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By
Reuters
Published
May 8, 2009
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Dawson Int'l Q1 rev down 14 pct; sees weak 2009

By
Reuters
Published
May 8, 2009

May 8 (Reuters) - Cashmere apparel maker Dawson International Plc (DINT.L) on Friday 8 May posted a 14 percent drop in first-quarter revenue and also warned of lower full-year results, driving its shares down nearly 5 percent.


Essentials by Barrie, a Dawson International company

The luxury cashmere and branded bed-linen company said it remained cautious in its outlook for the remainder of the year with fragile customer confidence, currency volatility and a difficult credit insurance market.

"The results in the first quarter have confirmed our expectations that the global recession will reduce sales, which combined with the net impact of weaker sterling will reduce profitability in the current year," Dawson said.

First-quarter revenue fell to 3 million pounds ($4.51 million) from a year earlier, as results at each of its divisions were hit by a weak pound, the company said.

Cashmere sales volumes fell 35 percent from a year ago with customers buying carefully to avoid being overstocked.

The company also said talks were continuing for the possible sale of its Todd & Duncan spinning business to Ningxia Zhongyin Cashmere Co Ltd.

Dawson International shares were down 0.125 pence at 2.5 pence at 1130 GMT. ($1=.6655 Pound) (Reporting by Balachander Surianarayanan in Bangalore; Editing by Himani Sarkar)

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