Colefax rolls out solid sales rise for the half year

27th Jan 2014 07:46

- Interim sales boosted by strong Decorating Division - Expects trading to remain challenging for remainder of year- Announces proposed tender offerMayfair-based fabrics and wallpapers firm Colefax said half year sales rose by 15 per cent but while it is optimistic about the recovery in the US, UK and Europe, it expects trading to remain challenging for at least the remainder of the year.The group, whose brands include Colefax, Fowler and Jane Churchill, said pre-tax profit jumped 72% to £3.07m for the six months ended October 31st 2013 from £1.79m a year before, helped by an improved performance from the Decorating Division. Sales during the six-month period climbed 15% to £39.17m and earnings per share soared 93% to 17.0pChairman David Green said: "A significant factor behind the increase in group profits for the first six months was an improved performance from the Decorating Division, partly reflecting timing differences in the completion of projects. In the core Fabric Division sales increased by 7% on a constant currency basis mainly due to the ongoing recovery in the US market and a better than expected improvement in the UK market."We are optimistic about the recovery in the US and the UK but, in Europe, we expect trading to remain challenging for at least the remainder of the year."Net cash rose to £7.58m from £5.59m in 2012.Colefax said: "The trends that we have seen in the first half of the year have continued into the second half. We are optimistic about the ongoing recovery in the US and the UK and future growth is likely to be closely tied to the strength of the high-end housing market." In a separate statement Colefax announced a proposed tender offer to buy up to approximately £4.4m of ordinary shares of 10p each, representing 9% of the company.The interim dividend has been increased by 5% to 2.00p per share.