rns3 Feb 2010 17:16
Dawson Holdings PLC
03 February 2010

February 3 2010
Dawson Holdings PLC
Dawson Holdings PLC ("Dawson" or the "Company")
Interim Management Statement and Trading Update
Dawson Holdings PLC, the media services business, today issues the following update on trading.
In the preliminary announcement of the results for the year to 30th September 2009, Dawson said that we did not expect the economy to improve for some time and that the outlook remained challenging. Against that background, a number of suppliers to the market, prompted no doubt by their own economically-driven challenges, have now taken steps which will affect the short-term profitability of our business, as described below:
· Dawson Media Direct has been adversely impacted as a result of many UK publishers
substantially reducing the volume of promotional copy they make available for sampling
opportunities, and
· Dawson Marketing Services, our marketing support business, has not yet seen the
recovery in client spending patterns that we had anticipated.
Dawson Books has, however, continued to perform broadly in line with expectations for this point in the financial year, with export and eBook sales largely offsetting a marginally weaker than expected UK print performance.
Overall, therefore, we now expect that the Company's trading and consequently profit before tax for the current financial year will be significantly below current market expectations.
However, the group, and all its constituent businesses, remain profitable and cash generative and we continue to be highly focused on managing the cost base to match the requirements imposed by the economic conditions.
As announced on 18 December 2009, the new funding facilities obtained give the group sufficient headroom for Dawson's expected activity levels. With the funding in place and good individual market positions, our three businesses are well-placed for the future as their markets recover.
This trading update now forms Dawson's Interim Management Statement.
For further information, please contact:
www.dawson.co.uk
Dawson Holdings PLC 020 3167 4100
Hugh Cawley, Chief Executive
Shore Capital and Corporate Limited
020 7408 4090
Dru Danford / Edward Mansfield
Smithfield
020 7360 4900
Katie Hunt / Rebecca Whitehead