Updates

Dawson Holdings

April 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Dawson shocked the market by announcing that it has lost not one but four key distribution contracts in its newspaper and magazine distribution arm to rivals Smiths News and John Menzies. Two expire in April next year, another in October and the fourth in November. The four contracts accounted for Â£255m of the divisionâ€™s turnover of Â£690m. Clearly there is no impact on this year's result but there is going to be a period of under-utilisation of overheads in due course, so a round of redundancies will have to be made. The loss of the contracts leaves questions over the future viability of the division and Dawson would be best to dispose of it if at all possible. The news has also put paid to the chunky dividend, which was ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Topps Tiles - Gain since recommendation: 94%

James Fisher

Dawson Holdings (March 2009)

Dawson Holdings (November 2008)

Dawson Holdings (May 2008)

Dawson Holdings - Performing â€œat the upper end of expectationsâ€ (March 2008)

Dawson Holdings - Fast growing divisions (October 2007)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X