Final Results

Colefax Group PLC
17 July 2001



                              COLEFAX GROUP PLC

                                FINAL RESULTS

                        FOR THE YEAR TO 30 APRIL, 2001

Colefax Group designs and distributes furnishing fabrics & wallpaper and owns
                  a leading interior decorating subsidiary.



             Its portfolio of five major fabric brands comprises

                    'Colefax and Fowler', 'Cowtan & Tout',

               'Jane Churchill', 'Manuel Canovas' and 'Larsen'.

                                  Key Points



  * Pre-tax profit increased by 16% to £5.9 million (2000: £5.1 million
    before exceptional costs of £358,000)



  * Earnings per share lifted by 32% to 16.5p (2000: 12.5p before
    exceptional costs of £358,000)



  * Sales up by 10% to £70.4 million (2000: £63.9 million)



  * Final dividend proposed of 2p, making a total of 3.3p (2000: 3.15p), an
    increase of 5%

 Enquiries:
Colefax Group plc   David Green, chairman                    Tel: [phone]
Biddicks            Zoe Biddick/Katie Tzouliadis             Tel: [phone]



CHAIRMAN'S STATEMENT

 Financial Results

The Group's pre-tax profits for the year to 30 April 2001 increased by 16% to
£5.9 million (2000: £5.1 million pre exceptionals) on sales up 10% at £70.4
million (2000: £63.9 million). Earnings per share rose by 32% to 16.5p (2000:
12.5p pre exceptionals). Group net borrowings at the year end were £6.0
million (2000: £5.6 million), which represents gearing of 42% to net assets.

The Board has decided to recommend a final dividend of 2.0p (2000: 1.9p)
making a total for the year of 3.3p (2000: 3.15p), a rise of 5%. The final
dividend will be paid on 10 October 2001 to shareholders on the register at
the close of business on 14 September 2001.

The increase in profits is largely due to the growth of the fabric division
although sales in the US, our major market, weakened towards the end of the
year.

Fabric Division - Portfolio of Brands: 'Colefax and Fowler', 'Cowtan & Tout',
'Jane Churchill', 'Manuel Canovas' and 'Larsen'.

Sales in the US, which represents 60% of the Fabric Division's sales,
increased by 2% on a constant currency basis. In March, we opened our new San
Francisco showroom and also refurbished our Boston agent's showroom. Both
showrooms now fully display the Group's five brands. We have largely completed
our showroom refurbishment programme and are not planning to make any
significant investments during the coming year. Sales in the US are currently
difficult and have been weakening since the beginning of the year.

UK sales, which represent 19% of the Fabric Division's turnover, increased by
5% during the year. The majority of this increase was generated by our Manuel
Canovas brand which continues to benefit from our UK sales network. The UK
market has started to get tougher and current indications are that sales are
unlikely to grow significantly this year.

Sales in Continental Europe, which represent 19% of the Fabric Division's
turnover, increased by 14% in sterling terms. Our most significant markets,
France and Italy, are still performing well, whereas Germany remains
difficult. In all these markets, other than France, we are still a small
player and have good growth opportunities. I therefore remain optimistic about
sales prospects in this area.

Sales in the Rest of the World were down 9% although at 2% of the Fabric
Division's turnover, the impact on the Group's results was not significant.
The decrease is mainly due to the adverse effects of the strength of sterling.

In March of this year, we launched our US fabric brand, 'Larsen', in the UK,
France, Germany and Italy and although it is too early to forecast what sales
we may expect, initial reaction has been encouraging.

Furniture Division

Sales by Kingcome Sofas, which represent just under 3% of Group sales,
increased by 4% during the period. In September 2001, Kingcome Sofas will be
opening a new trade showroom at the Chelsea Harbour Design Centre, which will
provide access to a wider customer base. To coincide with this, we will be
launching a new range of more contemporary furniture.

Interior Decorating Division

The Interior Decorating Division has had an excellent year with sales up by
10%. The significant increase in antique sales in the first half of the year
was not sustained in the second half and this activity ended 9% up on last
year. We have started the year with a healthy level of contracts and I believe
this area of the Group will continue to perform well.

Prospects

The slowdown in the US which we have experienced in the last two months of the
year has continued into the new financial year. It is difficult to predict the
trend with certainty at this stage however we believe this year's results are
unlikely to match last year's. We are continuing to invest in the future and
remain confident about the medium term prospects of the Group.

David B Green

Chairman



GROUP PROFIT AND LOSS ACCOUNT

For the year ended 30 April 2001
                                                    Notes       2001       2000
                                                               £'000      £'000

Turnover                                                      70,412     63,923
Cost of sales                                                 30,324     28,043

Gross profit                                                  40,088     35,880
Operating expenses                                            33,627     30,337

Operating profit before exceptional items                      6,461      5,543
Exceptional items                                                  -      (358)

Operating profit                                               6,461      5,185
Interest                                                       (543)      (434)

Profit on ordinary activities before taxation                  5,918      4,751
Tax on profit on ordinary activities
UK                                                             (618)    (1,072)
Overseas                                                     (1,348)      (691)

                                                             (1,966)    (1,763)

Profit on ordinary activities after taxation                   3,952      2,988
Dividends on equity shares                                     (734)      (791)

Retained profit for the year                                   3,218      2,197

Basic earnings per share                                1      16.5p      11.2p
Underlying earnings per share                           1      16.5p      12.5p
Diluted earnings per share                              1      16.4p      11.1p

All activity has arisen from continuing operations.

