Bolton backed as Dawson chairman

Published on Wednesday 10 March 2010 20:32

LEEDS Group has tightened its control over Kinross-based textiles firm Dawson International after pushing through the appointment of David Bolton as chairman.

Bolton has been serving as interim chairman since last year when Leeds Group ousted Dawson's previous chairman, Michael Hartley.

It was yesterday confirmed that Bolton's position at the top of the textiles manufacturer was now official, having received "the support of more than 50 per cent" of the company.

Leeds, which owns almost 29 per cent of Dawson, and other rebel shareholders ousted Hartley along with non-executive director Stephen Russell.

Chief executive Andy Bartmass said there had not been a split in the company's board, but Dawson had sought assurance from shareholders before the vote on Bolton's role.

The news came as Dawson reported a near halving in pre-tax profits on continuing operations of 575,000 in the year to 2 January as the cost of financing its pension deficit rose significantly.

The firm said its pension deficit had increased by 12.6 million to 19.3m as yields on corporate bonds fell.

It also warned that the latest triennial review of the deficit, using more conservative assumptions on life expectancy, could lead to a "significantly" higher deficit.

Bolton said the rise "represents a significant challenge" for the business. Dawson is in talks with the Pensions Regulator over how to address the deficit.