Interim Results

Colefax Group PLC
24 January 2008

CFX

                                COLEFAX GROUP PLC
                           ('Colefax' or 'the Group')
                                                           
                                Interim Results
                    for the six months ended 31 October 2007

Colefax is an international designer and distributor of furnishing fabrics &
wallpapers and owns a leading interior decorating business.

The Group trades under five brand names, serving different segments of the soft
furnishings marketplace; these are Colefax and Fowler, Cowtan & Tout, Jane
Churchill, Manuel Canovas and Larsen.

Key Points

•     Strong trading in all major markets and an exceptional
      performance by interior decorating division:
            - US - sales up 12%, the strongest growth for the last 3 years
            - UK - sales up 13%, reflecting continued strength of high end 
              property market
            - Continental Europe - sales up 11%

•     Sales increased by 14% to £38.61m (2006: £33.76m)

•     Pre-tax profit rose by 34% to £3.32m (2006: £2.48m)

•     Earnings per share rose by 49% to 15.02p (2006: 10.09p)

•     Interim dividend increased by 7% to 1.55p per share (2006: 1.45p)

•     Interior Decorating Division - sales up 70%
            - reflecting strength of UK market and helped by completion of
              significant contracts
            - on track for a very good year

•     Current trading good but slowing property market in UK and US is a concern
            - strengthening of US dollar should help to cushion any slowdown

David Green, Chairman, commenting, said,

'Trading conditions have been strong in all our major markets. Fabric sales in
our most important marketplace, the US, showed the strongest growth we have seen
in the last three years, increasing by 12% on a like-for-like basis. However,
the very weak US dollar did negatively impact results. We are particularly
pleased with the performance of our Interior Decorating Division, which is on
track for an exceptionally good year.

Current trading has remained robust in the UK and Continental Europe, with a
slight slowdown in the US. The US dollar appears to be strengthening and if this
continues, it will cushion any slowdown in sales

We are continuing to invest in all areas of our business and should have a
clearer view of economic conditions and prospects for next year following our
important spring trading months.'

Enquiries:

Colefax Group plc      David Green, Chairman          Tel: [phone]

KBC Peel Hunt          David Anderson                 Tel: [phone]

Biddicks               Katie Tzouliadis               Tel: [phone]



CHAIRMAN'S STATEMENT


Financial Results

The financial accounts for the six months to 31st October 2007 have been
prepared for the first time under International Financial Reporting Standards
('IFRS') and accordingly the Group's comparative results have been restated. The
impact of the adoption of IFRS has not been material.

The Group's pre-tax profit for the six months to 31st October 2007 increased by
34% to £3.32 million (2006: £2.48 million) on sales up 14% at £38.61 million
(2006: £33.76 million). Earnings per share increased by 49% to 15.02p (2006:
10.09p). Group net borrowings increased to £745,000 in line with the Group's
normal working capital cycle.

The Board has decided to recommend that the interim dividend be increased by 7%
to 1.55p per share (2006: 1.45p). The interim dividend will be paid on 10th
April 2008 to shareholders on the register at the close of business on 14th
March 2008.

Trading conditions have been strong in all our major markets, especially the UK
and Continental Europe. As reported in July, the demand at the high end has
remained buoyant and on a constant currency basis Group sales increased by 18%.
The increase in the Group's interim profits is partly due to a very strong
performance by our Decorating Division and this helped to offset the impact of
the weak US dollar which negatively affected the Group's results.

Product Division

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

Sales in the US, which represent 52% of the Fabric Division's turnover,
increased by 12% on a constant currency basis. This compares to growth of 3% in
the equivalent period last year and is the strongest period of growth in the
last 3 years. We are expanding our showrooms in Atlanta and Florida and expect
the refurbishment to be completed by the end of April.

Sales in the UK, which represent 21% of the Fabric Division's turnover,
increased by 13% during the period. This reflects the continued strength of the
high end property market and the success of our new collections.

Sales in Europe, which represent 24% of the Fabric Division's turnover,
increased by 11% on a constant currency basis. In France sales remained
difficult and therefore the increase was driven by an even stronger performance
from the remainder of Continental Europe. We are currently making changes to
address the underperformance in France and we hope this will lead to a return to
growth in our principal European market.

Sales in the rest of the world, which represent 3% of the Fabric Division's
turnover, increased by 42%. Although this remains a small part of the Group's
turnover, we are constantly looking at ways to expand in new markets that will
offer growth.

• Furniture - Kingcome Sofas

Sales of furniture, which account for 4% of Group sales, increased by 11% during
the period. The continued strong demand for furniture reflects the strength of
the market at the high end and is heavily focused in and around London.

