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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% | 810.00 | 780.00 | 840.00 | 810.00 | 810.00 | 810.00 | 252 | 08:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Fabricated Textile Pds, Nec | 104.82M | 6.69M | 0.9239 | 8.77 | 58.62M |
TIDMCFX
RNS Number : 1254D
Colefax Group PLC
29 January 2018
AIM: CFX
29 January 2018
COLEFAX GROUP PLC
("Colefax" or the "Group")
Half Year Results
for the six months ended 31 October 2017
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
-- Group sales up 6.5% to GBP42.08m (2016: GBP39.53m); up by 5.1% on a constant currency basis -- Group pre-tax profit up 35% to GBP2.56m (2016: GBP1.90m) -- improving conditions in core US market -- better performance from Decorating Division -- Earnings per share increased by 44% to 18.0p (2015: 12.5p) -- Net cash increased to GBP9.5m (2016: GBP8.0m) -- Interim dividend up by 4% to 2.40p per share (2016: 2.30p) -- Core Fabric Division sales up 4.6% to GBP36.47m -- up by 3.1% on constant currency basis, reflecting improved trading in the US -- Decorating Division performing well in new premises with first half profits up by GBP297,000 and a strong order book for the second half of the year
David Green, Chairman, said:
"The Group has made good progress over the last six months helped by improving trading conditions in our core US market and an encouraging performance by our Decorating Division. With a strong order book for the second half, we now expect the Decorating Division to exceed our original expectations for the full year.
"The Group has a strong balance sheet with cash of GBP9.5 million and we will continue to invest with confidence in our portfolio of brands and worldwide distribution network."
Enquiries:
Colefax Group plc David Green, Chief Tel: 020 7318 6021 Executive Rob Barker, Finance Director KTZ Communications Katie Tzouliadis, Emma Tel: 020 3178 6378 Pearson, Irene Bermont-Penn Peel Hunt LLP Adrian Trimmings, George Tel: 020 7418 8900 Sellar
The information contained in this announcement is inside information for the purposes of article 7 of Regulation 596/2014.
CHAIRMAN'S STATEMENT
Financial Results
Group sales for the six months to 31 October 2017 increased by 6.5% to GBP42.08 million (2016: GBP39.53 million) and increased by 5.1% on a constant currency basis. Pre-tax profits increased by 35% to GBP2.56 million (2016: GBP1.90 million). Earnings per share increased to 18.0p (2016: 12.5p). The Group ended the first half of the year with net cash of GBP9.5 million (2016: GBP8.0 million).
The main reason for the increase in profits in the first six months was an improvement in trading conditions in our core US market where Fabric Division sales increased by 4.5.% on a constant currency basis. In contrast trading conditions in the UK and Europe remained challenging. Sales in the UK were flat during the period and sales in Europe increased by 6.5% but by 1.5% on a constant currency basis. The increase in profit was also due to an improved contribution from the Decorating Division which made a first half profit of GBP213,000 compared to a loss of GBP84,000 last year.
Hedging losses arising from US Dollar cover put in place prior to the Brexit vote were GBP595,000 (2016 GBP755,000) and, excluding these, the Group's pre-tax profit increased by 18.5% to GBP3.15 million (2016: GBP2.66 million).
In line with our progressive dividend policy the Board has decided to increase the interim dividend by 4% to 2.40p per share (2016: 2.30p). The interim dividend will be paid on 9 April 2018 to shareholders on the register at the close of business on 2 March 2018.
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 87% of the Group's sales, increased by 4.6% to GBP36.47 million (2016: GBP34.87 million) and by 3.1% on a constant currency basis. Excluding hedging losses of GBP595,000 (2016: GBP755,000) operating profits increased by 7% to GBP2.92 million (2016: GBP2.73 million) reflecting improved trading conditions in our core US market.
Sales in the US, which represent 60% of the Fabric Division's turnover, increased by 5.4% in reported terms and by 4.5% on a constant currency basis. The improvement was broadly based with sales in most territories ahead of last year, reflecting favourable market conditions. In recent years we have invested heavily in our US distribution network and our own showrooms now account for over 75% of US sales.
