Furnishing fabrics, wallpapers and furniture supplier Colefax Group PLC has reported a growth in sales and profit.

According to its preliminary results for the year ended 30 April 2025, total sales rose 2.6% to £109.99m from £107.16m in 2024.

Pre-tax profit resulted at £8.90m, up 15.1% from £7.73m, driven by an exceptionally strong final quarter Fabric Division performance in the US as customers accelerated orders in advance of tariff increases.

Fabric Division sales increased by 5.9% to £95.92m from £90.54m, with US sales increasing by 12.9%, while UK sales decreased by 4.7% and Europe sales increased by 6.5%.

“Sales in the UK, which represent 16% of the Fabric Division’s turnover, decreased by 4.7%,” the group said. “This follows a 3% increase in the prior year and reflects fairly challenging market conditions in the UK caused by comparatively high interest rates and a subdued high end housing market which we believe is being adversely impacted by changes to the tax rules for non-domiciled individuals.

“Despite this, trading improved in the second half of the year with UK sales up by 1% compared to a decline of 8% in the first half of the year.”

As for Kingcome Sofas, which represent 3% of Product Division sales, revenues decreased by 8.6% to £2.85m from £3.11m. Pre-tax profit decreased by 14.3% to £359,000 from £419,000 against a strong prior year comparative.

“Most Kingcome sales are made to order and the business carries minimal stock,” the group added. “Sales during the year reflect orders delivered and a more useful measure of trading performance is the order intake during the year. Despite relatively challenging market conditions in the UK the order intake was up by 21% compared to a decline of 14% in the prior year.”

Decorating Division sales were down 17% to £11.22m from £13.51m.

David Green, Chief Executive of Colefax Group plc, said: “The Group has delivered another good performance which has exceeded expectations due to a very strong surge in US sales during the final quarter of the year.

“We believe this is mainly exceptional and related to orders accelerated to avoid tariff increases. This has continued in the first two months of the current year during the pause in tariffs announced by the US government but we do not believe it is likely to be sustained.

“Whilst our core Fabric Division business continues to perform well, we remain cautious about prospects and in particular the impact of higher tariff costs, a weaker US Dollar and lower Decorating Division profits.”