Cashmere and knitwear specialist Dawson International Plc today (30 September) said trading in the first half of its financial year has been in line with expectations, but that margins continue to be hurt by higher cashmere raw material prices. 

In a statement ahead of its Annual General Meeting, the company said: "Margins in both our UK and US knitwear businesses have been impacted by the increase in cashmere fibre prices and indications are that prices will increase further in 2012 before falling in 2013. 

"In the current economic climate it is difficult to predict the retail performance of our customers which affects the level of any potential reorder business in the fourth calendar quarter.

"However, our current order books indicate that we should meet our sales forecasts for the full year."