DAWSON INTERNATIONAL
Consolidated Profit and Loss Account
Period ended 1 January 2005
2004 2003
Note £m £m
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Turnover 70.2 68.3
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Operating loss
--------- ---------
- base (0.2) (9.6)
- goodwill impairment - (1.5)
- exceptional 3 (1.2) (7.0)
--------- ---------
(1.4) (18.1)
--------- ---------
Exceptional gain on sale of
operations 3 2.2 -
Goodwill previously written off
to reserves (0.8) -
--------- ---------
1.4 -
Profit on disposal of fixed
assets 0.3 -
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Profit/(loss) on ordinary
activities before interest 0.3 (18.1)
Interest and similar charges 4 (2.3) (1.0)
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Loss on ordinary activities
before taxation (2.0) (19.1)
Taxation - (0.1)
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Loss for the financial period
transferred to reserves (2.0) (19.2)
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Loss per share (pence)
Basic 5 (2.0) p (18.9) p
Diluted 5 (2.0) p (18.9) p
Adjusted 5 (2.3) p (10.5) p
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Balance Sheets
at 1 January 2005
Group Company
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2004 2003 2004 2003
£m £m £m £m
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Fixed assets
Tangible assets 2.6 5.9 - -
Investments - - 43.5 43.5
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2.6 5.9 43.5 43.5
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Current assets
Stocks 11.7 18.9 - -
Debtors 15.2 22.2 56.8 60.2
Cash and deposits 11.9 10.1 0.1 0.1
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38.8 51.2 56.9 60.3
Creditors - amounts falling due
within one year ------- ------- ------- ------
- borrowings - (20.2) - -
- other creditors (9.1) (10.0) (77.3) (80.1)
------- ------- ------- ------
(9.1) (30.2) (77.3) (80.1)
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Net current assets/(liabilities) 29.7 21.0 (20.4) (19.8)
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Total assets less current
liabilities 32.3 26.9 23.1 23.7
Creditors - amounts falling due after
more than one year
- borrowings (5.7) - (5.7) -
Provisions for liabilities
and charges (4.3) (3.2) - -
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Net assets 22.3 23.7 17.4 23.7
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Capital and reserves
Called up share capital 50.8 50.8 50.8 50.8
Profit and loss account (28.5) (27.1) (33.4) (27.1)
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Equity shareholders'funds 22.3 23.7 17.4 23.7
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These financial statements were approved by the Board of Directors on 6 May 2005
and signed on its behalf by
Michael G Hartley, Chairman David Cooper, Director
Consolidated Cash Flow Statement
Period ended 1 January 2005
2004 2003
£m £m
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Reconciliation of operating loss to net cash inflow/(outflow) from
operating activities
Operating loss before exceptional
charges and goodwill (0.2) (9.6)
Depreciation 0.8 1.3
Loss on disposal of fixed assets 0.1 -
(Increase)/decrease in stocks (2.9) 4.7
Decrease/(increase)in debtors 0.3 (1.6)
Increase in creditors 3.9 2.0
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Net cash inflow/(outflow)from operating
activities before exceptional charges 2.0 (3.2)
Reorganisation costs and utilisation of
closure provisions (1.6) (1.3)
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Net cash inflow/(outflow)from operating activities 0.4 (4.5)
Returns on investments and servicing of finance
- net interest paid (1.2) (1.1)
Taxation 0.3 0.1
Capital expenditure -------- --------
- purchase of tangible fixed assets (0.5) (1.3)
- sale of tangible fixed assets 0.8 0.4
-------- --------
0.3 (0.9)
Acquisitions and disposals
-------- --------
- disposals 16.7 1.3
- cash balances transferred on disposal (0.2) -
-------- --------
16.5 1.3
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Net cash inflow/(outflow)before management of
liquid resources and financing 16.3 (5.1)
Financing
- shareholder loan (repaid)/received (3.3) 3.3
- Loan Stock 5.3 -
- net movement in other loans (0.2) 0.2
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Increase/(Decrease)in cash 18.1 (1.6)
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Reconciliation of Net Cash Flow to Movement in Net Funds
Period ended 1 January 2005
Increase/(decrease) in cash 18.1 (1.6)
Loan Stock (5.7) -
Decrease/(increase) in debt 3.5 (3.5)
