News blog
Dawson International
- BY: Andrew Hore |
- POSTED: 19/02/2009 |
House broker WH Ireland has upgraded its forecasts for Dawson International and estimates that the textiles company made a profit in 2008.
WH Ireland moved from a forecast loss of £820,000 to a profit of £80,000 in 2008. Revenue forecasts have been increased from £93m to £106m. The forecast profit excludes any restructuring charges.
The broker is not changing its 2009 forecasts for the time being. Last year’s sale of the Dorma business to Dunelm means that forecast revenues fall to £81.2m in 2009. A profit of £580,000 is forecast.
The possible sale of the Todd & Duncan cashmere spinning business could affect the outcome.
Todd & Duncan is benefiting from investment in its plant and was helped by the strength of the Euro. Orders for the knitwear division continue to be strong. Even the remaining Dorma operations traded better than expected.
WH Ireland says that the shares are trading at a large discount to the NAV of 9.1 p a share – after deducting the pension deficit.
At 2.5p a share, up 0.375p on the day, which values Dawson at £5.63m.
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