REG - Colefax Group PLC - Preliminary Results
Tue 07:00
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RNS Number : 8860S Colefax Group PLC 29 July 2025
AIM: CFX
COLEFAX GROUP PLC
("Colefax" or the "Group")
Preliminary Results for the year ended 30 April 2025
Colefax is an international designer and distributor of furnishing fabrics
& wallpapers and owns a leading interior decorating business. The Group
trades under five brand names, serving different segments of the soft
furnishings marketplace; these are Colefax and Fowler, Cowtan & Tout, Jane
Churchill, Manuel Canovas and Larsen.
Key Points
· Sales increased by 2.6% to £109.99m (2024 - £107.16m) and by
4.2% on a constant currency basis
· Pre-tax profit increased by 15.1% to £8.90m (2024 - £7.73m) -
mainly due to an exceptionally strong final quarter Fabric Division
performance in the US as customers accelerated orders in advance of tariff
increases
· Earnings per share increased by 22.8% to 108.4p (2024 - 88.3p)
· Share buyback returned £2.4m of surplus capital to shareholders
in October 2024.
· Cash at 30 April 2025 of £22.3m (2024 - £17.8m)
· Fabric Division sales increased by 5.9% to £95.92m (2024 -
£90.54m) and increased by 7.8% on a constant currency basis
- US sales increase by 12.9%, UK sales decreased by 4.7% and Europe
sales increased by 6.5% (on a constant currency basis)
· Decorating Division sales down 17.0% to £11.22m (2024 -
£13.51m) and pre-tax profit of £582,000 (2024 - £847,000 profit)
· Board is proposing a final dividend of 3.1p (2024 2.9p) making a
total for the year of 5.9p (2024 - 5.6p) - an increase of 5.4%
David Green, Chief Executive of Colefax Group plc, said:
"The Group has delivered another good performance which has exceeded
expectations due to a very strong surge in US sales during the final quarter
of the year. We believe this is mainly exceptional and related to orders
accelerated to avoid tariff increases. This has continued in the first two
months of the current year during the pause in tariffs announced by the US
government but we do not believe it is likely to be sustained"
Whilst our core Fabric Division business continues to perform well, we remain
cautious about prospects and in particular the impact of higher tariff costs,
a weaker US Dollar and lower Decorating Division profits"
Enquiries:
Colefax Group plc David Green, Chief Executive Tel: 020 7318 6021
Rob Barker, Finance Director
KTZ Communications Katie Tzouliadis, Robert Morton Tel: 020 3178 6378
Peel Hunt LLP Dan Webster, Andrew Clark Tel: 020 7418 8900
(Nominated Advisor and Broker)
COLEFAX GROUP PLC
CHAIRMAN'S STATEMENT
Financial Results
Group sales increased by 2.6% to £109.99 million (2024 - £107.16 million)
and by 4.2% on a constant currency basis. Pre-tax profits increased by 15.1%
to £8.90 million (2024 - £7.73 million). Earnings per share increased by
22.8% to 108.4p (2024 - 88.3p) partly reflecting the benefit of share buybacks
during the current and prior year. The Group ended the financial year with net
cash of £22.3 million (2024 - £17.8 million).
Sales in the Group's core Fabric Division increased by 7.8% on a constant
currency basis and profit increased by 23.1% to £7.96 million (2024 - £6.47
million). This increase reflects a very strong performance in the US in the
final quarter of the year when sales increased by 14%. We believe that much of
this increase was exceptional and caused by customers accelerating purchases
to avoid tariff increases.
In October 2024 the Group returned £2.4 million of surplus cash to
shareholders by way of a share buyback in the form of a tender offer. The
Group purchased and cancelled 307,043 shares representing just under 5% of the
issued ordinary share capital at a price of £7.80 per share.
The Board is proposing to pay a final dividend of 3.1p (2024 - 2.9p) making a
total for the year of 5.9p (2024 - 5.6p). This will be paid on 9 October 2025
to shareholders on the register at the close of business on 12 September 2025.
