Colefax (CFX) investor relations material

Executive summary

• Revenue rose 5.4% to £115.92m, or 7.3% at constant currency; profit before tax increased 18.3% to £10.53m.

• Shareholder profit reached £7.75m and EPS rose 29.8% to 140.7p; year-end net cash was £23.5m.

• Strong US fabric sales drove results, offsetting weaker Decorating Division trading and continued challenges in the UK luxury market.

Financial highlights

• Gross profit was £66.16m versus £63.23m; operating profit was £11.27m versus £9.60m.

• Profit before tax £10.53m, up 18.3%; profit attributable to shareholders £7.75m, up 19.1%.

• Operating cash flow less lease payments increased 17.4% to £12.72m; net cash rose 5.6% to £23.55m.

• Total dividend for the year was 6.3p per share, up from 5.9p; proposed final dividend was 3.3p per share.

Outlook and guidance

• US sales remained strong after year-end; cautious optimism for continued strength through at least H1 FY2027, subject to stock-market risk.

• UK conditions expected to remain challenging; Decorating and Furniture divisions continue to face UK trading headwinds.

• Fabric Division targets a 10% pre-tax margin, considered realistic mainly with healthy sales growth and a relatively strong US dollar.

• FY2027 capital expenditure expected broadly in line with depreciation; lease payments expected to rise due to renewals at higher rents.

• Decorating Division expects to return to profitability next year, despite challenging UK market conditions.