REG - Colefax Group PLC - Half Year Results
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RNS Number : 6229Q Colefax Group PLC 28 January 2026
AIM: CFX
COLEFAX GROUP PLC
("Colefax" or the "Group")
Half Year Results
for the six months ended 31 October 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.
Highlights
· Group sales up 11.7% to £58.96 million (2024: £52.79 million) and up 13.6%
on a constant currency basis
· Group profit before tax up 21.3% to £5.29 million (2024: £4.36 million)
· Earnings per share up 25.0% to 66.5p (2024: 53.2p)
· Share Buyback returned £6.1 million of surplus capital to shareholders in
October 2025
· Fabric Division sales up 11.4% to £51.97 million (2024: £46.67 million) and
up 13.6% on a constant currency basis
o US up by 12.9% excluding tariff surcharges, UK up by 10.5%, Europe up by 2.9%
· Decorating Division sales of £5.42 million (2024: £4.65 million) with
project completions weighted to the first half of the financial year
o Profit of £351,000 (2024: loss of £63,000)
· Cash generation of £6.2 million excluding share buybacks and dividend
payments (2024: £3.6 million)
· Interim dividend of 3.0p (2024: 2.8p) up 7% in line with a progressive
dividend policy
David Green, Chairman, said:
"The Group has delivered another good performance in the first six months
primarily due to a strong Fabric Division performance in the US and despite
the additional cost and ongoing uncertainty caused by very significant
increases in US import tariffs. We believe that US trading is benefitting from
the very strong US stock market. Sales in November, December and January have
continued to perform well and unless there is a significant stock market
correction, we expect this trend to continue through to the end of the
financial year. As a result, the Group's profits for the year ended 30 April
2026 are expected to be ahead of current market forecasts. This is despite a
weaker US dollar exchange rate and an expected breakeven performance from our
Decorating Division. Next year, Fabric Division sales growth will be more
challenging due to strong prior year comparatives and the Group's performance
will partly depend on the stability of market conditions.
"The Group has a strong balance sheet with cash of £22.2 million. We will
continue to focus on investing in our US distribution network and our
portfolio of Fabric Division brands to take advantage of growth opportunities
in our major markets."
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
CHAIRMAN'S STATEMENT
Financial Results
Group sales for the six months to 31 October 2025 increased by 11.7% to
£58.96 million (2024: £52.79 million) and by 13.6% on a constant currency
basis. Pre-tax profits increased by 21.3% to £5.29 million (2024: £4.36
million). Earnings per share increased by 25.0% to 66.5p (2024: 53.2p). The
Group ended the half year with cash of £22.16 million (30 April 2025: £22.31
million).
In October 2025 the Group returned £6.1 million of surplus capital to
shareholders by way of a share buyback. The Group purchased and cancelled
691,680 shares, representing 11.7% of the issued ordinary share capital, at a
price of £8.80 per share. The share buyback will benefit earnings per share
in the current and future financial years.
Sales in our core Fabric Division increased by 13.6% on a constant currency
basis compared to a 4.5% constant currency increase in the first half of the
prior year. This increase was mainly due to a strong performance in the US
where sales increased by 18.3% on a constant currency basis. The percentage
increase includes surcharges to cover significant increases in US import
tariffs and excluding these, US sales increased by 12.9% on a constant
currency basis. This was still a strong performance which we attribute to the
ongoing stock market boom in the US. The profit benefit of the US sales
increase was partly offset by a weaker US dollar exchange rate which averaged
$1.34 compared to $1.29 for the prior year. Fabric Division sales in the UK
increased by 10.5% but against a weak prior year comparative and sales in
Europe increased by 2.9% on a constant currency basis.
The Group's first half results include an improved performance from our
Decorating Division which made a pre-tax profit of £351,000 compared to a
loss of £63,000 in the prior year.
In line with the Group's progressive dividend policy the Board has increased
the interim dividend by 7% to 3.0p (2024: 2.8p). This will be paid on 15 April
2026 to shareholders on the register at 13 March 2026.
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 88% of the Group's sales,
increased by 11.4% to £51.97 million (2024: £46.70 million) and increased by
13.6% on a constant currency basis. Excluding US tariff surcharges, Fabric
Division sales increased by 10.3% on a constant currency basis. Profits
increased by 13.2% to £4.76 million (2024: £4.21 million). The profit
benefit of the sales increase was partly offset by a weaker US Dollar exchange
rate and budgeted increases in operating costs, notably staff and premises.
