Management shake-up helps Dawn reduce its interim loss
The turnaround plan of new management at Distribution and Warehousing Network (Dawn) helped the local sanitaryware manufacturer cut its interim loss to less than a third.
Dawn reported on Monday morning that its revenue for the six months to end-September declined by 20% to R1.9bn while its net loss narrowed by 71% to R105m from R367m in the matching period.
Actions taken by new CEO Edwin Hewitt and chief financial officer Chris Booyens included raising R358m via a rights issue in April and selling Dawn’s 49% stake in Grohe Dawn Watertech (GDW) for R324.5m.
Its 51% of Swan Plastics was sold after the reporting period for R35m.
Other disposals included Fibrex in Angola, Aqualia in Mauritius and Boutique Baths in SA.
"Most businesses are underperforming as a result of the tough economic environment as well as the legacy issues still impacting the businesses after the appointment of new management," the results statement said.
"The group has commenced the implementation of a new plan to return all operations to sustainable profitability. The implementation commenced a few months ago and is expected to take longer than initially envisaged."