• Accessories - Manuel Canovas

We have completed a review of the Accessories Division looking at the markets in
which we operate, the diversity of the product line and those employees
responsible for specific areas. Following that review certain operational
changes are being made which will be a cost for the current year but should lead
to an improved performance in the years to come.

Interior Decorating Division

Decorating sales increased by 70% which is partly due to timing differences in
the completion of significant contracts but also reflecting the strength of the
UK market. This strong performance has resulted in a significant increase in
interim profits. Currently we still have a good order book and expect a very
good performance for the full year.

Prospects

Current trading through the end of the calendar year has remained similar to
that of the early part of the year with a slight slowdown in the US. It is
difficult to accurately gauge current market trends as history shows that our
business activities tend to lag any slowdown in the general economy. We are
concerned about the well publicised slowdown in the UK and US property markets.

The good news on the horizon appears to be the strengthening of the US dollar
which, if this continues, will help to cushion any slowdown in sales next year.

We are continuing to invest in all areas of our business and should have a
clearer view of economic conditions and prospects for next year following our
important spring trading months.


David Green

Chairman



GROUP INCOME STATEMENT
For the six months ended 31st October 2007

                                                       Restated        Restated
                                     Unaudited        Unaudited       Unaudited
                                    Six Months       Six Months            Year
                                   to 31st Oct      to 31st Oct   to 30th April
                                          2007             2006            2007
                                         £'000            £'000           £'000

Revenue                                 38,608           33,764          71,013

Profit from operations                   3,373            2,453           5,842

Finance income                              76               60             138                                  
Finance charge                            (127)             (36)           (174)
                                       ---------      ---------        ---------
                                           (51)              24             (36)
                                       ---------      ---------        ---------

Profit on ordinary
activities before taxation               3,322            2,477           5,806

Taxation                                (1,096)            (851)         (1,907)
                                       ---------      ---------        ---------

Profit for the period                    2,226            1,626           3,899
                                       =========      =========        =========
Earnings per share                       15.02p           10.09p          24.80p
Diluted earnings per share               14.44p            9.74p          23.86p
Dividend per share                        2.55p            2.37p           4.00p



GROUP BALANCE SHEET
As at 31 October 2007

                                                     Restated          Restated
                                  Unaudited         Unaudited         Unaudited
                                At 31st Oct       At 31st Oct     At 30th April
                                       2007              2006              2007
                                      £'000             £'000             £'000

Property, plant and
equipment                             5,056             5,402             5,135

Current assets:
Inventories and contracts in
progress                             13,118            11,878            12,045
Trade and other receivables          13,125            10,620            11,722
Cash and cash equivalents             5,623             4,366             4,113
                                    ---------       ---------          ---------
                                     31,866            26,864            27,880
                                    ---------       ---------          ---------

Trade and other payables:
amounts falling due within
one year                             19,585            16,899            17,508

Net current assets                   12,281             9,965            10,372
                                    ---------       ---------          ---------
Total assets less current
liabilities                          17,337            15,367            15,507
                                    ---------       ---------          ---------

Non-current liabilities:
Deferred taxation                       130                33                35
Pensions liability                      195               227               203
                                    ---------       ---------          ---------
                                        325               260               238
                                    ---------       ---------          ---------
Net assets                           17,012            15,107            15,269
                                    =========       =========          =========

Capital and reserves:
Called up share capital               1,565             1,664             1,565
Share premium account                11,141            11,087            11,141
Capital redemption reserve            1,308             1,202             1,308
ESOP share reserve                     (287)             (287)             (157)
ESOP capital reserve                    228               228               508
Foreign exchange reserve               (105)             (370)             (539)
Profit and loss account               3,162             1,583             1,443
                                    ---------       ---------          ---------
Total equity                         17,012            15,107            15,269
                                    =========       =========          =========


GROUP STATEMENT OF TOTAL RECOGNISED INCOME AND EXPENSES
For the six months ended 31st October 2007

                                                    Restated           Restated
                                  Unaudited        Unaudited          Unaudited
                                 Six Months       Six Months               Year
                                to 31st Oct      to 31st Oct      to 30th April
                                       2007             2006               2007
                                      £'000            £'000              £'000

Profit for the period                 2,226            1,626              3,899

Currency translation
differences on foreign
currency net
investments                              62             (149)              (108)

Currency translation
differences on foreign
currency intercompany
loans                                  (288)            (378)              (753)

