Page last updated at 09:27 GMT, Wednesday, 10 March 2010

Pension black hole at Dawson International

Dyeing machines
Dawson said sales in the US continued to be challenging

Kinross-based textile company Dawson International has reported its pension liabilities have almost trebled in the past year to £19.3m.

In a statement, Dawson said that the increase in liabilities was due to lower corporate bond yields and increased estimates of life expectancy.

The company said it was in talks with pension trustees and the regulator to agree a way forward.

The firm unveiled annual pre-tax profits of £575,000 for 2009.

This was down from just over £1m the previous year.

Dawson said its knitwear division did well with its branded home furnishings division the only disappointment.

The group said the escalation of the pension deficit, from £6.7m to £19.3m, represented a significant challenge for its UK businesses and was likely to prevent it from making any new acquisitions.

Dawson, which produces cashmere jerseys and owns the Barrie brand, also supplies bed linen.

Last year, the company sold its Todd and Duncan cashmere yarn business to a Chinese firm for £6.1m.

Group chairman David Bolton said it had been a very difficult year and paid tribute to his staff.

He said: "I thank everyone for their continued resilience and efforts to sustain existing business and their creative approach to maximising opportunities as they emerge.

"It is this drive and determination that has seen the group return a satisfactory performance in a difficult year."



Print Sponsor


SEE ALSO
High fashion helps textile firm
01 Feb 10 |  Tayside and Central
Knitwear firm sees losses widen
01 Sep 09 |  Tayside and Central
Cashmere business sold to Chinese
17 Jun 09 |  Scotland
Knitwear firm escapes recession
12 Mar 09 |  South of Scotland
Knitwear hit by 'turbulent' times
26 Mar 09 |  South of Scotland

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific