Company Update

 

TIDMDYS 
 
RNS Number : 1376G 
Dyson Group PLC 
26 January 2010 
 

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| 26 January 2010                                     | 
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Dyson Group Plc 
("Dyson" or "the Company") 
 
 
UPDATE ON DIALOGUE WITH BANKS 
UPDATE ON COMPANY ACCOUNTS 
TRADING UPDATE 
AND 
 BOARD UPDATE 
 
 
 
 
KEY POINTS 
 
 
  *  Significant progress made in ongoing negotiations with banks and key 
  stakeholders towards agreeing a solvent debt and capital restructuring of the 
  Company. 
  *  Encouraging trading momentum over the last three months within Saffil, the 
  Group's principal remaining operating business. 
  *  Operational restructuring of the business progressing well. 
  *  Julian Cooper to join the Board as Interim Chief Executive Officer. 
  *  Resignation of Dr. Krishnamurthy Rajagopal as Non-Executive Director. 
 
 
 
 
 
Commenting on today's developments, Christopher Honeyborne, Group 
Chairman, said: 
 
 
"Significant progress has been made in our ongoing negotiations with the 
Company's banks and other key stakeholders towards agreeing a solvent debt and 
capital 
restructuring of the Company. The Board intends to write to 
shareholders with a set of proposals when detailed terms have been agreed. 
 
 
"At the same time the operational restructuring of the Group is progressing 
well. Trading within Saffil has now started to show clear signs of improvement 
which is particularly pleasing and testament to the real strengths of that 
business. 
 
 
"I would also like to take the opportunity to thank Dr. Krishnamurthy (Raj) 
Rajagopal who has today stepped down from the Board.  Raj has been with Dyson 
since 2007 and the Board has valued his guidance during a very challenging time 
for the Company." 
 
 
For further enquiries, please contact: 
 
 
Dyson Group plc 
Christopher Honeyborne, Chairman                    Tel: [phone] 
Julian Cooper, Interim CEO                              Tel: [phone] 
 
 
Buchanan Communications                              Tel: [phone] 
Charles Ryland 
Catherine Breen 
 
 
KBC Peel Hunt                                           Tel: [phone] 
Julian Blunt / Simon Brown (Corporate Finance) 
Marianne Woods / Nicholas Marren (Corporate Broking) 
 
 
 
 
UPDATE ON DIALOGUE WITH BANKS 
 
 
The Company has been in extensive discussions with its banks and other key 
stakeholders 
and considered a range of options to reorganise its capital structure and reduce 
net borrowings. The Company can confirm that significant progress has been made 
in the ongoing negotiations towards agreeing a solvent debt and capital 
restructuring of the Company. The Board intends to write to shareholders with a 
set of proposals when detailed terms have been agreed. 
 
 
UPDATE ON COMPANY ACCOUNTS 
 
 
On 30 October 2009, the Company announced that it had changed its accounting 
reference date from 31 March to 30 September. Accordingly, the 12 month 
accounting period which would have ended on 31 March 2009 has been extended to 
an 18 month accounting period ended on 30 September 2009. 
 
 
On 30 October 2009, the Directors stated their intention to publish the audited 
accounts for the 18 month period to 30 September 2009 on or before 31 January 
2010. Due to delays in the negotiations with the banks, the Company will not now 
be able to meet this deadline. However, the progress made in the ongoing 
negotiations with banks and key stakeholders 
means that the Directors now 
anticipate that the Company will be in a position to publish the 
audited accounts for the 18 month period to 30 September 2009 during April 2010, 
subject to agreeing the detailed terms of the debt and capital restructuring. 
 
 
TRADING UPDATE 
 
 
The Group is executing an operational restructuring plan, whereby a number of 
its non-core businesses and properties are to be sold or closed. This 
restructuring has progressed well, with (as previously announced) both the 
completion of a sale of the Kiln Furniture Business in Stoke to a Management 
buyout team and the exchange of contracts to sell a number of agricultural 
properties taking place during December. This restructuring process is expected 
to be substantially complete by April 2010 at which point the Group will be 
primarily focused on the Saffil business and a number of investment properties 
with a substantially reduced cost base and a much simplified business structure. 
 
 
The Saffil business has benefited from the recovery in global automotive markets 
in recent months and has been awarded significant new Ecoflex business which is 
expected to lead to further growth during 2010 and 2011. Saffil sales revenue in 
the three months to December 2009 showed an increase of 18 per cent. on the 
previous quarter and an increase of 35 per cent. on the same period in 2008. The 
Saffil business headcount has been reduced by 38 per cent. over the last 15 
months, which together with other cost management actions across the business 
has resulted in overhead reductions of 21 per cent. 
 
 
Notwithstanding continued margin pressure within the industry, the above factors 
have led to significant improvements in profitability and cash generation in the 
Saffil business and give cause for optimism on the future prospects for this 
business. 
 
 
BOARD UPDATE 
 
 
The Company is pleased to announce the appointment to the Board of Julian Edward 
Peregrine Cooper as Interim Chief Executive Officer. Mr. Cooper, aged 47, has 
been acting as Interim Chief Executive since 22 October 2009 and as a consultant 
to the Board since July 2009. Mr. Cooper is an ICAEW qualified chartered 
accountant and former partner of Arthur Andersen. His experience of turnaround 
situations and restructuring companies is ideally suited to Dyson's current 
needs. Further details relating to Mr. Cooper as required by paragraph 9.6.13R 
of the Listing Rules are set out below: 
 
 
Mr. Cooper is a director of Ennstone plc, and was on the board when it entered 
administration in March 2009. 
Other than the information set out above, there are no other matters to be 
disclosed in relation to Mr. Cooper under paragraph 9.6.13R of the Listing 
Rules. 
The Company also announces that Dr. Krishnamurthy Rajagopal has resigned from 
the Board as a Non-Executive Director with immediate effect. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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