Preliminary Results

Colefax Group PLC
23 July 2007

CFX.L

                               COLEFAX GROUP PLC

                           ('Colefax' or 'the Group')

              Preliminary Results for the year ended 30 April 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, which serve different segments of the soft furnishings
marketplace; these are Colefax and Fowler, Cowtan & Tout, Jane Churchill, Manuel
Canovas and Larsen.

                                   Highlights

   • Record sales and pre-tax profits due to favourable conditions in all
    main geographical markets

   • Pre-tax profit increased by 45% to £5.93m (2006 - £4.09m)

   • Sales up 4% to £71.01m (2006 - £68.36m) and up by 8% on a like for like
    basis

   • Earnings per share rose by 45% to 25.3p (2006 - 17.4p)

   • Strong cash generation of £4.36m before dividends and share buybacks

   • Borrowings eliminated - net funds at year end of £363,000

   • Proposed final dividend of 2.55p (2006 - 2.37p), giving total dividend
    of 4.00p (2006 - 3.75p), an increase of 7% on last year

   • Market conditions remain healthy but weak US dollar will impact earnings
    in current year

David Green, Chairman of Colefax, commented,

'The Group has achieved very good growth in most major markets this year
reflecting the buoyant trading conditions which have continued into the current
year'


Enquiries:

Colefax Group plc   David B. Green, Chairman          Tel: [phone] (today)
                    Robert M. Barker, Finance Director

Biddicks            Katie Tzouliadis                  Tel: [phone]


COLEFAX GROUP PLC
CHAIRMAN'S STATEMENT

Financial Results

The Group's pre-tax profit for the year to 30th April 2007 increased by 45% to
£5.93 million (2006 - £4.09 million) on sales up 4% at £71.01 million (2006 -
£68.36 million). Earnings per share increased by 45% to 25.3p (2006 - 17.4p).
Net funds at the year-end were £363,000 (2006 - net debt of £300,000).

The increase in profitability resulted in strong cash generation during the year
of £4.36 million before dividends and share buybacks. During the year the Group
bought for cancellation 1.51 million shares at a total cost of £3.09 million,
representing 9% of the issued share capital at the start of the year.

The Board has decided to recommend that the final dividend is increased by 8% to
2.55p (2006 - 2.37p), making a total for the year of 4.00p (2006 - 3.75p), an
increase of 7%. The final dividend will be paid on 11th October 2007 to
shareholders on the register at the close of business on 14th September 2007.

The principal reason for the improvement in profitability was favourable trading
conditions in all the Group's main geographical markets. This reflects growing
demand for luxury household goods. On a constant currency basis Group sales
increased by 8% (2006 - 3%). The increased profitability has been achieved in
spite of a significant deterioration in the US dollar exchange rate which
adversely impacts margins in the US, our major market which accounts for 43% of
total Group sales (2006 - 46%).

Product Division

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

Sales in the Fabric Division, which represent 82% of Group sales, increased by
4% to £58.29 million (2006 - £56.01 million) and by 9% on a constant currency
basis.

Sales in the US, which represent 52% (2006 - 57%) of the Fabric Division's
sales, increased by 5% on a constant currency basis (2006 - 6%). The continued
growth in the US reflects the strength of the high end housing market which does
not seem to have been affected by the housing slowdown in the wider economy.

UK sales, which represent 21% (2006 - 18%) of the Fabric Division's turnover,
increased by an exceptional 16% (2006 - 4%). The key factor driving sales growth
has been the strength of the high end housing market.

Sales in Continental Europe, which represent 24% (2006 - 23%) of the Fabric
Division's turnover, increased by 11% (2006 - 2%) on a constant currency basis.
In France, our largest European market, sales increased by just 4% on a constant
currency basis and this has reduced the overall rate of increase in Europe. Most
European countries are performing well reflecting the continued growth of the
European economy.

Sales in the rest of the world, which represents 3% (2006 - 2%) of the Fabric
Division's sales, increased by 32% although it is still small proportion of
overall sales. The majority of our sales growth came from Australia, Russia and
the Middle East and we consider that there are good opportunities for further
growth in these markets.

• Furniture - Kingcome Sofas

Sales of Kingcome furniture, which account for 4% (2006 - 3%) of Group sales,
increased by 26% to £2.65 million (2006 - £2.09 million) and this growth has
resulted in significantly improved profitability. The majority of furniture
sales are in the UK and the exceptional sales growth reflects the very strong
high end housing market, particularly in London. The current year has started
well with a healthy level of deposits.

• Accessories - Manuel Canovas

Manuel Canovas is based in Paris and sales comprise beachwear and scented
candles which account for 4% (2006 - 4%) of Group revenue. During the year,
sales increased by 1% (2006 - 2%) to £2.82 million (2006 - £2.80 million).
Approximately 35% of sales are invoiced in US dollars and the weakness of the US
dollar has adversely impacted reported sales and margins although the division
achieved a small profit for the year.