Product Division
• Fabric Division -
Portfolio of Five Brands: "Colefax and Fowler", "Cowtan and Tout", "Jane
Churchill", "Manuel Canovas" and "Larsen"
Sales in the Fabric Division, which represent 87% of Group turnover, increased
by 5.9% to £95.92 million (2024 - £90.54 million) and increased by 7.8% on a
constant currency basis. Pre-tax profit increased by 23.1% to £7.96 million
(2024 - £6.47 million). The average US dollar exchange rate during the year
was $1.28 compared to $1.25 for the prior year.
The good performance by the Fabric Division was mainly due to a very strong
final quarter in the Group's core US market where like for like sales
increased by 14%. Although it is hard to quantify precisely, we believe that
much of the increase was due to clients accelerating purchases to avoid higher
US import tariffs. Typically client decorating projects can run for many
months and so there is flexibility to alter the timing of purchases. Sales in
April 2025 were an all-time record and up by $822,000 on the prior year.
Full year sales in the US, which represent 62% of the Fabric Division's
turnover, increased by 10.4% and by 12.9% on a constant currency basis. This
follows a 3% constant currency decrease in sales in the prior year. The
majority of luxury fabrics and wallpapers sold in the US are sourced from
manufacturers outside the US, especially Europe and India. The 'Liberation
Day' tariffs announced by the US government on 2 April represented a
significant increase in the cost of goods sold with additional duty of 20% on
European origin goods and 27% on Indian origin goods. These were paused for 90
days on 9 April but additional duty of 10% remains in force. The ongoing
uncertainty around tariffs remains a concern for customers and the trading
outlook largely depends on the outcome of ongoing trade negotiations.
Sales in the UK, which represent 16% of the Fabric Division's turnover,
decreased by 4.7%. This follows a 3% increase in the prior year and reflects
fairly challenging market conditions in the UK caused by comparatively high
interest rates and a subdued high end housing market which we believe is being
adversely impacted by changes to the tax rules for non-domiciled individuals.
Despite this, trading improved in the second half of the year with UK sales up
by 1% compared to a decline of 8% in the first half of the year.
Sales in Continental Europe, which represent 20% of the Fabric Division's
turnover, increased by 4.1% and by 6.5% on a constant currency basis. This
follows a constant currency increase of 8% in the prior year. Sales in Europe
have been reasonably resilient with most individual countries achieving an
increase on the prior year. France was the main exception with sales down by
1% due to a higher level of prior year contract orders. Housing transactions
have been increasing in most European markets helped by steady reductions in
central bank interest rates and stable trading conditions.
Sales in the Rest of the World, which represent just 3% of the Fabric
Division's turnover, decreased by 8.9% during the year. The decrease was
mainly due to lower sales in the Middle East following a strong performance in
the prior year when sales increased by 25%.
• Furniture - Kingcome
Sofas
Sales of Kingcome furniture, which represent 3% of Product Division sales,
decreased by 8.6% to £2.85 million (2024 - £3.11 million). Pre-tax profit
decreased by 14.3% to £359,000 (2024 - £419,000) against a strong prior year
comparative. Most Kingcome sales are made to order and the business carries
minimal stock. Sales during the year reflect orders delivered and a more
useful measure of trading performance is the order intake during the year.
Despite relatively challenging market conditions in the UK the order intake
was up by 21% compared to a decline of 14% in the prior year and
Interior Decorating Division
Decorating sales, which represent 10% of Group turnover, decreased by 17.0% to
£11.22 million (2024 - £13.51 million) resulting in a pre-tax profit of
£582,000 (2024 - £847,000 profit). This is considered a good performance
against a strong prior year comparative. The Decorating Division is the part
of the Group that is most likely to be affected by adverse changes to the tax
rules for non-domiciled residents in the UK. Customer deposits at the year-end
were down by 32% compared to the start of the year and as a result we are
expecting only a breakeven performance for the new financial year and as
always the full year result will depend on the timing of project
completions.
Prospects
The Group has delivered another good performance which exceeded expectations
due to a very strong surge in US sales during the final quarter of the year.
