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International designer and distributor of luxury furnishing fabrics and wallpapers, Colefax Group, has reported that trading conditions have remained ‘challenging’ at its latest Annual General Meeting.

Taking place today, 15 September 2016, the company confirmed that all resolutions proposed at the AGM were ‘duly passed’, whilst also highlighting that sales for the four months to 31 August were down on a constant currency basis by 7%.

Colefax also outlined that ‘significant’ capital expenditure was planned for this year, with two new openings in the USA, as well as relocating its Decorating arm in London.

Commenting at the AGM, chief executive David Green said: “Since we announced our year end results in July, trading conditions have remained relatively challenging in all of our major markets. In our core Fabric Division, sales for the four months to 31 August are up by 4% in reported currency but down by 7% on a constant currency basis. Overall, this was broadly in line with expectations.

“We have a significant capital expenditure programme this year with new US showrooms opening in Boston and Atlanta. We are also moving our Decorating Division to new premises on Pimlico Road, London and are optimistic about the trading prospects in this new location.”

Earlier this year Colefax reported its preliminary results, showing sales at £76.88m, with a slight fall in pre-tax profit to £5.02m.

Despite flat sales, cash increased by £3.2 million to £10.1 million after dividend payments of £0.48 million and share buybacks of £0.32 million. Revenue from Kingcome Sofas, which accounts for 3% of group turnover, increased by 7% to £2.62 million.