Colefax (CFX) H1 2025 earnings summary

Executive summary

• H1 revenue rose 1.8% to £52.789m, or 4.1% at constant currency; profit before tax fell 0.5% to £4.362m.

• EPS rose 12.5% to 53.2p; strong US Fabric sales supported performance ahead of expectations, while UK and European conditions remained challenging.

Financial highlights

• Revenue was £52.789m; gross profit was £30.149m versus £29.392m, and operating profit was £4.651m versus £4.835m.

• Profit before tax was £4.362m versus £4.383m; net income was £3.272m versus £3.288m.

• Cash at 31 October was £18.595m versus £17.76m at 30 April; operating cash flow was £6.969m versus £7.982m.

• Cash generation excluding share buybacks and dividends was £3.6m versus £4.2m in the prior-year half.

Outlook and guidance

• UK and European market conditions are expected to remain challenging through H2; US trading prospects look favourable.

• A stronger US dollar, if sustained, would benefit Fabric profits; potential higher US import tariffs remain a source of uncertainty.

• Decorating is expected to improve in H2, though its full-year result is forecast below the prior year's exceptional level.

• Focus remains on investment in the US distribution network and Fabric brand portfolio.