Colefax Group PLC (CFX) Announcements

Colefax Group PLC
25 January 2007



This announcement replaces the Interim Results announcement released on the RNS
system on the RNS no 0981Q on Thursday 25 January at 07.01. An amendment has
been made to Note 3 - the proposed interim dividend of 1.45p (2005: 1.38p) per
share is payable on 12th April 2007 to qualifying shareholders on the register
at the close of business on 9th March 2007 (not 10th March 2007). The full
announcement text appears below.


CFX.L
25 January 2007


                              COLEFAX GROUP PLC
                          ('Colefax' or 'the Group')


          Interim Results for the six months ended 31 October 2006


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, which serve different segments of the soft furnishings
marketplace; these are Colefax and Fowler, Cowtan & Tout, Jane Churchill, Manuel
Canovas and Larsen.


Highlights

    Sales up 7.5% on constant currency basis to 33.76m (2005: 32.19m)

    Favourable conditions across major markets US, UK and Continental Europe

     - US sales up 3% (2005: 8%)
     - UK sales up 17% (2005: Nil) reflecting strong housing market
     - European sales up 15% (2005: -1%), benefiting from improved economic
       conditions

    Pre-tax profit up 26% to 2.54m (2005: 2.10m)

    Earnings per share increased by 27% to 10.31p (2004: 8.09p)

    Strong operating cash flow

    Net cash of 0.56m - net borrowings eliminated

    Interim dividend increased 5% to 1.45p per share (2005: 1.38p)

    Encouraging outlook for full year


David Green, Chairman of Colefax, said,

'During the period, we have experienced favourable trading conditions in all our
major markets and in the UK and Europe in particular. This continues the trend
reported in our final results announcement last July. Group sales increased by
7.5% on a constant currency basis, which is the fastest rate of growth since the
year 2000. Current growth trends seem likely to continue in at least the short
term although we do expect a slowdown in the rate of growth in the US.

We have continued to invest heavily in our core fabric brands and remain
optimistic about the outlook for the full year.'


Enquiries:

Colefax Group plc       David B. Green,        Tel: 020 7448 1000
                        Chairman               (today)

Biddicks                Katie Tzouliadis       Tel: 020 7448 1000


CHAIRMAN'S STATEMENT


Financial Results

The Group's pre-tax profit for the six months to 31st October 2006 increased by
26% to 2.54 million (2005: 2.01 million) on sales up 5% at 33.76 million
(2005: 32.19 million). Earnings per share increased by 27% to 10.31p (2005:
8.09p). Group net borrowings decreased by 673,000 eliminating the Group's
gearing and giving rise to net cash of 556,000. During the period the Group
purchased for cancellation 450,000 shares at an average price of 1.99 per share
and representing 2.6% of the Group's issued share capital.

The Board has decided to recommend that the interim dividend be increased by 5%
to 1.45p per share (2005: 1.38p). The interim dividend will be paid on 12th
April 2007 to shareholders on the register at the close of business on 10th
March 2007.

During the period we have experienced favourable trading conditions in all our
major markets and in particular in the UK and Europe. This continues the trend
reported in our final results announcement last July. On a constant currency
basis Group sales increased by 7.5%, which is the fastest rate of growth since
the year 2000. Current growth trends seem likely to continue in at least the
short term although we do expect a slowdown in the rate of growth in the US.


Product Division

    Fabric - Portfolio of Five Brands: 'Colefax and Fowler', 'Cowtan and
    Tout', 'Jane Churchill', 'Manuel Canovas' and 'Larsen'


Sales in the US, which represent 55% of the Fabric Division's turnover,
increased by 3% on a constant currency basis. This compares to growth of 8% in
the equivalent period last year and suggests that rising interest rates are
starting to have an impact on trading conditions. Our autumn fabric collections
have been well received and in spite of the slower growth rate we believe that
the high end market will continue to perform well.

Sales in the UK, which represent 20% of the Fabric Division's turnover increased
by 17% during the period. This reflects the strength of the high end housing
market, particularly in London. We expect these favourable trading conditions to
continue for the remainder of the financial year.

