Interim Results - Replacement

Colefax Group PLC
22 January 2002





The issuer has advised that an amendment has been made to the statement (RNS
2974Q) released at 7.00am this morning. The earnings per share figure quoted in
the chairman's statement and on the 'key points' page should read as 4.63p and
not as previously stated. There are no other amendments to the statement which
can be found in full below:







                                 COLEFAX GROUP

                                INTERIM RESULTS

                     FOR THE SIX MONTHS TO 31 OCTOBER 2001



   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'



                                   Key points




  • Pre-tax profit decreased by 32% to £1.65m (2000: £2.40m)




  • Earnings per share decreased by 27.5% to 4.63p (2000: 6.39p)




  • Sales down by 4% to £32.65m (2000: £33.96m)




  • Interim dividend of 1.34p per share (2000: 1.3p), an increase of 3%









Enquiries:
Colefax Group plc      David Green, Chairman             Tel: [phone]
Biddicks               Katie Tzouliadis / Kathryn Burn   Tel: [phone]





CHAIRMAN'S STATEMENT

Financial Results

The Group's pre-tax profit for the six months to 31 October 2001 decreased by
32% to £1.65 million (2000: £2.40 million) on sales down 4% at £32.65 million
(2000: £33.96 million). Earnings per share fell by 27.5% to 4.63p (2000: 6.39p).

The Board has decided to recommend an interim dividend of 1.34p per share (2000:
1.3p), a rise of 3%. The interim dividend will be paid on 10 April 2002 to
shareholders on the register at the close of business on 8 March 2002.

Group net borrowings increased by £1.3 million to £7.3 million which represents
gearing of 51% to net tangible assets. The increase in borrowing is mainly due
to the launch of our Autumn fabric collections and we expect both borrowings and
stock to reduce in the second half of the year. During the period the Group
purchased and cancelled 775,000 shares at a cost of £601,000.

The decrease in profits was primarily due to the reduction in sales in the US,
our largest market, which I reported had been deteriorating when we announced
last year's results.



Fabric Division

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

Sales in the US which represent 59% of the fabric division turnover decreased by
9% on a constant currency basis. Trading conditions weakened over the first half
and a major contributing factor to our sales decrease was the lack of contract
sales. Our newly refurbished Boston showroom is performing better than last year
but we have put further showroom refurbishments on hold until market conditions
improve.

Sales in the UK which represent 19% of the fabric division turnover decreased by
3% reflecting the softening environment. In September, we launched Larsen, our
US fabric brand, at the Chelsea Harbour Design Centre and we are confident of
establishing this brand in the UK.

Continental Europe which represents 19% of the fabric division turnover
increased by 8% in sterling terms and benefited from a strong performance in
France which remained our most buoyant market. Following the introduction of the
Larsen brand in our major European markets and the encouraging reaction we have
received to the collection, we are extending its availability further and are
optimistic about future sales prospects.



Sales in the rest of the world decreased by 11% with our principal market
Australia still adversely affected by the weak Australian dollar. We are not
planning any expansion in this area until market conditions improve.



Furniture Division

Sales from this division increased by 3% during the period although the market
for sofas is becoming tougher. In September we opened a new showroom at the
Chelsea Harbour Design Centre and this is starting to make an impact on sales.



Interior Decorating

Interior Decorating sales were down 9%. This area of the Group's activity has
also been adversely affected by reduced demand from the US which traditionally
accounts for 40% of sales. In addition, antique sales have been weak due to the
lack of customers from the US.



Prospects

Our major market, the US, still remains weak. Conditions in the UK are difficult
with activity in the high end housing market slowing down. As long as trading
conditions in these two markets remain adversely affected, this will have a
negative impact on the Group's results. We continue to look at reducing costs
but will only do so if the long term future of the Group is not adversely
affected.







