Dawson International boosted by knitwear division

The Scottish firm, which is almost 29 per cent owned by Yorkshire's Leeds Group, said strong performance by both its UK and US knitwear businesses offset weakness in its home furnishings business.

For the year ended January 2, operating profit from continuing operations was 2m, up from 1.9m, and the group generared funds of 6.7m.

The company disposed of Todd & Duncan, which generated 5.4m of cash, and Dawson said it ended the year with no debt.

New chairman David Bolton said: "In a year of global economic recession and an uncertain outlook in all of our markets, Dawson International delivered a satisfactory trading performance from continuing operations reporting an operating profit of 2m and generating funds of 6.7m.

"Through the planned exit from loss making divisions in 2009, the current year presents an opportunity to build on solid foundations and focus entirely on our profitable core businesses.

"A key priority during the year will be to seek ways in which to reduce the pension deficit and associated costs by working with the Pension Trustees to reduce liabilities and increase returns on assets.

"This is likely to restrict any development of the group through potential acquisitions until substantial progress is made in this area."

He added: "Although there are some signs of markets stabilising, we expect trading to continue to be tough throughout 2010. Our approach to 2009 has demonstrated that we are able to take the necessary steps to weather these difficult trading conditions constructively and take advantage of opportunities as they present themselves.

"With strong, focused management teams in all of our businesses the board is confident we can maintain and develop our businesses during the course of 2010."