Trading Update

Sirdar PLC
07 July 2006

Sirdar PLC ('Sirdar' or 'the Group')

7 July 2006

Trading Update

In Sirdar's interim report to 31 December 2005, released on 16 March 2006, the
board stated that trading conditions in the early part of 2006 had shown no
material change from those apparent in the previous six months. It also reported
that sales within the Specialist Yarns division continued to be strong and that
there had been a modest element of growth from Floor Coverings.

Sales have been less buoyant over the last few weeks and there are early
indications that the recent fashion led upturn in the market for hand knitting
yarns may not be maintained over the next twelve months. Consequently, the board
believes that the outlook for that period is now more challenging and less
clear. In view of this they have lowered their expectations for the outcome of
the year ending 30 June 2007. The board still expects the outcome for the year
ended 30 June 2006 to be broadly in line with expectations.

The board also stated in the interim report that the residential floor coverings
sector remained an area of concern and was being given significant attention. As
part of this focus, two significant measures are currently being implemented
within this business. Firstly, part of the manufacturing process previously
carried out at Rochdale is being relocated to better facilities at the Group's
site in Wakefield. This relocation will, in due course, allow the adoption of
more modern manufacturing techniques. Secondly, a number of activities within
the sales, marketing and administration functions are being consolidated and
streamlined.

Whilst the Group continues to face challenging market conditions, we are
confident that we have the strategy in place to address these challenges.
Accordingly, in the absence of unforeseen circumstances, the board intends to
recommend a final dividend for the year ended 30 June 2006 of 1.60p per share
representing an increase of 14% over last year.


For further information please contact:

Sirdar PLC                 01924 371 501
Steve Harrison             Chief Operating Officer
Kevin Henry                Finance and Planning Director


Ends



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