We believe this was mainly exceptional and related to orders accelerated to
avoid tariff increases. It has continued in the first two months of the
current year during the pause in tariffs announced by the US government but we
do not believe it is likely to be sustained. High US tariffs are a threat to
the health of the US and world economy and there is still considerable
uncertainty over the impact they will have on trading conditions during the
remainder of the year. In addition, the US dollar exchange rate has weakened
significantly since January and every one cent decline in the average rate
impacts Group profits by around £190,000. Whilst our core Fabric Division
business continues to perform well, we remain cautious about prospects and in
particular the impact of higher tariff costs, a weaker US Dollar and lower
Decorating Division profits. On a positive note the Group stands to benefit
from falling interest rates which should boost housing transactions and over
time lead to higher home spending. The Group has a strong balance sheet with
cash of £22.3 million and we will continue to invest with confidence in our
portfolio of brands and worldwide distribution network.
The Group's performance over the last year is due to the hard work, talent and
loyalty of all our staff and I would like to thank them for their contribution
to the continued success of the Group.
David Green
Chairman
28 July 2025
GROUP INCOME STATEMENT
For the year ended 30 April 2025
2025 2024
£'000 £'000
Revenue 109,986 107,162
Cost of sales (46,760) (47,134)
Gross profit 63,226 60,028
Operating expenses (53,629) (51,552)
Profit from operations 9,597 8,476
Finance income 478 173
Finance expense (1,175) (917)
Profit before taxation 8,900 7,732
Tax expense (2,392) (1,938)
Profit for the year attributable to equity holders of the parent 6,508 5,794
Basic and diluted earnings per share 108.4p 88.3p
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 April 2025
2025 2024
£'000 £'000
Profit for the year 6,508 5,794
Other comprehensive income / (expense):
Items that will or may be reclassified to profit and loss:
Exchange differences on translation of foreign operations (436) (429)
Cash flow hedges:
Gains/(losses) recognised directly in equity 205 -
Total other comprehensive (expense) (231) (429)
Total comprehensive income for the year attributable to 6,277 5,365
equity holders of the parent
GROUP STATEMENT OF FINANCIAL POSITION
At 30 April 2025
Notes 2025 2024
£'000 £'000
Non-current assets:
Property, plant and equipment 7,542 8,557
Right of use asset 23,240 20,612
Deferred tax asset 179 24
30,961 29,193
Current assets:
Inventories and work in progress 2 18,013 18,241
Trade and other receivables 3 7,952 8,774
Cash and cash equivalents 4 22,312 17,763
48,277 44,778
Current liabilities:
Trade and other payables 17,291 18,623
5
Lease liabilities 4,340 4,038
Current corporation tax 257 31
21,888 22,692
Net current assets 26,389 22,086
Total assets less current liabilities 57,350 51,279
Non-current liabilities:
Lease liabilities 21,938 19,380
Deferred tax liability 128 154
Net assets 35,284 31,745
Capital and reserves attributable to equity holders of the
Company:
Called up share capital 592 623
Share premium account 11,148 11,148
Capital redemption reserve 2,282 2,251
ESOP share reserve (113) (113)
Foreign exchange reserve 754 1,190
Cash flow hedge reserve 205 -
Retained earnings 20,416 16,646
Total equity 35,284 31,745
GROUP STATEMENT OF CASH FLOWS
For the year ended 30 April 2025
2025 2024
£'000 £'000
Operating activities
Profit before taxation 8,900 7,732
Finance income (478) (173)
Finance expense 1,175 917
Loss/(Profit) on disposal of property, plant and equipment 60 38
Depreciation on right of use assets 4,662 4,350
Depreciation 2,720 2,625
Cash flows from operations before changes in working capital 17,039 15,489
Decrease / (Increase) in inventories and work in progress 140 1,244
Decrease / (Increase) in trade and other receivables 447 322
(Decrease)/ Increase in trade and other payables (1,056) (1,837)
Cash generated from operations 16,570 15,218
Taxation paid
UK corporation tax paid (866) (1,021)
Overseas tax paid (1,565) (730)
(2,431) (1,751)
Net cash inflow from operating activities 14,139 13,467
Investing activities