Sales in Europe and the rest of the world, which represent 25% of the Fabric
Division's turnover increased by 15% on a constant currency basis. This reflects
improving economic conditions throughout most of Europe. Our European sales have
benefited from the continued growth of our contemporary Larsen brand which was
first launched in Europe in 2001. Overall we expect market conditions to remain
generally favourable.


 Furniture - Kingcome Sofas

Sales of furniture, which account for 4% of Group sales, increased by 46% during
the period. We attribute much of this dramatic improvement to the relocation of
the trade and retail showroom to premises adjacent to our Colefax and Fowler
showroom in London's Fulham Road. The closure of Kingcome's trade showroom in
Chelsea Harbour has not adversely affected sales. This saving together with the
sales increase will result in significantly improved furniture profits for the
current year.


 Accessories - Manuel Canovas

Accessories sales comprise beachwear and candles and represent approximately 2%
of the Group total. The majority of sales take place in the second half of the
year. The forward order book is in line with the prior year although accessories
profits will be adversely affected by the weak US dollar because almost one
third of sales are invoiced in US dollars.


Interior Decorating Division

Decorating sales decreased by 1% during the period although this is largely due
to timing differences in the invoicing of contracts. The level of deposits is up
18% on the prior year. This reflects good trading conditions in the UK and in
particular the strength of the high end residential property market in London.
Antique sales recovered strongly during the period increasing by 36%. This
follows several years of difficult trading.


Prospects

Current trading conditions in all our major markets continue to remain
favourable. We are experiencing a growth slowdown in the US but the trend is
gradual rather than dramatic and reflects the general economy. Our main concern
is the continued weakness of the US dollar which is having an adverse impact on
margins in the US and if sustained will impact profits next year. In Europe, and
especially in the UK, we expect market conditions to remain favourable. We have
continued to invest heavily in our core fabric brands and remain optimistic
about the outlook for the full year.


David Green
Chairman


25th January 2007


COLEFAX GROUP PLC
INTERIM GROUP PROFIT AND LOSS ACCOUNT

                                         Unaudited Unaudited   Audited
                                        Six Months       Six      Year
                                                      Months
                                         to 31 Oct to 31 Oct     to 30
                                                                 April
                                              2006      2005      2006
                                             '000     '000     '000

Turnover                                    33,764    32,194    68,361

Operating profit                             2,493     2,088     4,419
Profit/(loss) on disposal of fixed              19        15     (177)
assets

Profit on ordinary activities before         2,512     2,103     4,242

interest and taxation
Interest received/(paid)                        24      (91)     (148)

Profit on ordinary activities                2,536     2,012     4,094
before taxation
Taxation                                     (875)     (702)   (1,270)

Profit for the period                        1,661     1,310     2,824

Earnings per share                          10.31p     8.09p     17.4p
Diluted earnings per share                   9.95p     8.00p     16.8p
Dividend per share                           2.37p     2.16p     3.75p




COLEFAX GROUP PLC

INTERIM GROUP BALANCE SHEET

                                    Unaudited    Unaudited      Audited
                                    At 31 Oct    At 31 Oct        At 30
                                                                  April
                                         2006         2005         2006
                                        '000        '000        '000

Fixed assets                            5,402        5,881        5,403

Current assets:
Stocks and contracts in progress       11,878       12,314       10,942
Debtors                                10,288        9,477       11,498
Cash at bank and in hand                4,366        3,870        2,347
                                       26,532       25,661       24,787

Creditors: amounts falling due         16,263       17,324       14,493
within one year

Net current assets                     10,269        8,337       10,294

Total assets less current              15,671       14,218       15,697
liabilities

Creditors: amounts falling due              -          250            -
after one year
Provision for liabilities and              33           64           57
charges

Net assets excluding pension           15,638       13,904       15,640
liability

Pensions liability                        134          112          134

                                       15,504       13,792       15,506

Capital and reserves:
Called up share                         1,664        1,709        1,709
capital
Share premium account                  11,087       11,087       11,087
Capital redemption                      1,202        1,157        1,157
reserve
ESOP share reserve                      (287)        (499)        (287)
ESOP capital reserve                      228    -                  228
Profit and loss                         1,610          338        1,612
account
                                       15,504       13,792       15,506



