4th Dec 2006 07:30
Sirdar PLC04 December 2006 SIRDAR PLC 04 December 2006 Sirdar PLC ("Sirdar" or "the Group") Trading update In Sirdar's announcement of results to 30 June 2006, released on 14 September2006, the Board stated that, in view of the downturn in demand for fashion handknitting yarns and a continuing uncertainty over the level of consumer spending,the prospects for further increases in sales and profitability in the currentfinancial year remained challenging. It is now apparent that the downturn in demand for fashion hand knitting yarnshas been more severe than was envisaged and that market conditions forresidential floor coverings have become more difficult. In addition, therecontinues to be pressure on margins across the Group. As a result of thissituation and the ongoing volatility in the Group's markets, the Board believesit is prudent to exercise considerable caution and they have reduced theirexpectations for the remainder of the financial year significantly. The Board also reported, in the announcement of results, that significantprogress had been made with the reorganisation of the residential floorcoverings business and detailed further changes that were planned within thatbusiness. The Board is now pleased to report that these changes have beencompleted ahead of schedule and within budget, and that further streamlining isplanned for the first half of 2007. As the Board is not yet able to predict when trading conditions will improve, itwill continue to focus on the control of costs and overheads and the effectivemanagement of working capital. Accordingly, in the absence of unforeseencircumstances, the Board intends to recommend an unchanged interim dividend forthe year ending 30 June 2007 of 0.80p per share. For further information please contact: Sirdar PLCSteve Harrison Chief Operating Officer 01924-371501Kevin Henry Finance and Planning Director 01924-371501 Brewin Dolphin SecuritiesAndrew Kitchingman Director - Corporate Finance 01132-410130 ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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