Deferred tax on
long-term intercompany
loan foreign currency
movements                               121              157                322
                                    ---------       ---------           --------
Total recognised
income relating to the
period                                2,121            1,256              3,360
                                    =========       =========           ========



GROUP CASH FLOW STATEMENT
For the six months ended 31st October 2007

                                       Unaudited      Unaudited       Unaudited
                                      Six months     Six months            Year
                                     to 31st Oct    to 31st Oct   to 30th April
                                            2007           2006            2007
                                           £'000          £'000           £'000

Operating activities

Profit from
operations before
interest and tax                            3,373         2,453           5,842
Depreciation                                  814           807           1,629
                                         ---------    ---------        ---------
Profit from
operations before
changes in working
capital                                     4,187         3,260           7,471

Increase in
inventories                                (1,156)       (1,058)         (1,355)
(Increase)/decrease
in trade and other
receivables                                (1,510)        1,009             394
(Decrease)/increase 
in trade and other
payables                                     (157)          826           1,524
                                         ---------    ---------        ---------
Cash generated from
operations                                  1,364         4,037           8,034

Taxation paid
UK corporation tax
paid                                         (955)         (649)         (1,432)
Overseas tax paid                            (127)         (256)           (393)
                                         ---------    ---------        ---------
                                           (1,082)         (905)         (1,825)
Net cash inflow
from operating
activities                                    282         3,132           6,209
                                         ---------    ---------        ---------
Investing activities

Payments to acquire
tangible property,
plant and equipment                          (828)         (966)         (1,648)
Receipts from sales
of property, plant
and equipment                                  10            35              45
Interest received                              76            54             129
                                         ---------    ---------        ---------
Net cash outflow
from investing                               (742)         (877)         (1,474)
                                         ---------    ---------        ---------
Financing activities

Purchase of own
shares                                          -          (897)         (3,093)
Repayment of
long-term loan                                  -          (250)           (500)
Interest paid                                (100)          (53)           (150)
Equity dividends
paid                                         (378)         (382)           (600)
                                         ---------    ---------        ---------
Net cash outflow
from financing                               (478)       (1,582)         (4,343)
                                         ---------    ---------        ---------
(Decrease)/increase
in cash in the
period                                       (938)          673             392
                                         =========    =========        =========



NOTES

 1.  The interim results have been prepared in accordance with the accounting
     policies of the Group under International Financial Reporting Standards
     (IFRS) as set out in the 'Statement on the Impact of Adoption of
     International Financial Reporting Standards', which was issued on 24th
     January 2008 and can be found on the Group's website. This statement
     includes reconciliations between prior year accounts and the restated
     comparatives included in this interim report. A full restatement of these
     policies and reconciliation of the resultant changes will be disclosed in
     the financial statements for the year ended 30th April 2008 which will be
     the Group's first full set of IFRS financial statements. The Group has 
     applied IFRS 1 'Transition to IFRS' in preparing this consolidated interim
     report. The Group's transition date is 1st May 2006 and its IFRS adoption 
     date is 30th April 2007. In preparing this interim report in accordance 
     with IFRS 1, the Group has applied the mandatory exception from full 
     retrospective application of IFRS. These standards and interpretations are
     subject to ongoing review and endorsement by the EU or possible amendment 
     by interpretive guidance from the International Financial Reporting 
     Interpretations Committee ('IFRIC') and are therefore still subject to 
     change.

 2.  During the financial period ended 31st October 2007, the Company paid a
     final dividend for the year ended 30 April 2007 of 2.55p per ordinary share
     giving a total dividend of £378,212. The proposed interim dividend of 1.55p 
     (2006: 1.45p) per share is payable on 10th April 2008 to qualifying 
     shareholders on the register at the close of business on 14th March 2008.

 3.  Earnings per share have been calculated on the basis of earnings of
     £2,226,000 (2006 restated: £1,626,000) and on 14,816,510 (2006: 16,111,464)
     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
     £2,226,000 (2006 restated: £1,626,000) and on 15,408,152 (2006: 16,698,371)
     ordinary shares being the weighted average number of ordinary shares in the
     period adjusted to assume conversion of all dilutive potential ordinary
     shares 591,642 (2006: 586,907).

 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). A copy of the statutory accounts for the
     year ended 30th April, which were prepared under UK GAAP, has been 
     delivered to the Registrar of Companies. The auditor's report on those 
     accounts was unqualified and did not contain a statement under section 237 
     (2)-(3) of the Companies Act 1985 (as amended).

 6.  Copies of the interim report are being sent to shareholders and will be
     available from the Company's website on www.colefaxgroupplc.com. Copies
     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.




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