COLEFAX GROUP PLC

INTERIM GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                                   Unaudited  Unaudited     Audited
                                                  Six Months Six Months        Year
                                                 to 31st Oct    to 31st     to 30th
                                                                    Oct       April
                                                        2006       2005        2006
                                                       '000      '000       '000

Profit for the period                                  1,661      1,310       2,824

Currency translation differences on foreign
currency
net investments                                        (163)         61         127

Currency translation differences on foreign            (378)        583         453
currency intercompany loans

Deferred tax on long-term intercompany loan              157      (238)       (189)
foreign currency movements

Total recognised gains and losses relating to          1,277      1,716       3,215
the period





COLEFAX GROUP PLC

INTERIM GROUP CASH FLOW STATEMENT

                                               Unaudited   Unaudited     Audited
                                              Six months  Six months        Year
                                             to 31st Oct to 31st Oct     to 30th
                                                                           April
                                                    2006        2005        2006
                                                   '000       '000       '000

Net cash inflow from operating                     4,037       2,921       7,556
activities

Returns on investments and servicing of
finance

Interest received                                     54          26          80
Interest paid                                       (53)       (135)       (247)
                                                       1       (109)       (167)

Taxation
UK corporation tax paid                            (649)       (536)       (988)
Overseas tax paid                                  (256)        (77)       (411)
                                                   (905)       (613)     (1,399)
Capital expenditure and financial
investment
Payments to acquire tangible fixed                 (966)       (889)     (1,781)
assets
Receipts from sales of tangible fixed                 35          16          64
assets
                                                   (931)       (873)     (1,717)

Equity dividends paid                              (382)       (350)       (574)

Cash inflow before financing                       1,820         976       3,699

Financing
Purchase of own shares                             (897)           -           -
Repayment of long-term loan                        (250)       (250)       (500)
Net cash outflow from financing                  (1,147)       (250)       (500)

Increase in cash in the period                       673         726       3,199





COLEFAX GROUP PLC

NOTES

1. Cash flow statement
                                        Unaudited   Unaudited   Audited
                                       Six months  Six months      Year
                                          to 31st to 31st Oct   to 30th
                                              Oct                 April
                                             2006        2005      2006
                                            '000       '000     '000
Reconciliation of operating profit to
net cash inflow from operating
activities

Operating profit before interest            2,493       2,088     4,419
and tax
Depreciation charges                          807       1,018     2,116
(Increase)/decrease in stocks             (1,058)          95     1,442
Decrease/(increase) in debtors              1,009         264   (1,615)
Increase/(decrease) in creditors              786       (544)     1,194

Net cash inflow from operating              4,037       2,921     7,556
activities

2. The interim results have been prepared in accordance with applicable
Accounting Standards and on the basis of the accounting policies set
out in the annual report and accounts for the year ended 30th April
2006, which have remained unchanged.

3. During the financial period ended 31 October 2006, the Company paid
a final dividend for the year ended 30 April 2006 of 2.37p per ordinary
share giving a total dividend of 382,232.

The proposed interim dividend of 1.45p (2005: 1.38p) per share is
payable on 12th April 2007 to qualifying shareholders on the register
at the close of business on 9th March 2007.

4. Earnings per share have been calculated on the basis of earnings of
1,661,000 (2005: 1,310,000) and on 16,111,464 (2005: 16,197,578)
ordinary shares being the weighted average number of ordinary shares in
issue during the period.

5. Diluted earnings per share have been calculated on the basis of
earnings of 1,661,000 (2005: 1,310,000) and on 16,698,371 (2005:
16,386,128) ordinary shares being the weighted average number of
ordinary shares in the period adjusted to assume conversion of all
dilutive potential ordinary shares 586,907 (2005: 188,550).

6. The interim accounts are unaudited. The above financial information
does not comprise full accounts within the meaning of Section 240 of
the Companies Act 1985 (as amended).

The comparatives for the full year ended 30th April 2006 are not the
Company's full statutory accounts for that year. A copy of the
statutory accounts for that year has been delivered to the Registrar of
Companies. The auditor's report on those accounts was unqualified and
did not contain a statement under section 237 (2)-(3) of the Companies
Act 1985 (as amended).

7. Copies of the interim report are being sent to shareholders and will
also be made available on request to members of the public at the
Company's registered office at 39 Brook Street, London W1K 4JE.
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