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Increase/(decrease) in net funds resulting from
cashflows 15.9 (5.1)
Loans disposed of 0.7 -
Translation adjustments (0.3) (0.8)
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Movement in net funds 16.3 (5.9)
Net debt at beginning of period (10.1) (4.2)
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Net funds/(debt) at end of period 6.2 (10.1)
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Consolidated Statement of Total Recognised Gains and Losses
Period ended 1 January 2005
2004 2003
£m £m
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Loss for the financial period (2.0) (19.2)
Translation adjustments (0.3) (0.2)
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Total recognised losses for the financial period (2.3) (19.4)
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Consolidated Reconciliation of Movements in Equity Shareholders' Funds
Period ended 1 January 2005
2004 2003
£m £m
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Loss for the financial period (2.0) (19.2)
Goodwill relating to operations sold previously
written off to reserves 0.8 -
Fair value adjustment in respect of share options
granted in the period 0.1 -
Translation adjustments (0.3) (0.2)
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Net decrease in equity shareholders' funds (1.4) (19.4)
Equity shareholders' funds at beginning of period 23.7 43.1
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Equity shareholders' funds at end of period 22.3 23.7
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Notes to the Preliminary Announcement
1 Basis of information in the preliminary announcement
The financial information in the preliminary announcement does not
constitute the Company's statutory financial statements for the financial
periods ended 1 January 2005 and 3 January 2004. The financial statements
for the year ended 3 January 2004 ('2003') have been delivered to the
Registrar of Companies and those for the financial year ended 1 January 2005
('2004') will be delivered following the Company's Annual General Meeting.
The 2004 financial information has been derived from the audited financial
statements and that for 2003 has been derived from the audited financial
statements for that period. The auditor's report on the financial statements
for both periods was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985.
2 Segmental analysis
(a) Class of business
2004 2003
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Operating Operating
profit/(loss) Profit/ profit/(loss) Profit/
before (loss) before (loss)
goodwill and before goodwill and before
Turnover exceptionals interest Turnover exceptionals interest
£m £m £m £m £m £m
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Fibres & Yarns 31.3 0.7 0.4 31.5 (3.1) (4.3)
Knitwear 10.1 (0.6) (0.6) 18.0 (3.5) (4.4)
Sourced
Garments 31.1 3.1 4.6 22.2 1.1 1.0
Intra Group
turnover (2.3) - - (3.4) - -
Central
overheads - (3.4) (5.8) - (4.1) (8.9)
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70.2 (0.2) (1.4) 68.3 (9.6) (16.6)
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Exceptional gain on disposal and
termination of operations 2.2 -
Goodwill amortisation - (1.5)
Goodwill relating to operations sold
previously written off to reserves (0.8) -
Profit on disposal of fixed assets 0.3 -
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Profit/(loss) on ordinary activities
before interest 0.3 (18.1)
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Net assets Net assets
£m £m
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Fibres & Yarns 15.0 23.4
Knitwear 0.2 9.8
Sourced Garments 2.5 (1.5)
Central (3.0) 0.5
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Net operating assets 14.7 32.2
Taxation 1.4 1.6
Net funds/(debt) 6.2 (10.1)
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Net assets 22.3 23.7
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It is not considered appropriate or meaningful to allocate interest across
segments in order to give a segmental analysis of profit before taxation as
borrowing requirements are managed on a Group wide basis.
The Fibres & Yarns segment includes the Joseph Dawson business which was
disposed of on 15 October 2004.
The Knitwear segment includes the Ballantyne business which was disposed of
on 31 March 2004.
As it was not possible to clearly distinguish the results of either the
Joseph Dawson business or the Ballantyne business beyond turnover for
financial reporting purposes neither has been reported as a discontinued
activity.
