Interim Results

Colefax Group PLC
18 January 2001



                              COLEFAX GROUP PLC


                               INTERIM RESULTS

                    FOR THE SIX MONTHS TO 31 OCTOBER 2000


  Colefax Group designs and distributes furnishing fabrics and wallpaper and

                owns a leading interior decorating subsidiary.


Portfolio of five major fabric brands: 'Colefax and Fowler', 'Cowtan & Tout',
               'Jane Churchill', 'Manuel Canovas' and 'Larsen'



  * Pre-tax profit increased by 22% to £2.40m (1999: £1.98m)

  * Earnings per share up by 32% to 6.39p (1999: 4.83p)

  * Sales rose by 12% to £34m (1999: £30.2m)

  * Interim dividend of 1.3p per share (1999: 1.25p), an increase of 4%

  * Continuing strong growth in US - Fabric Division sales ahead by 7%

  * Excellent performance in Continental Europe - Fabric Division sales
    increased by 18%. Good UK trading with fabric sales up by 8%.

  * Interior Decorating Division - performing well with new, younger
    interior decorators establishing reputations with major projects.

  * Major launch of US fabric brand, Larsen, into UK & Europe planned for
    March 2001


Commenting on the results and prospects, David Green, Chairman, said,

'The continued growth of the Fabric Division and, in particular, the
contribution from our Larsen and Manuel Canovas brands are the principal
reasons for the improvement in our results.

I believe the Group has significant opportunities to grow in its major
markets. Market conditions have remained good and we are confident of
continued good progress in the second half of the year.'

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



CHAIRMAN'S STATEMENT

Financial Results

The Group's pre-tax profit for the six months to 31 October 2000 increased by
22% to £2.40 million (1999: £1.98 million) on sales up 12% at £33.96 million
(1999: £30.2 million). Earnings per share rose by 32% to 6.39p (1999: 4.83p).

The Board has decided to recommend an interim dividend of 1.3p per share
(1999: 1.25p), a rise of 4%. The interim dividend will be paid on 10 April
2001 to shareholders on the register at the close of business on 9 March 2001.

Group net borrowings increased by £1.3 million to £6.94 million which
represents gearing of 57% to net tangible assets. During the period the Group
purchased and cancelled 2.05 million shares at a cost of £1.37 million.

 Fabric Division

Portfolio of Five Brands: 'Colefax and Fowler', 'Cowtan and Tout', 'Jane
Churchill', 'Manuel Canovas' and 'Larsen'

Sales in the United States, which now represent 62% of fabric division sales,
increased by 15% in sterling terms and 7% on a constant currency basis. The
growth in sales during the period reflects the success of our new product
launches and buoyant market conditions. Our newly refurbished New York
showroom performed particularly well during the period. We are currently
moving our showroom in San Francisco to larger premises in a superior
location. We are also refurbishing our agent showroom in Boston. These
projects will be completed by March 2001 and should produce increased sales in
these important markets.

Sales in the UK, which represent 19% of the fabric division turnover increased
by 8%. The reaction to our new collections launched in October has been
favourable. Our Colefax and Fowler showroom in Fulham Road is undergoing a
major refurbishment and when it reopens in March 2001 it will include our
Manuel Canovas fabric range, making the brand available to retail customers
for the first time.

Sales in Continental Europe have started to accelerate with an overall
increase of 18% in the first half of the year and now represents 17% of fabric
division sales. We believe there are good opportunities for continued growth
in most Continental European markets. Italy is currently the strongest market
and our investments in France and Germany are starting to produce good
results. In November, we completed the move of our Colefax and Fowler and Jane
Churchill showrooms in France from Rue du Mail to Place Furstenberg where our
existing Manuel Canovas trade and retail showrooms are located both of which
have been refurbished. We have sold our Rue du Mail showroom.

Sales in the rest of the world were flat during the period, the principal
reason being the lack of contract orders for the Middle East and the continued
strength of sterling. Sales from the rest of the world represent only 2% of
fabric division sales and so the impact on our overall performance is not
significant.

In March we shall be launching our US fabric brand, Larsen, in the UK and
Europe. Although the initial investment is significant, we are excited about
the prospects for this brand which has a contemporary look and does not
compete with any of our existing brands in these markets. We have signed a
lease for a Larsen showroom in the Chelsea Harbour Design Centre which will
act as the base for our European launch.

 Furniture Division

Sales from this division increased by 10% during the period. In May Kingcome
Sofas will be opening a new trade showroom at the Chelsea Harbour Design
Centre. This will provide access to a much larger customer base and should
lead to further sales growth.