Sales in the US, which represent 64% of the Fabric Division's turnover,
increased by 13.8% in reported terms and 18.3% on a constant currency basis.
The increase is distorted by tariff surcharges to cover substantial
increases in US import duty costs which have increased from an average of 5%
to over 20% of the value of US imports. Excluding tariff surcharges sales
increased by 12.9% on a constant currency basis. Considering the magnitude and
on-off-on nature of the US tariff increases the sales performance in the US
was very strong and we attribute this to the stock market boom which has
particularly benefitted the luxury market in which we operate. The higher
tariffs do affect most of our competitors as the majority of luxury fabrics
sold are manufactured outside of the US.
We have continued to invest in our US showroom network and in December we
moved to new showroom premises in Florida in an improved location. We are also
planning to move to a new showroom in San Francisco and have signed a lease
which will commence in September 2026.
Sales in the UK, which represent 16% of the Fabric Division's turnover,
increased by 10.5% during the period compared to a decrease of 8.3% in the
first half of the prior year. The increase largely reflects weak trading in
the prior year caused by uncertainty around the General Election and the first
post-election Budget. Market conditions remain relatively challenging in the
UK due to subdued high-end housing market conditions. High rates of stamp duty
are a particular drag on housing market activity and all the economic benefits
that would flow from higher transaction levels. However, lower inflation and
lower interest rates should help market conditions going forward.
Sales in Continental Europe, which represent 18% of the Fabric Division's
turnover, increased by 4.7% on a reported basis and 2.9% on a constant
currency basis. This follows an 11.5% constant currency increase in sales in
the first half of the prior year when we benefitted from some significant
one-off contract orders. Market conditions have been fairly stable in Europe
which we attribute to the steady reduction in interest rates from 4.50% to
2.15% in the year to June 2025.
Sales in the Rest of the World, which represent just 2% of the Fabric
Division's turnover, increased by 7.7% on a constant currency basis. This
compares to a 15.5% decrease in the prior year. Our largest market in the Rest
of the World is the Middle East and sales can fluctuate significantly due to
the number and timing of contract orders.
Furniture - Kingcome Sofas
Sales for the six months to October 2025 increased by 6.0% to £1.57 million
(2024: £1.48 million) and the Company made an operating profit of £176,000
(2024: £216,000). Furniture is the Group's only manufacturing activity. The
reduction in profit was due to increased operating expenses but is considered
a good performance in challenging UK market conditions for high-end
furniture. Sales reflect orders delivered during the period and the actual
order intake was down by 3% compared to an increase of 19% in the prior year.
Overall, the forward order book remains healthy and the business should
benefit from post Budget certainty and any further reductions in interest
rates.
Interior Decorating Division
Decorating sales, which account for just over 9% of Group turnover, increased
by 16.7% in the period to £5.42 million (2024: £4.65 million) and the
business made a profit of £351,000 compared to a loss of £63,000 for the
same period last year. This strong performance has boosted the Group's first
half profits but is mainly due to timing differences with project completions
weighted to the first half of the financial year. This contrasts with the
prior year and is reflected in the level of decorating work in progress which
ended the half year at £1.4 million compared to £3.6 million one year ago.
Overall, we expect the Decorating Division to achieve only a breakeven
performance this year, primarily due to a difficult high-end housing market in
the UK.
Prospects
The Group has delivered another good performance in the first six months
primarily due to a strong Fabric Division performance in the US and despite
the additional cost and ongoing uncertainty caused by very significant
increases in US import tariffs. We believe that US trading is benefitting from
the very strong US stock market. Sales in November, December and January have
continued to perform well and unless there is a significant stock market
correction, we expect this trend to continue through to the end of the
financial year. As a result, the Group's profits for the year ended 30 April
2026 are expected to be ahead of current market forecasts. This is despite a
weaker US dollar exchange rate and an expected breakeven performance from our
Decorating Division. Next year, Fabric Division sales growth will be more
challenging due to strong prior year comparatives and the Group's performance
will partly depend on the stability of market conditions.
The Group has a strong balance sheet with cash of £22.2 million. We will
continue to focus on investing in our US distribution network and our
portfolio of Fabric Division brands to take advantage of growth opportunities
in our major markets.