Sales in the UK, which represent just under 18% of the Fabric Division's turnover, were flat during the period reflecting challenging market conditions. We attribute this to the very weak high end housing market which continues to be adversely affected by high rates of stamp duty as well as economic uncertainty over the outcome of Brexit negotiations. Our business tends to lag changes in the high end housing market and as a result we believe market conditions could become more difficult over the next twelve months.
Sales in Continental Europe, which represent 20% of the Fabric Division's turnover, increased by 6.5% on a reported basis but were up by 1.5% on a constant currency basis. There is more optimism in Europe than we have seen for some years although the performance by country remains mixed. Sales in France, which is our largest market, were down by 9% in the period but this was mainly due to a significant contract order in the prior year. In Germany, sales increased by 1% on a constant currency basis and, in Italy, sales increased by 3%. Together these three markets account for 56% of our sales in Europe.
Sales in the rest of the world, which represent less than 3% of the Fabric Division's turnover, increased by 7% on a constant currency basis. The focus of our sales efforts in the rest of the world remain on our major territories, namely the Middle East, China and Russia. .
-- Furniture - Kingcome Sofas
Sales for the six months to October 2017 increased by 4% to GBP1.19 million (2016: GBP1.15 million) and the Company made a small operating profit of GBP22,000 compared to GBP9,000 in 2016. At the half year end the order book was up by 18% compared to last year and ahead of our expectations based on market conditions. The majority of furniture sales are in the UK, centred on London and we expect future trading to be challenging due to the slowdown in the high end housing market.
Interior Decorating Division
Decorating sales, which account for just over 10% of Group turnover, increased by 26% in the period to GBP4.4 million (2016: GBP3.5 million) and the Division made a first half profit of GBP213,000 compared to a loss of GBP84,000 for the same period last year.
In December 2016 the Decorating business moved to new office and showroom premises at 89-91 Pimlico Road in Belgravia. The new location is well suited to the needs of the business and trading has been encouraging since the move. Sales and profits in the Decorating Division can vary significantly from year to year depending on the timing of contract completions. We have a number of major projects scheduled for completion in the second half of the year and therefore anticipate a stronger than expected overall performance for the year. Although the high end market in London has been challenging the weakness of Sterling is favourable for the business and we have seen an increase in the proportion of overseas contracts.
Prospects
The Group has made good progress over the last six months helped by improving trading conditions in our core US market. Trading conditions in the UK look challenging due to a weak high end housing market caused by high rates of stamp duty and continuing uncertainty over Brexit. However, our exposure to the UK is limited by the fact that over 82% of Fabric Division sales are made overseas. There is also increased optimism in Europe but this follows two years of sales decline and it is too early to assess the extent of any recovery.
Our Decorating Division delivered an encouraging first half contribution and we expect it to exceed our original expectations for the full year.
The Group has a strong balance sheet with net cash of GBP9.5 million and we will continue to invest with confidence in our portfolio of brands and 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 2017 Oct 2016 2017 GBP'000 GBP'000 GBP'000 Revenue 42,083 39,529 80,475 Profit from operations 2,559 1,903 2,937 Finance income - - 1 Finance expense (2) - (1) (2) - - Profit before taxation 2,557 1,903 2,937 Tax expense (729) (628) (1,042) Profit for the period attributable to equity holders of the parent 1,828 1,275 1,895 Basic earnings per share 18.0p 12.5p 18.6p Diluted earnings per share 18.0p 12.5p 18.6p
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 2017 Oct 2016 2017 GBP'000 GBP'000 GBP'000 Profit for the year 1,828 1,275 1,895 Other comprehensive income / (expense): Items that will not be reclassified to profit and loss: Exchange differences on translation of foreign operations 335 2,543 1,628 Remeasurement of defined benefit pension scheme - - 101 Tax relating to items that will not be reclassified to profit and loss (411) (617) (449) ----------- ----------- ---------- (76) 1,926 1,280 Items that will or may be reclassified to profit and loss: Cash flow hedges: Gains / (losses) recognised directly in equity 108 (3,309) (2,611) Transferred to profit and loss for the year 595 755 2,006 Tax relating to items that will or may be reclassified to profit and loss (133) 511 109 ----------- ----------- ---------- 570 (2,043) (496) Total other comprehensive income / (expense) 494 (117) 784 Total comprehensive income for the period attributable to equity holders of the parent 2,322 1,158 2,679 ---------------------------------------------- ----------- ----------- ----------
