17th Jul 2014 12:28
LONDON (Alliance News) - Wallpaper business Colefax Group PLC Thursday reported an increase in profit for the full-year, following a strong performance from its decorating division.
The company, which operates under five brand names serving different segments of the soft furnishings market, posted pretax profit of GBP4.9 million for the year to April 30, up from GBP3.5 million a year earlier, as revenue rose to GBP78.0 million from GBP70.6 million.
Colefax's five brand names are Colefax and Fowler, Cowtan and Tout, Jane Churchill, Manuel Canovas and Larsen.
The company attributed the increase in pretax profit to a strong performance from its decorating division, which made an operating profit of GBP985,000 compared with GBP54,000 a year earlier. This improvement was partly due to the completion of projects delayed from the prior year, the company said.
Additionally, in the group's fabric division, sales increased 6% on a constant currency basis, reflecting the ongoing recovery in the US market and improvement in UK trading in the second-half of the year.
In contrast, Colefax said trading in Europe remained "challenging" in most of its major markets.
Looking ahead, the company said although it remains optimistic about growth prospects, the high proportion of its sales in the US market and invoiced in US dollar means that the strength of sterling will have an adverse impact on profitability. In addition, the Decorating Division is expected to return to a more normal level of activity following an exceptional performance during the year.
Nonetheless, Chairman David Green said "We remain optimistic about the long term future and will continue to invest in new product and strengthening our distribution network."
Colefax shares were quoted down 6.0% at 350.00 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Colefax Grp.