Final Results

Sirdar PLC
14 September 2006


Sirdar PLC


Preliminary results for the year ended 30th June 2006

14th September 2006

Chairman's Statement


Introduction

In an increasingly competitive market place, we have continued to implement a
wide range of initiatives in support of the group's strategy to focus on the
profitable growth of our existing operations.  The change programme in the Floor
Coverings division is on track and has identified opportunities to improve the
sales and profitability of the division over time.


The results

Turnover for the year was £74.8m (2005: £71.4m), an increase of 5% and operating
profit was £5.3m (2005: £4.8m before exceptional income (as restated), £5.2m
after exceptional income (as restated)).  Divisional performance reviews and
further financial information are contained within the Review of Operations.


Management and personnel

Following the move to AIM, the simplified management structure referred to in
last year's annual report was implemented on 1st January 2006. This reflects our
determination to continue to improve the effectiveness of the management team
and reduce costs.  The board is focused on the group's strategic agenda, whilst
delegating appropriate authority and accountability to the management teams of
the operating businesses.


Current trading and future prospects

In view of the downturn in demand for fashion hand knitting yarns and a
continuing uncertainty over the level of consumer spending, the prospects for
further increases in sales and profitability in the current financial year
remain challenging.

However, the ongoing implementation of our change programme will continue to
yield benefits, particularly in the areas of working capital and operating
efficiencies. We have a strong, determined and enterprising management team in
place. This team is committed to improving our market shares through a clear
focus on exceeding customer expectations through the marketing of innovative,
quality products.




TIM VERNON                                                  14th September 2006
Chairman




Review of Operations

Introduction

The group continues to adapt to the competitive pressures in its major markets.
We have sought to increase the rate of change within the group to address market
pressures where they exist, and to exploit market opportunities where they are
to be found.  There has been a continuing focus on innovation, cost control and
working capital management with a view to delivering the best achievable result
from the group's operations.  The group is likely to continue facing challenges
in its markets. However, it is becoming better able to adapt and change in order
to cope with those demands.


The results

Turnover in the year amounted to £74.8m (2005: £71.4m).  This represents an
increase of 5% attributable to growth within the Specialist Yarns division.

Operating profit increased to £5.3m (2005: £4.8m before exceptional income (as
restated), £5.2m after exceptional income (as restated)).  Lower average debt
levels reduced the interest charge for the year to £0.6m (2005: £0.7m).  After
this interest charge and other finance costs, calculated in accordance with FRS
17, of £0.6m (2005: £0.7m) profit on ordinary activities before taxation was
£4.1m (2005: £3.8m (as restated)).

Net cash inflow from operating activities increased in the year to £7.6m (2005:
£6.0m), driven by effective working capital management.  Net debt reduced by
£3.8m to £5.4m (2005: £9.2m).


Earnings and dividends per share

Basic earnings per share amounted to 5.65p per share compared to 5.38p (as
restated) last year.  Adjusted earnings per share for 2005, after eliminating
the effect of the exceptional item, amounted to 4.70p (as restated).

An interim dividend of 0.80p per share was paid in May 2006 and the proposed
final dividend is 1.60p per share. This gives a total dividend of 2.40p per
share for the year, representing an increase of 14% over last year's total of
2.10p per share.  In accordance with FRS 21, the proposed final dividend is not
recognised as a liability at the balance sheet date.


Key performance indicators

As part of its internal financial control procedures the board monitors certain
financial ratios. For the year to 30th June 2006 sales per employee amounted to
£110,000 (2005: £109,000), operating return on sales was 7.1% (2005: 6.7%
(before exceptional income)), return on average net operating assets was 12.5%
(2005: 10.5% (before exceptional income)) and working capital to sales
percentage was 20.5% (2005: 23.3%).

The board is pleased to note modest improvements in each of these performance
measures during the year.


Specialist Yarns division

Turnover increased to £18.6m (2005: £15.3m) and delivered operating profit of
£3.7m (2005: £3.3m (as restated)).  The division has enjoyed buoyant market
conditions for its range of hand knitting yarns and has been able to exploit
these opportunities to good effect as a result of the transformation of the
business in 2004.

As indicated in the year end trading update, much of this market buoyancy has
surrounded UK demand for fashion yarns.  Recent market indications are that this
fashion led peak in demand may be set to reduce over the coming year, thereby
returning demand to more normal levels.  To counter this effect the business has
been active in broadening the scope of its product offering and in seeking to
grow sales in export markets.

Sales of the Tilsatec range of technical products have continued to grow through
the development of innovative, high performance products.  This was recognised
publicly in April 2006 when the business was granted the Queen's Award for
Enterprise in the innovation category.


Floor Coverings division

Turnover was static at £56.2m (2005: £56.2m), delivering an operating profit of
£2.1m (2005: £2.4m (as restated)).  The results reflect the continuing unhelpful
nature of the markets to which the division is exposed.

The pace of change at the residential floor coverings operation has increased in
the second half of the year.  Plans have been devised and actions have been
taken which will result in a more focused business capable of exploiting its
strength in the market for high value residential carpets.

The integration of the Pownall and Ryalux businesses has been advanced by the
streamlining of the relevant sales, marketing and administration activities.
This integration will continue with the planned closure of the Spenbrook Mill
manufacturing site.