Payments to acquire property, plant and equipment (2,068) (2,991)
Interest received 478 173
Net cash outflow from investing (1,590) (2,818)
Financing activities
Purchase of own shares (2,395) (7,227)
Principal paid on lease liabilities (4,566) (4,151)
Interest paid on lease liabilities (1,175) (916)
Interest paid - (1)
Equity dividends paid (343) (353)
Net cash outflow from financing (8,479) (12,648)
Net (decrease)/increase in cash and cash equivalents 4,070 (1,999)
Cash and cash equivalents at beginning of year 17,763 19,746
Exchange gains/(losses) on cash and cash equivalents 479 16
Cash and cash equivalents at end of year 22,312 17,763
GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 30 April 2025
Share capital Share premium account Capital redemption reserve ESOP share reserve Foreign exchange reserve Retained earnings Total equity
Cash flow hedge reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 April 2024 623 11,148 2,251 (113) 1,190 - 16,646 31,745
Profit for the year - - - - - - 6,508 6,508
Foreign exchange - - - - (436) - - (436)
- - - - - 205 - 205
Movement in cash flow hedge
- - - - (436) 205 6,508 6,277
Total comprehensive income for the year
Share buybacks (31) - 31 - - - (2,395) (2,395)
Dividends paid - - - - - - (343) (343)
At 30 April 2025 592 11,148 2,282 (113) 754 205 20,416 35,284
At 30 April 2023 724 11,148 2,150 (113) 1,619 - 18,432 33,960
Profit for the year - - - - - - 5,794 5,794
Foreign exchange - - - - (429) - - (429)
Total comprehensive income for the year - - - - (429) - 5,794 5,365
Share buybacks (101) - 101 - - - (7,227) (7,227)
Dividends paid - - - - - - (353) (353)
At 30 April 2024 623 11,148 2,251 (113) 1,190 - 16,646 31,745
623 11,148
COLEFAX GROUP PLC
NOTES TO THE FINANCIAL INFORMATION
1. Earnings per share
Basic earnings per share have been calculated on the basis of profit on
ordinary activities after tax of £6,508,000 (2024 - £5,794,000) and on
6,006,133 (2024 - 6,564,031) ordinary shares, being the weighted average
number of ordinary shares in issue during the year. Shares owned by the
Colefax Group Plc Employees' Share Ownership Plan (ESOP) Trust are excluded
from the basic earnings per share calculation.
Diluted earnings per share are the same as basic earnings per share as there
are no outstanding share options in force at 30 April 2025.
2. Inventories and work in progress
2025 2024
£'000 £'000
Finished goods for resale 16,096 15,487
Work in progress 1,917 2,754
18,013 18,241
3. Trade and other receivables
2025 2024
£'000 £'000
Trade receivables 3,856 4,857
Less: provision for impairment of trade receivables (467) (592)
Other receivables 2,644 2,802
Prepayments and accrued income 1,919 1,707
7,952 8,774
4. Cash and cash equivalents
2025 2024
£'000 £'000
Cash at bank and in hand 22,312 17,763
The fair value of cash and cash equivalents are
considered to be their book value.
5. Trade and other payables
2025 2024
£'000 £'000
Trade payables 4,685 4,648
Accruals 7,127 8,146
Payments received on account 3,146 4,031
Other taxes and social security costs 628 643
Other payables 1,705 1,155
17,291 18,623
6. Financial Information
The above financial information, which has been prepared in accordance with
international accounting standards in conformity with the Companies Act 2006,
does not constitute statutory accounts as defined in Section 435 of the
Companies Act 2006.
The financial information for the year ended 30 April 2025 has been extracted
from the statutory accounts which will be delivered to the Registrar of
Companies following the Company's annual general meeting. The comparative
financial information is based on the statutory accounts for the financial
year ended 30 April 2024 which have been delivered to the Registrar of
Companies. The Independent Auditors' Report on both of those financial
statements was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under Section 498(2) and Section
498(3) of the Companies Act 2006.
7. Copies of the Annual Report and full Financial Statements will be
available from the Group's website on www.colefaxgroupplc.com. Copies will
also be made available on request to members of the public at the Company's
registered office at 19-23 Grosvenor Hill, London W1K 3QD.
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