(b) Geographical segments
2004 2003
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Operating Operating
profit/(loss) Profit/ profit/(loss) Profit/
before (loss) before (loss)
goodwill and before goodwill and before
Turnover exceptionals interest Turnover exceptionals interest
£m £m £m £m £m £m
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United Kingdom 39.1 (1.9) (4.2) 46.1 (9.3) (15.2)
United States
of America 31.1 1.7 2.8 22.2 (0.3) (1.4)
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70.2 (0.2) (1.4) 68.3 (9.6) (16.6)
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Exceptional gain on disposal
and termination of operations 2.2 -
Goodwill amortisation - (1.5)
Goodwill relating to operations sold
previously written off to reserves (0.8) -
Profit on disposal of fixed assets 0.3 -
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Profit/(loss) on ordinary activities
before interest 0.3 (18.1)
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Net assets Net assets
£m £m
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United Kingdom 14.4 36.1
United States of America (0.3) (3.9)
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Net operating assets 14.7 32.2
Taxation 1.4 1.6
Net funds/(debt) 6.2 (10.1)
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Net assets 22.3 23.7
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2004 2003
3 Exceptional items £m £m
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Operating
Refinancing costs (i) (0.6) -
Reorganisation costs (ii) (0.2) (0.4)
Fixed asset impairment - (1.8)
Exceptional debtor provision (iii) (1.5) (3.7)
Release of supplier provision (iv) 1.5 -
Environmental costs - (0.9)
Actuarial shortfall arising on
discontinued US pension scheme (v) (0.4) (0.4)
Other - 0.2
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(1.2) (7.0)
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Exceptional gain/(loss) on sale of operations
Disposal of the Ballantyne business 3.5 -
Disposal of the Joseph Dawson business (1.3) -
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2.2 -
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(i) The Group undertook two refinancing exercises in the year,
firstly to replace its existing bank facilities and secondly to
secure funding for the Dorma acquisition. All associated costs not
directly related to the facilities secured are expensed as
exceptional refinancing costs.
(ii) The reorganisation costs were incurred by the Fibres and Yarns
division.
(iii) No repayments were received from the Group's former joint
venture partner, King Deer, during the year. Following the year end
a revised payment plan was agreed extending the repayment term to
2008. While the Group remains optimistic that the total debt can be
recovered full provision has been made to reflect the risk inherent
in such an extended term of credit.
(iv) The Group carried a provision in respect of supplier balances
relating to 2003 and earlier years. Following agreement with those
suppliers the provision has now been released. The release is
treated as an exceptional item due to its size.
(v) Further provision was made against the discontinued US pension
scheme following an actuarial valuation at 31 December 2004.
2004 2003
4 Net interest payable £m £m
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Interest receivable and similar income
Interest receivable on short term deposits 0.2 -
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Interest payable and similar charges
Bank loans and overdrafts
- base (0.7) (0.9)
- exceptional (0.1) -
Loan Stock premium and issue costs
amortisation (1.5) -
Other loans (0.2) (0.1)
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(2.5) (1.0)
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(2.3) (1.0)
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2004 2003
5 Earnings per share pence pence
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Basic and diluted loss per share (2.0) (18.9)
Goodwill 0.8 1.5
Gain on fixed assets disposals (0.3) -
Permanent diminution in fixed assets - 1.8
Gain on sale of operations (2.2) -
Other exceptional charges 1.4 5.1
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Adjusted loss per share (2.3) (10.5)
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000s 000s
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Weighted average number of shares
Basic weighted average shares in
issue during the period 101,506 101,506
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Basic loss per share is calculated on the loss for the financial period of
£2.0 million (2003: loss £19.2 million) and the weighted average number of
shares during the period calculated in accordance with Financial Reporting
Standard 14.
Diluted loss per share adjusts for share options granted to employees and
warrants issued where the exercise price is less than the average price of
the Company's shares during the period and when their exercise would reduce
earnings per share or increase loss per share. 4,000,000 potentially
dilutive ordinary shares have been disregarded as they would decrease the
loss per share.
Adjusted loss per share is calculated on the loss for the period before
exceptional items and goodwill.