Final Results

Sirdar PLC
18 September 2007


Sirdar PLC

Preliminary results for the year ended 30 June 2007

Operating Review

Introduction

Over the last twelve months we have continued with the restructuring of the
residential floor coverings operation, as detailed in previous announcements,
and the implementation of the strategy to focus on floor coverings, announced in
March 2007. We believe that the effect of these changes will be to position the
business to have a sustainable future and be better placed to achieve profitable
growth in a substantial market.

As part of the implementation of this strategy, we stated our intention to
review our property portfolio and to sell the Specialist Yarns division. The
first stage in this process was completed at the end of July 2007 with the
completion of the sale of Bective Mills, Wakefield and Ensor Mill, Rochdale for
gross proceeds of £16.25m, which was significantly in excess of the book value.
This disposal, which will be reflected in the financial statements for the year
ending 30 June 2008, provides scope to amend the way that the business is
financed in the future.

The results

Turnover for the year was £65.3m (2006: £74.8m). This represents a reduction of
13% due to a decline in the sales of fashion hand knitting yarns and residential
carpets. Operating profit before exceptional costs was £1.5m (2006: £5.3m).
After exceptional costs of £0.9m (2006: nil) associated with the reorganisation
of the residential floor coverings operation, operating profit was £0.6m (2006:
£5.3m). The group also recorded an exceptional profit on sale of fixed assets of
£0.2m (2006: nil). Interest charges reduced to £0.5m (2006: £0.6m) and other
finance costs reduced to £0.3m (2006: £0.6m). After interest charges and finance
costs the result was a loss on ordinary activities before taxation of £0.1m
(2006: profit £4.1m).

Net cash inflow from operating activities in the year amounted to £4.5m (2006:
£7.6m), driven by an aggressive stock reduction programme. This enabled the
group to fund the reorganisation of the residential floor coverings operation,
including a significant increase in capital expenditure, and still reduce net
debt by £0.2m to £5.2m (2006: £5.4m).

Earnings and dividends per share

Basic loss per share amounted to 0.89p (2006: basic earning per share 5.65p).
Adjusted earnings per share, after eliminating the effect of the exceptional
items, amounted to 0.24p (2006: 5.65p).

An interim dividend of 0.80p per share was paid in May 2007 and the proposed
final dividend is 1.60p per share. This gives an unchanged total dividend of
2.40p per share for the year.

Key performance indicators

As part of its internal financial control procedures the board monitors certain
financial ratios. For the year to 30 June 2007 sales per employee amounted to
£107,000 (2006: £110,000), operating return on sales was 2.3% (2006: 7.1%),
return on average net operating assets was 3.8% (2006: 12.5%) and working
capital to sales percentage was 18.2% (2006: 20.5%). The first three of these
performance indicators reduced as a consequence of the challenging market
conditions. However, the working capital ratio benefited from the success of the
stock reduction programme.

Floor Coverings division

Turnover reduced to £50.3m (2006: £56.2m), delivering an underlying operating
profit of £1.8m (2006: £2.9m). After exceptional costs of £0.9m (2006: nil)
associated with the reorganisation of the residential floor coverings operation
and goodwill of £0.9m (2006: £0.9m) the operating result was a loss of £40,000
(2006: profit £2.1m). Modest growth was achieved by Burmatex in the commercial
sector of the market but the residential sector was more difficult and Ryalux
experienced a decline in sales.

The restructuring programme within the residential operation moved closer to
completion. The site at Wakefield now has tufting and backing facilities
operational with a small batch dye house due to come on stream in the near
future. The Rochdale site was sold at the end of July 2007 and, although we have
a licence to remain in occupation until 31 January 2008, activity at this site
is gradually being scaled back with a view to ceasing manufacturing on site by
the end of September 2007. The restructuring of the residential operation
remains on target to be concluded by the original deadline of the end of
December 2007.

In June 2007, we started the process of amalgamating the two floor coverings
businesses, Burmatex and Ryalux, into one operation which will form the heart of
the business in the future. A number of management appointments were announced
on 1 August 2007 and key personnel are now working on an integration and
amalgamation programme. When complete, we expect benefits to arise from the
exploitation of additional sales opportunities, a greater focus on new product
development and further cost savings.

Specialist Yarns division

Turnover reduced to £15.0m (2006: £18.6m) and delivered an operating profit of
£1.0m (2006: £3.7m). As reported previously, sales of hand knitting yarns were
more difficult than in the previous two years as the buoyant market conditions
for fancy yarns came to an end. However, the focus on the development of
innovative high performance products enabled sales of the Tilsatec range of
technical products to continue to grow.

Management and personnel

We would like thank the divisional directors, senior management and all our team
members throughout the group for their ongoing commitment and support during a
challenging period.

Current trading and future prospects

In spite of the highly competitive conditions in the markets in which we
operate, it is encouraging to report that sales in both divisions are currently
running ahead of the same period last year.

