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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Colefax Group Plc | LSE:CFX | London | Ordinary Share | GB0002090453 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 805.00 | 770.00 | 840.00 | 805.00 | 805.00 | 805.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Fabricated Textile Pds, Nec | 104.82M | 6.69M | 0.9239 | 8.71 | 58.26M |
From Apr 2019 to Apr 2024
TIDMCFX
RNS Number : 3325O
Colefax Group PLC
29 January 2019
AIM: CFX
29 January 2019
COLEFAX GROUP PLC
("Colefax" or the "Group")
Half Year Results
for the six months ended 31 October 2018
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.
Highlights
Hot Features
Premium
-- Group sales up 7.8% to GBP45.38m (2017: GBP42.08m);
up by 7.7% on a constant currency basis
-- Group pre-tax profit up 41% to GBP3.62m (2017: GBP2.56m)
- strong first half performance from Decorating Division
due to timing of contracts - profits of GBP738,000
(2017: GBP213,000)
- reduced hedging losses of GBP73,000 compared to GBP595,000
in prior year
-- Core Fabric Division sales up 1.0% to GBP36.89m (2017:
GBP36.47m)
- US up by 2%, UK flat, Europe down by 1%
-- Earnings per share increased by 55% to 27.9p (2017:
18.0p)
-- Net cash increased by GBP1.6m to GBP11.1m (2017: GBP9.5m)
-- Interim dividend up by 4% to 2.50p per share (2017:
2.40p)
David Green, Chairman, said:
"The Group has delivered a positive first half performance against a weakening trading environment in most of our major markets. In our core US market we continue to benefit from the strength of the US Dollar but the confidence that we saw at the start of the year has slowed recently and we are therefore more cautious about growth. In the UK trading remains challenging but could improve quickly if there is a satisfactory resolution to the current high level of Brexit uncertainty
"The Group has a strong balance sheet with net cash of GBP11.1 million and we are well-placed to take advantage of any improvements in market conditions. We will continue to invest with confidence in our portfolio of luxury brands and our worldwide distribution network."
Enquiries:
Colefax Group plc David Green, Chief Tel: 020 7318 6021
Executive
Rob Barker, Finance
Director
KTZ Communications Katie Tzouliadis, Dan Tel: 020 3178 6378
Mahoney
Peel Hunt LLP Adrian Trimmings, George Tel: 020 7418 8900
Sellar
CHAIRMAN'S STATEMENT
Financial Results
Group sales for the six months to 31 October 2018 increased by 7.8% to GBP45.38 million (2017: GBP42.08 million) and increased by 7.7% on a constant currency basis. Pre-tax profits increased by 41% to GBP3.62 million (2017: GBP2.56 million). Earnings per share increased by 55% to 27.9p (2017: 18.0p). The Group ended the first half of the year with net cash of GBP11.1 million (2017: GBP9.5 million).
The main reason for the increase in profits in the first six months was a strong first half performance from our Decorating Division which made profits of GBP738,000 compared to GBP213,000 last year. In addition US Dollar hedging losses reduced by GBP522,000 due to the absence of contracts put in place prior to the Brexit referendum. In our core US market Fabric Division sales increased by 2.1% on a constant currency basis. In the UK sales were flat and in Europe sales decreased by 0.8% on a constant currency basis reflecting challenging trading conditions in both these markets.
In line with our progressive dividend policy the Board has decided to increase the interim dividend by 4% to 2.50p per share (2017: 2.40p). The interim dividend will be paid on 10 April 2019 to shareholders on the register at the close of business on 15 March 2019.
Product Division
-- Fabric Division - Portfolio of five brands: "Colefax and Fowler", "Cowtan and Tout", "Jane Churchill", "Manuel Canovas" and "Larsen".
Sales in the Fabric Division, which represent 81% of the Group's sales, increased by 1.2% to GBP36.89 million (2017: GBP36.47 million) and by 1.1% on a constant currency basis. Excluding hedging losses of GBP73,000 (2017: GBP595,000) operating profits decreased by 2% to GBP2.86 million (2017: GBP2.92 million) reflecting relatively challenging market conditions especially in the UK and Europe.
Sales in the US, which represent 61% of the Fabric Division's turnover, increased by 2.4% in reported terms and by 2.1% on a constant currency basis. Trading became more difficult towards the end of the period with sales up by 4.4% in the first three months and down by 0.3% in the second three months despite relatively strong general economic conditions. We believe that confidence in our sector has recently been impacted by a number of factors including rising interest rates and stock market volatility.
We are about to start the refurbishment of our Los Angeles showroom and expect this project to be completed by July 2019. Currently we lease and operate eight company owned showrooms in the US covering our most important territories and these now account for over 75% of total US sales.
Sales in the UK, which represent 17% of the Fabric Division's turnover, were flat during the period. The high end housing market remains very weak and historically this has been an important driver of our business. We believe that market conditions in the UK will remain difficult until the uncertainty and potential adverse impact of Brexit is resolved. In August we completed the refurbishment of our showroom in the Chelsea Harbour Design Centre and we are pleased with the positive reaction from our customers.