David Green
Chairman
28 January 2026
COLEFAX GROUP PLC
INTERIM GROUP INCOME STATEMENT
Unaudited Unaudited Audited
Six months to Six months to Year
31 Oct 2025 31 Oct 2024 to
30 April 2025
£'000 £'000 £'000
Revenue 58,960 52,789 109,986
Cost of sales (26,396) (22,640) (46,760)
Gross profit 32,564 30,149 63,226
Operating expenses (27,002) (25,498) (53,629)
Profit from operations 5,562 4,651 9,597
Finance income 325 232 478
Finance expense (596) (521) (1,175)
Profit before taxation 5,291 4,362 8,900
Tax expense (1,405) (1,090) (2,392)
Profit for the period attributable to equity holders of the parent 3,886 3,272 6,508
Basic earnings per share 66.5p 53.2p 108.4p
Diluted earnings per share 66.5p 53.2p 108.4p
INTERIM GROUP STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Six months to Six months to Year
31 Oct 2025 31 Oct 2024 to
30 April 2025
£'000 £'000 £'000
Profit for the period 3,886 3,272 6,508
Other comprehensive (expense):
Items that will or may be reclassified to profit and loss:
Exchange differences on translation of foreign operations 152 (213) (436)
Cash flow hedges:
(Losses) / gains recognised directly in equity (34) - 205
Transferred to profit and loss for the period (115) - -
Total other comprehensive (expense): 3 (213) (231)
Total comprehensive income for the period attributable to equity holders of 3,889 3,059 6,277
the parent
COLEFAX GROUP PLC
INTERIM GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at 31 Oct 2025 As at 31 Oct 2024 As at 30 April 2025
Notes £'000 £'000 £'000
Non-current assets:
Right of use assets 21,107 25,370 23,240
Property, plant and equipment 7,031 7,930 7,542
Deferred tax asset 183 24 179
28,321 33,324 30,961
Current assets:
Inventories and work in progress 5 16,200 18,513 18,013
Trade and other receivables 6 9,024 8,852 7,952
Cash and cash equivalents 22,161 18,595 22,312
47,385 45,960 48,277
Current liabilities:
Trade and other payables 7 18,104 18,672 17,291
Lease liabilities 5,463 3,727 4,340
Current corporation tax 345 133 257
23,912 22,532 21,888
Net current assets 23,473 23,428 26,389
Total assets less current liabilities 51,794 56,752 57,350
Non-current liabilities:
Lease liabilities 18,808 24,369 21,938
Deferred tax liability 78 153 128
Net assets 32,908 32,230 35,284
Capital and reserves attributable to equity holders of the Company:
Called up share capital 523 592 592
Share premium account 11,148 11,148 11,148
Capital redemption reserve 2,352 2,283 2,282
ESOP share reserve (113) (113) (113)
Foreign exchange reserve 906 977 754
Cash flow hedge reserve 56 - 205
Retained earnings 18,036 17,343 20,416
Total equity 32,908 32,230 35,284
COLEFAX GROUP PLC
INTERIM GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Six months to 31 Oct 2025 Six months to 31 Oct 2024 Year
to 30 April
2025
£'000 £'000 £'000
Operating activities
Profit before taxation 5,291 4,362 8,900
Finance income (325) (232) (478)
Finance expense 596 521 1,175
Loss on disposal of property, plant and equipment 0 60 60
Depreciation on right of use assets 2,475 2,189 4,662
Depreciation 1,300 1,347 2,720
Cash flows from operations before changes in working capital 9,337 8,247 17,039
Decrease / (increase) in inventories and work in progress 2,331 (305) 140
(Increase) / decrease in trade and other receivables (209) (156) 447
(Decrease) in trade and other payables (684) (449) (1,056)
Cash generated from operations 10,775 7,337 16,570
Taxation paid
UK corporation tax paid (624) (261) (866)
Overseas tax paid (686) (107) (1,565)
(1,310) (368) (2,431)
Net cash inflow from operating activities 9,465 6,969 14,139
Investing activities
Interest received 325 232 478
Payments to acquire property, plant and equipment (722) (921) (2,068)
Net cash outflow from investing (397) (689) (1,590)
Financing activities
Purchase of own shares (6,087) (2,395) (2,395)
Principal paid on lease liabilities (2,261) (2,097) (4,566)
Interest paid on lease liabilities (599) (547) (1,175)
Equity dividends paid (182) (179) (343)
Net cash outflow from financing (9,129) (5,218) (8,479)
Net (decrease) / increase in cash and cash equivalents (61) 1,062 4,070
Cash and cash equivalents at beginning of period 22,312 17,763 17,763
Exchange (loss) / gains on cash and cash equivalents (90) (230) 479
Cash and cash equivalents at end of period 22,161 18,595 22,312
COLEFAX GROUP PLC
NOTES
1. Basis of Preparation
The condensed group financial statements for the 6 months ended 31 October
2025 have been prepared in accordance with UK-adopted international accounting
standards in accordance with the requirements of the Companies Act 2006.
