Blackfriar: Tragedy if Dyson joins list of the recession's fallen firms

But Blackfriar believes it would be a tragedy if Dyson Group, the 200-year-old Sheffield manufacturer, was among the dearly departed.

Dyson has had a torrid time of it. Entering the downturn with huge exposure to the collapsing automotive industry was sheer misfortune. However, the 38.8m debt millstone around it neck smacked more of financial imprudence.

Now, however, opportunities finally beckon.

It has taken more than a year of talks with its banks Lloyds and Svenska Handelsbanken to get to the stage Dyson reached yesterday.

In return for wiping out 35m of its debt, Dyson proposes the banks taking 51 per cent of its equity, leaving shareholders with just 12 per cent. Dyson would be left significantly smaller, but with a solvent, viable future.

Former directors fired parting shots at the banks before their departure, accusing them of making unreasonable demands around a new finance deal.

Indeed, the unsecured nature of Dyson's debt has proved a major stumbling block, as each side had a significant amount to lose.

It's hard to know exactly what went on, but if the debt hadn't been unsecured, Blackfriar bets Dyson's fate would have been far more swiftly resolved, probably by some form of insolvency.

That was the fate that met another Yorkshire plc last week, as Bank of Ireland and Bank of America called in Jarvis's debt and forced the York-based rail maintenance firm into administration. But Dyson's proposals offer another route. As chairman Dr Christopher Honeyborne observed, "it's the least bad outcome".

Dyson's directors want to delist the company, then initiate the debt-for-equity swap.

As a private company, Dyson would have a working capital facility and banks would have a clear incentive to help it succeed.

Jobs would be saved and Dyson would be able to focus its attention on the recovering automotive market.

The company needs the support of 75 per cent of shareholders for the delisting. Blackfriar hopes shareholders follow the example of non-executive director John Lomas, whose family once controlled the company. He has pledged his 4.3 per cent in support of the delisting. They will be left with very little, but a little is better than nothing.

Faced with the alternatives, Blackfriar believes salvaging a viable, private company from Dyson would be a real achievement.

As Surgical Innovations admits itself, at first glance its results look disappointing.

Retained profits for the year to December 31 fell 17 per cent to 525,000.

But this can be explained by delays in a contract which have since been resolved and a decision to make write downs in its blood transfusion business which it now plans to sell.

This decision is long overdue. Surgical's instruments for keyhole surgery have far more potential.

This is an area which should race ahead over the next few years as surgeons move away from invasive surgery towards keyhole – an operation which is far less risky, less painful for the patient post-surgery and has far fewer complications.

Not only does the group have enormous potential in surgery on obese patients as obesity increases in nearly every country in the Western world, but it also has other market opportunities.

The group has already expanded into veterinary surgery and it is now looking at arthroscopy – particularly hip, knee and shoulder joints.

This has the potential to be an even bigger market than laparoscopy.

Another new area is cardiovascular, which would fit in well with the growing trend away from opening up the chest to perform surgery.

Yesterday's announcement that the group is looking at ways to change its structure so it can pay dividends at some point in the future will be welcome news to its 4,500 shareholders.

They have been very patient and a payback is due as soon as possible.