Sales in Continental Europe, which represent 19% of the Fabric Division's turnover, decreased by 1.1% on a reported basis and by 0.8% on a constant currency basis. Trading in most of our major European markets has been weak despite significant monetary stimulus by the European Central Bank over the past four years which is now coming to an end. In France, which is our largest European market, sales were flat during the period but helped by a significant contract order. In Germany sales were down by 8%. In Italy sales were down by 15% reflecting very challenging economic conditions. We do not anticipate any short term improvement in trading conditions in most of our major European markets. Europe encompasses a wide range of tastes and we will continue focus our sales efforts on the markets best suited to our brands and with the most growth potential.
Sales in the Rest of the World, which represent approximately 3% of the Fabric Division's turnover, decreased by 2% on a constant currency basis. Our major markets comprise the Middle East, Russia, China and Australia. In Russia we have changed our method of distribution from a distributor to an agent and are optimistic about growth prospects in this market. Overall we expect the Rest of the World to remain a relatively small proportion of Fabric Division sales
-- Furniture - Kingcome Sofas
Sales for the six months to October 2018 increased by 14% to GBP1.36 million (2017: GBP1.19 million) and the Company made an operating profit of GBP102,000 compared to GBP22,000 in 2017. The increase in sales reflected a strong order book at the start of the year. The majority of sales are made in the UK, especially London and so this was a good performance in difficult market conditions. Currently the order book is in line with last year.
Interior Decorating Division
Decorating sales, which account for just over 16% of Group turnover, increased by 61% in the period to GBP7.1 million (2017: GBP4.4 million). This was a strong performance reflecting the completion of a number of major projects during the period. As a result the Decorating Division made a first half profit of GBP738,000 compared to a profit of GBP213,000 for the same period last year.
Decorating Division sales can vary significantly between periods according to the timing of contract completions. For the current financial year sales will be weighted to the first half of the year and we expect sales for the full year to be below the exceptional performance last year. Customer deposits remain at a healthy level and we remain optimistic about trading from our new Pimlico Road showroom which is performing well in its second full year of operation.
Prospects
The Group has delivered a positive first half performance against a weakening trading environment in most of our major markets. In our core US market we continue to benefit from the strength of the US Dollar but the confidence that we saw at the start of the year has slowed recently and we are therefore more cautious about growth prospects. In the UK trading remains challenging but could improve quickly if there is a satisfactory resolution to the current high level of Brexit uncertainty. In Europe we expect trading to remain difficult but there are opportunities for growth and we will focus our efforts on countries with the most potential.
The Group has a strong balance sheet with net cash of GBP11.1 million and we are well-placed to take advantage of any improvements in market conditions. We will continue to invest with confidence in our portfolio of luxury brands and our worldwide distribution network.
David Green
Chairman
COLEFAX GROUP PLC
INTERIM GROUP INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months Year to
to 31 to 31 30 April
Oct 2018 Oct 2017 2018
GBP'000 GBP'000 GBP'000
Revenue 45,384 42,083 86,052
Profit from operations 3,623 2,559 4,721
Finance income 3 - 1
Finance expense (1) (2) (3)
2 (2) (2)
Profit before taxation 3,625 2,557 4,719
Tax expense (906) (729) (887)
Profit for the period attributable to
equity holders of the parent 2,719 1,828 3,832
Basic earnings per share 27.9p 18.0p 38.1p
Diluted earnings per share 27.9p 18.0p 38.1p
COLEFAX GROUP PLC
INTERIM GROUP STATEMENT OF COMPREHENSIVE
INCOME
Unaudited Unaudited Audited
Six months Six months Year to
to 31 to 31 30 April
Oct 2018 Oct 2017 2018
GBP'000 GBP'000 GBP'000
Profit for the year 2,719 1,828 3,832
Other comprehensive income / (expense):
Items that will not be reclassified to
profit and loss:
Exchange differences on translation of
foreign operations 838 335 (743)
Remeasurement of defined benefit pension
scheme - - 31
Tax relating to items that will not be
reclassified to profit and loss (139) (411) 76
----------- ----------- ----------
699 (76) (636)
Items that will or may be reclassified
to profit and loss:
Cash flow hedges:
(Losses) / Gains recognised directly in
equity (145) 108 210
Transferred to profit and loss for the
year 73 595 959
Tax relating to items that will or may
be reclassified to profit and loss 14 (133) (222)
----------- ----------- ----------
(58) 570 947
Total other comprehensive income / (expense) 641 494 311
Total comprehensive income for the period
attributable to equity holders of the
parent 3,360 2,322 4,143
---------------------------------------------- ----------- ----------- ----------
COLEFAX GROUP PLC
INTERIM GROUP STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
At 31 Oct At 31 At 30 April