These unaudited group interim financial statements have been prepared in
accordance with AIM Rules. In preparing this report, the group has adopted the
guidance in the AIM Rules for interim accounts which do not require that the
interim condensed group financial statements are prepared in accordance with
IAS 34 "Interim financial reporting".
Going concern
The interim Financial Statements have been prepared on a going concern basis.
The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Group to continue in operational existence for the
foreseeable future and that, therefore, it is appropriate to adopt the going
concern basis in preparing the condensed group interim financial statements
for the period ended 31 October 2025.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Group's 30 April 2025 Annual Report and Financial Statements, a
copy of which is available on the Company's website: www.colefaxgroupplc.com
(http://www.colefaxgroupplc.com) .
Critical accounting estimates
The preparation of condensed group interim financial statements requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the end of the reporting period. Significant
items subject to such estimates are set out in Note 2 of the Group's 30 April
2025 Annual Report and Financial Statements. The nature and amounts of such
estimates have not changed significantly during the interim period.
2. Accounting Policies
These interim results have been prepared in accordance with the accounting
policies expected to be applied in the next annual financial statements for
the year ending 30 April 2026.
3. Basic earnings per share have been calculated on the basis of earnings of
£3,969,000 (2024: £3,272,000) and on 5,845,961 (2024: 6,152,600) ordinary
shares being the weighted average number of ordinary shares in issue during
the period.
4. Diluted earnings per share have been calculated on the basis of earnings of
£3,969,000 (2024: £3,272,000) and on 5,845,961 (2024: 6,152,600) ordinary
shares being the weighted average number of ordinary shares in the period.
Inventories and work in progress As at 31 Oct 2025 As at 31 Oct 2024 As at 30 Apr 2025
5. £'000 £'000 £'000
Finished goods for resale 14,820 14,903 16,096
Work in progress 1,380 3,610 1,917
16,200 18,513 18,013
6. Trade and other receivables As at 31 Oct 2025 As at 31 Oct 2024 As at 30 Apr 2025
£'000 £'000 £'000
Trade debtors 4,020 4,445 3,389
Other debtors 3,049 2,560 2,644
Prepayments and accrued income 1,955 1,847 1,919
9,024 8,852 7,952
7. Trade and other payables As at 31 Oct 2025 As at 31 Oct 2024 As at 30 Apr 2025
£'000 £'000 £'000
Trade payables 6,144 5,359 4,685
Payments received on account 2,823 4,758 3,146
Other taxes and social security costs 708 548 628
Other payables 1,734 1,065 1,705
Accruals 6,695 6,942 7,127
18,104 18,672 17,291
8. The financial information for the year ended 30 April 2025 does not constitute
the full statutory accounts for that period. The Annual Report and Financial
Statements for the year ended 30 April 2025 have been filed with the Registrar
of Companies. The Independent Auditors' Report on the Annual Report and
Financial Statements for the year ended 30 April 2025 was unqualified, did not
draw attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
9. Copies of the interim report 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.
10. Approval of interim financial statements
The interim financial statements were approved by the Board on 27 January
2026.
6.
Trade and other receivables As at 31 Oct 2025 As at 31 Oct 2024 As at 30 Apr 2025
£'000 £'000 £'000
Trade debtors 4,020 4,445 3,389
Other debtors 3,049 2,560 2,644
Prepayments and accrued income 1,955 1,847 1,919
9,024 8,852 7,952
7.
Trade and other payables As at 31 Oct 2025 As at 31 Oct 2024 As at 30 Apr 2025
£'000 £'000 £'000
Trade payables 6,144 5,359 4,685
Payments received on account 2,823 4,758 3,146
Other taxes and social security costs 708 548 628
Other payables 1,734 1,065 1,705
Accruals 6,695 6,942 7,127
18,104 18,672 17,291
8.
The financial information for the year ended 30 April 2025 does not constitute
the full statutory accounts for that period. The Annual Report and Financial
Statements for the year ended 30 April 2025 have been filed with the Registrar
of Companies. The Independent Auditors' Report on the Annual Report and
Financial Statements for the year ended 30 April 2025 was unqualified, did not
draw attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
9.
Copies of the interim report 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.
10.
Approval of interim financial statements
The interim financial statements were approved by the Board on 27 January
2026.
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. END IR FLFLTLAIDFIR
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