David Green

Chairman











GROUP PROFIT AND LOSS ACCOUNT

For the six months ended 31 October 2001
                                                                  Six months           Six months
                                                                 to 31st Oct          to 31st Oct
                                                                        2001                 2000
                                                                       £'000                £'000
Turnover                                                              32,654               33,962
Operating profit                                                       1,858                2,630
Interest Payable                                                       (213)                (226)
Profit before taxation                                                 1,645                2,404
Taxation                                                               (575)                (841)
Profit after taxation                                                  1,070                1,563
Dividends                                                              (304)                (264)
Retained profit for the year                                             766                1,299
Earnings per share                                                     4.63p                6.39p
Diluted earnings per share                                             4.61p                6.37p
Dividend per share                                                     1.34p                1.30p











GROUP BALANCE SHEET

As at 31 October 2001
                                                           At 31st Oct         At 31st Oct     At 30th April
                                                                  2001                2000              2001
                                                                 £'000               £'000             £'000
Fixed assets                                                     9,075               8,494             9,048
Current assets:
Stocks and contracts in progress                                15,895              14,072            14,898
Debtors                                                          8,841               8,309             8,924
Cash at bank and in hand                                         1,438               2,084             1,792
                                                                26,174              24,465            25,614

Creditors: amounts falling due within                           19,308              17,709            18,171
one year

Net current assets                                               6,866               6,756             7,443
Total assets less current liabilities                           15,941              15,250            16,491
Creditors: amounts falling due after                             1,547               3,098             2,097
one year

Provision for liabilities and charges                               79                  81                79
                                                                14,315              12,071            14,315
Capital and reserves:
Called up share capital                                          2,379               2,456             2,456
Share premium account                                           11,055              11,055            11,055
Capital Redemption Reserve                                         475                 397               397
Profit and loss account                                            406             (1,837)               407
                                                                14,315              12,071            14,315









GROUP CASH FLOW STATEMENT

For the six months ended 31 October 2001
                                                                         Six months               Six months
                                                                        to 31st Oct              to 31st Oct
                                                                               2001                     2000
                                                                              £'000                    £'000
Net cash inflow from operating activities                                     1,341                    3,163
Returns on investments and servicing of finance
Interest received                                                                85                       37
Interest paid                                                                 (232)                    (267)
                                                                              (147)                    (230)
Taxation
UK corporation tax paid                                                        (44)                    (417)
Overseas tax paid                                                              (19)                    (203)
                                                                               (63)                    (620)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                   (1,420)                  (1,446)
Receipts from sales of tangible fixed assets                                     34                      144
Purchase of ESOP shares                                                           -                    (268)
                                                                            (1,386)                  (1,570)

Equity dividends paid                                                         (460)                    (454)

Cash (outflow)/inflow before financing                                        (715)                      289

Financing
Purchase of own shares                                                        (601)                  (1,369)
Repayment of long-term loan                                                   (519)                    (504)
Net cash outflow from financing                                             (1,120)                  (1,873)
Decrease in cash in the period                                              (1,835)                  (1,584)







GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the six months ended 31 October 2001
                                                                         Six months               Six months
                                                                        to 31st Oct              to 31st Oct
                                                                               2001                     2000
                                                                              £'000                    £'000
Profit for the period                                                         1,070                    1,563
Currency translation differences on foreign currency net                      (166)                      547
investments
Total recognised gains and losses relating to the period                        904                    2,110







 NOTES TO THE INTERIM FINANCIAL STATEMENTS
1.    Cash flow statement
                                                                           Six months             Six months
                                                                          to 31st Oct            to 31st Oct
                                                                                 2001                   2000
                                                                                £'000                  £'000

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

      Operating profit before interest and tax                                  1,858                  2,630
      Depreciation charges                                                      1,324                  1,151
      (Profit) on sale of tangible fixed assets                                  (20)                   (68)
      (Increase) in stocks                                                    (1,076)                (1,448)
      Decrease in debtors                                                          45                    819
      (Decrease)/increase in creditors                                          (790)                     79

      Net cash inflow from operating activities                                 1,341                  3,163

2.    The interim dividend is payable on 10th April 2002 to qualifying
      shareholders on the register at the close of business on 8th March 2002.

3.    Earnings per share have been calculated on the basis of earnings of
      £1,070,000 (2000: £1,563,000) and on 23,120,625 (2000: 24,466,333)
      ordinary shares being the weighted average number of ordinary shares in 
      issue during the period.

4.    Diluted earnings per share have been calculated on the basis of earnings
      of £1,070,000 (2000: £1,563,000) and on 23,200,857 (2000: 24,536,351)
      ordinary shares being the weighted average number of ordinary shares in
      the period adjusted to assume conversion of all dilutive potential
      ordinary shares 80,232 (2000: 70,018).

5.    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).

6.    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 W1Y 2JE.







                      This information is provided by RNS
            The company news service from the London Stock Exchange