KPMG makes 'going concern' warning over Dawson Holdings
Auditor warns of 'material uncertainty' over the future of the newspaper and magazine distribution
KPMG has said that there was ‘material uncertainty’ about whether Dawson
Holdings would remain a going concern as the distribution company warned that
its newspaper division may go into administration.
The company’s chief executive, Peter Harris, will resign and be replaced by
the company’s finance director, Hugh Cawley.
The management reshuffle came as the company said that it’s news distribution
business had lost the majority of its major contracts during the first half of
its financial year.
‘The first half of the current financial year has been a dramatic and
profoundly disappointing one for the Group, following the loss of the majority
of its contracts in Dawson News,’ said chairman Nigel Freer. ‘This is having far
reaching consequences for both our business and the industry it supplies.
In an ’emphasis of matter’ statement auditor KPMG said that although a
restructuring of the group has been approved, resulting in the group’s bank debt
being restructured, should the news division be placed into administration or
default on its debt ‘there is no certainty that the remaining Group will be able
to successfully agree favourable terms for continuing finance within the
standstill period.’
Further reading:
Dawson
Holdings half-year results