Decorating Division

Interior decorating and antique sales which together account for 10% of Group
sales (2006 - 11%), decreased by 2% to £7.26 million (2006 - £7.40 million)
during the year. Antiques sales increased by 9% which is encouraging after
several years of difficult trading. Decorating sales decreased by 4% but this
reflects the timing of the completion of contracts rather than market
conditions. The decorating order book is extremely healthy with deposits up by
46% over last year.

Prospects

The Group has achieved very good growth in most major markets this year
reflecting the buoyant trading conditions which have continued into the current
year. We believe that the trend of rising interest rates in the UK and Europe
will have some impact on the high end housing market and this is likely to
impact our overall growth rates. In addition the extreme weakness of the US
dollar will have a significant adverse impact on our margins in the US if it
remains at this level for the remainder of the year. We will continue to invest
in our strong portfolio of brands which will benefit the Group and its
shareholders in the future.



David B. Green
Chairman
23rd July 2007



COLEFAX GROUP PLC
GROUP PROFIT AND LOSS ACCOUNT
For the year ended 30th April 2007


                                               Notes        2007          2006
                                                           £'000         £'000
Turnover                                                   71,013       68,361
Cost of sales                                              31,602       30,575
                                                       -----------------------
Gross profit                                               39,411       37,786
Operating expenses                                         33,465       33,367
                                                       -----------------------
Operating profit                                   3        5,946        4,419
Profit/loss on disposal of fixed assets                        16         (177)
                                                       -----------------------
Profit on ordinary activities before interest             
and taxation                                                5,962        4,242
Interest                                                      (36)        (148)
                                                       -----------------------
Profit on ordinary activities before taxation               5,926        4,094
                                                       -----------------------
Tax on profit on ordinary activities 
-      UK                                                  (1,250)        (933)
-      Overseas                                              (705)        (337)
                                                        -----------------------
                                                           (1,955)      (1,270)
                                                        -----------------------
Profit for the financial year                                3,971       2,824
                                                        -----------------------
Basic earnings per share                           2         25.3p       17.4p
Diluted earnings per share                         2         24.3p       16.8p
                                                        -----------------------

All activity has arisen from continuing operations.


COLEFAX GROUP PLC
GROUP BALANCE SHEET
At 30th April 2007

                                                          2007         2006
                                                         £'000        £'000
Fixed assets:
Tangible assets                                          5,135        5,403
                                                     ----------------------
Current assets:
Stocks and contracts in progress                        12,045       10,942
Debtors                                                 11,384       11,498
Cash at bank and in hand                                 4,113        2,347
                                                     ----------------------
                                                        27,542       24,787
                                                     ----------------------

Creditors: amounts falling due within one             
year                                                    16,831       14,493
                                                     ----------------------
Net current assets                                      10,711       10,294
                                                     ----------------------
Total assets less current liabilities                   15,846       15,697
Provision for liabilities:
Deferred taxation                                           35           57
                                                     ----------------------
Net assets excluding pension liability                  15,811       15,640
Pension liability                                          120          134
                                                     ----------------------
Net assets including pension liability                  15,691       15,506
                                                     ----------------------
Capital and reserves:
Called up share capital                                  1,565        1,709
Share premium account                                   11,141       11,087
Capital redemption reserve                               1,308        1,157
ESOP share reserve                                        (157)        (287)
ESOP capital reserve                                       508          228
Profit and loss account                                  1,326        1,612
                                                     ----------------------
Shareholders' funds                                     15,691       15,506
                                                     ----------------------


The financial statements were approved by the board of directors and authorised
for issue on 23rd July 2007.

D. B. Green Director
R. M. Barker Director


COLEFAX GROUP PLC
GROUP CASHFLOW STATEMENT
For the year ended 30th April 2007

                                            Notes         2007         2006
                                                         £'000        £'000
Net cash inflow from operating activities       3        8,034        7,556
Returns on investments and servicing of
finance:
Interest received                                          129           80
Interest paid                                             (150)        (247)
                                                     ----------------------
                                                           (21)        (167)
                                                     ----------------------
Taxation:
UK Corporation tax paid                                 (1,432)        (988)
Overseas tax paid                                         (393)        (411)
                                                     ----------------------
                                                        (1,825)      (1,399)
                                                     ----------------------
Capital expenditure and financial
investment:
Payments to acquire tangible fixed assets               (1,648)      (1,781)
Receipts from sales of tangible fixed assets                45           64
                                                     ----------------------
                                                        (1,603)      (1,717)
Equity dividends paid                                     (600)        (574)
                                                     ----------------------
Cash inflow before financing                             3,985        3,699
                                                     ----------------------
Financing:
Purchase of own shares                                  (3,093)           -
Repayment of long-term loans                              (500)        (500)
                                                     ----------------------
Net cash outflow from financing                         (3,593)        (500)
                                                     ----------------------
Increase in cash in the period                  4          392        3,199
                                                     ----------------------


GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 30th April 2007
                                                          2007         2006
                                                         £'000        £'000
Profit for the financial year                            3,971        2,824
Currency translation differences on foreign            
currency net investments                                  (133)         127
Currency translation differences on foreign             
currency loans                                            (753)         453
Deferred tax on long-term loan foreign                
currency movements                                         322         (189)
                                                      ---------------------
Total recognised gains and losses relating to          
the year                                                 3,407        3,215
                                                      ---------------------


COLEFAX GROUP PLC
NOTES TO THE ACCOUNTS
At 30th April 2007

1. Adoption of New Accounting Requirements

In preparing these financial statements the Group has adopted for the first time
UITF 44 'Group and Treasury Share Transactions'. UITF 44 requires the fair value
of the award of share options to subsidiary employees to be treated as a capital
contribution.

The change in accounting policy has resulted in an increase of £439,000 in the
cost of investments in subsidiaries at 30th April 2006 and a decrease in amounts
due from subsidiary undertakings in the parent company's books. There is no
impact on profit for the year or net assets at 30th April 2006.

2. Earnings Per Share

Basic earnings per share have been calculated on the basis of profit on ordinary
activities after tax of £3,971,000 (2006 - £2,824,000) and on 15,719,278 (2006 -
16,227,578) ordinary shares, being the weighted average number of ordinary
shares in issue during the year. Shares owned by the Colefax Group Plc
Employees' Share Ownership Plan (ESOP) Trust are excluded from the basic
earnings per share calculation.

Diluted earnings per share have been calculated on the basis of profit on
ordinary activities after tax of £3,971,000 (2006 - £2,824,000) and on
16,339,872 (2006 - 16,728,940) being the weighted average number of shares in
issue during the year, calculated as follows:

                                                          2007         2006
Basic weighted average number of shares              15,719,278  16,227,578
Dilutive potential ordinary shares, including
shares under option owned by the Colefax Group Plc
ESOP Trust                                              620,594     501,362
                                                   ------------------------
                                                    16,339,872   16,728,940
                                                   ------------------------

3. Reconciliation of operating profit to net cash inflow from operating
activities

                                                      2007            2006
                                                     £'000           £'000
Operating profit                                     5,946           4,419
Depreciation charges                                 1,629           2,116
(Increase)/decrease in stocks                       (1,355)          1,442
Decrease/(increase) in debtors                         394          (1,615)
Increase in creditors                                1,420           1,194
                                               ---------------------------
Net cash inflow from operating activities            8,034           7,556
                                               ---------------------------

4. Cash and Financing

Reconciliation of Net Cash Flow to Movement in Net Funds/(Debt)

                                                     2007             2006
                                                   £'000             £'000
Increase in cash                                     392             3,199
Repayment of bank loan                               500               500
                                                 -------------------------
Movement in net debt resulting from cash           
flows                                                892             3,699
Translation differences                             (229)               52
                                                 -------------------------
Movement in net debt in the period                   663             3,751
Net debt at 1st May                                 (300)           (4,051)
                                                 -------------------------
Net funds/(debt) at 30th April                       363              (300)
                                                 -------------------------

                                     At                                  At
                                1st May                Exchange  30th April
                                   2006  Cash flow  differences        2007
                                  £'000      £'000        £'000       £'000
Analysis of Net Funds/(Debt)
Cash at bank and in hand          2,347      1,995         (229)      4,113
Overdrafts                       (2,147)    (1,603)           -      (3,750)
                              ---------------------------------------------
                                    200        392         (229)        363
Debt due within one year           (500)       500            -           -
                              ---------------------------------------------
Net funds/(debt)                   (300)       892         (229)        363
                              ---------------------------------------------

5. The above financial information, which has been prepared on the same basis as
set out in the 2006 annual accounts, except for the adoption of the accounting
standard described in note 1, does not constitute statutory accounts as defined
in Section 240 of the Companies Act 1985. The financial information for the year
ended 30th April 2007 has been extracted from the statutory accounts on which an
unqualified audit opinion has been issued.

Statutory accounts for the year ended 30th April 2007 will be delivered to the
Registrar in due course. The comparative financial information is based on the
statutory accounts for the financial year ended 30th April 2006. Those accounts,
upon which the auditors issued an unqualified opinion, have been delivered to
the Registrar of Companies.

The annual accounts for the year ended 30th April 2007 are expected to be posted
to shareholders shortly and will be available from the Company's website on
www.colefaxgroupplc.com.

6. Annual General Meeting

The Annual General Meeting of Colefax Group plc will be held at 19-23 Grosvenor
Hill, London W1K 3QD on 18th September 2007 at 11.00 a.m.



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