There is no material difference between the profit on ordinary activities
before taxation and the retained profit for the year stated above and their
historical cost equivalents.

GROUP BALANCE SHEET

At 30 April 2001
                                                                 2001      2000
                                                                £'000     £'000

Fixed assets
Tangible assets                                                 8,361     7,312
Investments                                                       687       419

                                                                9,048     7,731

Current assets:
Stocks and contracts in progress                               14,898    12,313
Debtors                                                         8,924     8,895
Cash at bank and in hand                                        1,792     1,139

                                                               25,614    22,347

Creditors: amounts falling due within one year                 18,171    15,408

Net current assets                                              7,443     6,939

Total assets less current liabilities                          16,491    14,670

Creditors: amounts falling due after more than one year         2,097     2,995

Provision for liabilities and charges:
Deferred taxation                                                  79        81

                                                               14,315    11,594

Capital and reserves:
Called up share capital                                         2,456     2,661
Share premium account                                          11,055    11,055
Capital redemption account                                        397       192
Profit and loss account                                           407   (2,314)

Equity shareholders' funds                                     14,315    11,594



GROUP CASH FLOW STATEMENT

For the year ended 30 April 2001
                                                    Notes       2001       2000
                                                               £'000      £'000

Net cash inflow from operating activities               4      8,058      7,251

Returns on investments and servicing of finance:
Interest received                                                 65         77
Interest paid                                                  (590)      (512)

                                                               (525)      (435)

Taxation:
UK Corporation tax paid                                      (1,422)      (716)
Overseas tax paid                                              (679)    (1,005)

                                                             (2,101)    (1,721)

Capital expenditure and financial investment:
Payments to acquire tangible fixed assets                    (3,334)    (2,443)
Receipts from sales of tangible fixed assets                     140          6
Purchase of ESOP Shares                                        (268)          -

                                                             (3,462)    (2,437)

Equity dividends paid                                          (752)      (809)

Cash inflow before financing                                   1,218      1,849

Financing:
Purchase of own shares                                       (1,362)    (1,734)
Repayment of long-term loan                                  (1,018)          -

Net cash outflow from financing                              (2,380)    (1,734)

(Decrease)/increase in cash in the period                    (1,162)        115



GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the year ended 30 April 2001
                                                                     2001  2000
                                                                    £'000 £'000

Profit for the financial year                                       3,952 2,988
Currency translation differences on foreign currency net              865 (254)
investments

Total recognised gains and losses relating to the year              4,817 2,734



NOTES TO THE ACCOUNTS

At 30 April 2001


 1. Earnings per share

    Basic earnings per share have been calculated on the basis of earnings of
    £3,952,000 (2000 - £2,988,000) and on 23,988,364 (2000 - 26,679,207)
    ordinary shares, being the weighted average number of ordinary shares in
    issue during the year.

    Underlying earnings per share which exclude exceptional items of nil (2000
    - £358,000) have been calculated on the basis of earnings of £3,952,000
    (2000 - £3,346,000) and on 23,988,364 (2000 - 26,679,207) ordinary shares,
    being the weighted average number of ordinary shares in issue during the
    year.

    Diluted earnings per share have been calculated on the basis of earnings
    of £3,952,000 (2000 - £2,988,000) and 24,065,831 (2000 - 26,832,091) being
    the weighted average number of shares in issue during the year adjusted to
    assume conversion of all dilutive potential ordinary shares, 683,533 (2000
    - 152,884).

    All earnings per share calculations exclude the shares owned by the
    Colefax Group Plc Employees' Share Ownership Plan (ESOP) Trust. Dividends
    on these shares have been waived.
 2. Operating profit


        Cash flow statement

        Reconciliation of operating profit to net cash inflow from operating
        activities:


Operating profit                                                 6,461    5,185
Depreciation charges                                             2,461    2,452
(Profit) on sale of tangible fixed assets                          (8)      (6)
(Increase)/decrease in stocks                                  (2,200)      641
Increase in debtors                                               (41)    (432)
Increase/(decrease) in creditors                                 1,385    (589)

Net cash inflow from operating activities                        8,058    7,251



3.      The above financial information, which has been prepared on the same
basis as set out in the 2000 annual accounts, does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The financial
information for the year ended 30 April 2001 has been extracted from the
statutory accounts on which an unqualified audit opinion has been issued.
Statutory accounts for the year ended 30 April 2001 will be delivered to the
Registrar in due course. The comparative financial information is based on the
statutory accounts for the financial year ended 30 April 2000. Those accounts,
upon which the auditors issued an unqualified opinion, have been delivered to
the Registrar of Companies.