UK recovery for Colefax

6th May 2010 16:03

Colefax Group says that trading conditions have been better than expected in the last few months of the financial year and operating profits will be much better than expected. The upmarket furnishings and wallpaper supplier says fourth quarter UK fabric sales are 13% ahead year-on-year. Decorating and furniture businesses have also done better. The US is a much bigger market and it has been tough but fourth quarter sales are 1% higher. Operating profits before exceptionals are expected to be around £3.9m, against £2.7m the year before. Colefax is closing its Manuel Canovas beachwear business in France at an exceptional cost of £800,000. Management remains cautious about prospects.