Knitwear success helps push up profits at textiles group

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

For the year to January 2, operating profit from continuing operations rose to 2m, up from 1.9m, and the group generated 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.

"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."

Mr Bolton, who was interim non-executive chairman, was appointed non-executive chairman earlier this week.

He said a key priority this year will be to reduce the pension deficit and associated costs.

He said this is likely to restrict any development of the group through acquisitions until substantial progress is made.

The group said that although there are some signs of markets stabilising, it expects 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," said Mr Bolton.