COLEFAX GROUP PLC
INTERIM GROUP STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited At 31 Oct At 31 At 30 April 2017 Oct 2016 2017 GBP'000 GBP'000 GBP'000 Non-current assets: Property, plant and equipment 9,771 9,135 9,669 Deferred tax asset 257 839 386 10,028 9,974 10,055 Current assets: Inventories and work in progress 14,203 13,825 13,938 Trade and other receivables 12,056 12,604 11,805 Current corporation tax - - 170 Cash and cash equivalents 9,499 8,024 6,710 35,758 34,453 32,623 --------------------------------------- ---------- ---------- ------------ Current liabilities: Trade and other payables 15,054 16,617 13,961 Current corporation tax 184 27 - 15,238 16,644 13,961 ---------- ---------- ------------ Net current assets 20,520 17,809 18,662 ---------- ---------- ------------ Total assets less current liabilities 30,548 27,783 28,717 --------------------------------------- ---------- ---------- ------------ Non-current liabilities: Deferred rent 1,905 2,003 1,992 Pension liability 3 177 55 Deferred tax liability 636 954 734 ---------- ---------- ------------ Net assets 28,004 24,649 25,936 ======================================= ========== ========== ============ Capital and reserves attributable to equity holders of the Company: Called up share capital 1,022 1,022 1,022 Share premium account 11,148 11,148 11,148 Capital redemption reserve 1,852 1,852 1,852 ESOP share reserve (113) (113) (113) Foreign exchange reserve 2,703 3,485 2,779 Cash flow hedge reserve (409) (2,526) (979) Retained earnings 11,801 9,781 10,227 Total equity 28,004 24,649 25,936 ======================================= ========== ========== ============
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 2017 2016 2017 GBP'000 GBP'000 GBP'000 Operating activities Profit before taxation 2,557 1,903 2,937 Finance income - - (1) Finance expense 2 - 1 Depreciation 1,382 1,279 2,720 ----------- ----------- ---------- Cash flows from operations before changes in working capital 3,941 3,182 5,657 Increase in inventories and work in progress (330) (862) (1,140) Increase in trade and other receivables (322) (2,672) (2,172) Increase in trade and other payables 1,880 2,547 1,835 Cash generated from operations 5,169 2,195 4,180 ----------- ----------- ---------- Taxation paid UK corporation tax paid (14) (132) (224) Overseas tax paid (358) (623) (1,141) ----------- (372) (755) (1,365) ----------- ----------- ---------- Net cash inflow from operating activities 4,797 1,440 2,815 ----------- ----------- ---------- Investing activities Payments to acquire property, plant and equipment (1,614) (1,705) (4,126) Receipts from sales of property, plant and equipment - 27 40 Interest received - - 1 Net cash outflow from investing (1,614) (1,678) (4,085) ----------- ----------- ---------- Financing activities Purchase of own shares - (2,583) (2,583) Interest paid (2) - (1) Equity dividends paid (254) (244) (478) Net cash outflow from financing (256) (2,827) (3,062) ----------- ----------- ---------- Net increase / (decrease) in cash and cash equivalents 2,927 (3,065) (4,332) Cash and cash equivalents at beginning of period 6,710 10,085 10,085 Exchange (losses) / gains on cash and cash equivalents (138) 1,004 957 Cash and cash equivalents at end of period 9,499 8,024 6,710 ------------------------------------------- ----------- ----------- ----------
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 2018. 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 2017, the Company paid a final dividend for the year ended 30 April 2017 of 2.50p per ordinary share amounting to GBP254,000. The proposed interim dividend of 2.40p (2016: 2.30p) per share is payable on 9 April 2018 to qualifying shareholders on the register at the close of business on 2 March 2018. 3. Basic earnings per share have been calculated on the basis of earnings of GBP1,828,000 (2016: GBP1,275,000) and on 10,160,000
(2016: 10,207,315) 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 GBP1,828,000 (2016: GBP1,275,000) and on 10,160,000 (2016: 10,207,315) 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 2017 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 30 April 2017 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 2017 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 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 19-23 Grosvenor Hill, London W1K 3QD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFEELAITFIT
(END) Dow Jones Newswires
January 29, 2018 02:00 ET (07:00 GMT)
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