2018 Oct 2017 2018
GBP'000 GBP'000 GBP'000
Non-current assets:
Property, plant and equipment 8,980 9,771 8,692
Deferred tax asset 188 257 173
Pension asset 37 - 34
9,205 10,028 8,899
Current assets:
Inventories and work in progress 14,663 14,203 14,086
Trade and other receivables 11,692 12,056 11,130
Cash and cash equivalents 11,078 9,499 9,177
37,433 35,758 34,393
--------------------------------------- ---------- ---------- ------------
Current liabilities:
Trade and other payables 13,276 15,054 13,678
Current corporation tax 708 184 306
13,984 15,238 13,984
---------- ---------- ------------
Net current assets 23,449 20,520 20,409
---------- ---------- ------------
Total assets less current liabilities 32,654 30,548 29,308
--------------------------------------- ---------- ---------- ------------
Non-current liabilities:
Deferred rent 1,977 1,905 1,878
Pension liability - 3 -
Deferred tax liability 151 636 11
---------- ---------- ------------
Net assets 30,526 28,004 27,419
======================================= ========== ========== ============
Capital and reserves attributable to
equity holders of the Company:
Called up share capital 981 1,022 981
Share premium account 11,148 11,148 11,148
Capital redemption reserve 1,893 1,852 1,893
ESOP share reserve (113) (113) (113)
Foreign exchange reserve 2,857 2,703 2,158
Cash flow hedge reserve (90) (409) (32)
Retained earnings 13,850 11,801 11,384
Total equity 30,526 28,004 27,419
======================================= ========== ========== ============
COLEFAX GROUP PLC
INTERIM GROUP STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Six months Six months Year to
to 31 Oct to 31 Oct 30 April
2018 2017 2018
GBP'000 GBP'000 GBP'000
Operating activities
Profit before taxation 3,625 2,557 4,719
Finance income (3) - (1)
Finance expense 1 2 3
(Profit) / loss on disposal of property,
plant and equipment (7) - 235
Depreciation 1,406 1,382 2,735
----------- ----------- ----------
Cash flows from operations before changes
in working capital 5,022 3,941 7,691
Increase in inventories and work in
progress (387) (330) (301)
(Increase) / decrease in trade and other
receivables (280) (322) 463
(Decrease) / increase in trade and other
payables (765) 1,880 1,056
Cash generated from operations 3,590 5,169 8,909
----------- ----------- ----------
Taxation paid
UK corporation tax paid (20) (14) (350)
Overseas tax paid (503) (358) (679)
-----------
(523) (372) (1,029)
----------- ----------- ----------
Net cash inflow from operating activities 3,067 4,797 7,880
----------- ----------- ----------
Investing activities
Payments to acquire property, plant
and equipment (1,271) (1,614) (2,382)
Receipts from sales of property, plant
and equipment 7 - 49
Interest received 3 - -
Net cash outflow from investing (1,261) (1,614) (2,333)
----------- ----------- ----------
Financing activities
Purchase of own shares - - (2,172)
Interest paid (1) (2) (3)
Equity dividends paid (253) (254) (488)
Net cash outflow from financing (254) (256) (2,663)
----------- ----------- ----------
Net increase in cash and cash equivalents 1,552 2,927 2,884 Cash and cash equivalents at beginning of period 9,177 6,710 6,710 Exchange gains / (losses) on cash and cash equivalents 349 (138) (417) Cash and cash equivalents at end of period 11,078 9,499 9,177 ------------------------------------------- ----------- ----------- ----------
COLEFAX GROUP PLC
NOTES
1. The Group prepares its annual financial statements in accordance
with International Financial Reporting Standards (IFRS). These
interim results have been prepared in accordance with the accounting
policies expected to be applied in the next annual financial
statements for the year ending 30 April 2019.
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 31 October 2018, the Company
paid a final dividend for the year ended 30 April 2018 of 2.60p
per ordinary share amounting to GBP253,000.
The proposed interim dividend of 2.50p (2017: 2.40p) per share
is payable on 10 April 2019 to qualifying shareholders on the
register at the close of business on 15 March 2019.
3. Basic earnings per share have been calculated on the basis of
earnings of GBP2,719,000 (2017: GBP1,828,000) and on 9,747,000
(2017: 10,160,000) 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 GBP2,719,000 (2017: GBP1,828,000) and on 9,747,000
(2017: 10,160,000) ordinary shares being the weighted average
number of ordinary shares in the period adjusted to assume conversion
of all dilutive potential ordinary shares of nil (2016: nil).
5. The financial information for the year ended 30 April 2018 does
not constitute the full statutory accounts for that period. The
Annual Report and Financial Statements for the year ended 30
April 2018 have been filed with the Registrar of Companies. The
Independent Auditors' Report on the Annual Report and Financial
Statements for the year ended 30 April 2018 was unqualified,
did not draw attention to any matters by way of emphasis, and
did not contain a statement under 498(2) or 498(3) of the Companies
Act 2006.
6. Copies of the interim report are being sent to shareholders and
will be available from the Group'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 19-23 Grosvenor
Hill, London W1K 3QD.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LLFSTLEITFIA
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January 29, 2019 02:00 ET (07:00 GMT)
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