Scottish textile and knitwear producer Dawson International has reported widening losses of £3.2 million in its Half Year Statement for the period ended 4 July 2009.

Commenting on the interim results, Chairman David Bolton said: "As anticipated in our Annual Report for 2008 the Group has experienced a lower level of demand overall for its products in the first six months of 2009, trading through the worst economic conditions experienced for a very long time. It is important to note that performance in the first half of the year reflects the seasonality of the US Knitwear division, which generates over 90 per cent of its sales and all of its profits in the second half of the year.”

"The outlook for the full year remains very challenging. Every effort is being made to remain close to customers to find ways to adapt product and price point and respond to changing market demands dictated by the global recession, whilst maintaining a rigorous focus on cost containment and reduction”, Bolton added.

Dawson, which owns the Barrie knitwear brand, sold its Todd & Duncan cashmere yarn business to China’s Ningxia Zhongyin Cashmere Company for £6.1m. Todd & Duncan, which is now part of the company's discontinued operations, continued to make losses in the first half of the year. Taking into account the discontinued operations, Dawson's total losses were over £9m after tax and exceptional costs.