Furnishing fabrics, wallpapers and furniture supplier Colefax Group PLC has reported an uptick in sales as its Kingcome furniture division delivered an “exceptional” performance.
According to its Preliminary Results for the year ended 30 April 2024, total sales increased 2% to £107.16m from £104.82m in 2023.
Pre-tax profit decreased by 10% to £7.73m from £8.54m, mainly due to higher Fabric Division operating costs and a weaker US Dollar exchange rate.
Colefax Group, which trades under five brand names including Colefax and Fowler, Cowtan & Tout, Jane Churchill, Manuel Canovas and Larsen, as well as through its furniture division Kingcome Sofas, said that Fabric Division sales decreased by 2.1% to £90.54m from £92.51m, with US sales down by 3%. However, UK sales rose 3% and Europe sales improved 8%.
On the UK, the group said: “This performance was above expectations at the start of the year and we believe it partly reflects a backlog of work arising from the high level of housing transactions during the Covid pandemic. Sales held up well throughout the year although first half sales were up by 4% and second half sales up by 2% pointing to a slowdown in activity.”
The Decorating Division delivered a strong performance with sales up by 42% to £13.51m from £9.52m and pre-tax profit of £847,000.
Sales of Kingcome furniture, which represent 3% of Product Division sales, increased by 12% to £3.11m from £2.78 m. Pre-tax profit increased by 75% to a record £419,000, demonstrating the high level of operational gearing in the business.
“The performance during the year was exceptional and primarily due to a significant reduction in the outstanding order book between the start and end of the year,” the group said. “The actual order intake during the year was down by 14% reflecting challenging market conditions for furniture.”
David Green, Chief Executive of Colefax Group plc, said: “The Group has delivered a good performance in relatively challenging market conditions and with a weaker US Dollar exchange rate.
“Over the last year higher interest rates have reduced housing market activity and we are expecting difficult market conditions in the year ahead and this is reflected in our existing market forecast.
“The Group is well placed to benefit from falling interest rates as this should boost housing market activity but it will take time for this benefit to feed through to home spending.”
