Sirdar PLC
09 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 has
instigated a recall of one of its fashion hand knitting yarns, named Fizz, in
the 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 for
approximately £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 impact
of the recall. In the event of a full return of all product by consumers and
full retail price reimbursement, the maximum potential impact of the recall to
Sirdar would be approximately £2.7 million. However, some product is held as
stock by retailers which, when returned, will be credited at wholesale price,
and it is proposed to offer consumers a redeveloped Fizz yarn as a replacement
for any product they return. In addition, due to the nature of the product and
on the basis of information received regarding product recalls in general, the
Board anticipates that the recall may result in only a small proportion of the
product being returned.
In view of the above, the Board believes that the likely financial impact of the
recall will be significantly below the maximum potential liability. Combined
with the current strong performance of the Specialist Yarns Division as a whole,
the Board, therefore, currently believes that the Group continues to trade in
line with its expectations.
The Board will provide an update on the recall and its financial effects as soon
as available and in any event will provide further details at the time of the
Group's interim results to be issued on 17 March 2005.
Enquiries:
Sirdar PLC 01924 371501
Duncan Verity, Group Chief Executive
Kevin Henry, Group Finance Director
This information is provided by RNS
The company news service from the London Stock Exchange
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