Investment in the future of the residential floor coverings operation has been
made with the relocation of bespoke carpet manufacture into a newly created
centre of excellence within the group's Wakefield site.  This provides a high
quality environment in which best practice, lean manufacturing methods can be
adopted to enable this activity to be more responsive to the needs of the
market.

The new management team at Burmatex, the division's contract floor covering
business, has been active in making changes to arrest and reverse the gradual
decline recently experienced in this business.  Changes have included
improvements to operating methods, rationalisation and upgrading of the product
range, re-branding and an increased focus on customer needs.





Enquiries:


Steve Harrison                                               01924 371501
Chief Operating Officer

Kevin Henry                                                  01924 371501
Finance & Planning Director

Andrew Kitchingman                                           01132 410130
Director - Corporate Finance
Brewin Dolphin Securities


The proposed final dividend for the year, of 1.60p per share will, if approved,
be paid on 21st November 2006 to those shareholders on the register of members
at the close of business on 27th October 2006.

The group has adopted, for the first time, Financial Reporting Standard 17,
Retirement Benefits, and Financial Reporting Standard 21, Events after the
Balance Sheet Date. This gives rise to prior year adjustments and the
restatement of comparative figures accordingly.

These preliminary financial statements, which have been prepared on a basis
consistent with the previous year, except as noted above, do not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The information for the year ended 30th June 2006 is an extract from the group's
statutory financial statements on which the company's auditors, Grant Thornton
UK LLP, have given an unqualified opinion in accordance with Section 235 of the
Companies Act 1985, and which are to be delivered to the Registrar of Companies.

This announcement has been agreed with the company's auditors for release.



Consolidated Profit and Loss Account
year ended 30th June 2006

                                                                          2006                          2005
                                                                                                    Restated
                                                                          £000                          £000

Turnover                                                                74,811                        71,422


Operating costs                                                       (69,490)                      (66,658)

Exceptional income                                                           -                           452

Net operating costs                                                   (69,490)                      (66,206)


Operating profit                                                         5,321                         5,216

Net interest payable and similar charges                                 (609)                         (690)
Other finance costs                                                      (590)                         (700)

Profit on ordinary activities before taxation                            4,122                         3,826

Taxation                                                               (1,509)                       (1,338)

Profit for the year                                                      2,613                         2,488


Earnings per share

 (basic and diluted)                                                     5.65p                         5.38p



The results shown in the profit and loss account derive wholly from continuing
activities.

There is no difference between the profit on ordinary activities before taxation
and the profit for the year stated above and their historical cost equivalents.



Statement of Total Recognised Gains and Losses
year ended 30th June 2006

                                                            2006                              2005
                                                                                             Restated
                                                        £000            £000            £000         £000

Profit attributable to shareholders of the                             2,613                        2,488
group

Actuarial gains/(losses) recognised in                 4,020                         (4,430)
the pension scheme
Related deferred taxation                            (1,206)                           1,330
                                                                       2,814                      (3,100)

Total recognised gains/(losses) relating to the year                   5,427                        (612)

Prior year adjustment                                               (15,463)

Total recognised losses since last financial statements             (10,036)


Consolidated Balance Sheet

as at 30th June 2006


                                                                   2006                         2005
                                                                                               Restated
                                                           £000            £000            £000        £000
Fixed assets

Intangible                                                               12,857                      13,737

Tangible                                                                 15,107                      15,694

                                                                         27,964                      29,431


Current assets

Stocks                                                   16,517                          17,344

Debtors                                                  10,416                          11,938

Cash at bank and in hand                                    537                             485

                                                         27,470                          29,767

Creditors (amounts falling due within one year)        (17,399)                        (18,920)

Net current assets                                                      10,071                       10,847

Total assets less current liabilities                                   38,035                       40,278

Creditors (amounts falling due after more than                          
one year)                                                                 (739)                     (3,733)

Deferred taxation                                                       (2,071)                     (2,230)

Net assets excluding pension deficit                                    35,225                       34,315

Net pension deficit                                                     (9,590)                    (13,090)

                                                                        25,635                       21,225


Equity shareholders' funds

Called up share capital                                                 11,561                      11,561

Share premium account                                                      504                         504

Capital redemption reserve                                               2,395                       2,395

Profit and loss account                                                 11,175                       6,765

                                                                        25,635                      21,225




Consolidated Cash Flow Statement
year ended 30th June 2006

                                                                        2006                   2005

                                                                     £000       £000       £000        £000

Net cash inflow from operating activities                                      7,584                  5,995

Interest paid and similar charges                                              (654)                  (720)

                                                                               6,930                  5,275

Corporation tax paid                                                         (1,121)                  (122)

Capital expenditure

Purchase of tangible fixed assets                                 (1,227)               (1,415)

Sale of tangible fixed assets                                         207                   340

                                                                             (1,020)                (1,075)

Equity dividends paid                                                        (1,017)                  (879)

Cash inflow before financing                                                   3,772                  3,199

Financing

Redemption of loan notes                                            (226)                 (118)

Repayment of bank loans                                           (2,811)               (2,921)

                                                                             (3,037)                (3,039)

Increase in cash                                                                 735                    160






ENDS


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