Furnishing fabrics, wallpapers and furniture supplier Colefax Group PLC has reported a growth in half year sales and profit.
According to its latest trading update for the six months ended 31 October 2025, total group sales rose 11.7% to £58.96m from £52.79m in 2024.
Fabric Division sales rose 11.4% to £51.97m from £46.67m, with the US up by 12.9% excluding tariff surcharges. UK sales rose by 10.5% and Europe were up by 2.9%.
Within its Decorating Division, sales increased to £5.42m from £4.65m, with project completions weighted to the first half of the financial year.
Pre-tax profit for the period increased 21.3% to £5.29m from £4.36m.
Commenting on the UK performance, the group said: “Sales in the UK, which represent 16% of the Fabric Division’s turnover, increased by 10.5% during the period compared to a decrease of 8.3% in the first half of the prior year.
“The increase largely reflects weak trading in the prior year caused by uncertainty around the General Election and the first post-election Budget. Market conditions remain relatively challenging in the UK due to subdued high-end housing market conditions.
“High rates of stamp duty are a particular drag on housing market activity and all the economic benefits that would flow from higher transaction levels. However, lower inflation and lower interest rates should help market conditions going forward.”
As for Kingcome Sofas, sales during the period increased by 6% to £1.57m (2024: £1.48m) and the Company made an operating profit of £176,000 (2024: £216,000). Furniture is the Group’s only manufacturing activity.
The reduction in profit was due to increased operating expenses but is considered a “good performance in challenging UK market conditions” for high-end furniture. Sales reflect orders delivered during the period and the actual order intake was down by 3% compared to an increase of 19% in the prior year.
“Overall, the forward order book remains healthy and the business should benefit from post Budget certainty and any further reductions in interest rates,” the group added.
David Green, Chairman, said: “The Group has delivered another good performance in the first six months primarily due to a strong Fabric Division performance in the US and despite the additional cost and ongoing uncertainty caused by very significant increases in US import tariffs. We believe that US trading is benefitting from the very strong US stock market.
“Sales in November, December and January have continued to perform well and unless there is a significant stock market correction, we expect this trend to continue through to the end of the financial year. As a result, the Group’s profits for the year ended 30 April 2026 are expected to be ahead of current market forecasts.
“This is despite a weaker US dollar exchange rate and an expected breakeven performance from our Decorating Division. Next year, Fabric Division sales growth will be more challenging due to strong prior year comparatives and the Group’s performance will partly depend on the stability of market conditions.
“The Group has a strong balance sheet with cash of £22.2 million. We will continue to focus on investing in our US distribution network and our portfolio of Fabric Division brands to take advantage of growth opportunities in our major markets.”