Trends in hand knitting are difficult to predict and subject to fluctuations
caused by changes in fashion although Tilsatec continues to offer opportunity
for sustainable growth in the future. Floor coverings remains a challenging
marketplace but we believe that the planned amalgamation of the two businesses
will deliver profitable growth over time.

In summary, the group is currently undergoing a period of significant
transformation in order to become a highly focussed, lower cost, marketing-led
business which majors on the strengths of its brands and people and which
promotes an innovative culture. Our vision for the future remains clear and we
are pursuing our strategy with vigour and determination in order to compete
effectively in the years ahead.

Enquiries:
Steve Harrison                                                    01924 371501
Chief Operating Officer

Kevin Henry                                                       01924 371501
Group Finance Director & Company Secretary

Andrew Kitchingman                                                01132 410130
Managing Director - Corporate Finance
Brewin Dolphin

These preliminary financial statements, which have been prepared on a basis
consistent with the previous year, do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The information for the
year ended 30 June 2007 is an extract from the group's statutory financial
statements on which the company's auditor, Grant Thornton UK LLP, has 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.

The announcement has been agreed with the company's auditor for release.


Consolidated Profit and Loss Account
year ended 30 June 2007

                                                      2007                2006
                                                      £000                £000

Turnover                                            65,330              74,811

--------------------------------------------------------------------------------

Operating costs before exceptional items           (63,838)            (69,490)

Exceptional costs                                     (937)                  -
                                                     -------             -------

Net operating costs                                (64,775)            (69,490)
--------------------------------------------------------------------------------

Operating profit                                       555               5,321

Exceptional profit on sale of                          190                   -
fixed assets

Net interest payable and similar charges              (527)               (609)

Other finance costs                                   (310)               (590)
                                                     -------             -------

(Loss) / profit on ordinary activities before      
taxation                                               (92)              4,122

Taxation                                              (319)             (1,509)
                                                     -------             -------

(Loss) / profit for the year                          (411)              2,613
                                                     -------             -------

(Loss) / earnings per share
(basic and diluted)                                  (0.89)p              5.65p
                                                     -------             -------



Statement of Total Recognised Gains and Losses
year ended 30 June 2007

                                                           2007          2006
                                                           £000          £000

(Loss) / profit attributable to shareholders of the
group                                                      (411)        2,613

Actuarial gains recognised in the pension scheme, net of
deferred taxation                                         2,534         2,814
                                                          -------       -------
                                                            
Total recognised gains relating to the year               2,123         5,427
                                                          -------       -------


Consolidated Balance Sheet
as at 30 June 2007

                                                2007                 2006
                                           £000      £000       £000      £000
Fixed assets

Intangible                                         11,976               12,857

Tangible                                           15,729               15,107
                                                   --------             --------

                                                   27,705               27,964

Current assets

Stocks                                   13,312               16,517

Debtors                                  10,682               10,416

Cash at bank and in hand                    176                  537
                                       ----------           ----------

                                         24,170               27,470

Creditors (amounts falling due within   
one year)                               (17,243)             (17,399)
                                       ----------           ----------

Net current assets                                  6,927               10,071
                                                   --------            ---------

Total assets less current liabilities              34,632               38,035

Creditors (amounts falling due after
more than one year)                                     -                 (739)

Deferred taxation                                  (2,104)              (2,071)
                                                  ---------            ---------

Net assets excluding pension deficit               32,528               35,225

Net pension deficit                                (5,880)              (9,590)
                                                  ---------            ---------

                                                   26,648               25,635
                                                  ---------            ---------

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                            12,188               11,175
                                                  ---------            ---------

                                                   26,648               25,635
                                                  ---------            ---------





Consolidated Cash Flow Statement
year ended 30 June 2007

                                                 2007                2006
                                            £000      £000      £000      £000

Net cash inflow from operating activities            4,482               7,584

Interest paid and similar charges                     (602)               (654)
                                                     -------             -------

                                                     3,880               6,930

Corporation tax paid                                  (635)             (1,121)

Capital expenditure

Purchase of tangible fixed assets         (2,574)             (1,227)

Sale of tangible fixed assets                658                 207
                                          --------           ---------

                                                    (1,916)             (1,020)

Equity dividends paid                               (1,110)             (1,017)
                                                   ---------           ---------

Cash inflow before financing                           219               3,772

Financing

Redemption of loan notes                     (80)               (226)

Increase / (decrease) in bank loans           86              (2,811)
                                          --------           ---------

                                                         6              (3,037)

Increase in cash                                       225                 735
                                                   ---------           ---------



Notes

If approved, the final dividend will be paid on 20 November 2007 to those
shareholders on the register of members on 26 October 2007.

In accordance with Rule 20 of the AIM Rules, Sirdar confirms that the annual
report and accounts for the year ended 30 June 2007 will be posted to
shareholders and will be available to view on the Company's website at
www.sirdarplc.co.uk.




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