring the total exceptional income recognised in 2010 to $2.5 million (GBP1.6 million). This will be offset to some extent by restructuring costs and an increase in environmental clean-up cost provisions in both the UK and the USA.

Outlook

Trading performance in 2011 is likely to be lower than previously expected, impacted by the significant increases in cotton and cashmere prices experienced in 2010. The increase in cotton prices is now well communicated in the market and it is anticipated that price increases will be accepted by our customers in 2011 allowing some recovery in margins in our Home Furnishings business. Cashmere price increases will impact on both our UK and US Knitwear businesses. Of most concern is the impact on our US Knitwear business where private label customers have indicated that they will reduce their cashmere buys, leading to a significant reduction in turnover and profitability in that business.

For further information please contact:

Dawson International PLC Tel: 01577 867 000

David Bolton, Chairman

David Cooper, Group Finance Director

WH Ireland Limited Tel: 0161 832 2174

Robin Gwyn

Biddicks PR Tel: 0203 178 6378

Zoe Biddick

This information is provided by RNS

The company news service from the London Stock Exchange

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