Product recall

9 Feb 2005 07:00

Sirdar PLC09 February 2005 9 February 2005 Sirdar PLC ("Sirdar" or the "Group") Product recall The Board of Sirdar announces that the Group's Specialist Yarns Division hasinstigated a recall of one of its fashion hand knitting yarns, named Fizz, inthe light of concerns over consumer safety with regard to its flammability. Fizz was launched in mid-2004, for the Autumn season, and to date accounts forapproximately £1.1 million of Group sales, being equivalent to approximately£2.7 million at retail prices. At this time, the Board is unable to quantify the likely full financial impactof the recall. In the event of a full return of all product by consumers andfull retail price reimbursement, the maximum potential impact of the recall toSirdar would be approximately £2.7 million. However, some product is held asstock by retailers which, when returned, will be credited at wholesale price,and it is proposed to offer consumers a redeveloped Fizz yarn as a replacementfor any product they return. In addition, due to the nature of the product andon the basis of information received regarding product recalls in general, theBoard anticipates that the recall may result in only a small proportion of theproduct being returned. In view of the above, the Board believes that the likely financial impact of therecall will be significantly below the maximum potential liability. Combinedwith the current strong performance of the Specialist Yarns Division as a whole,the Board, therefore, currently believes that the Group continues to trade inline with its expectations. The Board will provide an update on the recall and its financial effects as soonas available and in any event will provide further details at the time of theGroup's interim results to be issued on 17 March 2005. Enquiries: Sirdar PLC 01924 371501 Duncan Verity, Group Chief ExecutiveKevin Henry, Group Finance Director This information is provided by RNS The company news service from the London Stock Exchange