Colefax (CFX) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 2.6% to £109.99m, or 4.2% at constant currency; profit before tax increased 15.1% to £8.90m.

• Strong Fabric Division trading, especially a late-year US sales surge, lifted results above expectations; some purchases were believed to have been accelerated ahead of tariff increases.

• Year-end cash was £22.31m, with no bank borrowings; net assets reached £35.28m.

Financial highlights

• Gross profit increased to £63.23m from £60.03m; operating profit rose to £9.60m from £8.48m.

• Profit attributable to shareholders rose 12.3% to £6.51m; basic and diluted EPS increased 22.8% to 108.4p, partly reflecting share buybacks.

• Operating cash flow less lease payments increased 6.7% to £10.83m; cash and cash equivalents rose to £22.31m from £17.76m.

Outlook and guidance

• Cautious outlook: tariff costs, a weaker US dollar and lower Decorating Division profits pose headwinds; recent US sales acceleration is not expected to persist.

• A one-cent decline in the average US dollar rate is estimated to reduce profit by about £190,000; around one-third of FY26 dollar exposure was hedged at $1.28.

• Decorating customer deposits were down 32% at year-end; a breakeven result is expected in the new financial year, subject to project completion timing.

• Falling interest rates could support housing transactions and, over time, home spending; investment in brands and worldwide distribution will continue.