 Interior Decorating

The interior decorating division continues to perform well. Sales of antiques
increased by 26% reflecting good trading conditions at the top end of the
market in the UK and the USA. All our interior decorators are busy and we are
especially pleased with the way our new, younger decorators are attracting
major work. Overall, the division is on target for another good result this
year.

 Prospects

I believe the Group has significant opportunities to grow in its major markets
either through the introduction of new products or geographical expansion.
Market conditions have remained good and we are confident of continued good
progress in the second half of the year.

                                                       David B Green, Chairman

GROUP PROFIT AND LOSS ACCOUNT

For the six months ended 31 October 2000
                                                Six months to     Six months to
                                                       31 Oct            31 Oct
                                                         2000              1999
                                                        £'000             £'000

Turnover                                               33,962            30,189

Cost of sales                                          14,726            13,088

Gross profit                                           19,236            17,101
Operating expenses                                     16,606            14,913

Operating profit                                        2,630             2,188

Interest payable                                        (226)             (213)

Profit on ordinary activities before
taxation                                                2,404             1,975
Tax on profit on ordinary activities                    (841)             (652)

Profit on ordinary activities after

taxation                                                1,563             1,323
Dividends                                               (264)             (298)

Retained profit for the year                            1,299             1,025

Earnings per share                                      6.39p             4.83p

Diluted earnings per share                              6.37p             4.80p

Dividend per share                                      1.30p             1.25p



GROUP BALANCE SHEET

At 31 October 2000
                                         At 31 Oct    At 31 Oct     At 30 April
                                              2000         1999            2000
                                             £'000        £'000           £'000

Fixed assets                                 8,494        7,339           7,731

Current assets:
Stocks and contracts in progress            14,072       13,391          12,313
Debtors                                      8,309        7,183           8,895
Cash at bank and in hand                     2,084        1,976           1,139

                                            24,465       22,550          22,347

Creditors: amounts falling due
within one year                             17,709       15,740          15,408

Net current assets                           6,756        6,810           6,939

Total assets less current liabilities       15,250       14,149          14,670

Creditors: amounts falling due
after one year                               3,098        3,389           2,995

Provision for liabilities and charges           81          285              81

                                            12,071       10,475          11,594

Capital and reserves:

Called up share capital                      2,456        2,661           2,661
Share premium account                       11,055       11,055          11,055
Capital Redemption Reserve                     397          192             192
Profit and loss account                    (1,837)      (3,433)         (2,314)

                                            12,071       10,475          11,594



GROUP CASH FLOW STATEMENT

For the six months ended 31 October 2000
                                                  Six months to   Six months to
                                                         31 Oct          31 Oct
                                                           2000            1999
                                                          £'000           £'000

Net cash inflow from operating activities                 3,163           3,194

Returns on investment and servicing of finance
Interest received                                            37              34
Interest paid                                             (267)           (274)

                                                          (230)           (240)

Taxation
UK corporation tax (paid)/received                        (417)              15
Overseas tax paid                                         (203)           (237)

                                                          (620)           (222)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets               (1,446)           (921)
Receipts from sales of tangible fixed assets                144               5
Purchase of ESOP shares                                    -268               -

                                                        (1,570)           (916)

Equity dividends paid                                     (454)           (484)

Cash inflow before financing                                289           1,332

Financing
Purchase of own shares                                  (1,369)          (1734)
Repayment of long-term loan                                -504               -

Net cash outflow from financing                         (1,873)         (1,734)

Decrease in cash in the period                          (1,584)           (402)



GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the six months ended 31 October 2000
                                                        Six months   Six months
                                                                to           to
                                                            31 Oct       31 Oct
                                                              2000         1999
                                                              £000         £000

Profit for the period                                        1,563        1,323

Currency translation differences on foreign currency
net investments                                                547        (202)


Total recognised gains and losses relating to the
period                                                       2,110        1,121



NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.  The interim dividend is payable on 10 April 2001 to qualifying shareholders
    on the register at the close of business on 9 March 2001.

2.  Earnings per share have been calculated on the basis of earning of £
    1,563,000 (1999: £1,323,000) and on 24,466,333 (1999: 27,393,536) ordinary
    shares being the weighted average number of ordinary shares in issue during
    the period.

3.  Diluted earnings per share have been calculated on the basis of £1,563,000
    (1999: £1,323,000) and on 24,536,351 (1999: 27,588,352) ordinary shares
    being the weighted average number of ordinary shares in the period adjusted
    to assume conversion of all dilutive potential ordinary shares 70,018
    (1999: 194,816).

4.  The interim accounts are unaudited. The above financial information does
    not comprise full accounts within the meaning of Section 240 of the
    Companies Act 1985 (as amended).

5.  Copies of the interim report are being sent to shareholders and will also
    be made available on request to members of the public at the Company's
    registered office at 39 Brook Street, London W1K 4JE.